Tips for Purchasing Your Own Stake in the Commercial Real Estate Industry

While most people know and widely understand the residential real estate investment approach, the commercial end of the industry sometimes gets overlooked due to the nuanced nature and opportunity of the sector. Having said that, the diverse opportunities within the commercial division should drive investors toward it. You have options, and before you dive into a residential rental property, you may want to consider different, often times larger fish with a bigger profit opportunity. Sound interesting, but don’t know where to get started? You aren’t alone, so I decided to put together a few tips for dipping your feet in the commercial real estate pool.

Ask Questions

Like the age-old saying, there’s no such thing as a stupid question so don’t be afraid to ask them. The more you know, the more likely you are to make a sound investment. If you find yourself asking what questions you should be asking, Kyle Pennell compiled a few questions to get you started like what kind of property and do you have a location in mind? You can find the full list here.

Find Professionals

This is where commercial real estate professionals like myself and the staff at SVN Northco come in. Because the industry is so varied, you want to find a realtor or advisor that has experience with your type of property. One usually doesn’t assume that because someone can sell a house Minneapolis, they can sell a house in New York City or Dubai. They need to have an understanding of the industry, property type and location. Large real estate firms have diversified portfolios that often span the globe, and as a result, they have more experience with major transactions like selling a resort or even a private island.

As described by Inc., you don’t have to know everything. That’s why you seek help from others who make it their mission to know the ins and outs of the commercial real estate sector. “They can help you determine the right time to buy or sell, the right locations to consider, and the nuts and bolts of closing the deal.” Don’t be afraid to seek counsel from a lawyer, broker, accountant or all three.

Do Your Due Diligence

After you asked the questions and determined the property with help from your team of professionals, you now need to check the bones of the deal. Even if a property seems picture perfect, you want to ensure that it is a sound investment. If there are problems – you want to find them now rather than six months down the line when you already bought into the venture.

Once it passes inspections and your own personal expectations – it’s time to take the plunge.

Hidden In Plain Sight: Understanding Off-Market Real Estate Deals

Are you new to real estate investing? Maybe just the real estate market in general? When searching for a property, you may hear about people buying real estate you didn’t even know was on the market. As described in this article, “Off-market real estate deals were once the preserve of ultra-high-end properties. But whisper listings—or pocket listings as they are also known—have spread to a range of price points as more buyers and sellers realize the advantages of keeping things hush-hush.” With an evolving market, this has become a more common approach.

Typically when selling a piece of real estate, the owner uses an agent to promote and ultimately sell it. The agent then advertises the property through a Multiple Listing Service database more commonly known as MLS and handles coordinating open houses and walkthroughs from there. Now, especially in areas or with properties in high-demand, pocket-listings have become a more discrete approach to getting your property sold.

Of course, there are a few factors when veering away from listing your property with an agent for this more atypical approach. Sellers usually aren’t as eager to get out of their property. They accept that less exposure potentially extends their selling timelines. Rather, they wait for the right buyer at the right time with the right price all of which off-market deals can offer. The obvious enticing factor is also the discretion associated with off-market details. Instead of giving the general public an all-access look inside your home, brokers work directly with buyers who actually want something like your home and aren’t just open-house hopping to find interior design inspiration or see how their neighbors decorate.  

For buyers, off-market deals tend to pay off as well. They usually don’t compete with other bids since these listings are less widely known about. The price is also usually more reasonable since the seller’s commission is typically lower. Buyers looking to flip a property often find deals in this section of the market, but it takes experience and the right amount of background real estate knowledge. To reap the benefits as an off-market buyer, you also need to do your homework. These properties aren’t out for the world to see, so you or your agent need to ensure that agents with off-market properties know that you want in the ring.

This variety of listings isn’t limited to million dollar deals or celebrity sellers either. While some high-end properties take this approach for more discretion, others choose the pocket listing option because they were approached directly by a broker with a buyer in mind. It’s particularly common in an empty market where people aren’t particularly eager to sell like the Bay area where inventory is low, but the demand remains high.

