US Reporter

Things to Consider Before Investing in Real Estate

Cindy Smith Cindy Smith on March 21, 2023

A lot of people are getting involved in real estate investing, and for good reason. It is by far the best way to replace your income and build your wealth. However, before investing your hard-earned money into real estate, it is wise to ask important questions about the property, yourself, and your goals. We caught up with tax attorney and real estate investor Brian Boyd, author of Replace Your Income: A Lawyer’s Guide to Finding, Funding, and Managing Real Estate Investments for his expertise on what important questions you need to ask yourself before plunking down your money. Ask yourself the following:

Is this a property that I would be willing to live in?

This question places the property in a perspective that is more important to you than you know. Why is it important to you? Because you do not want to be a slumlord. You want your investments in the community to reflect your character. Thus, you must be willing to either make the property something you would live in or make it something you are not ashamed of. Every property you own, whether it is a single-family home, a duplex, apartment complex or a short-term rental should be safe, warm, free of pests and rodents, have operable utilities, and be clean. If the property you are looking to buy as an investment does not meet those criteria, then you should not buy it or buy it and make it that way. Investors owe our communities our best efforts, and you owe it to yourself and your legacy to own good properties.

Does this property help me?

Real estate as an investment, whether short-term or long-term, should help you financially and holistically. This is not a New Age philosophy espoused to give you spiritual guidance. This is simply advice to new investors to take stock of themselves before they become responsible and accountable to others. In this case, those others are your tenants, City or County Code Inspectors, and a host of other people that you have never met. If you are not ready to be a landlord, are you ready to hand over the responsibility for your investment to a property manager? This is important because that property manager is now in control of your investment. Property managers can be life-changing for the better, but no one cares more about your investment than you do. So, does the property help your financial picture, and does it enhance or diminish your enjoyment of real estate investing? Financial success can be mutually exclusive of your holistic being. Turning the day-to-day issues over to someone else can be your answer to enjoying your investment. There is no wrong answer to this question, but there is always an answer for you that will bring you peace of mind.

Does this property help me get closer to my goals?

As you move forward in your investing life with real estate, you will see many different ways to invest. Long-term, short-term, residential, commercial, land, storage units, flipping contracts, wholesaling of contracts, and the list goes on and on. Does your target investment help you achieve your ultimate goal? Does buying a single-family long-term home help you get closer to your goal? Or should you buy a short-term rental? Does this purchase meet your budgetary requirements, or are you getting too far beyond your comfort level? Have you underwritten this property? Does it make financial sense? Will you make the profit you need to in order for this investment to be a sound buy? Is there another property that you could do better on? Ask yourself these questions before you consider making an offer on a property.

Once you decide that you want to make an offer, it is helpful to take a few hours and do some quick research. Here is what you need to do:

  • Check the flood zone maps for this property- FEMA has maps of the entire country for you to review.
  • Check the crime rate of the area- the internet is full of crime statistics for just about every zip code.
  • What are the rents for the area? – Rentometer.com will give you an up to date barometer of the current rents in that area.
  • Walk the property with a contractor and if you make an offer- GET AN INSPECTION and then walk the property with a contractor so you have an idea of the costs of repairs.
  • Is there an HOA? Does the City restrict Short Term Rentals in this area?
  • Does the property have a tenant? Get a copy of the lease or the last lease that was in place.
  • Call your lender and get an idea of what your payment will be each month- Numbers matter.

With the above list completed, make an offer. You will never get your second property if you don’t get your first. Anyone can do this; new ventures can be scary, but so was that first time you rode a bicycle and look at you now! I wish you the best of luck in your real estate investing.

Real EstateAbout Brian T. Boyd, Esq.

Attorney Brian Boyd helps clients with real estate, construction, and other business matters, while at the same time growing his real estate portfolio to a six-figure income. He earned a JD from Samford University’s Cumberland School of Law, and an LLM in Taxation from Georgetown University Law Center. His newest book is Replace Your Income: A Lawyer’s Guide to Finding, Funding, and Managing Real Estate Investments.

