The growing number of zombie homes in residential or suburban neighborhoods is a topic being discussed more across the U.S. Despite what it may sound like, a zombie home is not part of a real estate halloween story. A zombie home occurs after an individual believes they’ve lost real estate to foreclosure. After that, the initiating lender then unexpectedly cancels the foreclosure procedure. The result of this process allows the real estate property to remain vacant without anyone to take responsibility for it’s upkeep or maintenance.
Despite what most people believe, zombie homes are actually common throughout the United States. In the last decade, Long Island has seen an increase in zombie homes. This surge can be attributed to when many homes went into New York’s three year foreclosure process in the late 2000s. Presently, this process continues and homes remain vacant. This results in neighborhoods with high amounts of zombie houses.
To learn more about zombie homes in Long Island, Sharestates lists the top five zombie home cities in Long Island based on data from Newsday. These calculations use the ratio of zombie home per thousand units, and housing unit data of specific neighborhoods from censusreporter.
Top 5 Zombie Home Cities in Long Island
Zombie Homes Per Thousand Units = 20.12
Housing Units = 7,360
Total Number of Zombie Homes = 148
Zombie Homes Per Thousand Units = 20.12
Housing Units = 1,050
Total Number of Zombie Homes = 22
Zombie Homes Per Thousand Units = 20.12
Housing Units = 6,500
Total Number of Zombie Homes = 130
Zombie Homes Per Thousand Units = 20.91
Housing Units = 4,500
Total Number of Zombie Homes = 96
Zombie Homes Per Thousand Units = 15.86
Housing Units = 1,484
Total Number of Zombie Homes = 23
According to Newsday, there have been recent legislations to reduce the high amount of zombie houses in Long Island. This includes a bill of rights to better educate homeowners on how to avoid foreclosure or homes in foreclosure. Additionally, there are new requirements for banks to care for houses after foreclosure so the property can preserve its resale value, and protect the property values of its neighbors. Due to the continued legislation, Long Island areas will likely see a reduction of high zombie homes.
Millennials, defined as those born from 1982 to 2000, now hold an estimated population of 84 million in the U.S. Millennials are now the largest age group, outnumbering the baby boomer generation by a population of 10 million. What does this mean for the future of real estate investing? As this upward trend continues, we can expect more millennials to invest in real estate.
Real Estate Investments Seen as the Most Valuable Asset
As millennials begin to land steady occupations and seek financial stability, where to invest one’s hard earned money becomes the question. Real estate is seen as the most valuable asset by far. Research from Fannie Mae reported that 85 percent of millennials agree real estate is a good investment.
This generation is most likely to value real estate, over any other asset class, such as stocks, due to the lingering skepticism from the stock market crash, that contributed to the 2008 recession. Many millennials were attending or graduating from college, and entering the job market during the financial recession. During this time it was difficult for many college students and graduates to find jobs. That time period of financial stress also affected millennials’ families, leaving a bad impression of the stock market in this group’s minds.
Millennials Have Alternative Ways to Invest in Real Estate
Living in the digital age, technology now plays a huge role when investing in real estate, giving millennials the advantage. According to the National Association of Realtors Research Department, 99 percent of millennials use the internet to search for homes and 58 percent found homes on a mobile device, further illustrating this generation’s stronghold on technology. As the millennial age group ventures into real estate, this group will have multiple ways to invest.
Marketplace Lending Sites
The first option for millennials to invest in real estate is through online marketplace lending sites, such as Sharestates. Sharestates allows accredited investors to invest in various real estate types, with as little as $1,000. Many millennials seek full access when diversifying their investment portfolios, a convenience of marketplace lending sites. Marketplace lending and real estate crowdfunding are secure options for millennials. The investments are guaranteed by the property and the borrower itself, unlike most REITs that are traded on the volatile and unpredictable stock market.
Airbnb and Rental House Investing
Millennials seeking another form of income can consider Airbnb and rental house investing. Airbnb allows homeowners to rent out the entire home or a section, for a specific amount of time. The income earned can help the homeowner build equity or pay the mortgage. Airbnb is already a popular choice amongst millennials when seeking rentals to lodge in, it is only a matter of time until this group will use Airbnb as a source of income.
Real Estate Investing Challenges Millennials Will Face in the Future
As much as millennials are eager to invest in real estate, they have some challenges to overcome. According to FICO, many millennial home buyers can’t obtain loans backed by Fannie Mae, because many don’t meet the median credit score of 750. These poor credit scores can be attributed to the high amounts of student debt weighed on millennials. Student Loan Hero reported that the class of 2016 graduates have an average of $37,172 in student loan debt, a 6 percent increase from the previous year. These obstacles make it difficult for millennials to dive into the world of real estate investing.
Real estate investing is proving to be a tougher journey for millennials compared to older generations, but the millennial generation is determined. As this generation increasingly outnumbers the baby boomer generation, millennials are expected to become the majority of real estate investors. Millennials already see real estate as the best investment class, and have multiple ways to invest in real estate. Once millennials are able to overcome their financial challenges, the future of real estate investing will be strong.
