Real Estate Fun Facts For Interesting Conversations

Real Estate Fun Facts

for Interesting Conversations

Cool Business Models

Land Lease

Why buy the building when you can just own the land beneath the building? Doing it this way you can make the owner of the building on your land lease to you. This creates substantial dependable income.

Benefits – you generally don’t have to do much with the building. Any issues they have are their own. So you just collect a check.

Sometimes you can even put a time limit on whoever builds on your land so that in say, 100 years, you get the building on top of your land.

Quite the multi-generational play!

Buy & Lease Back Agreement

Let’s say you own a building, in addition to owning the company that occupies that building, but then you sell the building to an investor and become the tenant. This earns you a lot of cash and provides the new property owner with reliable rental income.

Considerations: parking, signage, utilities, insurance, ingress/egress, and renewal options!

Is it worth it?
Unless you’re trying to grow into new locations rapidly, this usually isn’t the best long-term play.

My suggestion – Refinance the property and pull out the appreciated value then buy another property.

Master Lease

Let’s say you lease an entire office building containing 10 individual offices.

You can make a profit by leasing out all the smaller offices for a greater sum than your master lease amount. So if your monthly master lease amount is $10,000 and you rent each office for $1,500, then you will make a profit of $5,000.

Building owners like this because it “fills up” their property relatively quickly and gives them less oversight because you essentially become a mini version of the building owner.

A word of caution – You get one thing wrong (e.g. parking) and you’ll have a lot of trouble filling up your units.

Master Lease

Let’s say you lease an entire office building containing 10 individual offices.

Building owners like this because it “fills up” their property relatively quickly and gives them less oversight because you essentially become a mini version of the building owner.

A word of caution – You get one thing wrong (e.g. parking) and you’ll have a lot of trouble filling up your units.

Master Lease

Let’s say you lease an entire office building containing 10 individual offices.

Building owners like this because it “fills up” their property relatively quickly and gives them less oversight because you essentially become a mini version of the building owner.

A word of caution – You get one thing wrong (e.g. parking) and you’ll have a lot of trouble filling up your units.

Avoid Real Estate Scams

Rental Scams

Searching for a new rental home can be daunting and stressful, especially if you are on a tight schedule or looking to rent in a hot market area. Unfortunately, this can make it easy to fall for rental scams.

By doing careful research and being attentive to red flags, you can avoid becoming the next victim. In this video, we’ve compiled some common red flags and tips to help you avoid becoming a victim of real estate rental scams.

Looking to rent a home in Phoenix, Arizona? We can help! As part of our streamlined rental application process, we put you in contact directly with the property management to ensure a smooth and transparent rental application process.

Home Buyer Scams

Buying a new home or making a real estate investment can be time-consuming, stressful, and complicated. There’s nothing quite like finding out that the seller has accepted the offer on your new home…and then it’s time to send your down payment.

But how do you make sure that your down payment goes to the right place?

Watch this video to learn about the most common home buyer scams and how to prevent your exciting home-buying experience from becoming a financial tragedy.

A Lesson from History

Understanding the Sales Agreement

When making any kind of real estate investment, it’s crucial for both parties to have a mutual understanding of the terms of the sale.

Does the person selling the property have the right to sell it?

Always read the fine print.

Even well-intentioned transactions can lead to disappointment if there’s a misunderstanding about what is actually being exchanged or agreed upon. Ensure clarity and avoid potential issues by reviewing all purchase and sale agreement details thoroughly.

Understanding the Sales Agreement

A Lesson from History

When making any kind of real estate investment, it’s crucial for both parties to have a mutual understanding of the terms of the sale.

Does the person selling the property have the right to sell it?

Always read the fine print.

A Lesson from History

Understanding the Sales Agreement

When making any kind of real estate investment, it’s crucial for both parties to have a mutual understanding of the terms of the sale.

Does the person selling the property have the right to sell it?

Always read the fine print.

Unique & Unconventional Real Estate Developments

From Courtroom to Court

On the fifth floor of the Supreme Court building, there is a gym with a basketball court, known as “The Highest Court in the Land,” located literally above the Supreme Court’s courtroom.

Unique amenities, such as a basketball court, provide significant value to the lives of the people working in the building while enhancing a property’s appeal and desirability.

Commercial property management for unique amenities can be complex.

