Paul Johnson

U.S. commercial foreclosures more than doubled in March compared to the same month in 2023. California had the most commercial foreclosures in March at 187, an 8% decrease from February but a 405% increase from a year earlier. Texas saw a 31% increase month-over-month and a 129% increase from March 2023, while Florida experienced a 30% uptick for the month and 107% for the year. Delinquency rates for mortgages backed by commercial properties were the same during the first quarter as during Q4, with 3.2% of loans either more than 30 days late at the end of the quarter or real estate-owned. Office properties remain the most common for delinquencies and foreclosures. The delinquency rate for office-based commercial loans increased to 6.8% in the first quarter, while hospitality-backed properties ticked up to 6.3%. Delinquent retail-backed loans dropped from 5% at the end of 2023 to 4.7% in Q1. #CRE #commercialrealestate #foreclosures #creinvesting #crelending #creadvisors

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California's SB 1211 was signed into law this week. the attached article lays out some of our thoughts on this important piece of legislation from our perspective here at Villa. this bill opens up a very compelling pathway for owners of multifamily properties in California to be able to generate value from underutilized land by adding additional units of housing. we're excited to continue to help owner/operators continue to create value by building much-needed homes. https://lnkd.in/guhPztYX

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Discover the essentials of California’s Section 8 housing program, including eligibility, income limits, and application steps. Learn how this program supports low-income families and individuals in finding affordable housing.

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We held our Zonda Multifamily Executive conference this week in Las Vegas. We had great speakers from UDR, AVB, Airbnb, and more talking about the current state of the rental market. Here are my 5 takeaways: 1. Not all markets are created equal today. Markets in CA, the Northeast, and the Midwest still have rising rents and high occupancy levels. The ‘pipeline’ markets across the Sunbelt see increased supply, negative rent growth (YOY), and lower occupancy levels.   2. Demand for rentals is still high. The slower rental market in some areas is supply-related, not demand. In fact, net absorptions, a stat looking at space vacated versus space leased, is the highest in over 15 years (excluding the 2021 pandemic high). From UDR’s earnings call – “While our Sunbelt markets broadly have more robust job growth than our coastal markets, we remain cautious on the region in the near-term, given the very high absolute levels of new supply coming online.” From EQR’s earnings call – “Our expansion markets of Atlanta, Austin, Dallas-Fort Worth, and Denver…continue to have good demand, but remain under pressure from continuing high levels of supply.” 3. Reshoring is the most important economic trend to watch. Spencer Levy from CBRE did a great job discussing the importance of reshoring. He used New Albany, Ohio, as an example. The Intel chip factory has encouraged other related companies to enter the market, resulting in job growth, more development, and demand for ancillary services. 4. SFR/BTR is at the biggest risk. Experts said government regulations and policies pose a growing threat to this market segment. We have a blog on the topic available to our subscribers of the Rental Housing Outlook (https://lnkd.in/ecmtpeth). 5. Favorite markets for multifamily development varied geographically. Kimberly Byrum (formerly Fiala), Zonda’s Managing Principal and multifamily expert, led a great discussion on top markets. Of the big markets, Carl Whitaker at RealPage likes DC, Columbus, and Las Vegas. Joshua Clark with Zillow agreed on Columbus but also pointed to Miami and the Inland Empire in Southern California. Among smaller markets, Fayetteville, Charleston, Gainesville, Tallahassee, and Santa Rosa were all mentioned. Big thanks to Zonda's programming and events team for all the great work! Siobhan O. Jenna Wylie Yeleny Rivera-Flores Josh Brous Arthur Yampolsky, CMP Rob Britt #rental #housing #multifamily

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A new program in Arizona is expected to help hundreds of people with their mortgage down payments and interest rates. My goal -to do my part by creating a companion program through 72SOLD. Read the whole article here. #home #homebuyers #help #RealEstate #72SOLD ##realestateexperts

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Half way through 2024? How can that be? I think the theme for this year should be "if it was easy, then everyone would be in this business." Although our team is helping a lot of people accomplish their leasing and sales goals, it has required a lot of effort to create the desired results. The following is my mid-year retail update for the Inland Empire and San Gabriel Valley. #cre #inlandempire #commercialrealestate #sangabrielvalley

