Park Place Property Management

208.377.3227

Construction is Slowing Down in Idaho

The heady days of 2015 and 2016, where Idaho frequently led the nation with double-digit growth in construction jobs, seems to have tempered in 2017.

constructionThe number of construction jobs in Idaho did reach a nine-year high at 44,500 in February, but the sector has been shedding jobs each month since then and hit 42,900 in May, according to the Associated General Contractors of America.

The May job count is still 3.9 percent higher than in May 2016. But Idaho ranked only No. 21 among the states in year-to-year job increases in May after routinely sitting at No. 1, 2 or 3 through much of 2015 and 2016. In those years, year-to-year increases were often between 10 and 14.8 percent, according to AGC statistics.

“Last year we were out of control. That’s not really a sustainable pace,” said Todd Bloom, owner of B&B Steel Erectors, a Boise general contractor.

The spring slip in construction jobs can be attributed to the completion of several large-scale projects.

City Center Plaza, the J.R. Simplot Co. corporate headquarters, Hyatt Place and Inn at 500 Capitol construction have all wrapped up in downtown Boise as have three hotels in Nampa and Meridian. New hospitals in Nampa and Meridian are in their final stages of construction. Saint Alphonsus Health Systems has scaled back from 300 to 45 construction workers since February, though the St. Luke’s Nampa work site has ramped up a touch from 255 to 290 workers since February.

Idaho has hovered between 39,000 and 44,500 construction jobs since November 2015 after sitting at 33,000 to 35,000 for most of 2013 and 2014. Idaho reached its highest number of construction workers in June 2006 at 53,300, according to AGC statistics.

Bloom believes Idaho can reach those numbers again – but at a more gradual growth rate. He thinks there will be a shift from large buildings.

“A lot of it is going to be infrastructure projects,” Bloom said. “Our infrastructure is in need of dire help. It has to be a coordinated effort between government policy and private investment. The cities and counties have to do a better job at urban planning.”

Idaho Business Review

Posted in Uncategorized | Leave a comment

4 Ways to Survive Future Real Estate Market Crashes

The real estate market may be very healthy compared to what it was five years ago, but that doesn’t mean we’re in some sort of eternal bliss. There will be rough patches ahead — and likely a couple more crashes in your lifetime — but how can you as an investor safeguard yourself against them?

4 Ways to Protect Yourself

“Historically, economic activity rises and falls in marked business cycles,” senior market strategist Susan Green explains. “Periods of recession appear and recede approximately every 5-10 years.” Thus, it’s reasonable to expect that we’ll encounter some economic issues in the next few years. They may not be as dramatic as what happened in 2008, but reverberations will likely be felt in the real estate market.

Luckily, there are a few ways you can protect yourself.

1. Buy properties that rent below the median.How to find an apartment in Nampa

You have to think one step ahead of the market. While it’s a good rule of thumb to have the best property on the street, you don’t want to be stuck charging a rent that’s higher than the median in the area. This may be fine during times when the market is healthy, but you’ll get swallowed up when the market falters.

People still need a place to live in a down market, but they’re naturally going to gravitate towards what they can afford. By purchasing properties that rent below the median, you can maintain steady occupancy rates, regardless of what’s happening in the larger economy.

2. Be the best property owner possible.

It pays to be a good person. When you’re a likeable owner who works with people, deals with maintenance issues in a swift manner, and charges affordable rent, people are more likely to stick with you when the market turns.

On the contrary, if you’re a jerk and tenants are just renting from you because you were the only option at the time, they’re going to bolt the moment they can. Focus on building a strong reputation now so that you’re better equipped to survive a potential crash.

3. Be realistic with cash flow numbers.

calculating1

When purchasing a new property, it doesn’t do anyone any favors to plug in vague numbers to determine monthly cash flow. Be conservative and honest.

“You should sit down at the computer, open a spreadsheet, and factor in all your expenses,” real estate investor Jason Hanson says. “What is insurance going to cost? Is there an HOA fee on the house? Are you getting a home warranty? You want to know down to the penny what your cash flow will be on a property.”

When the market does eventually take a downturn and rental rates decrease, you’ll at least know that you have some play in your numbers. On the other hand, if you were liberal with your computations, you’ll find yourself underwater in very little time.

4. Pay down mortgages when possible.

There’s always the question of whether it makes more sense to pay down on an existing mortgage or put that money into a new piece of real estate. While there are schools of thought that apply to both, consider paying down rental property mortgages when you can. This gives you some leverage if the market crashes and you have difficulty making payments.

Never Put All of Your Eggs in the Same Basket

At the end of the day, financial diversification is your friend. Real estate may be one of the more stable and appreciation-friendly investments you can make, but don’t put everything you have into real estate. Spread yourself out a bit and diversify as much as possible. This mitigates your risk and provides more tolerance in a down market.

by | BiggerPockets.com

Posted in Uncategorized | Leave a comment

10 Keys to Becoming a Real Estate Investing Legend

1. Be kind.

kindness

There’s a quote by Maya Angelou that just seems to ring more true as the years go by:

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

One of the first things we learn as kids is to play nice—to share. But being kind is more than just playing nice. It has more to do with genuinely caring about other people. It’s investing in them! As real estate investors, our business is deeply people-based. How we treat the people around us is paramount to our success. In this business, trust us: Even when you don’t want to take the high road, even when you don’t want to let go, even when you don’t want to be kind, do all of those things.

