NYC During Christmas

christmas in NYCSean Perkin is known for a highly profitable and lucrative professional career, from investments to his present position in real estate. Born in South Africa, Sean Perkin created his own destiny, beginning with gaining a Bachelors Degree in Architecture from the University of Southern California, and then perpetuating his zest for learning by training in branding, marketing, and design thereafter. Today, Perkin has sold hundreds of millions of homes, developments, and apartments offering only the highest in quality and value to his clients, based on their widely-ranging tastes, incomes, and goals in real estate. To truly succeed and know the market from a holistic perspective, a real estate agent should be an avid traveler-to which Sean Perkin is one. He has traveled around the globe as an international traveler to more than two dozen countries to include: Central America, Europe, Mexico, Africa, Asia, and various tropical locations.  To this end, Perkin offers his thoughts about one of his favorite places and times of year: Christmas in NYC.

The holidays are a special time of year, and everyone has a preference for where they like to spend it. Christmas in NYC is one of Sean Perkin’s favorite times of year for the following reasons:

 

1.       The Magic: There’s just something so magical about the hustle and bustle at Christmastime in the city. Christmas carolers, decorations on the street and in the windows, a happier countenance, and lights.

2.       Rockefeller Center: It’s a tourist trap, the stuff of famous movies-but it still warms my heart-skating by the otherworldly, epic Christmas tree at Rockefeller Center. Nothing like it.

3.       Window Extravagance: While some may consider it over the top and exclusive to the Christmas shopper, some of the windows you see while ambling in NYC at Christmastime are just magnificient-not because I plan on buying anything in the window or the store on lavish display, but because it’s a tribute to tradition, to the larger-than-life existence of the department store that once was, that is no more.

 

Surge in California Real Estate

Sean Perkin is a successful entrepreneur who uses his traveling experiences as inspiration for his properties at Sean Perkin & Associates.

Sean Perkin explains the Surge in California Real EstateTheir once humble portfolio has grown extensively over the years and includes multiple single family residences, apartment buildings, and other value added opportunities throughout Southern California.

Sean Perkin refers to investing as a dance that involves a lot of skill from many different people. He believes that the main keys to success are discipline, timing, and a working knowledge of the market. More savvy business strategies can be found on his website, seanperkin.com/blog.

According to a recent article in Forbes, there has been a surge in California real estate that is not ideal for qualified buyers looking for a home. It is, however, a prime time for investors like Sean Perkin to capitalize on the market. Along the west coast, it is becoming nearly impossible to find reasonably priced real estate. Several factors are driving the market higher, including:

  • Lack of Land- Land is scarce in the most desirable California neighborhoods and often requires purchasing an already expensive home and replacing it with one three times as expensive. This is ideal for homeowners nearby, but difficult for prospective home buyers.
  • Inflating Prices- As buying a home can take months, foreign buyers take advantage of this by providing all-cash offers that are often above asking price. Unfortunately, this drives up the price for others.
  • Prop 13- This voter initiative caps property tax rates at 1.25% while also freezing assessed property values at their original purchasing price. This skyrockets prices as older homeowners are disinclined to sell.

Investment property ownership add to the many reasons inventory is limited in California. After the financial crisis when real estate hits bottom, many investors devoured short sales and foreclosures. Now that many people cannot afford a house on the west coast, it creates the need to rent. In steps investors with their newly converted properties. Like Sean Perkin states, discipline, timing, and a working knowledge of the market are critical in order to be successful in the industry.

Learn more about Sean Perkin and his California properties here: http://seanperkin.tumblr.com

Entrepreneurship

Sean Perkin the EntrepreneurAre you an aspiring entrepreneur just waiting to break out with your wildly creative ideas? Wondering what it takes to be successful like Sean Perkin? Many people aspire to open their own business, schedule their own hours and have full control over important decisions like marketing strategies and hiring. But at the same time becoming an entrepreneur is one of the most intimidating decisions in anyone’s life. Many times we walk away from the opportunity for fear of failure, or worse, the risk of bankruptcy.

An entrepreneur embodies a particular persona. The most important characteristic of successful entrepreneurs is confidence. You have to know you can do what it takes to run an up and coming company. You can’t allow failure or fears to get in your way. Sean Perkin provides a few rules to live by before getting behind the steering wheel of entrepreneurship.

Planning

You know the old saying? At the beginning of every business management 101 crash course you hear the phrase “always plan for the worst,” but you should always be planning for everything. Every part of your business should be written down and organized; every detail should be recorded. Never let yourself plan out ideas in your mind, believing you’ll retain it and remember later on. Take notes vigorously. Record all data and notes. Develop a business plan that focuses on both the narrow and broad goals. All this planning and preorganization will definitely pay off in the end.

