Portfolio B413

Ryan Martin

During this semester I was able to dive more deeply into research about several
real estate topics. Listed below is a compilation of the research I completed and. Some
topics I really sunk my teeth into because the interest was greater than in others, but all
topics discussed this semester were very interesting.
Real Estate in the EconomyThe economic side of the Real Estate industry has always interested me this
week we had the opportunity to do research out of class on how the economy was
doing, given several sources to find out how the economy was impacted the housing
industry.
Some of the information that I found most helpful was from the census bureau.
This and the Bureau of Labor Statistics which is a great indicator of how the housing
market is doing as it depicts the job outlook and current jobs in the construction industry
which directly effects real estate as you see more construction workers and

management positions in construction companies it shows you that they are confident in
the industry being stable.
Another resource that I use for predicting and checking on the economy that was
introduced to me in this class was the new housing sales, and applications for permits. I
also learned better how to use this information to see how the housing industry can
seem on a high and yet be unstable, by looking at how employment is going how
interest rates are and the general economy, if people arent making money they cant be
buying houses.
During the semester Ive had conversations with several home builders both
national and local ones and I had asked what kind of a buyers market are we looking at
as the economy has stabilized are they starter home, entry level houses or more high
end homes. I received varying responses, the builders here and close by that I spoke
with specialize in custom homes and have seen that there are less and less people
wanting to spend a lot of money on their houses in line with that I spoke with a national
home builder the President of the North division at DR Horton. They build hundreds of
homes a year and expect a huge growth next year. They have been making a lot of
money in the starter family unit especially in the Texas and southern areas. Its
interesting to see the differences in the market just depending on the region youre in.

I had an interesting conversation with a former student and he talked about the
housing crash not impacted some areas and completely destroying others. He said that
in most of Colorado the housing market was pretty stable during the down turn, on the
other side of things in California his old boss had to go out of business just recently,
because he never was able to make up for the loss he had in the downturn and had to
file for bankruptcy.

Market Analysis/Property Research Projects 1 and 2

INTERNATIONAL BUILDERS SHOW

During the beginning of January, I was able to attend the International Builders
Show in Las Vegas, Nevada. This was a great opportunity to learn from the
professionals in the industry of real estate and home building as well as see much of the
new technology and get a better feel of where the market is headed. The main reason
for the trip was to support and participate with the BYU-I NAHB (National Association of
Home Builders) team.
This team competes against schools from all over the United States in a real
estate development project. The same project is given to a team of students at each

school along with some problems that need to be remedied or objectives that would like
to be met. The project is either being considered or already underway by an actual
company.
The teams have three months to complete an all-inclusive project book some of
the things that are included: complete market analysis including analysis of competitors
and a deep look at trends and demographics past, present and future, financial analysis,
all project construction documents as well as several other topics usually totaling over
100 pages of literature.
I learned a great deal from the time that I spent helping the team prepare for the
presentation and watching many of the other schools present and be critiqued by the
judges. I would like to focus on a few of the key questions, concerns as well as good
parts of the presentations that were that stood out to me.

Parking- A major concern and problem that was found with most of the
developments at the competition. The development had over one
thousand people living in it and did not have anywhere near a reasonable
percentage of parking spaces. The remedy to this kind of situation wasnt
simple and the company itself who is developing the project in real time
said that they struggled with the city and finally decided to have a limit on

the number of vehicles allowed, until they could build a parking structure at
a later phase in the project.

Filling a need in the market- This was a great question and should be the
beginning of any market analysis. Does the type of community or type of
home that you will provide fill a need are the demographics pointing
towards a shortage of something you can provide. This is where you
should start otherwise without buyers or renters in the market you wont
make any money.
Something discussed in this semester and at this event was that so many
investors and companies rush into a development without doing the
research and end up finding the market was saturated with that type of
home or property.

Amenities- This is a huge part of what goes into a buyer or renters choice,
are there things to do, places to go, sites to see and are they close. What

does this place have to offer?