Joseph McNeal Outperforms Competitors Through His Industry Expertise and Team Synergy

Chris Watson Chris Watson on October 17, 2022

Thousands of real estate and financial professionals enter the competitive industry, hoping to make money and expand their networks. However, despite the growing number of professionals in the industry, finding available advisors and consultants eager to help people make their dreams happen sincerely is challenging. Joseph McNeal is a genuine and driven professional who provides honest and effective services.

Joseph McNeal is a real estate expert, financial professional, and decorated army veteran with over a decade of service. He has over ten years of experience as an investor. He is a top business developer who knows how to use marketing, recruiting, real estate and financial planning to succeed. Joseph and his team can benefit almost anyone in the United States. 

The financial and real estate guru holds a MBA in marketing, certificate in alternative investments from Harvard Business School Online, a graduate certificate in real estate and construction management from Denver University, a graduate of the REALTOR® Institute, a military relocation professional, and a certified Pricing Strategy Advisor. 

Joseph’s team is well-known in the industry for having extensive business development experience through marketing, real estate, and financial planning strategies. Joseph advises sellers, buyers, and investors on marketing and purchasing property at the best price. Joseph assesses clients’ needs and financial capabilities. Their customers are typically business-minded individuals with a household to protect.

Leo Greyson, one of their clients, recommended Joe: “Joe goes above and beyond to help people with marketing and business mentorship.” His knowledge of the real estate industry is exceptional. You will feel like a long-term friend and partner to him because of his professionalism and people skills”

These testimonials only serve to reinforce their impeccable reputation. Their streamlined and synergistic services scale across multiple platforms to set them apart from the competition. In addition, Joseph and his team’s education, experience, and industry accomplishments add to their company’s expertise. In addition to being one of the industry’s top players, he has taught college courses in occupational studies, business, martial arts, science, and fitness. Moreover, Joe enjoys off-roading, martial arts, traveling and reading when he is not growing his business, investing, or training.

Joseph conducts comparative market analyses to estimate property values and personal financial reviews to assist clients in meeting their financial objectives. Joseph is a lifelong learner with an MBA, MS, BA, AAS, and AA. The real estate and financial professional’s military background includes being a U.S. Tactical Combatives Instructor, Army Aviation Technician, Master Fitness Trainer, and Master Resilience Trainer. 

Joseph’s ambition demonstrates his strong desire to serve his clients truly. He wants to help more people and have a unique interconnection of skill sets that work synergistically to maximize his unique selling proposition.

Entrepreneur Ahmed Elbatrawy enhances Jeddah’s Real Estate by Developing the Region’s Most Reliable Real Estate Platform

Lynda Gomez Lynda Gomez on September 12, 2022

Many global and domestic investors are drawn to the Middle Eastern real estate business, like Jeddah’s real estate. As a result, billions have been invested in the region, making it one of the fastest-growing real estate markets in history.

However, while the industry in the region is flourishing, it is still largely unregulated, with only a few rules and laws in place to safeguard buyers, sellers, and renters. While this may help investors and developers, it may harm individuals and companies wanting to buy or rent property in Jeddah and the rest of the region.

A Force for Change

Ahmed Elbatrawy, CEO of Ahmed Elbatrawy LLC, intends to stabilize the region’s real estate markets by instituting rules and regulations through his platform, Multiple Listing Solutions (MLS) Arab MLS Matrix. With the support of his companies, E Systematic Egypt and DSP technology Dubai, MLS lists apartments, villas, commercial properties, and businesses for sale in a secure environment. This platform will be crucial for real estate professionals, investors, and consumers. MLS will act as both a centralized property management system and an online platform for selling properties, as it serves one of its primary purposes of contributing to the region’s economic growth and development.

The benefits of MLS

MLS will be a hub for real estate professionals searching for properties that fit the demands of their clients. It also provides buyers and sellers with the most accurate and up-to-date market information.