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Are you an accredited investor seeking a stable, high-return investment with a meaningful impact? At Silvercrest Opportunity Fund, we specialize in seller-financed manufactured housing in established Arizona communities, creating homeownership opportunities for families while providing higher-than-average returns for investors. With 10% annual net returns for a 1-year commitment (paid monthly) or 12% annual net returns for a 3-year term (paid quarterly), this is a unique opportunity that combines financial growth with a purpose. This strategy aligns with Warren Buffet's investment principles of buying undervalued, cash-flowing assets in stable markets. Manufactured homes in Arizona offer an especially strong investment proposition, with historically high demand, low vacancy rates, and strong buyer interest due to affordable homeownership options in a growing, stable market. Why This Opportunity Is a Smart Investment: High Returns, Low Risk: With 10% - 12% annual returns, you’re outpacing traditional investments, while the focus on low-cost housing mitigates risk. Warren Buffett-Inspired Strategy: We adopt Buffett’s philosophy of investing in undervalued assets that generate steady, predictable cash flow. Growing Housing Demand: Arizona’s population growth and affordable housing shortage ensure consistent demand for manufactured homes, making it a prime investment environment. Social Impact: Not only will you earn great returns, but you’ll also be part of an emotionally satisfying process—creating opportunities for families to own homes they can afford. Current Market Conditions Favor This Investment: Rising Interest Rates: Many traditional investments like stocks and bonds are facing volatility due to higher interest rates. Manufactured housing, however, remains relatively insulated from these fluctuations, making it an attractive alternative. Affordable Housing Crisis: With more people seeking affordable housing solutions, seller-financed manufactured homes offer a practical solution while continuing to provide strong, predictable returns for investors. 🌐 Get Started Today! Visit https://lnkd.in/gADHx-6k to learn more and begin investing in this lucrative, purpose-driven opportunity. Don’t miss your chance to be part of a growing, impactful investment. Secure your spot now and earn safe, stable returns while helping families achieve homeownership!

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Rent control continues to be a big topic of conversation - especially as we move closer to the election! Lex Wieneke and I explore the potential impacts in this month's episode of Seattle Multifamily Podcast. Watch the full episode on our YouTube channel (link in bio) https://lnkd.in/g7C-MBR7 #seattlerealestatemarket #rentcontrol #simonandersonteam  #commercialrealestate #2024election

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Seattle vs. Surrounding Areas 🏙💸 Rent trends revealed! See how Seattle and surrounding areas stacks up in the rental market as of June 2024 compared to prior year. 📊 #realestate #seattle #trending #seattlerealestate #rentalproperty

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LME Investments: Weekly Newsletter- 10/6/2024 - high rents in California and lease activity in the office space. Hi All Thank you for taking the time to read the LME Investments / Local Multifamily Experts Meetup weekly newsletter. We strive to highlight the most relevant insights, trends, and issues impacting real estate investing, with a focus on the multifamily sector in the nation's largest county - Los Angeles. Happy October! We hope you are enjoying the cooler fall weather - despite the unexpected spike in heat during the later part of this past week. Nearly one in five California renters pays more than $3,000 a month in rent. The number of Californians paying these relatively elevated rents, has grown by more than 120% since 2019. California ranks second in the nation for high rents, behind only Hawaii. Has the Los Angeles office market turned a corner? LA recorded the highest rates of office leasing since early 2020. 3.8 million square feet of office space leases were signed during the third quarter of 2024. This is a 27% boost in office leasing vs one year ago. Monthly remained steady at $3.90 per square foot. With that said, there are numerous office leases ending in 2025 and 2026. It is unclear how much these new leases will offset currently occupied spaces which are coming vacant.  A "paused" office property at 1633 26th Street in Santa Monica will instead become 370 apartments, with ground floor commercial space. Kilroy Realty owns the site, and development firm Holland Partner Group will be handling the redevelopment. In smaller development news, a 9 unit building will replace a duplex in Venice, west of Lincoln Boulevard. Local development firm Uplifters Development is behind the project. That's it for now. We'll see you next week!          Warm Regards, Sanjeev Bhatia & Shiva Bhaskar, Esq. [email protected] WWW.LMEINVESTMENTS.COM https://lnkd.in/ebgi37jS