When deciding whether off-market transactions are the option for you, consider these questions. Do you have a particular property in mind that isn’t on the market, but is the only option for you? If yes, then finding an agent to set up an off-market buy may be your best option. Are you looking for a unique or high-end home in an empty market? Again, pocket deals could be your best alternative. No matter the case, a skilled real estate agent can help you find the property for you whether it’s in the MLS Database or not.

5 Tips for Becoming a Successful Real Estate Agent

Whether you’re just getting started or you consider yourself a senior real estate agent, there are always ways to improve your success with property sales and listings. Becoming a successful real estate agent doesn’t happen overnight – it takes practice and a ton of commitment. Here are fives ways you can improve your success rates as a real estate agent:

Be driven.

• As a real estate agent, you should always be driven and determined to sell a property – regardless if it’s residential or commercial.
• A great way to do this is to make a list of your personal goals for whichever project you’re working on.
• Then, meticulously write out each step that will help you reach your goals – and get to it!

Be resilient.

• There’s no doubt that as a real estate agent you’ll have both good and bad days, but it’s important to keep moving forward and not let yourself get down.
• Be committed – don’t give up on a project or listing just because something gets in the way.
• Remember, life will always throw curve balls – what matters most is how you handle them.

Learn from your mistakes.

• There will be times where you make a mistake with a client or listing, but don’t let it affect you too much (we all make mistakes, in every profession).
• Learn how to adapt and grow from the mistakes you make so that you can push yourself to be a stronger, more successful agent.
• Mistakes aren’t fatal – they’re usually fixable, but you should know when it’s appropriate to just walk away.

Believe in yourself and the people around you.

• Have faith that you will succeed in this business, and that the people in your agency will too.
• Always be there to lend a helping hand, because chances are you will need one from your peers at some point.

Maintain a positive attitude and likable personality.

• Successful real estate agents are always likable – be a people person. Nobody wants to do business with someone who comes off cold.
• Maintaining a positive attitude will help fellow agents as well as yourself feel more determined and will bring more value to your work.

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Latest Listings | Frank Jermusek

Trails End Resort

 

PRICE:	$1,825,000
NUMBER OF ROOMS:	9
BUILDING SIZE:	14,500 SF
PROPERTY TYPE:	Hospitality
LOT SIZE:	33.69 acres

 

Highlights:

Very popular full service, four season resort 6.3 Miles from Canadian Boarder 33.69 total acres 803 feet of total lake shore

NOI – $188,447 9 cabins, 8 camping sites, 2 lodge rooms and 1 unfinished cabin Additional Development Land & Home Available

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Cornucopia Lodge

PRICE:	$795,000
NUMBER OF ROOMS:	9
BUILDING SIZE:	7,000 SF
PROPERTY TYPE:	Hospitality
LOT SIZE:	56.0 acres
YEAR BUILT:	2008

 

Highlights:

Great Wilderness Location with activies such as horseback riding, skiing, backpacking, restaurant Near Eagle Cap Wilderness (Oregon’s largest designated wilderness area) Near Hells Canyon National Recreation Area – deepest river gorge in North America New Construction in 2008 and well maintained

Current at 30% Occ- $58,700 NOI Excellent Upside at 50% Occ – $91,040 NOI Presented in Collaboration with: Hell’s Canyon Realty Inc | Steve Brooks | 866.893.6133

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Developmental Land – Family

 

PRICE:	$425,000
PROPERTY TYPE:	Land
LOT SIZE:	1.73 acres

 

 

Highlights:

Property Size: 1.73 Acres ASSEMBLAGE POTENTIAL TO 2.84 ACRES Zoning: Residential / Multi-Family Utilities: Full

Best Use: Multi-Family 20-41 High Density 12-24 Units Per Acre Development Requires City Approval

 

* Please note: all of the information above is provided by Sperry Van Ness, check out their website with more of Frank Jermusek’s listings here!

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Investing in Golf Course Real Estate: An Increasing Trend

Since 2014, investing in golf course real estate has become an increasing trend. Though the Great Recession marked a low point for the golf course real estate market, investors have been showing an increasing interest for golf course investments across the entire country.