In addition, MLS is a powerful resource for research and analysis. Agents and analysts can spot trends and patterns in sales by analyzing data over time. The platform also helps clients make well-informed choices about buying or selling properties by establishing fair pricing for all communities and providing accurate tax information.

“We aim to assist investors from all over the world as well as consumers who want to buy real estate and increase the brokerage return on investment by ten times, at least in Egypt and the Arab world,” Elbatrawy says. “We want them to have easy, secured, safe, and trusted transactions, and also a better communication channel between one another and other real estate investors worldwide.”

Moving Forward

Elbatrawy’s work on this initiative has been ongoing for about a year. He has already received over 200 million EGP to roll out this project in Egypt through his new company E systematic and another $100 million from the Gulf region for the project’s expansion through his Dubai company DSP technology . He wants to make a safer, easier, and more convenient environment for people in the region to find and purchase that perfect home and take all the real estate business at the Middle East globally. 

“I’m changing the whole Arab world’s real estate business industry with new state-of-the-art digital solutions in a way that will match the upcoming vision for all the Middle East governments – to build great futures and strong economies like Egypt, Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait.” Elbatrawy proudly shares.

About Ahmed Elbatrawy

Ahmed Elbatrawy is a successful Egyptian-American entrepreneur known as one of the big Real estate brand in America who aims to redefine the Middle East’s real estate industry. A solution-driven man, Elbatrawy believes in a people-first approach, devoting a tremendous amount of time to sharing his knowledge and expertise with the world.

Visionary Entrepreneur Dan Lee Dominates the Real Estate Scene With Highly Entertaining Videos

Cindy Smith Cindy Smith on August 10, 2022

In this day and age, having the talents and skills is no longer enough to succeed in a particular field of endeavor. In order to achieve genuine success, one must also have the passion, commitment, and dedication to translating their vision into reality. As a matter of fact, luminaries who have made significant marks in their respective trades are known not only for their achievements but also for the meaningful and long-lasting impact they left on others. Such is the case with real estate mogul Dan Lee, a visionary whose relentless drive has taken him to great heights. 

If there is one thing that Dan has proven, it is that being an innovator can help one secure a competitive edge even in a highly cutthroat environment. As someone passionate about mastering his craft, he took it upon himself to engage in ventures that would allow him to maximize his potential and broaden his horizons. For this reason, he chooses to be relentless with his pursuits and make the most out of opportunities for growth and expansion. Currently, Dan has been making waves in the digital space by uploading entertaining and engaging real estate videos. 

Through his patience and perseverance, Dan became an acclaimed real estate agent. On top of that, he is also a three-time industry finalist for Large Agency of the Year in his state. He was also a two-time finalist of the Industry Sales Person of the Year. Due to his unique style of marketing a property, he made it to the Today Show for a segment.

Standing at the helm of PlumProperty, Dan Lee has established a reputable standing in the world of real estate and entrepreneurship. Although his company is now considered one of the emerging authorities in the industry, the visionary still likes to look back on his humble beginnings and remind himself of how far he has come. According to him, his business began as a small enterprise before it flourished into the powerhouse it is recognized for today. With his inspiring growth, he encourages aspirants and dreamers to keep moving forward. 

Since its inception in 2016, PlumProperty has served as a beacon of excellence and trustworthiness. At present, the company has 45 staff members and has generated $1.5 billion in property revenues. With his creative flair and innovative outlook, he has shown how powerful social media platforms are, heavily determined to continue revolutionizing the industry by creating videos that are not only unique but also very entertaining. 

“Start small, keep your fixed costs down. Clients don’t care about your flashy office. They care about service and results. A lot of clients like the fact that you are a small business and are hustling to achieve your goals and are more willing to support you with their business,” Dan said. “Treat your staff well, and your best staff like heroes, engrain them in the business, and reward staff frequently for great results. Hold amazing team meetings, make them fun and motivating, celebrate the wins with everyone, celebrate anniversaries and birthdays and top performances.”

