Nate Niehuus

I just analyzed 9,500+ STR listings in Nashville, TN 🏠 Individual asset returns have grown 1.6% in 2024 with a 7% increase in listings. HOWEVER >>> Asset performance declined 3.5% in 2023! And it is not obvious that this market will continue to show increases in average asset performance. To stand out, you should consider adding some amenities: - Pool (+$1064 per month) - Ev Charger (+$905 per month) - Pool table (+$343 per month) Read my full analysis 👇 https://lnkd.in/gHcN57Pa #STR #Investing #DataInsights

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"Productivity" is overhyped. Do this instead: 1) Value your time 2) Pick something you love 3) Get started working on it 4) Learn more as you go 5) Do not quit 6) What would you add to this list? Read: Science-based approaches to productivity: https://lnkd.in/eYfPmcaU -- Enjoy this? Follow me Trey Wheeler for more, and join my free weekly newsletter to Crush Your Real Estate Career (link in bio)

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Empress Homes: You're not comparing apples to apples." 🍎 Prospective Client: What do you mean? EH: Well, look at the bid proposals. What do you notice? PC: Builder A has a Contingency $ in place but no builder fee. PC: Builder B has a Builder Fee in place but no contingency plan. Oh.... I see now. I'm not comparing apples to apples. Why is there so much variance? EH: Well - why is there a variance at a restaurant? Do you expect a superior experience predicated on the price you pay? Do you expect La Caille restaurant to be a different experience than Little Ceasar's? P.C: I get it. Who can I trust? Who can I depend on? Who do I want to work with? EH: Now you're getting somewhere! P.C. - We didn't talk about price. Builder A is charging 18%, Builder B is charging 15% - why is Builder A showing a bid sheet that is less than Builder B? EH: Great question! Be thoughtful in your analysis. Don't succumb to high pressure sales tactics either. This is your home... and this experience is going to last 18-24 months. You're really becoming business partners with your builder. PC: How much do YOU charge? ....... Aah yes. That IS the question. 💯 If you have engineered plans and you have a home design ready to roll, we would be happy to bid out your project. Let's go build you something special!

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$85-$95 per SF all in excluding the cost of the land. This is an average for a site without special site work. It is for a decent size project around 80,000 SF. If you are building a 40,000 SF facility the cost may be in the $110 to 120/SF range. #storageauthority #selfstoragefranchise #selfstorage #selfstorageprofits #entreprenuer #startups #realestatedevelopment #franchise #storage #residualincome #franchise

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Here's are the key takeaways from the big apartment data providers' Q3 data releases, boiled down for easy reading: 1) DEMAND FOR APARTMENTS IS HUGE, and occupancy rates are higher than expected. -- CoStar: "Strong rebound in demand" and "smallest supply-demand gap in 3 years." Reported first quarter-over-quarter occupancy increase since 2021. -- RealPage: "Apartment demand again looked quite remarkable." Also reported occupancy increase in Q3. -- Yardi: "Demand has remained strong due to economic and employment growth, immigration and demographics." Reported flat occupancy at a still-healthy 94.8%. 2) SUPPLY IS EVEN HUGER (is that a word?) across much of the U.S. New apartment completions for 2024 will be a long-term high around 600k units, and just how long depends on who you ask. CoStar says 40-year high, RealPage says 50-year high. Either way, it's a lot. But remember: The U.S. has about 2x as many working-age adults as we had a half-century ago, so on a per-capita basis or a % inventory growth basis, these numbers aren't nearly as big, which may explain why occupancy rates are holding up decently well. Still, it's a lot of supply. And that leads to next topic: 3) SUPPLY IS PUTTING DOWNWARD PRESSURE ON RENTS Everyone is reporting a similar trend on rents: Rent growth is basically flat. CoStar put year-over-year rent change at 1.1%, RealPage says 0.2% and Yardi says 0.9%. At the low end, Apartment List reported rents falling 0.7%. By any account, the rent growth numbers haven't changed is 12+ months. In other words: For operators, it's not getting worse, nor do we yet see signs of a rebound in most markets. 4) THE MIDWEST and NORTHEAST CONTINUE TO PERFORM BEST (thanks to much lesser supply). Rents are falling where supply is going in big numbers. Rents are rising where supply is minimal. RealPage: "Most major apartment markets in the Midwest continued to post rent growth above the U.S. average in 3rd quarter. Congruently, Midwest markets have generally delivered more limited supply recently." Similarly, Yardi wrote that lower-supplied markets in the Midwest and Northeast recorded the highest rent growth, while higher-supplied Sun Belt markets cut rents moderately. CoStar expects the trend to continue, saying: "Midwest and Northeast locations and mid-priced 3-star properties could continue to outperform." The data providers all crowned Austin as the national laggard on rents, with rents falling 5-8% there depending who you ask. 5) OTHER NOTABLES CoStar: Higher-priced apartments are winning the lion's share of the demand (though that's also where supply is getting added and higher vacancy, too). RealPage: "The construction pipeline is rapidly emptying," with fewer starts pointing to lesser supply by late 2025. Yardi: "With the typically slower winter months approaching and the supply wave set to continue through 2025," look for continued to rent softness in higher-supplied markets. #apartments #multifamily #rentalhousing