Novice real estate investors hear many misconceptions about real estate investing. Common misconceptions range from the perception that real estate investing is a quick way to get rich, investing in real estate deals is easy to do, or only the rich can invest. These myths create a false summary of the real estate investment sphere. Here is what is actually true when it comes to investing in real estate.
Myth 1: Investing in Real Estate Requires Lots of Money
This myth is subjective because “a lot of money” can mean any amount, and it also depends on the type of investor. As a real estate investor, or borrower, one needs to be financially secure before they even consider investing in real estate. There are multiple ways to invest, some requiring more money than others. One relatively low cost method to invest in real estate is through marketplace lending.
Solution: Marketplace Lending
Becoming popular in the late 2000s, marketplace lending grants individuals the opportunity to participate in the purchase of big ticket items such as real estate. Online marketplace lending platforms, such as Sharestates, allow investors to participate in various types of real estate investments starting at a thousand dollars, with annual returns averaging in the eight to twelve percent range.
On the other hand, marketplace lending (MPL) platforms give borrowers access to real estate funding. Their investment property goes through an underwriting process, and the risk of the borrower paying back the loan is evaluated. Similar to hard money lending, borrowers can receive fast money through MPL platforms such as Sharestates. Once approved, real estate developers can receive loans within a quick turnaround time.
Myth 2: Real Estate Investing is Easy
The answer to this question is both yes and no. In a sense, marketplace lending has made it easier to fund real estate deals by pooling investor capital while lowering the barrier of entry for investors. On the contrary, finding the best real estate investments is a demanding task. Becoming a successful investor takes time and effort, with researching and networking being imperative to reaching success. The ability to acquire the best deals greatly depends on one’s ability to research and network.
Solution: Research and Networking
For real estate developers, inspecting the property, surveying the area, and adhering to zoning laws will be important. Before they can consider purchasing the property, performing due diligence and inspecting the property for faults can make or break the deal. If the developer is looking to build a restaurant in an area that is already saturated with restaurants, they may want to consider bringing a different property. Zoning laws and restrictions will also affect the investment. For example, if a property is in close proximity to a school, there may be limitations on the type of property that can be built there.
Before investing in real estate it’s important to keep abreast of current industry trends and market demands. Once up to date in the industry trends, beginning research on factors or rates that’ll affect prospective investments is the next step. Some factors that will affect the investments are mortgage rates, cap rates, and occupancy rates. The investor’s ability to do accurate and diligent research determines the likeliness of success in their investments.
Connecting and partnering with other investors, lawyers, developers, and even prospective buyers is essential. This network can either give knowledge, or partner together in various types of investment properties such as multi-family, commercial, residential, or mixed-use properties. In addition to gaining the experience, investing in different property types help investors and developers diversify their investment portfolio.
Myth 3: Fast Track to Getting Rich
This is the most common myth. Due to false advertisements, many individuals believe real estate investing can quickly get you rich. Forget the advertisements seen online or heard on the radio. Investing in real estate is not a quick way to get rich. In fact, many of the successful or wealthy investors today, have made mistakes in their career. That being said, setting realistic goals helped these investors reach success.
Solution: Setting Realistic Investment Goals
Setting realistic investment goals is key to staying grounded. Being overly optimistic about investment deals can cloud judgement, leading to unnecessary investing mistakes. Know when to step back or pass on an investment, and know there will not be overnight success. Mistakes are inevitable, but setting realistic investment goals will help reduce mistakes, and help reach financial goals.
Hopefully clearing up these misconceptions enlightens novice real estate investors to the realities of investing. Investing in real estate is not a fast way to get rich nor can there be overnight success. Good news is, with marketplace lending platforms investors have access to quality real estate deals, and borrowers receive funding for their real estate investments.
Real estate tech is trending in 2017. The digital era is changing the landscape of real estate with the implementation of virtual reality, mobile applications, drones, and smart technology in homes. Technology has always been part of the real estate industry, historically playing a role in online real estate listings, online reviews of real estate agents, and online ads. It is clear in 2017 that real estate and technology are reaching a whole new level.
Real Estate Tech on the Rise
Common processes that used to be conducted through paperwork and in-person meetings are now being handled online. This is a result of a demand to maximize efficiency. Real estate investors, developers, and borrowers are looking for more convenience in real estate related transactions, as well as saving time and costs.
Real Estate Investors Utilizing Digital Contracts
Scheduling a mutual meeting place to sign documents is no longer a necessity. Real estate investors and borrowers love this as it expedites the document-signing process. Interested investors can digitally sign contracts to agree to the terms of a property investment such as; investment amount, projected return on investment (ROI), loan to value, loan to cost, and the loan after repaired value.
On the flip side, borrowers can sign digital contracts when signing term sheets for real estate loans. This process is a lot faster versus the loss of time that would result from various meetings to sign documents. In addition to digital contracts, home inspections and other forms are increasingly handled digitally.
Real Estate Apps to Perform Due Diligence
Real estate apps are of great benefit to investors. As real estate is becoming more digitised, access to information is too. Using homesnap, gaining property information is as simple as taking a photo of the property, and receiving information such as the owner, tax rolls, and official market value. You can also retrieve statistics on neighborhoods such as crime rate and nearby schools with dwellr. Access to all of this concentrated information is a great tool for real estate investors to perform their due diligence on a property, or a real estate underwriting team to approve a real estate loan.