Financial Stability

The most intimidating part of opening a private business is the financial investment. Make sure you balance your personal finances with your business finance needs.  Most startups should expect to just break even in the first 3 years of business. So spend your money carefully and live a humble personal life, at least until profits start flowing in.

Get involved

You want to engage your business’s community. Make sure to actively be involved in nearby community events, both physically at town events or fairs and also virtually online. You may want to participate in sponsoring your local soccer team to boost your brand awareness. The task of getting your name out there in front of potential customers is one of the most daunting and challenging. You may have to spend a few bucks and extra time supporting your brand name. But first start in your backyard and then start expanding. You’ll be recognized like the big fortune 500 companies in no time!
Find out more about Entrepreneurship on Sean Perkin’s Google+ or visit his Aboutme: http://about.me/seanperkin

Boutique Firm vs. Mainstream Firm

Sean Perkin and his team of talented artisans at Sean Perkin & Associates have been acquiring apartment buildings and single family homes throughout Southern California since 2008. He encourages readers to visit his tumblr to learn more about his company and the services they provide. The success of Sean Perkin & Associates is no doubt partial to their boutique style firm, which is simply one that operates within a niche. According to an article on Consulting Career Connection, it is important to consider the long-term potential, scope, framework, and culture of big firms versus specialized boutiques.

Long-term potential

Boutique firms deliver a small number of high quality services and focus on specific challenges across fewer industries. This promises more focus to the clients. Due to their size and abilities, larger firms are able to focus on a variety of function across a number of industries. Essentially, you need to decide what direction your company is heading and which option is best for you in the long run.

Scope

Both types of firms require the ability to work well with a team and clients. At Mainstream firms, clients are able to choose their team members based on their expertise and experience. On the other hand, boutique firms can only provide smaller teams; a benefit when it comes to client exposure.

Framework

Larger firms have well developed resources, infrastructure, and information systems, which many argue ease stress. Contrary, it can be said that this bureaucracy can stifle the creativity that comes from smaller firms, which must be more clever and resourceful to provide low-cost solutions.

Culture

A major difference between boutique and mainstream firms is the culture. Clients of mainstream firms will have to meet with hundreds of people daily, making it feel less personal. Smaller firms offer a more familial approach, fostering deep rooted relationships.

How to Hire a Home Inspector

Home Inspection ClipboardThroughout the years, Sean Perkin and his skilled team at Sean Perkin & Associates have syndicated a number of investments with favorable returns to investors. The company’s portfolio continues to increase, acquiring a number of single family homes and apartments throughout southern California. When flipping homes, Sean Perkin stresses the importance of hiring a trustworthy home inspector to examine the property.

The duration of a home inspection can range from two to four hours and cost anywhere from $300 to $800. Although pricey, the home inspection can reveal problems you never would have noticed, and in turn, allows the buyer or seller to make repairs before it’s too late. Typically, a home inspection will cover cosmetic features, structural integrity, and all mechanical systems, including:

  • Foundation

  • Slabs

  • Basement

  • Roof

  • Insulation/ventilation/drainage

  • Chimney

  • Insects

  • Plumbing

  • Electrical

  • Heating and cooling systems

  • Exterior walls

  • Kitchen/bathrooms

With such a lengthy to-do list, it’s important to hire a home inspector that is up to the task. Sean Perkin recommends taking the time to speak with several inspectors before hiring. Ask a lot of questions, including how long they’ve been in the business and the number of inspections they’ve performed. During this discussion, you can gain a sense of how confident the individual is in their skills and demeanor. Since different homes have different associated risks, you also should also be sure your inspector is familiar with the type of home you are considering.

Sean Perkin also encourages potential home buyers to ask for credentials! If your state regulates home inspectors, you can check his or her record with the agency. You can also check for certification by ASHI is your state does not regulate home inspections.

Lastly, it is equally important to choose an inspector before you have purchased a home. Once you choose a home, every minute is critical. Give yourself time to find the right inspector, not just the first one you meet.

US Housing Market Hits a Rut

Sign "Home for Sale"As a real estate investor and owner of his own real estate company, Sean Perkin makes it a priority to keep up with news and trends in the national real estate market. There is growing concern among the real estate investing community about a deep and widespread slowdown in the housing market. In high demand regions, this slowdown is coupled with a drastic rise in housing prices, yielding an additional slowdown. A recent report calculated that year-over- year monthly home sales dropped a full 13.3%, including a sharp 14.5% decrease alone from February to March 2014. Additionally, last month’s sales of new single-family homes hit the lowest point since July 2013.

An even greater concern regarding the current housing market lies in new home sales, which are slowing down. The sluggishness of new home sales, combined with unexpected high price tags accompanying many homes, is raising concerns. Median prices rested at $290,000; the highest monthly tally recorded. This market is particularly difficult for first time buyers, which are important for sustainability. With only older or move-up buyers drawn to the market, the risk that the market will remain stagnant continues to increase.