Due to the expected wear and tear, regular inspections are essential to ensure that the basketball court (and the rest of the property) are well-maintained. Safety standards, such as maintaining flooring, lighting, and equipment, must be rigorously upheld to prevent on-site injuries.

With effective property management and a proper understanding of the intricacies of maintaining and managing a property with unique features, the enhanced property value and tenant satisfaction can provide a substantial real estate investment return.

Residential Airplane Parking

“Fly-in communities,” or “airparks” are residential communities designed for aviation enthusiasts, where residents can park their airplanes in their homes. These communities have private runways, allowing residents to take off and land their planes directly from their homes. These homes are built with attached or adjacent hangars, allowing for spacious aircraft storage and maintenance.

Investment Potential

For real estate investors, airparks can be a lucrative opportunity to tap into a niche market with specific and affluent buyers and tenants who value convenience and exclusivity. The shared interest in aviation fosters a strong sense of community, which enhances the property desirability — driving up the demand and value.

Before investing in an airpark property, a few considerations include initial costs for purchase or development, ongoing maintenance costs, and ensuring regulations and compliance.

Explore the fly-in airport communities in the US.

Secret Apartment With a View

There is a secret apartment on the third level of the Eiffel Tower. The apartment is located 935 feet (285 meters) above the ground and offers a stunning view of Paris. In contrast to the industrial steel framework of the tower, the apartment was designed to feel comfortable and cozy.

Gustave Eiffel, the engineer behind the Eiffel Tower, received many extravagant offers from people wanting to spend just one night in this exclusive apartment. His selectiveness in who could stay at the apartment only heightened its fame and desirability.

This is a great example of how building a reputation of exclusivity can increase a property’s value, and when these principles are applied to modern-day rentals, they can drive up leasing rates alongside maximizing your rental income and therefore increase the property value.

Secret Apartment With a View

Homeowner Traditions

Burning Your Mortgage Papers

Paying off your mortgage is a huge personal and financial milestone that brings a profound sense of financial security. Whether you are a residential homeowner, a property manager, or a real estate investor, achieving this milestone is a testament to your financial stability.

When you don’t have a monthly mortgage payment, you can allocate those funds toward other investments, savings, home improvements, or maintenance, which can help increase the property value.

The sense of liberation and pride that comes with making your final mortgage payment has given rise to the tradition of burning mortgage papers. This act symbolizes the end of the mortgage journey and the beginning of true home ownership.

Celebrating True Home Ownership

As property managers, we understand the value of home ownership!

Being mortgage-free gives homeowners an advantage when dealing with potential buyers or tenants because it allows them to wait for a good offer without the pressure of a mortgage payment. By taking desperation out of the equation, as a mortgage-free homeowner, you can negotiate from a position of financial strength.

Watch this video to learn about some interesting ways to celebrate that final mortgage payment.

Real Estate Flops

We Work Did Not Work

As property managers, we understand the importance of filling an office building with tenants and acquiring rental income. WeWork’s objective was to earn more money for its tenants by creating trendy office spaces that would encourage its employees to work in the office rather than working from home.

In theory, this was a fantastic idea – until it wasn’t. Following the Master Lease Business Model can be very risky.

The Empire State Building

The Empire State Building is an internationally recognized symbol of prosperity, and it is beloved by tourists visiting New York City from all over the world. Property management prepared itself for crowds of Americans flocking to work from inside this great American Empire.

Can you imagine looking up from your screen and soaking in that breathtaking view of the city?

But in 1931, at the start of the great depression, the demand for office space rentals was less than anticipated.

The Simpsons House

Is this a true fan’s dream home or a real estate flop? In 1997, a painstakingly accurate real-life version of the Simpson’s house was constructed in Nevada as part of a sweepstakes.

The winner could select between two prizes – a brand-new orange, cartoony house, or a cash prize amount. Taking the cash sum might be appealing, but with the right property management and marketing, this unique, eccentric has great real estate investment opportunity potential.

The Simpsons House

Is this a true fan’s dream home or a real estate flop? In 1997, a painstakingly accurate real-life version of the Simpson’s house was constructed in Nevada as part of a sweepstakes.

The Simpsons House

Is this a true fan’s dream home or a real estate flop? In 1997, a painstakingly accurate real-life version of the Simpson’s house was constructed in Nevada as part of a sweepstakes.