Virtual Reality and 3D Tours of Real Estate
Virtual reality no longer exists only in science fiction movies, it now exists as real estate tech. The invention of virtual reality and 3D tours gives potential buyers a complete view of the home as if they were physically there. Very soon we can expect to see integration with home design, or architectural software, that allows potential buyers to make preferential alterations such as furniture or structural changes. We are hopeful in the future we’ll see virtual reality debut in the real estate marketplace lending sphere, allowing online property tours accessible to investors.
Capturing the Property with Drone Mapping Technology
Drones have been a trending gadget and it was only a matter of time it became part of real estate tech. Pix4D created an app that lets the user create 3D maps that are interactive based on drone mapping. The drone will fly around the property capturing information resulting in a 3D virtual reality recreation. The use of drones and drone mapping technology is more efficient and cost effective than hiring a tech guru for this process.
Real Estate Investing and Smart Homes
Smart homes are sparking a keen interest in homeowners. The features are energy efficient and a convenient luxury to have around the home. Features such as smart lighting, automated temperature controls, thumbprint operated security systems, and automated locks are finding their way in homes. The great thing about smart homes is that most of its features are interconnected using Wi-Fi, Bluetooth, and other similar devices. Setting up these features is becoming easier and the prices are becoming more affordable. This trend is catching on to fix-and-flippers and real estate developers who are looking to increase home value as well. Renovating a home with smart features is an affordable option while adding great value to a property.
Real estate tech is quickly trending in 2017. Technology has always played a part in real estate but the digital era is quickly changing its role. The increasing demand for saving time, efficiency, and reduced costs is pushing the bounds of technology. Real estate investors, developers, and borrowers are loving these trends as they add convenience and transparency to their transactions. This year we will see the increasing use of drones, virtual reality, mobile apps, and smart technology in homes.
Sharestates is honored to support the Sunrise Association in raising funds, so children with cancer and their siblings have the opportunity to enjoy day camp. This support has been defined through years of partnered charity events and fundraisers.
“Sharestates is always excited to bring smiles to the children of the Sunrise Association through our annual contributions. We understand that cancer is a daily reality for these children and their families so we look forward to being able to provide any respite, even if just during the camp hours.” Michael Ramin, Business Development at Sharestates.
Sunrise Charity Gala
This year’s Sunrise Charity Gala has a challenge for the valiant David Miller, a board member of the Sunrise Association. Sharestates’ Raymond Y. Davoodi and Michael Ramin offered that David shave his trademark hair and mustache for a pledge of $10,000. David’s mustache is a beloved, key trait to his identity. Having the winner mentality, David counter-offered, being extremely altruistic he accepted the challenge if Sharestates and the Sunrise Association combined, raised over $50,000 for the children.
When asked about how the campaign idea came about, Michael Ramin states, “David Miller is known for his ability to sell anything, he is an amazing guy with great enthusiasm. It was only natural that we turned this fundraising round into a fun event with major stakes, David’s prized hair! This is just another testament to David’s dedication to the Sunrise Association and its campers!”
This year the Sunrise Charity Gala takes place at the Glen Head Country Club on May 4th. The event is highly anticipated for many reasons. The Charity Gala is a huge opportunity for everyone to come together. Families, donors, and Sunrise staff have the opportunity to connect over a common mission. Asking for your generosity, this life-changing fundraiser will put children through camp, give families a piece of serenity, and provide additional services to enhance the lives of Sunrise’s kids.
The Sunrise Association is a remarkable organization that is dedicated to preserving the childhood of terminally ill children. To help ease the heavy burden off the parents, all of Sunrise’s programs and services are always free of charge. Each child’s smile is made possible through the generosity of donors both large and small.
The Sunrise Association offers a summer day camp, fun year-round activities, and in-hospital recreational programs. The day camp creates a place for youth with cancer and their siblings to participate in many specialized activities throughout the summer. The year-round activities give the campers a chance to make new friends or reconnect with old ones during every season. Sunrise on Wheels is one of many in-hospital recreational programs. Sunrise on Wheels allows hospitalized children to enjoy the benefits of the Sunrise Day Camp, making sure to put a smile on the child’s face and lifting their spirits.
Founded in 2006 by Arnie Preminger, the Sunrise Day Camp was the first and only camp to provide a haven for cancer children and their siblings. This day camp originated as a dream of Arnie Preminger’s. After attending a Paul Newman concert that raised funds for a sleep-away camp for terminally ill children, Arnie realized that a summer day camp for cancer children was non-existent. Preminger with more than 30 years of operating summer camps, turned this dream into a reality, and is continuing to change lives 11 years later.
Sharestates takes pride in supporting the Sunrise Association, bringing smiles to children with cancer and their families for years. The Sunrise Charity Gala taking place at the Glen Head Country Club, will directly benefit the families coping with the realities of cancer. Sharestates and the Sunrise Association ask for your generosity, and support during the Sunrise Charity Gala on May 4th.