Houses with lower price tags, however, still seem to be moving. The same recent real estate report noted that homes on the low end of the market sold in about two months, whereas 53% of mid-range homes and 62% of high priced homes were still on the market many months later.

Since real estate is local and depends on the conditions of each specific market, the unhealthy national market might be regionally segmented. Sales are especially dragging in the south, midwest, and west coast, while sales of single family homes in the northeast are the strongest.

Learn more about the current state of the U.S. housing market here: http://www.biggerpockets.com/renewsblog/2014/04/28/u-s-housing-market-hits-rut/

9 Tips for Purchasing Multi-Family Properties

Sean Perkin in Thailand

Sean Perkin travels the world to gain interior design inspiration. The above photo was taken during a trip to Thailand.

As owner of Sean Perkin & Associates, Sean Perkin has brokered and sold in excess of 150 single- and multi-family properties in California. Last week he shared some tips for purchasing single-family investment properties in this blog post, and this week he has nine tips for purchasing multi-family properties:

  1. Historically, apartment buildings have been stable investments that return reasonable returns of between 5-20%, to infinite, upon stabilization. This dramatic difference is based on an investors refinancing of the property and their eventual cash left in the deal.
  2. Buyers of apartment buildings tend to be for the most part “mom and pop” owners who are very conservative, like to run the properties themselves and keep an eye on things. Of course there are  major institutional players as well, however, they tend to purchase Class A assets that are larger.
  3. Multi-family units are an incredible way to go for investors who are patient. As we say in the business “making money in apartments is like taking a slow boat to china.” There is no get rich quick or fast money. Like everything else, these type of investments require intensive management, watching every dollar and being well capitalized.
  4. While historically apartments have been great investments they are not for everyone. The management of rental property is very difficult and expensive. Tenants lie, don’t pay rent, abuse the property and in general mistreat the asset. Of course there are always maintenance issues including plumbing, roofs, electrical and termite. And, while hiring a management company is great and alleviates a lot of the day to day management by owners there is a cost of 4-6% of the gross rents collected for the service. While that is not a large amount, most owners believe they can do a better job (they are vested) than a third party.
  5. Financing for multi-family units (5+ units) is very different than that of single family. The overall process including rate and loan amount is based more on the asset than they owner. As such, vacancy rate, location, deferred maintenance, experience of the owner are all factors.
  6. Buyers of apartments typically need to come in with 25-35% down. The more a buyer puts down the greater the monthly cash flow but the lower the yield. Real estate investing is all about leverage. If you’re able to buy a $1,000,000 building for $200,000 down or $300,000 down, what would you do? What would be the better deal? The truth is – it depends on your situation. The lower amount will mean a higher return on your cash invested but your annual cash flow will be lower than if you invested a larger amount.
  7. Buyers should also be aware that when a property requires a down payment larger than 35%, unless there is a compelling reason to purchase it (major vacancy) it is most likely over priced.
  8. Once an investor has purchased a property and stabilized it (fixed it up and gotten all tenant to pay on time on a regular basis) the rewards are great. Aside from the leverage most properties experience rental income increases annually, asset appreciation, depreciation and write off’s. All of which lead to an owner eventually refinancing and pulling out their initial investment – which leads to an infinite return on the investment.
  9. Those interested in apartments should set a realistic timeline for returns (minimum of one year) and have ample reserves in the event of vacancy and maintenance.

 

If you have questions about the intricate process of real estate investment, reach out to Sean Perkin today to obtain more information.

You can learn more about Sean Perkin by adding him to your LinkedIn network or reading his bio on Weebly: seanperkin.weebly.com

7 Tips for Purchasing Single Family Properties

Sean Perkin

Sean Perkin shares his tips for purchasing single-family properties in this new blog post.

Sean Perkin is the owner of Sean Perkin & Associates, a real estate investment firm that has successfully brokered and syndicated in excess of one hundred and fifty single-family and multi-family investments in and around Los Angeles. Multi-family properties offer unique opportunities versus single-family homes. While single family homes typically generate much higher yields (return on cash invested) they do not produce income and as such are a higher risk. Multi-family investments which include apartments (5 plus units) offer investors numerous advantages over the long term and are a great way to go. As with any investment opportunity, research, knowledge and an understanding of the investment is critical to success.