According to an article published by GolfDigest.com, “International money is a big part of it, with Chinese investors showing a special interest in California, Hawaii and the Washington, D.C., area,” (Course Correction). Many traditional real-estate investors, both across seas and nationally, have taken an interest in golf courses because of the potential large profits they can make. The article goes on to say, “Companies with ties to New York’s Fortress Investment Group, for example, recently bought about 100 courses from American Golf and another 48 from CNL Lifestyle Properties,” (Course Correction). When people invest in golf courses, they know there is a chance they can make around a 20-30% profit, or at least a profit in general.

The value of a golf course is another vital component in relation to investors gaining a strong interest in golf course investments. Most of the time, buyers will decide whether or not to make an official investment once they have figured out how much of a profit they will make each year. According to GolfDigest.com, “A typical buyer these days expects to earn about 10 to 11 percent a year on the investment, brokers and course appraisers say. To arrive at a good price, buyers divide a course’s annual profit by this expected return,” (Course Correction).

For more information about recent trends in golf course investing, please read GolfDigest.com’s article here.

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Giants Ridge Lots for Sale

Giants Ridge – Voyageurs Retreat – Lots For Sale

For Sale

Giants Ridge – Voyageurs Retreat
Lots for Sale

Giants Ridge – Biwabik, MN

Lots From: $25k – $75K

“6-Pack” Combine Lots Sale  Buy 5 Lots Get 1 Free Seller Financing Available Construction Financing Available Flexible Lot Combination Options

Individual Lots Sale  Lake Front Lots – $75K Per Lot Off Lake Lots – $25K Per Lot Construction/Mortgage Loans Available Ability to Combine Lots

Lot Specs:

• 178 Total Acres19 Lake Front Lots ($75k)96 Off Lake Lots ($25k)
• In Place InfrastructurePaved Roads w/CurbsUtilities to Lots
• Large 1-4 Acre ParcelsCan be Combined
• Walking/Cart Distance to Giants Ridge Resort Area
• Prime Growth AreaPolymet Operations Begin in 2016 (estimated)600+ New Jobs to Area

Special Offers:

• Specials on Giants Ridge Golf & Skiavailable to all buyers
• 10% Buying Broker Commissionavailable on lots closed by 3/31/15
• Seller Financing Available
• Construction/Mortgage Loans Available

Points Of Interest:

• Giants Ridge: http://www.giantsridge.com
• Quarry Golf: http://ift.tt/1GwkOE8
• Legend Golf: http://ift.tt/1I2iuY3
• Area Amenities Include: The Spa, Golf, Biking, Hiking, Disk Golf, Canoes/Kayaks, Paddleboards, Fishing, Iron Range, Many Dining Options, Nordic, Skiiing/Snowboarding, Snow Tubing, Showshoeing and more…

***Please note all information here is provided by Sperry Van Ness***

See more at Northco.com

 

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Golf Course in Collier County

What may upset those who enjoy a well kept secret may provide others with the romantic housing they’re after as a golf course in Collier County was chosen as a prime area for developing real estate. Traditionally, golf courses are constructed in neighborhoods with vast land areas interwoven through a community of h
ouses, but now a project calls for the raising of houses in a secluded, uninhabited area in Florida conveniently located near the Golf Club of the Everglades. Pulte Real Estate found an untouched area in between two unpopulated golf courses and claimed it as their next spot for building. Their project called Greyhawk will feature 548 single­family homes across the 500­acre plot.

Michael Agins, the sales manager leading the project, notes the new idea of “homes built around golf,” hoping that the houses will not disturb the tranquility of the area. The heads at Pulte are in agreement that the endeavor will neither sacrifice nor challenge the respite­like appeal of the area that attracted them to the land in the first place. The homes will be built into the greenery to blend in with the scenery and contribute to the rural, undisturbed quality of the area. The hard­to­find allure of the golf courses will be mimicked by Pulte’s strategy. If they commercialize and advertize the area too strongly, the appeal of exclusivity will be lost among the buzzing of construction.

While it is agreed that developing real estate is unavoidable, the approach taken by Pulte is commendable and offends few who hold dearly to the golf course and view it as a small community’s hideaway. Fortunately for the few who frequent the course, it will still see the range of flora and fauna that thrive nearby and color the course with diversity that tends to remain unseen in more suburban communities. Many members of the club are happy Pulte’s project will preserve the natural feel of the greenery leaving creatures like snakes and bobcats on the prowl.