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One answer to increasing housing supply is having better data AND a financial vehicle to mitigate against an oversupply. Maybe government or non-profit agrees to buy out inventory at cost in an oversupply situation. Builders I talk to don’t feel confident in the data to fire up supply too much. Only building when they have short term line of sight.

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You can raise money for your deals with 200 or 2,000 investors on your "list". Some of our clients with a list of 200 potential investors can raise $2M in a few days or a week. While others with 4 or 5,000 on their "list" struggle to raise $500,000. A small highly engaged community of potential investors is more important than building some big "list" of people who don't know, like, or trust you.

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9 Tools Powering a $500M Construction Empire What’s the secret sauce behind a construction company pulling in $500M annually? Spoiler: It’s not about fancy innovation. It’s about smart implementation. We got an inside look at ANDRES Construction Services’s playbook, and here’s the TL;DR: ‣ They choose people over features when evaluating tech. ‣ Their early adoption game is unmatched (iPads in 2010? Yes.) ‣ Enterprise-wide buy-in keeps their team aligned and productive. ‣ They see spreadsheets as opportunities to innovate. The tools? They’re not a secret. ANDRES Construction openly shares their entire tech stack—from Procore to Genda. But the real story? How one man, John Andres, turned a practical mindset into a winning strategy. Want to learn how to implement tech like a pro? Get the full breakdown in this week’s Bricks & Bytes Bulletin. Join over 1,200 founders, construction-techies and investors by signing up to our newsletter. Link in comments.

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Building a high-performing property portfolio in Florida's multifamily investments is immensely satisfying. Picture this: Each property is like a piece of a jigsaw puzzle. 𝗪𝗵𝗲𝗻 𝘁𝗵𝗲𝘆 𝗳𝗶𝘁 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿 𝗽𝗲𝗿𝗳𝗲𝗰𝘁𝗹𝘆, 𝘁𝗵𝗲𝘆 𝗰𝗿𝗲𝗮𝘁𝗲 𝗮 𝗯𝗲𝗮𝘂𝘁𝗶𝗳𝘂𝗹 𝗽𝗶𝗰𝘁𝘂𝗿𝗲 𝗼𝗳 𝘀𝘂𝗰𝗰𝗲𝘀𝘀. 📈 But it doesn't happen overnight. Here are a few key elements that I've found 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹 𝗶𝗻 𝗺𝗮𝗸𝗶𝗻𝗴 𝘁𝗵𝗶𝘀 𝘃𝗶𝘀𝗶𝗼𝗻 𝗮 𝗿𝗲𝗮𝗹𝗶𝘁𝘆: 𝟭. 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵: I can't stress enough how important it is to know the area. Understanding local markets, demographics, and economic trends helps in knowing where to put our money. 𝟮. 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗼𝘃𝗲𝗿 𝗾𝘂𝗮𝗻𝘁𝗶𝘁𝘆: It's tempting to grab every deal that comes our way, but focusing on high-quality investments ensures better long-term returns. It's about playing the long game. 𝟯. 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀: Partnerships with trustworthy suppliers, contractors, and property managers are vital. Good people make the journey smoother. 𝟰. 𝗔𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝘁𝗼 𝗱𝗲𝘁𝗮𝗶𝗹: Small things like maintaining the properties well and keeping tenants happy make a big difference. Happy tenants stay longer, which means steadier income. 𝟱. 𝗔𝗱𝗮𝗽𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: The market changes, and so should we. Being flexible and ready to pivot keeps us ahead of the curve. Seeing the portfolio grow and yield results gives me a unique joy. It’s not just about the finances but about creating homes and building futures. To anyone looking to venture into Florida's multifamily investments, remember: 𝗣𝗮𝘁𝗶𝗲𝗻𝗰𝗲, 𝗿𝗲𝘀𝗲𝗮𝗿𝗰𝗵, 𝗮𝗻𝗱 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝗯𝗲𝘀𝘁 𝗮𝗹𝗹𝗶𝗲𝘀. 🤝 #realestate #realestateinvesting #multifamily #multifamilyorlando therealfund

