Wednesday, June 29, 2016

Industry Experts say Millions of Homes at Risk of Hurricane Damage

Around seven million homes are at risk of hurricane damage along the Atlantic and Gulf coasts, according to a new report released by CoreLogic. Despite the volume of at-risk homes, the percentage is lower than that of previous years. Authors of the study, meanwhile, recommend better techniques to assess home elevation.

Still, real estate experts warn residents to take extra precaution in securing their homes, particularly as the country enters hurricane season. Many weather bureau officials have stated that global warming, along with rising sea levels, should drive expectation of bigger and stronger storms. Florida has 2.7 million homes at risk, earning it the number one spot on the list of most at-risk states. It is followed by Louisiana, Texas, and New Jersey.

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Homeowners are being cautioned about purchasing property along the coast. This, however, has had little impact on coastal housing sales. Recent data have shown that the market for beach-front homes and coastal housing has increased in the last year. This can be attributed to extremely low mortgage rates around these areas and the dramatic price increase in the cities.

Real estate agents and potential homeowners are banking on history. A lot of these reports have claimed potential risks, although hurricanes within the areas have been weak, if not absent, for the last few years. Weather officials still caution that this season could be devastating, pointing out that the environment has been more active for the last 30 years.

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Risks or none, potential homebuyers have flocked to these states and are more than willing to buy properties along these areas.

Learn the latest real estate news by following this Jon Bourbeau Twitter page.

Monday, May 16, 2016

How Virtual Reality is Changing Open House Sessions

Open house sessions may now be done virtually. Many real estate websites are now using virtual reality to help augment their many open house sessions. These 3-D tours have inspired other real estate groups to consider optimizing the use of augmented reality headsets. These headsets, built by such giants as Google, Apple, and Microsoft, can be used to provide potential clients real-time viewings of the property. The difference between these types of tours and what is currently available is that headsets give the illusion that the person is physically at the property. The headsets have been designed to shift the image in sequence with the movement of the head. Thus, unlike virtual tours did over a website – where movement is directed by a mouse and images are scanned photographs placed in a seamless projection – augmented reality tours would give clients an honest overview of how the property really looks like.

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These are estimations and augmented reality has yet to be used for mainstream open house sessions. Still, the presence of virtual reality tours has already shifted the way real estate properties are being marketed. Nearly half of national listings are done online, with more being placed every day. Potential clients are more willing to attend open house sessions on projects they’ve already seen photos of online. Current data supports this with the additional conclusion that virtual reality tours further increases the potential of closing a sale.

This is based on human psychology. Clients simply want what is the most convenient for them while still giving them the same amount of quality. Virtual reality – and eventually augmented reality – helps achieve this. Real estate professional should take this into heavy consideration as it will affect their overall career success.

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Jon Bourbeau is the founder and CEO of Pacer Partners, a boutique real estate management firm handling all aspects of property investment. For more information, visit this Facebook page.

Wednesday, May 4, 2016

Gamechangers That Will Redefine The Asset Management Industry

Asset management is looking to expand significantly, based on research by PricewaterhouseCoopers. According to the study, global assets under management will rise to $101.7 trillion by 2020. 

The bulk of the asset management industry remains concentrated in the US and Europe, and while it stands to stay that way for the foreseeable future, the industry is fast reaching South America, Asia, and Africa. The increasing population of high net worth individuals in these regions, along with the expansion and emergence of pension and sovereign wealth funds, has been improving investments. 

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Asset management is looking to move to the center stage after being in the shadow of the banking and insurance industries. But the trend shows that there is a rapid growth and rising popularity for alternative investments.

There is also a prevailing change in the investor’s mindset. Traditional investments such as stocks and bonds are no longer the optimal options, because they do not generate as much wealth to reach the desired investment objectives. 

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Technology is also helping the elevation of asset management, which has usually operated within a relatively low technological infrastructure. In the next half-decade, technology will become critical in cementing client relationships, information gathering, operational efficiency, and financial and tax reporting. 

Jon Bourbeau is the founder of Pacer Partners, a boutique real estate and asset management firm with offices in New York City and Miami. Learn more about asset management by visiting this Facebook page.

Thursday, April 28, 2016

Asset management: Spending to earn more

In finance, the goal is to increase the value of an asset while keeping liabilities at a minimum. Whether at a corporate or at an individual level, asset management is about making the right decisions, investing in the right places, and buying the right properties for a better portfolio. An asset manager, simply put, oversees other people’s money while drafting solutions on how increase it.

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Asset management is a powerful industry that is worth trillions of dollars. It is as much a necessity to a young professional getting acquainted with the 401(k) to the newly minted high net worth individual. Building a person’s financial portfolio is a way of tracking his or her progress through the years. On the other hand, having an overview of what a person can do with his or her money also shows the possibilities for growing assets. Aside from taking care of a person’s earnings, it is also about making the money work, even when its owner could be doing something else.