Crazy Real Estate Projects from the Past

Oil Rigs in LA

California is known for its commitment to health consciousness and environmental sustainability, so it might be surprising to learn that there is a substantial oil rig presence within the urban landscape of Los Angeles. Aside from the environmental concerns surrounding these oil rigs, they can also impact property values (both positively and negatively), zoning regulations, and the health of residents in nearby areas.

For real estate investors, it’s important to consider that investment opportunities in close proximity to oil rigs will come with challenges, such as fluctuating market trends and complex property management needs.

The House That’s Not a Home

Have you ever noticed a charming house that looks perfect – maybe too perfect, but something is off?

If you watch closely, you might notice different people coming and going, and a few subtle signs indicating that this house is not a residence. These disguised electric substation houses keep the neighborhoods quieter, safer, and help the surrounding homes maintain their property values (because who wants to live next to an ugly, loud, transformer) while seamlessly powering the neighborhood.

The Hollywood Sign

The Hollywoodland sign was first established in 1923. It started off as a temporary ad for a housing development in the Hollywood Hills, but ended up becoming one of the most recognizable historic landmarks worldwide. Through its ups and downs, deterioration, loss of letters (“LAND”) in 1949, and eventual replacement in 1978, its transformation alongside the growth of the film industry, is a great example of how creative marketing can impact real estate developments.

The sign did more than just increase property values – by attracting businesses, tourists, and new residents, it shaped the Hollywood area into the thriving real estate market we know today, driving a consistent demand for property management services as investors and developers strive to maintain and enhance the value of their holdings.

The Hollywood Sign

Historic Highlights

British Texas

Selling a home is a big deal in the real estate world, but imagine the complexities of negotiating for the sale of an entire country!

In 1854, Sam Houston took on a monumental property management role when he negotiated the annexing of the Republic of Texas, making it the 28th state. Just like any other real estate transaction, negotiations were intense, but once Britain became interested in Texas, the United States could not afford to pass up the opportunity.

Repopulating a Country

As property managers, we understand the importance of filling a property with tenants and, more so, the importance of filling a country with residents.

Although the exchange of people for chickens is not an ethical practice, this is exactly what happened as Israel sought to work with Romania to increase its Jewish population.

San Francisco is Built on Sunken Ships

California’s high property values, which soared during the California Gold Rush, presented a unique property management and real estate development opportunity. Abandoned anchored ships became real estate developments such as affordable housing, hotels, and jails.

Over time, many of these ships rotted, sank, or burned in the Great Fire of 1851 – As the city expanded, real estate developers just built right over the sunken ships.

San Francisco is Built on Sunken Ships

Over time, many of these ships rotted, sank, or burned in the Great Fire of 1851 – As the city expanded, real estate developers just built right over the sunken ships.

San Francisco is Built on Sunken Ships

Over time, many of these ships rotted, sank, or burned in the Great Fire of 1851 – As the city expanded, real estate developers just built right over the sunken ships.

Haunted and Horrifying RE Tales

Scary Spaces

Picture this! You’re overseeing maintenance on an old rental home and the AC tech tells you that he found a creepy room and a secret passage in your home!

If you ever find yourself in this situation as a property manager, it’s a good idea to notify the landlord immediately. The landlord might not have done these “renovations,” and it would be important to figure out who did it and why, especially if it has caused damage to the property. Something else to consider is that these additions, once found, need to be inspected by licensed contractors for regulatory compliance to ensure that they don’t pose a safety risk to the residents or neighbors of the property.

Looking to add your own secret room to your home? Check out these less creepy ideas.

Listing a Haunted House

Do you have to tell the buyers if a house is haunted? Maybe – depending on where you live. If you’re a realtor or property manager in Arizona though – good news! You don’t have to disclose if a property is haunted.

Hauntings, deaths in a home, and other paranormal activity can affect real estate property values, especially if the house has gained a reputation among the neighbors. So it might still be a consideration to disclose the information instead of having a buyer or tenant feel deceived if they find out after the fact. Fortunately, haunted houses can attract a niche audience so finding a nice balance between spooky stories and not scaring away the potential buyers or tenants is key.

Looking to buy, rent, or sell a haunted house? Here are a few things to consider.