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I wouldn't be The Proptech Scout if I wasn't actually scouting. The flavor of the day is.. Tenant Screening and Verification! I noticed an unusually high number of Tenant Screening companies at RETCON - Real Estate Technology Conference 2024 a couple weeks ago: Docuverus - Fraud Detection + Income Verification Celeri VERO Trigo (YC W23) Snappt Companies like these emerge as part of an ongoing technology arms race between fraudulent tenants and property managers. Fraudsters are upgrading from photoshop to #generativeAI, and it's really hard to tell what's fake. I failed Celeri's "spot the fake paystub" game so hard. Large all-inclusive property management software like Yardi, AppFolio, Entrata, or Buildium, A RealPage Company offer basic background checks as parts of their tenant screening features. But they're officially too big to be nimble anymore. So early stage startups are mostly where you'll find these "white hat" countermeasures. Point solutions like these are a bit annoying to sign up for and implement, but in these cases, the downside of going through an #eviction is much more time consuming and costly. #Landlords and #propertymanagers! What tenant screening solutions do you use? Tag companies and founders in the comments! #proptech #founders If you run a tenant screening company, tag it in the comments and describe what you do in one sentence. And I encourage you to reach out to your peers in this segment if you didn't already know they exist. This isn't necessarily limited to #residentialrealestate. I'm curious to see if there are tenant screening solutions for other asset classes as well.

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Here, I strive to provide unique insights tailored to my network's interests, particularly those who are data-driven and keen on real estate investing. Sometimes, it's more efficient to leverage others' thoughts. When it comes to real estate data, Jay Parsons stands out. His insights are particularly relevant to the U.S. apartment market, making him a valuable resource. This thread is particularly interesting, as it has been a primary focal point during my most recent conversations with investors. The tl;dr - The U.S. apartment market is adding more supply in H1 2024 than most full years in decades, yet demand is almost matching. Occupancy rates are stabilizing, up 10 bps per RealPage, and steady for three months per Yardi. Key factors: ▪️ High-income new renters ▪️ Reduced renter turnover ▪️ A focus on occupancy over rents ▪️ Supply pressures on rent Demand exceeds expectations, especially in high-supply areas, indicating a resilient market. 

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Former President Trump and Vice President Harris are taking the debate stage tomorrow. While it’s unlikely that housing will feature prominently during the evening, there are a few things I will be listening for hints of that may ultimately impact residential real estate markets: 1️⃣ Building initiatives or other supply-side plans: Harris has called for 3 million new housing units to be built over the next four years spurred by a tax incentive for homebuilders selling starter homes to first-time buyers. Trump, meanwhile, has said he wants to open federal land for residential construction. Just take a look at the below chart of housing undersupply, according to Freddie Mac. No other policies would make up for the upward pricing pressure from that market imbalance. With apparent bipartisan agreement around boosting supply, it will be interesting to see if the topic comes up and how. 2️⃣ Rebates or other demand-side support: The Vice President has proposed $25,000 down-payment assistance for first-time buyers – a variation of an earlier proposal from the Biden Administration. She has also supported bills that are aiming to reduce market power of landlords for single-family rentals. There haven’t been any proposals from the Trump camp about demand-side intervention, so it will be interesting to see if he criticizes his opponent’s approach here. 3️⃣ Outside-the-box proposals: Beyond getting involved directly in supply and demand, there are a range of other plans we might hear from the candidates. Harris has proposed a $40 billion innovation fund for local governments to support housing solutions, and Trump has said that he would push the Federal Reserve to lower interest rates to make mortgages more affordable. 4️⃣ Broader macro: While the candidates are unlikely to get into the details of regulation, agencies, or proposals on stage, they will probably touch on taxes, tariffs, inflation, and growth initiatives that will ultimately impact the economy as a whole and have second-order effects for housing. It certainly sets up to be an eventful debate. Let’s get our 🍿ready!