A reliable asset manager has foresight—aside from the ability to read and assess a client’s portfolio, he or she must offer suggestions for administering resources for the current economic context. This finance professional is always on the lookout for investments while maintaining the client’s financial plan.

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Jon Bourbeau is the founder and CEO of Pacer Partners, a direct investment platform primarily dealing with real estate transactions. Before the company’s establishment in 1999, Jon acquired a comprehensive range of intellectual capital working with some of the largest institutions in the US. Get to know more about Jon and Pacer Partners by visiting this website.

Tuesday, February 23, 2016

Nailing Thematic Investing: Getting a Structural Feel Of Opportunities

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A lot of people in the business are trying out thematic investment strategies. Thematic investing is about purchasing a group of stocks relevant to a certain sector or domain, which effectively distributes risk within a portfolio.

It is also about looking for long-term political, economic, and social trends and opportunities with lasting impact to clients in different sectors and locations. Thematic investors need to learn how structural trends will affect returns on some of their assets. They need to be sensitive about the advantage or disadvantage in sectors and regions where thematic strategies will be concentrated.

There are multiple benefits to thematic investing. It allows an investor to create investment opportunities in hot spots. Systematic investment processes can also contribute to a deeper understanding of value creation and risk. It is a dynamic and flexible way to validate and express business hunches by applying the rules of making sound investment decisions.

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It is important, though, not to put money on fads. Good themes are usually underrated or misunderstood, but these have staying power. They will give the investor or the business a reasonable profit.

Not everyone can keep up with the thematic investing. Do your research, and see if this will benefit you and your business.

Jon Bourbeau is the founder of Pacer Partners, a real estate boutique firm that practices thematic investing strategies. To know more about the real estate business, visit this blog.

Monday, December 21, 2015

The Allure of Sale-leaseback Deals

The practice of sale-leaseback is not new in the real estate market. Briefly defined, a real estate sale-leaseback is a deal in which the property owner-occupant sells the facility to an investor and then simultaneously signs a long-term lease, typically for 10 to 20 years, to rent the property back.

For sellers, the sale-leaseback transaction frees up the value of the real estate for other purposes such as using the proceeds to expand operations or investing in new equipment. Also, any debt associated with the property is removed from the balance sheet. In turn, sale-leaseback deals offer investors a predictable return on the purchase, in terms of rent. The value of the acquired real estate will also likely appreciate, especially for well-located properties.

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But just like any other deal, a sale-leaseback has its drawbacks. For example, sellers lose flexibility in the future use of the property sold and leased back. As tenants, they have to follow the terms and conditions of the lease contract. They may also need to move when the lease expires or face penalties when they vacate the facility earlier. For investors, there is always the possibility that the tenant will be unable to pay the rent.

Still, despite the risks, many companies and investors alike saw how the sale-leaseback strategy will benefit them in the long run. In fact, 2015 saw some firms take the sale-leaseback plunge. Sale-leasebacks were not only prominent among big retail and restaurant chains but also among smaller entities, including healthcare facilities and medical office buildings.

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And in 2016, industry observers anticipate more sale-leaseback activities. Many engines will be driving future transactions, including current financial terms that make sale-leaseback an attractive option. Capital is also flowing from all sources, especially from foreign investors.

At the end of the day, though, not all sale-leasebacks are created equal. A thorough review of the deal and how it can potential affect the financial health of both parties is essential before signing off the transaction.  

As the founder and CEO of Pacer Partners, Jon Bourbeau is familiar with the various types of real estate transactions, including sale-leaseback. Read more about real estate here.

Thursday, November 26, 2015

Private Equity in Real Estate: An Emerging New Market

The Wall Street Journal reported recently about an emerging new secondary market for real estate funds. Despite the relative stability of the real estate industry, many financial advisors say that the 2008 global economic crisis left a comparatively deep scar in the market - particularly in the area of private equity and real-estate funding. Nevertheless, trends see the real estate market rebounding, with more corporations partnering with private equity funds. There are several advantages to this.

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 For one, private equity is usually made from partnerships that are thoroughly assessed beforehand. Unlike in the general market, in private equity funding, both companies know each other. Most selling and purchasing are made after weeks, if not, months, of meetings. As one can imagine, it can be considered a tedious process, but real estate property managers have found that these partnerships last longer and are less likely to fail. The amount is normally quite large, and both companies cautiously list every single detail in their contract. Though lengthy, partnerships are stronger as both parties understand what is involved and what is at stake.

These partnerships are also carefully handled by a real estate investment and management group such as Pacer Partners. Historically, private equity funding was done only with the mediation of each group’s financial advisors. However, it was seen that having a separate "eye," as it were, contributed to a fairer and more stable contract. It must be emphasized that while these services initially seem like an unnecessary cost, the long-term benefits of such an association potentially saves millions of dollars.

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Jon Bourbeau is the driving force behind Pacer Partners, which deals with private equity funding for different levels of real estate assets. For more information, visit this LinkedIn page.