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Today the Los Angeles County Board of Supervisors passed a measure that caps rent increases on rental units at 3% or 60% of the Consumer Price Index, whichever is lower for unincorporated Los Angeles. The ordinance applies to approximately to 51,700 rental units across 10,900 properties in unincorporated Los Angeles County, with a significant portion of these units located in South Los Angeles, East Los Angeles, and the San Gabriel Valley. This means that if CPI is 3%, rent increases would be capped at 1.8%. Over the past three years, mortgage interest rates have grown by more than 100%, utilities have grown by more than 50%, insurance has increased by more than 50%, labor costs have grown by more than 25%. These caps make it extremely challenging for landlords to operate. They do not account for increased operating costs, including rising insurance premiums, maintenance costs, and inflation. Furthermore, it will worsen the housing crisis and deter investment in rental properties. People think that it will decrease rental rates; however, it will have the exact opposite result. Expect that in Los Angeles there will be less units on the market (less supply), and as a result the demand will be higher - resulting in higher rents. This is a catastrophic result for the housing industry and a negative result for rental prices. We cannot solve our housing problem by instilling socialist market philosophies. We need to build more housing, and this measure will encourage less housing development in Los Angeles.

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As a Realtor®, staying updated on evolving compensation structures, commission strategies, and concessions is crucial to serving clients better. With the market shifting, understanding these changes allows Realtors® to negotiate smarter deals and ensure both buyers and sellers get the best outcomes. This NAR article dives deep into how these trends are impacting the industry. #RealEstate #RealtorLife #Compensation #Commission #ClientService #Realtor

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How to Handle Subletting and Roommate Changes in Rentals: https://ow.ly/JmHS50REEoS #PropertyManagement #Leasing #LosAngeles

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Renting vs. Owning in Sacramento: Weighing the Pros and Cons with Mayne St Properties Sacramento, with its diverse neighborhoods and growing real estate market, presents individuals with a critical decision: to rent or to own? In this blog post, we'll explore the pros and cons of renting versus owning in Sacramento, shedding light on the factors that can influence your decision, with a special emphasis on how Mayne St Properties can guide you through this pivotal choice. https://lnkd.in/gN-RVCcq

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You hear it all the time – the new home market is outperforming the resale market, thanks to incentives. And it's true! These incentives range from mortgage rate buydowns to flex dollars, funds for closing costs, and options and upgrades. Zonda is the only company that tracks new home incentives on a community-by-community basis across the country. Currently, most new home communities offer some kind of incentive. The map below shows how incentive usage varies by market – the deeper the purple, the higher the usage. Key stats: -The markets with the highest share of incentive usage are Sarasota, Jacksonville, and Tampa. Markets with the smallest share of incentive usage are New York, San Diego, and Seattle. -Homebuilders in Tampa, Jacksonville, and Cape Coral average the highest incentive dollar amount at ~3% of the local home price. Colorado Springs, Cincinnati, and New York average the smallest dollar amount of <1%. -Interestingly, nearly 80% of move-up/move-down projects offer incentives, higher than both entry-level and high-end totals. This surprised me at first, but it makes sense – those looking to move up have likely already locked in a low rate so may need financial assistance to feel comfortable selling their existing home. Sarah Bonnarens Sean Fergus Tim Sullivan Karyn Bonder Kyle Cheslock Cameron McIntosh Keith Hughes Bryan Glasshagel Evan F. Susan Heffron Dan Fulton #housing #homesales #newhomes

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Virtual Presentation about Real Estate Market Cycles via zoom at the Orange County Investment Club on Tuesday, August 6th. See details below: Orange County Investment Club Click here to RSVP: https://lnkd.in/gW7CYhjZ Omar Ruiz will be presenting a general overview of Real Estate Market Cycles and the different phases within the cycles. The real estate market, like any other industry, operates in cycles that include periods of stability, growth, decline, and recovery.  Attendees will get valuable information on the profitable courses of action to take within each phase. Market cycles influence property values, rental rates, and investment returns, directly impacting the financial success of real estate ventures. Understanding these cycles is necessary for investors, as it allows them to anticipate market movements and make informed decisions. 

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