Diversify revenue stream- I found this to be very intriguing as well apt.
rentals bring different kinds of income then commercial leasing and so
does home investments or community developments or vacation
properties. Considering all possible revenue streams you can become

diversified enough that the market slowing down on one end wont hurt
you nearly as bad as others who have all their eggs in one basket so to

speak.
Exit strategy - How fast and how much can you cut your losses and the

companies and move on to another project.

Risk mitigation- Murphys law what can go wrong will go wrong how can
you fix it and are you prepared and have planned for things to happen,
working them into development time costs and other aspects of the
project.

During the time I spent at the show I was able to grow my knowledge of building
techniques finances real estate development and purchase and many other things and it
was an overall great experience.

Property Research Presentation 1

Colebrooke dr 2012 Temple Hills MD

I chose my Grandmothers vacant property as my first property presentation. My
goal was to see if it would be profitable to renovate it, lease it, or sell it. This was more of
a study on who would want to buy or rent this property.
I first found the city data/census data that indicated the age, sex, income level,
number of persons in family as well as many other demographics which follow:
Male- 44.6% Female- 55.4%
Age- 31.8
Household income- 57,605

Cost of living 133.4 (average is 100)

Bachelors degree 25 and older 22.8%
Unemployment (2014) 6.6%
Commute 43.5 min
Not married 72.2%
Rent income (2012) $1230
Safer than 7% of other cities in America
Some of these statistics seem hard to overlook Ive highlighted them. Its hard to
get over less than a quarter of the residents graduated college, as well as the income
level is pretty low. Probably most concerning is the amount of crime in this
neighborhood. Since the property she owns is a home 4 bed 2 bath its better suited for
a family which according to the demographics there arent many of those in this area.
On the other hand 1230 for rent would make a good amount of money and can
be easy to handle even with a low income. I couldnt see renting this as I would always
be worried about the crime and neglect and misuse of the property as it is a low style of
life that exists there. I would think the best option would be to sell. We would need new
carpets and to repaint the walls which would cost around $2000-$3000 altogether.

I believe it would be attractive to a buyer who is looking to move into a new job in
Washington D.C. We would have no problem working on a price with the buyer as it is
an asset that we are looking to part with soon.
Selling points would mainly be the amenities in this neighborhood as it is located
just 20 min. from Arlington and Washington D.C. which means that you have access to
hundreds of restaurants, theatres, malls, parks, historical sites etc
In conclusion I would not invest in this community if I had an opportunity to just
to many risks in terms of damages to properties and not finding buyers if you buy a fixer
upper. Hopefully the neighborhood improves.

Property Research Project 2

For this presentation I wanted to try and do something more of the opposite of
what I did for my last presentation as it was more of a failed investment and I wanted to
find one that would actually work.
I wanted to find somewhere people would want to live and come from all over to
find, for jobs, quality of life, amenities and the safety that the community would bring.
Through my searches on the internet and talking with several people from my hometown
and others. I decided that Arlington VA could be one of those places. It is Top 10 in
some of the wealthiest and most desired places to live.

I attribute it to the proximity it has with D.C as well as its own culture of being a
highly educated more of a high class low crime community. I really like these statements
that I found about the community.
Arlington lobbied to run the Metro underground and planned for high-rise and
high-density development nearby. The result is the Rosslyn-Ballston Corridor that
planners imagined as an urban village. Each stop has its own function and identity.
Together, its mix of retail, residential, government buildings, and offices help draw
residents and businesses, but also help support the more traditional suburban parts of
Arlington such as the cul-du-sac, single-family-home neighborhoods of Country Club
Hills and Columbia Pike.
The City is continually growing with a new Hyatt Hotel which will produce over $1
million in annual taxes will create more than 100 construction jobs and provide $2.2
million in benefits to the community. This and dozens of other big projects make this a
bustling city which many want in on and hopefully I was able to pick a good enough
property appeal to those who are ready to live the good life.