Unique Digital Platform Realesto Meshes Blockchain Technology and Real Estate to Make Investing Available for the General Public

Lynda Gomez Lynda Gomez on May 11, 2022

With money comes investment opportunities. 

Knowing what to put money towards to generate passive income can be confusing when there are a multitude of options to choose from. While advice generally revolves around stock, real estate investing is the second at the forefront of people’s minds. 

A sought-after form of investment throughout history, its benefits are undeniable. As explained by Roosevelt, former U.S president, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

Drawing investors in at an incredibly fast pace, the sector has recently seen some of its most profitable numbers, beating pre-pandemic statistics. 

Unfortunately, this surge of interest is dwindling the availability of properties to purchase, causing the remainder of them to soar up in price. Getting a foot in the door is now harder than ever before, especially for lower-income households. 

In an attempt to open the market to everyone, Usman and Sehrish Khan, founders of Realesto, a blockchain-based platform for real estate, have made it their mission to offer a new approach. 

“When we started exploring our deep interests in the Real Estate industry, there was a common theme we came across every time we had to make a decision on making an investment. Given the problem solvers we are, we asked ourselves how we can make this process simple and profitable for everyone using technology? We believe answers lie in data, blockchain, and partnerships. Realesto is our attempt in doing just that,” explains Usman. 

By meshing technology and investing, the duo put forward their extensive background in software engineering to create a revolutionary digital platform that would allow everyone and anyone to get in the game. 

Leveraging the incredible uses that AI technology has, Realesto vets real estate investment opportunities for long-term viability. Through this process, investors can start putting their money towards residential properties with a bare minimum of just $1000 – without extra fees or hidden costs. 

Though they are only accepting investment from accredited investors in Realesto’s initial stage, they hope to open the platform to the general public in the future.

“Our greater mission is to bring institutional-level wealth generation opportunities to everyone. Grow together as a community, using the latest technology tools,” say both Khans.

With the Global Tokenization Market expected to grow in the coming years, Realesto is leading the way for future investors to expand their portfolios.

Visit their website here to keep up with upcoming opportunities and learn more about Realesto. 

Learn How Jason Lee Villarreal Is Shifting the Real Estate Marketplace One Luxury Home at a Time

brittanymeyers brittanymeyers on February 22, 2022

Jason Lee Villarreal is an American Real Estate Professional based out of Houston, Texas. The luxury real estate agent is known in his Marketplace as the go to for luxury real estate — In his career, he has successfully done over $250 million in real estate transactions. The successful

agent wants you to know when listing your home — It’s not the market, it’s the marketing. With many reasons to include, Jason Lee Villarreal has been able to separate himself in the marketplace with his proprietary listing concepts that help the clients he represents sell fast and in most cases over asking price.

How Jason Lee Villarreal Helps Helps Sellers Win

As an experienced agent, Villarreal understands the various corners that are cut by agents when listing homes. When it comes to prepping a home for sale, Villerreal stands by his core values and integrity. Through his representation, Villarreal goes above and beyond with additional allocation of time and effort over a majority of the agents in his marketplace. With communication and alignment, Jason takes information from his exclusive clients to ensure their homes are staged in a meaningful way. Villarreal offers in house staging — a service agents typically outsource to third party providers. By offering staging in house, Jason is able to make sure that the home is marketed and presented in a way that he knows will interest buyers in the marketplace.

What Sellers Should Know When Listing Their Home(s)

Jason Lee Villarreal wants you to know that when listing your home, it is important to understand your market. In today’s housing market, there are easy ways to get a step ahead of those in the market looking to sell their homes that are in direct competition with you. Furthermore, Villarreal went on to say the following helpful tools are readily available and should be ensured to be provided by your seller agent. These such benefits include: Professional Photo and Video Production, Short Video Reel(s) Or buzz videos, Local Press and Media Coverage, and Overall Digital Marketing promotion or advertising. Seen by many as a no brainer, a large chunk of the marketplace lacks these low cost resources when listing their home. When aligning with a seller agent for your home, make sure you ask quality questions about their Digital Advertising strategies that they plan on utilizing through the process of listing and selling your home.