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Scottsdale, AZ: Short-Term Rental (STR) Market Overview. (Which market should I look into for next week?) - The Scottsdale market has seen substantial growth in total monthly revenue. This growth underscores the market's strength and ability to command higher prices. Impact of Property Size: - Property size plays a crucial role in rental performance in Scottsdale. Larger properties (5+ bedrooms) consistently achieve higher average monthly revenue and ADR compared to smaller and medium-sized properties. This suggests a strong demand for spacious accommodations, likely driven by group travelers and families seeking ample space and amenities. However, it's important to note that larger properties generally experience lower occupancy rates than smaller properties, indicating a potential trade-off between higher rates and consistent bookings. Influence of Amenities: - The presence of a pool significantly impacts rental performance in Scottsdale. Properties with pools consistently outperform those without pools by revenue. Specifically, properties with pools have a mean revenue of $11,470.80 and a median revenue of $10,144.20, while properties without pools have a mean revenue of $5,931.13 and a median revenue of $5,478.12. - While properties with hot tubs and pools command a higher average monthly revenue compared to those without such amenities, the difference in occupancy rates is negligible. For example, properties with hot tubs have a mean occupancy of 69% and a median occupancy of 67%, while properties without hot tubs have a mean occupancy of 67% and a median occupancy of 66%. This suggests that while these amenities may contribute to a more luxurious experience and justify premium pricing, they do not significantly influence booking frequency. Market Outlook: - The Scottsdale short-term rental market is poised for continued growth in 2024. The upward trends in revenue coupled with stable occupancy rates, indicate a healthy and thriving market. Investors can capitalize on this positive momentum by focusing on larger properties and ensuring the availability of sought-after amenities like pools and hot tubs. (Data used for this report was restricted to Investment Grade assets.) _______________________________ Interested in learning more about STRs? Check out my article on how a VRM can boost returns by 56%! https://lnkd.in/gNH473aT #shorttermrentals #str #scottsdale #airbnb #investmentgrade #datadriven

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Today's Boring Biz: 30+ Year Roofing Company - $2.1M Revenue - $1.0M Cashflow - $5.0M Ask Price - 5.0x Multiple - West Virginia - Day 47 of "50 States In 50 Days" Note: We do not represent this deal, highlighting for informational purposes only for viewers What does the company do? 1. Full service roofing 2. Commercial + residential customers 3. Installation, re-roofing + repairs Investment highlights 1. 32+ years in operation 2. Loyal customer base 3. Dedicated team of 7 Investment risks/concerns 1. Highly competitive industry 2. Seasonality + weather related issues 3. Owner-dependency risk #SMB #ETA #finance #Cashflow #investing #search #searchfund #privateequity #microprivateequity #smallbusiness #venturecapital #vc #entrepreneur #business #businessowner #roofing #construction #WestVirginia #servicecompany Disclaimer: Hypothetical and illustrative only. Please do your own research (DYOR) or work with tax and legal professionals before making a decision. This video are intended for informational purposes only and does not constitute legal or tax advice, nor should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by SMB PE LLC or any third party.

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"Why invest in commercial properties instead of residential ones?" Short answer: Scale, risk, and forced appreciation *Commercial properties, in this case, referring to multifamily properties >5 units* Whenever I get asked this question, usually from people that own <5 unit buildings, I have a couple main points that I hit: 1️⃣ Economies of Scale More units ⏩ lower costs per unit The costs overall will, of course, be higher, but hiring property management for a 50-unit building will be more efficient than a portfolio of 25 duplexes. 2️⃣ Risk & Diversification The more units a building has, the less that one vacancy will affect the income of the property. Investors and banks both will *often* offer better financing terms for larger properties because of the cash flow diversification. In a duplex, if you have one vacancy, it's a major issue and needs to be fixed as soon as possible. A few months without a tenant could mean losing the property, for some owners. In a 30-unit multifamily building, one vacancy is 3.33% of the property. While you'll want to rent it out and keep the occupancy as high as you can, it should not affect your ability to hold onto the property. 3️⃣ Forced Appreciation & Valuation by NOI Probably the most notable difference between CRE and <5-unit residential properties ⬇ As commercial properties are valued by their Net Operating Income (NOI), any increase to that NOI is reflected in the sales price. Let's say you bought a 10-unit property for $1,000,000, to keep the numbers easy. You bought it because you thought the expenses were way too high, and you believed you could run the property more efficiently. At an 8% cap rate (NOI / Sales Price), your NOI is $80,000 per year. You execute your plan to perfection and add 10% to the NOI - now $88,000 per year. At the same cap rate, that adds $100,000 to the value of your property - now worth $1,100,000. And that's only if you decreased the costs, and left the rents the same. 😃 A good advisor will work with you to find where you can increase the NOI on properties you're considering, or maximize the value of the property you have. If your broker isn't doing that, dump them. _______________________________________ There are some incredible ways to add value to commercial real estate of all kinds. What has worked best for you recently? Enjoy this AI-generated image ⤵