Condo Research

The main questions I had about condos were could you rent them out? As well as
could you do renovations in them?
Through searching on the internet I found that it is almost always possible to rent
condos it is sometimes risky though if you dont keep the renter informed about the HOA
decisions as well as parking assignments and use of communal property. I also found
that it is possible to renovate floors, painting, counters, cabinets, appliances but you
cant knock down walls or change anything with the electrical or plumbing of the condo.
I also learned from an investment site that condo owners who rent are expected
to cover the total of your monthly payment, condo association dues, property tax,
insurance and that they should factor in a $1500 allowance for maintenance and repairs.

Arlington Comprehensive Plan mission statement-

Arlington will be a diverse and inclusive worldclass urban community with secure,
attractive residential and commercial neighborhoods where people unite to form a
caring, learning, participating, sustainable community in which each person is important.
Future Prospects-

After performing these studies and listening to others thoughts and other
presenters. Something sparked my interest and that was the foreign rental and property
investment. During my mission in Brasil I found that land value in some places was
increasing at incredible rates properties were being bought for 40k and selling just 6
months latter for 80k this wasnt all over, but there was areas that this happen and as a
result some people made thousands of dollars even the average joe. I recall a story of a
man who built a 4 plex in his spare time it had taken him a little over a year and he had
about 6 months left on the project, due to the fact that he was doing most of the labor
himself. He had spent about 100k on the improvements and 30k on the property.
Someone came an offered him 300k for the nearly completed 4 plex and his year long
investment paid off in big dividends.
I would love to be able to go to other countries and invest in properties to rent out
for vacationers, from what I can tell that is a lot more profitable if not more risky than
buying an average apartment in a downtown area of the states.
I found a property that was listed for around 60k USD and could rent out for
1,800 per month with almost no taxes and little other fees to worry about especially
since utilities there are only about $50 a month.

Land Development Presentation

Tamana Fields Comments

Im excited for this commercial development to be built and have been following the PLZ
meetings closely to see if there is any news. I think that if it were built Rexburg would
begin to grow more and more and people would stop going to Idaho Falls as much. I
would love to see the day when people from Idaho Falls comes down to Rexburg.

Brokerage and Realtor Research

For some time Ive been interested in becoming a realtor and so I did some
research on what it would take to become one and if it would be profitable or not. If it
were profitable I would love to do it as a part time job.
The first thing I did was speak with my friend in Frederick MD, who just
completed (a few months prior) his law portion of the realtor exam. He explained to me
that it is a difficult portion to pass and the certifications, insurance and other fees
associated with becoming a realtor totaled to around $2500 which can be daunting not
knowing how things will go.
I asked him what kind of commission he would get starting out and he explained
to me that he was just lucky he was able to be given the opportunity to join a good
brokerage which helped you get your first few homes and has a great training program
they actually want you to be successful.
The commission he said was about 2% after everything was split up and the
average price of home would be around 300k so a $6,000 profit on one house is fine
with him as long as he can get one a month hell be fine. Of course he could be looking
at more like 1% because the agency takes a percent sometimes as they give you the
opportunity to sell for them and they take most of the liability.

I enjoyed all of the presentations in class and thought they were very helpful and
increased my understanding of these topics as well as gave me a greater desire to learn
more.
Here is a list of some of the resources that were helpful in my presentations and
research. I will most certainly be using this resources throughout my life. I was led to
several of these by friends, bankrate.com and Zillow.com were sites that a real estate
investor from England urged me to check out saying that these sites give you a basic
financial basis to go off of on a real estate investment and help to show what the market
is like and how it is doing.
http://arlingtonva.s3.amazonaws.com/wp-content/uploads/sites/31/2014/02/Comp-PlanExec-Summary1.pdf
http://www.kapre.com/
http://www.city-data.com/city/Arlington-Virginia.html
http://arlingtonva.s3.amazonaws.com/wpcontent/uploads/sites/31/2014/04/demographics_Arlington_-Profile-2014.pdf
http://www.bankrate.com/finance/real-estate/wise-to-buy-condo-to-rentout.aspx#ixzz3WasuDROt

http://livability.com/va/arlington/real-estate/why-arlington-va-top-100-best-place-live2015
http://www.virginiabusiness.com/news/article/construction-begins-on-161-room-hyattplace-hotel-in-arlington