The Future For Jason Lee and How You Can Reach Him To List Your Home

As a listing agent with Martha Turner Sotheby’s International Realty, Jason Lee is excited to further expand his efforts and proven concepts throughout the greater Houston marketplace. If you are looking to list your home, Villarreal is seeking to take on new qualified clients. In today’s real estate climate, there has never been a better time to sell your home for its appraised value or in some cases even over asking price. To learn more about Jason Lee Villarreal and how to get in contact with him, click here.

Steve Haddadin: The Real Estate Prodigy and His Passion to Serve Others

brittanymeyers brittanymeyers on November 3, 2021

Many people seek entrepreneurship as a means to gain financial freedom, but others venture into such a career to create an impact on their chosen industry. For Steve Haddadin, his choice to pursue an entrepreneurial career was grounded on his passion for serving others. Having been in the Real Estate industry for years, he founded King Real Estate Group to help elevate the industry through prioritizing his clients. 

Steve Haddadin is an entrepreneur whose passion for Real Estate started when he was 18 years old. He worked in several aspects of the industry, from selling Commercial and Residential properties, management of Office and Retail properties, Lending, and Development in Orange County and Riverside County. His experience instilled a desire to thrive, but he knew that it would not be enough to let him go far into the business. “In a highly competitive industry, you need to stand out. Having a well-rounded education will help you develop the skills and the tools to better serve your clients.” says Haddadin.

He went on to California State University, Fullerton College of Business & Economics, obtaining a B.A. in Finance and also a Minor in Real Estate from California State University, Los Angeles. While his education has been an integral part of his development, Steve’s wits have helped him obtain several prestigious certifications and designations like Certified Commercial Investment Member (CCIM®) from the CCIM Institute, Certified Property Manager (CPM®) from IREM, and Certified International Property Specialist (CIPS®) and Short Sales and Foreclosure Resource (SFR®) from the NAR. “Earning designations and attaining a higher education helps you build up a knowledge base to better serve your clients, and stand out.” says the Real Estate expert.

Steve Haddadin founded King Real Estate Group grounded on a core value of providing the highest quality of service in the market. The company’s goal is to represent its clients’ best interest, providing them with the best advice to fulfill their Real Estate needs. “Our system is transparent and will make sure our clients are satisfied,” said Steve, “We educate our clients through every step of the process.” Given how harsh the economic environment has become today, Steve believes that it is crucial to offer a host of services, as it is a very competitive marketplace. With a team of experienced and talented professionals, King Real Estate Group delivers solutions to enhance the value of their client’s Real Estate assets.

Haddadin’s passion to serve others is evident in his role as a board member of the Center for Real Estate at California State University, Fullerton College of Business & Economics. Steve reformed the center through fostering numerous industry relations with organizations that he earned certifications from. He has also spent his time connecting with and inspiring students who have a shared interest in Real Estate. He hopes that by his efforts in the community, others can follow his direction to inspire the next generation of Real Estate professionals.

Throughout his career, Steve Haddadin has always pushed the boundaries of what’s possible. Recently, he decided to take his career one step further by enrolling in Capital University School of Law as a 2024 JD candidate to expand his services to the legal side of Real Estate for his clients. Upon completing his studies, Steve foresees his name and brand becoming the center of major Real Estate in Southern California.

You can reach out to Steve Haddadin through his website.

Here’s Why Michael Dobrov and United Group Development Have Become Big Names in Chicago Real Estate

Veronica Thompson Veronica Thompson on April 14, 2021

Getting into real estate investing can be a daunting challenge. Most people will work all their lives to pick up one or two properties and put them under their name. Michael Dobrov of United Group Development is a cut above the rest in that he has grown his portfolio to several properties in record time. And we’re not just talking about a few dozen or even a few hundreds. Try 2,500 properties.