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Cold-calling multifamily investors is tricky right now 👌 "Hey, I'm Ian, do you want to sell your property?" "Nope" "Makes sense, I wouldn't either." *Conversation paraphrased for effect The reality is that outside of unavoidable issues, investors typically aren't looking to sell their properties right now. Why? Part of the problem, I believe, is a bid/ask spread that is too big (thank you Wesley Cox, CCIM). More buyers are coming to the market, with out-of-state investors looking to place capital in the Midwest. Right now, I'm seeing West Coast and Sun Belt investors looking to shift gears. That will help to narrow the spread, but volume will stay depressed until owners' expectations are shifted away from the frothy 2020-2022 market. But another issue is that there is more uncertainty now, and people aren't sure what to do. The election is looming, and this election seems to be especially chaotic. Rates look like they might actually be dropping - "Maybe I'll wait and see..." A recession is starting to look more and more likely. There are definitely reasons to invest in Indiana 🌽 Indiana, in particular, has escaped the wild oversupply issues that are going to hit more popular markets soon. Speaking mainly about my coverage area, from Indianapolis to Fort Wayne to South Bend, rents have stayed strong. That's all great for buyers, and good for holders, but when it comes to actually selling, it seems to be a very narrow subset of people. Off to find them ☎ ___________________________________ If you're looking to invest in or sell multifamily properties in Northeastern Indiana, I'd love to help. I have a growing list of buyers, targeting anywhere from 10 to 350 units. They are all serious, sophisticated, and good closers. Let me know.

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Here's a free multifamily GTM framework. GTM = go-to-market ... a phrase often not used in multifamily. The fact is, no developer wants to see their lease-up dragging, but too often, that’s exactly what happens. Why? It’s not just a matter of timing—it's a lack of strategy. Let me paint the picture: - Construction’s moving along. - You finally see the building take shape. - Excitement builds... for obvious reasons! - And yet, renters don’t even know you exist. Here’s what happens: The team starts marketing a few months before CO, thinking they’re on top of it, but the results fall flat. This isn’t just a one-off thing—it’s happening in markets everywhere. Rents are tightening. Competition is heating up. And to rise above it, you need more than a few flyers and a website. You need a legitimate go-to-market strategy. A solid GTM strategy looks like this in multifamily: 1. Know your renters. What do they want, and why would they choose your property over the building down the street? 2. Differentiate your project. What makes you stand out? What’s your unique selling point that renters can’t find anywhere else? 3. Craft your message. How is your brand speaking to these renters? Does your look, feel, and message hit home with your target audience? 4. Get on the radar. What are you doing, both online and offline, to build awareness? How are you letting renters know your building exists? Early enough? 5. Drive demand. Stop throwing money at marketing channels that don’t work. How are you attracting qualified leads—those who actually want to live in your building? 6. Nurture your prospects. Renters take their time making decisions. How are you staying top-of-mind and building trust so that when they’re ready to sign a lease, it’s with you? 7. Leverage organic content. Attention spans are shorter than ever, but great content still matters. How are you using the right type of organic content to connect with your audience? 8. Align your teams. Here’s where it falls apart for a lot of developers: marketing and leasing teams operating in silos. If your teams aren’t working together, you’re wasting leads and losing momentum. They need to share processes, feedback, and adapt quickly to what’s working. This isn’t just theory—each of these steps makes a real difference! If you'd like, I’ll dive deeper into each one, showing you how to build a GTM strategy that doesn’t just drive awareness, but fills units and boosts your ROI.

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🏗️ **Navigating Zoning Changes** 🏗️ "Zoning changes can be the most challenging part of land development. Find land already zoned properly to simplify the process." 🏡 How do you handle zoning challenges? #Zoning #LandDevelopment #RealEstate

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