REALTOR® University will discontinue its master’s program, and NAR will allow members to enroll in Columbia College as a member benefit.
Affordable dream: Housing crisis policies could bring changes to your community
The American dream isn’t dead, but it is evolving.
For decades, the dream has meant owning a home, having a successful career, or having a better quality of life than your parents. Now, it’s more about freedom and family.
A pair of studies released earlier this year showed how the American dream is changing and whether people believe they’re on the path to living it.
When RealClear Opinion Research asked more than 2,000 U.S. registered voters across all age groups and political affiliations in February about the American dream, 37% said the dream was “alive, but under threat.†Another 28% said it is “under serious threat, but there is still hope.†Nearly seven in 10 respondents believe that the American dream “can be achieved by anyone in the U.S. if they work hard.â€
The American Enterprise Institute also released a report in February after collecting more than 2,400 responses across demographic groups to a survey on social capital, civic health, and quality of life in the U.S. The public policy think tank discovered that 40% of respondents believe their family is living the American dream. Another 40% believe their family is on the way to achieving it.
The most essential factors of the American dream are having the freedom of choice in how to live one’s life (85%), having a good family life (83%), and retiring comfortably (71%), according to the research. While owning a home might not be as important as it once was, it is still a critical part of the picture; 59% called it essential.
Unfortunately, owning or renting a suitable home is increasingly out of reach for many in the U.S. Lawmakers, housing officials, and advocates are scrambling to find solutions.
Some states and municipalities are considering accessory dwelling units—also known as mother-in-law suites or granny flats. Some are interested in developing smaller homes on smaller lots in communities occasionally referred to as pocket neighborhoods. Zoning changes and new Federal Housing Administration lending guidelines for condominiums are expected to make a difference in the affordable housing crisis too.
Your community association could be impacted by one or more of these efforts.
Whatever the problem and solution, the American dream is more complex and individualistic than ever. It’s also sure to be a discussion point leading up to the presidential election—now less than one year away.
What does the American dream mean to you?
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Taking flight: What to consider when deploying drones in your community
Drones have rapidly become useful tools for commercial and recreational purposes, including search and rescue operations, surveying damage after natural disasters, and aerial photography. Community associations, whether in a high-rise condominium or a community of single-family homes stretched over dozens of acres, also could benefit from the visual advantages offered by drones.
Drones can document before-and-after conditions, which can assist with insurance claims, as well as normal wear and tear and exposure to the elements, helping an association become proactive about repair work before it becomes an emergency. They also can inspect infrastructure for code violations or gather photos and video to market the community when it’s looking its best, says Bill Holderby, owner and founder of Eagle Eye UAS in Naples, Fla.
When contracting with a drone operator to provide services for your association, Holderby recommends making sure the operator has a Federal Aviation Administration Part 107 license, which shows compliance with safety requirements for commercial operations. All pilots who fly drones for a living must have taken and passed an FAA test, along with a background check by the Transportation Security Administration.
Holderby also suggests asking the operator about their experience flying drones; if they keep a flight log; how they handle emergency situations; who owns the images/video/data from the flights, how it’s stored, and for how long; and how they handle safety.
A community should do some due diligence on drone rules too. Hillary B. Farber, a professor at the University of Massachusetts School of Law, and retired attorney Marvin J. Nodiff, a fellow in CAI’s College of Community Association Lawyers, recommend the following:
- Have some guidelines in place. Make sure that both hobby and commercial drone operators are cleared or approved to fly in the community.
- Address privacy concerns. No drone operator should be flying outside of a resident’s window or over the pool, for example, unless they’re contracted specifically to do that work.
- Communicate with homeowners. Before any association-approved drone operation, inform your residents what the project is, where flights will occur, and when you’ll fly.
- Mitigate risk factors. Potential concerns include electronic component failure, hijacked controls, hacked video feeds and homeowners’ personal data, operator negligence or loss of control, and invasion of privacy.
- Consider insuring against claims of bodily injury, property damage, or personal injury. Standard commercial general liability policies don’t cover aircraft, including drones. The board would need a separate aviation policy or endorsements for bodily injury and property damage, and personal and injury liability, which would cover claims such as invasion of privacy. Any person who operates the drone should be covered as an insured party. In addition, an operator should have specific liability insurance for flying the drone. Most will have a $500,000 to $1 million liability policy.
The post Taking flight: What to consider when deploying drones in your community appeared first on Ungated: Community Associations Institute Blog.
October 2019 Housing Minute
Pending home sales rose while existing-home sales declined on a month over month basis in September.
BiggerPockets Podcast 354: From Rookie Mistakes to Syndicating BIG Deals with Nichole Stohler
From single family to multifamily to hotels!
On today’s show, Nichole Stohler sits down with Brandon and David and discusses her journey from purchasing a single family home to syndicating hotels! Nichole has a fascinating story that started with losing the first house she bought, grew into recommitting herself to learning the asset class of real estate, and ended with massive success through big deal syndications.
You’ll love the advice she shares about managing managers, scaling the right way, and dealing with tenants according to three irrefutable laws. She goes on to discuss keeping properties clean, choosing the right partners, and analyzing economic factors when choosing a hotel or apartment complex.
Nichole reveals tons of great tips when it comes to building wealth through various asset classes of real estate. This show has something for everyone!
C2EX Broker Resources
Managing brokers have administrative capabilities on the C2EX platform to help them enhance and track their agents’ C2EX progress.