For golf players, the club will limit capacity at 300. It currently holds 190 members, and the number of new homeowners will unlikely push that limit.

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New Listings for Sale | Frank Jermusek

Frank Jermusek’s Latest Listings

Featured Golf / Resort Properties For Sale:
 

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Briarwood Club of Ankeny – $3,950,000
Ankeny, IA

Private Country Club – Nearly 400 Members – Fully Developed Upper to Middle Class Neighborhood Built Throughout Course

Par 72 – 7,000 Yards – 157 Acres – Rating 73.5 – Slope 128

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Gunflint Lodge  –  $6,700,000
Grand Marais, MN

Click Here To See Listing

50,000 SF – 33 Cabins – 103 Acres – Price/Room: $203,030.30 – Zip Line Tour

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Superior Shores Resort & Hotel  –  REDUCED PRICE:  $19,950,000 
Two Harbors, MN
 

Click Here To See Listing100,000 SF – 234 Rooms – 30 Acres – 4,100 Ft Shoreline – Price/Room: $98,290.60 – Over 1 Mile Lake Superior Coastline – Kamloops Restaurant/Bar – Indoor/Outdoor Pools – Sauna

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Northernair  –  $1,200,000
Ely, MN

Click Here to See Listing

On Lake Mitchell – 6 Cabins Owned – 7 Cabins in Rental Pool – 5 Backlots – Main Lodge

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Voyageurs Retreat Residential Community Land  –  $25,000 – $2,562,750
At Giants Ridge Resort – Biwabik, MN

Click Here to See Listing

178 Acres – Lots Range From 1 to 7 Acres (single lots available) – Neighbor To Giants Ridge Golf & Ski Resort – Electricity/Power – Water – Telephone – Gas/Propane

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North Shore Golf Club  –  $750,000
Menominee, MI

 
Click Here To See ListingListing is offered in collaboration with:
Coldwell Banker Today’s Real Estate

18 Holes – Par 72 – 6,440 yds – 160 Acres – Rating 72 / Slope  119
Located on Shoreline of Lake Michigan

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Pine Ridge Golf Course  –  $495,000
Evansville/Alexandria, MN

Click Here To See Listing

9 Holes – Par 35 – 2,992 yds – 90.50 Acres – Rating 33.7/ Slope 109 – Includes All Equipment Needed to Maintain Course

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Castle Rock Golf Course  –  $1,900,000
New Lisbon/Mauston, WI

Click Here To See Listing
18 Holes – Par 71 – 6,167 yds – 122.37 Acres – Rating 70.2/ Slope 125 – 4 Residential Lots or 3.12 Acres – Out Parcel Lot of 15.08 Acres – Short Drive From Wisconsin Dells

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Riverview Golf Course  –  $595,000
Antigo, WI

Click Here To See Listing

9 Holes – Par 36 – 3,131 yds – 83.41 Acres  – Rating 69.8/ Slope 119

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The Valley Golf Course  –  $749,000
Mondovi, WI

Click Here To See Listing18 Holes – 72 Par – 6,293 yds – 142 Acres – Rating 70.4/ Slope 124 – 14 Residential Lots

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Lake Chetek Estate / Development Land  –  $1,990,000

Chetek, WI

Click Here To See Listing

269.54 Acres – 4,000 ft water front – Airstrip/Hanger – 2 Separate 2,400 SF Homes – Redevelopment Opportunity

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Diamond Jo’s Casino Commercial Development Land

GREAT HOTEL SITE

Northwood, IA

Click Here To See Listing

4 Lots Totaling 8.73 Acres – Ideal Retail/Commercial Development Lots – Over 1 Million Visitors to the Area Per Year – On Interstate 35

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Sperry Van Ness | Northco Golf & Resort Overview

Sperry Van Ness | Northco Golf & Resort is a specialized division within Sperry Van Ness | Northco Real Estate Services which focuses specifically on the golf and resort industry.  The focus is on owner/operators, investors, municipalities, board of directors and financial institutions that require professional expertise.  
Let Us Give You The Competitive Edge To Buy And Sell Golf & Resort Properties

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Sperry Van Ness and Northco Real Estate Services Partnership

Northco Real Estate Services is partnering with Sperry Van Ness International.