Single Family Homes

  1. Can be bought as a primary, secondary or investment property (rental) with conventional financing being the best option.
  2. Buyers can purchase with as little as 3.5% down payment using FHA (government assisted) approved lenders so long as they qualify. However, typically if an investor is not able of prefers not to get an FHA loan (not difficult if you are a W-2 wage earner) they would come in with a down payment of between 20-30% of the purchase price.
  3. Current rates range from 2.5% to about 5.5% depending on each borrowers financial and personal situation.
  4. It is imperative to understand the investment horizon – which when financing can save thousands of dollars. As such, investors should pay close attention to the term of the loan, 3, 5, 7, 15, 30. No need to get a 30 year loan if you plan on holding for 5 years – which would typically have a lower rate. Borrowers also have the option of interest only or principal and interest.
  5. If an investor is planning on holding long term then a 30 year term locked into today’s rates might make sense.
  6. If a buyer cannot qualify for conventional financing then they could consider private equity (raising from friends & family – very difficult) or obtaining “hard money” which is very expensive (double to triple that of conventional).
  7. If the property is bought to “fix and flip” an investor can make a very attractive return, sometimes resulting in a doubling, tripling or even greater return on their initial investment. The return is obviously predicated on the purchase price, cost of the renovation, method of financing and ultimate sales price. Though the return can be tremendous, the investment return is in most instances Ordinary Income and taxable. If an investor opts to rent the property out rather than flipping it – there are advantages including tax benefits, depreciation, interest write off and deductible expenses.

Be sure to bookmark this blog, as Sean Perkin will be sharing his tips for purchasing multi-family properties in his next post.

Learn more about Sean Perkin on his Weebly bio, or view other investing tips by following his Tumblr blog: seanperkin.tumblr.com

3 Tips for Locating Promising Investment Properties

Investment Properties

Sean Perkin shares three tips for uncovering promising investment properties.

Sean Perkin is the owner of Sean Perkin & Associates, a real estate investment firm that has syndicates multifamily and single family investments throughout the Los Angeles area. He cautions that real estate investing is not easy; it requires discipline and timing. Location impacts the value and investment potential for a property in many ways. Here are three tips new real estate investors can use to uncover promising investment properties in their area:

Evaluate the Neighborhood

Location plays a major role in building a property’s value, with neighborhood in particular having a major influence on the property’s valuation. Neighborhood isn’t an element that investors can control once they’ve purchased a home, so it’s best to keep this in mind before making a purchase. For this reason, many investors recommend aiming for undervalued, dated, and obsolete homes in up and coming neighborhood rather than targeting the best looking house in a subpar neighborhood. The worst looking house in a good neighborhood will ultimately offer more upside. Remember, “location, location, location.”

Consider Nearby Amenities

An extension of the location where a property is located is what’s near the property. Homes near a noisy highway, landfill, or factory are less desirable than homes along the ocean or near a lake. First-time investors would be wise to avoid amenities that will cause the house to sit on the market for an extended period of time. Keep it simple, avoid hillsides, winding roads, busy streets, properties near commercial areas, flight paths and other “elements” that will limit the buying pool. Remember, “keep it simple, cater to families and don’t go overboard on the renovation.”

Pay Attention to School Districts

With so many property flips being sold to families and young professionals planning to start a family, a bad school district can be a deal breaker. As mentioned above when discussing neighborhoods, a house that needs work but is located in a strong school district offers more growth potential than a nice looking property in a school district with a lesser reputation.

Have questions about real estate investment? Reach out to Sean Perkin today to discuss the investment process, gain a better understanding of the potential for success, and develop a plan for minimizing potential losses.

Learn more about Sean Perkin on his VisualCV profile, or by viewing his Expertfile: www.expertfile.com/experts/sean.perkin

Real Estate Investing: Best Practices

Sean Perkin

Sean Perkin, owner of Sean Perkin & Associates, will use this blog to share real estate investing tips.

Sean Perkin is the owner of Sean Perkin & Associates, a real estate investment firm that has syndicated a number of investments with favorable returns for investors. He obtained his sales associate license in real estate in 2002 and then went on to get his broker’s license. Sean Perkin understands some of the best practices prospective investors should follow before jumping in to the real estate market.

Real estate investors must start by gaining a better understanding of the market in which they are planning to invest. To start, an investor must begin by researching a target market in order to gain an intimate understanding of the community, property values, potential opportunities and the target market. Investors who jump in before comprehending the state of their local market could end up taking a loss. A quick Google search will turn up scores of websites, blogs, and books targeted specifically towards real estate investors. Studying these resources will allow investors to minimize the chances of making critical mistakes along the way. Additionally, investors are advised to build a strong support system of brokers, attorneys, accountants, and mentors who can help throughout the entire process.

While the above is very limited in scope you are welcome to contact Sean Perkin directly to discuss the process, potential for success and ways to minimize potential losses. Have a question? Leave a comment below and Sean Perkin might answer your question in a future blog post.

Learn more about Sean Perkin and his real estate investment company by viewing his about.me page, or by reading his bio on Blogspot: http://seanperkin.blogspot.com