The founder and owner of United Group Development, Michael Dobrov, has become somewhat a legend in Chicago and the whole state of Illinois for his immensely successful work in real estate investing. He has been buying properties for many years and helping hundreds of people with services like short-term financing for commercial real estate. Given the sheer size of his domain, it’s safe to say that Michael Dobrov and United Group Development play a pivotal role in shaping Chicago’s real estate industry. 

Michael started in real estate quite early. His family was already into properties when he started, which helped give him a boost. “I lived in a household that regularly discussed things like the practical know-how of real estate,” shares Dobrov. “That gave me quite an interest in properties and realty.” Dobrov skipped college and moved straight into work after high school graduation.

United Group Development has reached out to hundreds of individuals and corporations and helped them with real estate needs after some time in the field. The company doesn’t sell property but primarily acquires and develops them. Focusing on that niche of real estate activity has done well for the company as it has now become one of the leading real estate firms in the state and even the country. United Group has now grown its revenue effectively to $1 billion since it began in 2014, making it an elite club of real estate investment players to reach ten figures in less than a decade.

In the last seven years, Michael Dobrov has developed more than 25 residential homes and over 2,000,000 square feet of commercial properties. He now has properties in Chicago, Northwestern Indiana, and Wisconsin, among many other areas in the United States. Dobrov’s near-accurate real estate foresight and knack for developing promising areas into large-scale condominiums and commercial regions have turned him into one of the northeast’s biggest property moguls. 

Michael made headlines a few years back for becoming the first real estate developer to finish a large-scale condominium conversion in Illinois. “Many tried to secure the conversion in the past but weren’t successful,” shares Dobrov. “Our tireless effort to work hand-in-hand with individual owners was key to completing the project.” United Group Development completed the condominium refurbishment project within a year.

True to its name, United Group Development’s mission is to unite people in one common goal. For the most part, it’s in the business of building and developing not just properties but communities. To this end, Michael works hand in hand with his family. His wife handles the books while his eleven-year-old daughter gets involved in its corporate social responsibility arm. United Group also regularly supports PAWS Chicago, a shelter for abandoned and stray animals. Together, the Dobrov family and the United Group Development team work hard to acquire, finance, and develop other areas in the United States. To learn more, visit its website.

Bryce Taylor Is a Rising Real Estate Agent on a Mission to Raise New Industry Leaders

brittanymeyers brittanymeyers on April 9, 2021

At the young age of 19, rising real estate agent Bryce Taylor already sees himself raising new and driven industry leaders in the future as his way of paying back all the mentorship he has enjoyed, which is currently empowering him to be one of the most promising agents in the business. He is looking forward to training and educating teens on how to maintain the proper mindset that will allow them to excel in the industry, despite the many obstacles that they will potentially encounter along the way.

The New York-based licensed real estate agent was so motivated to pursue a career in the real estate industry that it only took him one month and a half to finish getting his license. Normally, it takes people four months to finish the entire course. He has always been drawn to real estate because of his outgoing personality. He was convinced that he would shine in the business after growing up watching popular TV shows on real estates, such as Selling Sunset and Million Dollar Listings. 

“Unlike other real estate agents, money doesn’t play a huge role in why I decided to become an agent,” Bryce Taylor shares. “For me, it’s more about helping people of different backgrounds find a place to call home or helping someone sell their home. Overall, just getting the chance to connect with all these people is amazing and brings me joy. This causes me to be really invested in fulfilling my clients’ needs no matter what,” he concludes. 

Bryce Taylor has always been known for his compassionate nature. He has always enjoyed giving back to the community and participating in initiatives that impact other people positively, including helping out at homeless shelters, park clean-ups, toy drives, and going out to exercise his voting rights. Bringing this attribute as he builds his real estate career makes him stand out as he shows genuine care to his clients. He does not see his clients as moneybags. He sees them as ordinary people who are looking for the perfect house to call home. 