It’s not a big playing field, and no one wants to play with the guy who looks like the jerk, even if that guy was completely justified in the action that made him look like a jerk. Being kind always trumps being a jerk or burning a bridge. Even if you have to part ways, you can do it amicably.

2. Master your niche.

Another saying? The jack of all trades is the master of none. Be a master. Hone in on your niche and completely master it. Be the undisputed champion. Be the person who talks about your area of real estate investment and causes everyone to stop and listen.

It’ll take time to get that experience under your belt—but that kind of mastery is so worth it, not just for your bank account, but for the wealth of knowledge that you can pass on. Stay humble and remember that it take time. Nothing is worse than someone who wants to tout their achievements after completing two flips. Hold up and spend a little more time figuring out your niche.

3. Stay humble.

The best mentors know what they know and admit what they don’t. Stay humble. There will always be things that you still don’t know! Other investors will know more than you do in other areas. Lean into their wisdom. Listen. Pay your dues while you’re still learning—and even when you’ve spent 20 or 30 years in the business.

Humility is one of the best qualities you can have, period—not just for public opinion’s sake, but because it prevents hubris, which prevents us from making stupid mistakes. Stay humble and seek to educate first. Learn to educate in your niche from a point of humility, and your legend will be on its way.

4. Never stop learning.

mentor

Hand-in-hand with humility is realizing that you always have more to learn. No matter how long you’ve been in the real estate investment game or how old you are, keep pushing your education forward. Keep learning more because there’s always more to learn.

This is one of the best lessons I have ever been taught by my own mentors. The world changes quickly. Never think you know it all, and never discount others and what you might be able to learn from them. Spend your time with your eyes and ears open, and you just may be amazed at what you learn.

5. Find your own mentors.

One way to keep learning is to sit at the feet of the investors and experts you trust most. Not only do you get to lean on their wisdom, but you can learn from their character, too. They’re your mentors for a reason, remember. If you want to learn from and emulate them, there’s a reason. Surround yourself with people you want to be like. The company you keep matters. You will become the six real estate investing mentors your surround yourself with.

6. Make genuine connections.

Network, network, network! So many investors neglect this key step on their journey. Building up professional connections is key not only to generating leads, but to crafting a network that creates the support and structure your business needs in a way that’s mutually beneficial for everyone. That does not mean pass out business cards and then stand in the corner nor does it mean constantly e-blast and blink-copy every business card you have ever been given. Take time to try and make genuine connections.

7. Go above and beyond.

The best real estate investors have something in common: They all go above and beyond. You’ll never find a legendary real estate investor who settles for second rate. They all value excellence—in their services, in their properties, in their deals, in their effort, in everything. Be prepared to make some sacrifices if you want to be that investor. Along those lines, be prepared to give first when you are thinking of going above and beyond. Give before you ask and always give at a level that astounds the person on the other end.

8. Value the details.

Speaking of effort, another way to ensure your status as legend in real estate is to simply pay attention and value the little things—details. Do you make sure to remember things like names? Dates? Thank you notes? Do you follow up? Remember to make good on your word, even if it wasn’t an explicit promise or deal. People pay attention to those little details that add up to a whole lot of integrity. Don’t neglect those little things that don’t necessarily make a direct impact on you business but make a big impression nonetheless.

9. Own your mistakes.

A huge part of your reputation hinges on how you deal with failure and mistakes. Are you the type to pass the buck (and the blame) on to someone else? Do you mope and complain and deny your responsibility in mistakes and mishaps? Or do you own up to it and take charge of the situation? Think about it. The way you deal with the worst of what real estate investing throws at you says a lot to your colleagues.

man in jeans and brown shoes walking down the sidewalk with grass in the background10. Keep pushing forward.

In the face of difficulties, the best thing you can do for your reputation is to keep going. It won’t be easy, but when you show perseverance and the will to carry on, it says a lot about you. Many of the best investors you will find today, those who may truly be legendary, are the ones who persevered through the toughest real estate climate any of us can remember. They put their heads down and went to work—not after the crisis, but through the crisis. They kept pushing forward; they took hard meetings, made tough phone calls, and continued to believe they would succeed. These are the true legends of real estate, and their example of finding a way should be one you seek to emulate.

-Chris Clothier, Bigger Pockets

Posted in Uncategorized | Leave a comment
Park Place Property Management | 625 S. Stratford Dr. Ste 200 | Meridian, Idaho. 83642 | Phone: (208) 377-3227 Fax: (208) 376-3884 | pppm@parkplaceid.com
Rental Property Management Serving Boise | Meridian | Nampa | Kuna | Eagle | Star | Caldwell