Fresh news from Northco Real Estate Services!

We at Northco Real Estate Services are very excited to become the newest affiliate of Sperry Van Ness International, a commercial real estate franchisor, to form locally-owned Sperry Van Ness | North Real Estate Services. Bringing you the same level of service with the added resources of a national network, SVN | Northco provides: full service brokerage, golf & resort, investment, property & asset management, construction and development services.

SVN | Northco is licensed to provide these various commercial real estate services in Minnesota, Wisconsin, Iowa, South Dakota and North Dakota.

Frank Jermusek will head a newly-formed golf & resort national product council for over 180 Sperry Van Ness offices. Building on previous success with Northco over the last six years, Frank is looking forward to teaming with advisors from these 180 SVN offices to offer localized, hands-on assistance to clients across the country.

SVN | Northco Development

In the new affiliation, Adam Seraphine and Dean Dovolis will join and lead the development services practice group. With their experience in Twin Cities development market, they bring a track record of success to an already dynamic team.

Said Jermusek, “We are extremely excited about our partnership with Adam and Dean. Adam and I have been friends for a number of years and have talked about partnering up, but never pulled the trigger. Both of our groups have been extremely busy and believe this collaboration provies synergy for our practice teams.” Seraphine remains a principle at NHH Properties where he’ll continue to seek investments for both NHH and Northco Investments. Dovolis remains a principal with DJR Architecture, but will perform development services through SVN | Northco.

Collaboration, Training, and Technology

Partners Frank Jermusek and Walt Van Heest acquired Northco in 2006 and have enjoyed success at the helm of the 40 year-old company. Their partnering with Sperry Van Ness will allow them to build on this success by utilizing national networks to maximize property values for clients. They use the SVN cloud-based enterprise marketing system that provides everything from investment analysis to listing-specific website generation, giving clients an edge in making decisions and provides an added level of administrative efficiency.

Broker Development

The new partnership understands that another key to success is the ongoing development of employees. For that reason, SVN | Northco has developed a specific, continuous, professional skills program, including an immersive business development retreat that recently concluded. Through this program, our brokers have more fine-tuned skills to provide specialized services to clients.

With the partnership, Jermusek also anticipates doubling the size of the current brokerage staff to forty licensed professionals within the next year.

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The State of Real Estate in 2015

As we begin a second straight year with a southern migration of the “Polar Vortex”, we are left to wonder what to look for in the 2015 housing market. As it turns out, an erratic year might just lead to a new year of stability in the market, with some new twists.

In 2014, there were several seemingly contradicting indicators such as sales of previously-owned homes landing below the level sales were at during the same time in 2013 while new homes sales increased by almost 2%. However, accordingly to a recent report from Forbes, this is actually signaling a settling of a market that has been in rapid recovery since the housing bubble. While the settling might lower the freneticism some experience in the housing market, it might actually become more difficult for some.

Something that might be music to the ears of those looking to buy a home, whether new or previously-owned, is that prices will not rise as rapidly they have during the recovery. Prices nationwide are around where they were ten years ago. Realtor.com predicts a 4%-5% increase in home prices in 2015, while Zillow is more conservative, predicting ~2.5%. It should be noted that while prices increases are predicted to slow down in 2015, those increases will still likely outpace the rise in incomes, with Realtor.com predicting that 2015 housing affordability will actually decrease by 5%-10% especially with mortgage rates also predicted to rise with the end of QE3 and weakened Chinese and European economies.

Another interesting potential is that for millennials to begin outnumbering Gen X’ers in the homebuyers market. Data shows that a larger proportion of millennials want to buy a home in within the next 5 years than Gen X’ers, but are holding off because of a greater inclination to delay getting married and having children. Data would suggest that rent prices will increase more quickly than home values, pushing more millennial renters towards the home buying market.

Generally speaking, we will have to see how the transition from quantitative easing will affect the housing market. We should see prices stabilize, but geopolitical factors such as historically low oil prices and generally weakened superpower economies are wild cards that can have a strong effect on the market.

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