Before deciding to go full-time in the real estate industry, Bryce Taylor also showed interest in the practice of law. He attended several law programs at Columbia University and New York Law to get a feel of things. In the end, however, he realized that practicing law is not what he is called to do. 

Pouring all his energy and creativity into his chosen career path allows him to connect with his clients in a meaningful way. Mostly, his clients love that Taylor goes out of his way to help them. When he sets his mind to making a difference in the lives of his clients, he does not stop until their needs are met. 

In the next few years, Bryce Taylor envisions himself becoming a successful real estate agent with a massive client database. By working excellently in this season in his life, he knows that success will be within his reach. Sharing the same possibilities with others is something that he wants to continue doing in the future to help people achieve their dreams and experience financial stability. Confident that his Corcoran training will take him further in his career, Taylor has nothing but positive thoughts about his future and that of the people who will train under him. 

Connect with Bryce Taylor by visiting this website. 

Commercial Real Estate after the Coronavirus!

brittanymeyers brittanymeyers on December 18, 2020

Americans are likely to see more “for rent” signs in the coming months as many businesses devastated by COVID-19 abandon offices and storefronts.

The pandemic has affected the way people use and interact in public space and likely will have lasting impacts on commercial real estate. The coronavirus is now a global phenomenon with two thirds of the world’s population living under some sort of lockdown or quarantine. People can no longer work, meet, eat, shop, and socialize as they used to. The working world quickly transformed from business as usual into office closures, work-from-home mandates, and production stalls. “Coronavirus could restructure America’s commercial real estate and industry,” said Clement Ziroli Jr.

While commercial properties tend to generate high returns, residential real estate properties are known to be much safer investments during a pandemic. While businesses are shutting down, people will always need places to live. So it’s unlikely that the COVID-19 pandemic will have long-lasting effects on the demand for the residential real estate sector. Landlords of single-family homes and small multi-family homes can expect to make rental income. Plus, there are still motivated sellers on the market in 2020.

Clem Ziroli Jr., who served on the Board of Directors of the California Mortgage Banking Association (CMBA) and the Community Home Lenders Association (CHLA), believes that we’re seeing the first signs of stress in the industry as clients are seeking to move out of office spaces they can no longer afford and the number of accounts receivable ticks up.

In early August, news broke that Simon Property Group—the largest owner and operator of malls in the US—was in talks with Amazon, with the objective of repurposing some of the space formerly occupied by beleaguered retail tenants into distribution and fulfillment centers. Amazon had already been converting some sites of “failed malls” in Northeastern Ohio into fulfillment centers. The e-commerce giant continues to perform well amid the COVID-19 crisis, doubling its profits year-over-year to $5.2 billion in the second quarter despite the worst economic contraction ever experienced by the US.

The question begged is what happens next. While some may look to muscle their way into distressed assets, it’s very possible the commercial real estate market will never look the same. This pandemic is something we’ve never experienced before,” notes Clement Ziroli.

“The commercial real estate industry has really been under the radar during this 2020 corona-stricken year, but it’s hurting badly,” Pac W. Dong says. Demand for office space has tumbled. Last quarter, office leasing was at its lowest point since the Great Recession. With that in mind, some developers and financiers are taking a step back from building more office space.

“The pandemic really accelerated a trend toward online shopping and away from in-person shopping,” said Clement Ziroli Jr., acquisitions and leasing specialist. Public concern about the virus might cause some businesses such as movie theaters and malls to experience decreased traffic for weeks or months after reopening. When shopping and travel begin to stabilize, it will be clearer what commercial properties are worth. It will be interesting to see how real estate reacts in a second COVID wave that many believe has already started. “It will bounce back as soon as the world normalizes, but not as quickly as some optimists say,”  Pac W. Dong said.