BiggerPockets Podcast 353: Turning $5K Into $5K/Month and Retiring at 40 with Tim Rhode
“Trading up†to successfully retire financially free at 40!
On today’s show, Brandon and David interview retired real estate broker Tim Rhode, who explains how he was able to buy great deals and 1031 exchange them into financial freedom!
Tim shares some fantastic advice on playing great financial defense to achieve an early retirement, crushing it in real estate sales, and locking up deals during his first conversation with sellers.
Tim also shares how knowing his market led to him making hundreds of thousands buying land in the path of progress, how to build a “fulfillment triangle,” and how he recognized the market turning in 2006 and cashed out before losing money.
Tim has a huge heart, is committed to helping others get out of the rat race, and shares some incredible advice on how to do so. Make sure you listen for his description of the several levels of financial freedom and his belief that those who make it to the top of the mountain should throw down the rope for the rest still climbing. Download this one today!
Crunching numbers: What goes into a community association’s budget?
Budgets are crucial to a community association’s financial operation. Just like for-profit businesses, association boards should work diligently to develop annual budgets that estimate revenue and expenses for the upcoming fiscal year. A properly drafted budget can help prevent reduced services, deteriorating property, or special assessments.
Many state statutes and most governing documents impose a legal obligation on boards to develop an accurate budget and collect sufficient assessments to cover expenses. A detailed budget helps residents understand why assessment amounts are reasonable and how their money will be used.
Community associations have two types of budgets: an operating budget and a reserve budget. Operating budgets have unrestricted funds that are used to run the association through the fiscal year, while reserves have restricted funds saved for expenses that will occur in the future.
The board is tasked with gathering the necessary financial information to project potential sources of income and expenses, including conducting a reserve analysis, looking at bids for contracts, projecting utility or service increases, and comparing past years’ budget trends.
Certain line items constitute expenses that associations are required by law or contract to pay and should be allocated for first. An association also should allocate contingency funds, separate from the reserve budget, for unanticipated expenses such as extreme weather, economic conditions that could increase fees for products or services, emergency repairs, and lawsuits.
Here are some of the most common expenses that associations should include when drafting the operating budget.
Maintenance. Allocate line items that protect and enhance the community’s property. A maintenance schedule should be developed or amended annually for budget considerations, and service contracts should be checked to anticipate potential increases or to negotiate a better rate.
Taxes. While assessments are not taxable, other sources of income, such as interest earnings, facility rental income, and income from goods and services, likely will be taxed. Other taxes that associations may need to pay include personal property, payroll (if it hires salaried employees), or real estate tax.
Utilities. Associations should measure past consumption of electricity and water to anticipate any increases. Conducting a professional utility audit can ensure meters and other equipment are functioning properly. The audit also can help an association determine if it can reduce expenses by installing energy-efficient systems.
Insurance. An association should ask its insurance professional to audit current property and liability coverage and recommend appropriate protection that fits its needs.
Administrative costs. These include expenses for professional services provided by consultants, reserve specialists, attorneys, and accountants, fees for banking and collecting delinquencies, as well as the costs of maintaining an office, including equipment, supplies, and phone and internet service.
Once your budget is drafted, share it with homeowners so they can review before the annual meeting.
The post Crunching numbers: What goes into a community association’s budget? appeared first on Ungated: Community Associations Institute Blog.
Bonus Audiobook Excerpt: The House Hacking Strategy
Prefer to listen, rather than read?
Here’s a sample of the audio format of “The House Hacking Strategy: How to Use Your Home to Achieve Financial Freedom,” by BiggerPockets’ own Craig Curelop.
In it, you’ll hear:
An overview of the “unfair advantages” house hacking offers
A breakdown of varying house hacking techniques
A real-life case study illustrating the above
You can find the full audiobook here bit.ly/househackaudible.
And don’t forget, Audible is running a special deal for BiggerPockets Real Estate Podcast listeners!
If you’re not yet a member, go to http://www.audibletrial.com/biggerpockets to get a free Audible book and a free 1-month subscription.
BiggerPockets Podcast 352: No Driver’s License, No Money, No Excuses: How Diego Corzo Blazed a Trail to 18 Doors
Eighteen doors by 29 years old by never taking no for an answer! We realize there are a lot of inspirational investors out there, but on today’s show, you’re going to be blown away by one of the best.
Brandon and David sit down with Diego Corzo, a “DREAMer†who moved to the United States with his family at a young age. Fast forward a few years, and Diego jumped headfirst into real estate investing, using house hacking strategies that will work for anyone.
You will be blown away by Diego’s story of how he rode a bike (with his suit in a backpack to avoid getting it sweaty) when he couldn’t get a driver’s license, how he got on the fast track to becoming a millionaire, and how he overcame a speech impediment, going on to give a TED talk!
You will love his fantastic advice on what to look for in a house hack property, which areas to look when investing, and how to target the perfect tenant market. You’ll also appreciate his thoughts on avoiding drama between roommates, vetting turnkey companies, and structuring partnerships. Diego goes on to share some solid info about why he prefers “B†neighborhoods over “C†and why doing your own math is so important when analyzing deals.
This guest is truly an incredible person with an incredible story—not to mention some pretty fantastic investing advice.
Don’t miss out! Download this episode today, and make sure you’re subscribed to the BiggerPockets Real Estate Podcast so you won’t miss the next one!