Real estate brokers are actively responding to interest from their residential and commercial clients on green features in properties, according to new data from the National Association of Realtors (NAR). [Source]
... survey in 2012 and 2014 showed economists largely agreeing that the Obama stimulus reduced unemployment and was beneficial, even though the political right was strongly opposed to it. The reason is that economic theory and nearly all evidence shows that fiscal expansion when interest rates are stuck at their lower bound is expansionary.
Equally standard microeconomic theory is just as clear that the minimum wage will reduce employment, and I suspect that had this survey been done in the early 1990s most academics would have agreed with this, whatever their political persuasion. What has changed is the evidence. This example clearly shows a good number of academics responding to empirical results that conflict with standard theory.
According to several disaster recovery and flood management experts who reviewed the legislation, Texas is indeed ahead of the curve in some aspects of disaster preparedness, but they say it’s behind other states in other areas.
Some Connecticut Condo Associations Can Seek Crumbling Foundation Help
"A wave of satellites set to orbit the Earth will be able to pinpoint producers of greenhouse gases, right down to an individual leak at an oil rig."
Tsunami-Wrecked Fukushima Nuclear Plant Begins Fuel Removal in Melted Reactor
It will take years, and new technology will be needed to finish securing the entire site. Let's pray another tsunami doesn't hit before they're done.
‘People Are Still Living in Toxic Homes’ ~ County Allocates $5.2 Million to Continue Exide Cleanup:
Closed in 2015 after coming under investigation under the U.S. Attorney’s Office, Exide had been been spewing lead and arsenic particles from the facility’s smelters for decades – contaminating air, soil, and groundwater in Vernon, Boyle Heights, Commerce, Maywood, Huntington Park, Bell, and parts of East L.A. – and affecting hundreds of thousands of people. The effects of lead poisoning include, high blood pressure, an increased risk of stroke or heart attacks, kidney disease, risk of miscarriages in pregnant women, an increased risk of developing learning problems especially in children early in their development, and an increased risk of cancer.
Exide, a company based out of Milton, Georgia, had been fined and monitored for years – led by efforts of community organizations – before its closure in 2015 by local, state, federal agencies for excessive emissions of toxins and improper storage of toxic substances. But even when they negotiated a settlement with the U.S. Attorney and admitted to felony violations, they managed to avoid criminal liability for their actions, and got away with only having to put up $9 million for cleaning up houses around the facility over a five year period.
Sec. Carson told The Real Deal last month that his agency cannot mandate affordable housing in the zones. It will, however, give preference for developers who apply for certain federal grants to build affordable housing within Opportunity Zones. [Source]
My house is located in the middle of my street. We have been extensively remodeling it for the last two years. People walk down my street all the time and whenever I am out, I am showered with compliments about the house in general and the landscaping specifically. [Source]
Critics of the program still worry it will only benefit wealthy developers in gentrifying and up-and-coming areas that happen to be in Opportunity Zones, and that the truly distressed communities will be ignored.
The political analysis in the article is wrong. It's behind the times.
Warren Mosler, a hedge funder who’s helped popularize MMT especially within the finance world, has argued that the government doesn’t need to levy any taxes to pay for Medicare-for-all. Laying off the millions of people doing health care administration for private insurers and hospitals would be a major deflationary event, he argues, so if anything, the government should offer a tax cut or another spending increase to “pay for” Medicare-for-all in inflation terms.
Many people don't believe me when I tell them that there are those who believe capitalism is right and democracy is wrong.
He [Stephen Moore] also “repeatedly said he believed capitalism was more important than democracy,” ....
The People should decide via pure democracy exactly how much and where and when they want to allow capitalism or public ownership. The People should democratically decide the mix, the ratio. It is absolutely wrong to leave it up to historically continuous elitists making such choices over the People's objections.
This could help tenants pay the rent.
Last week, Sens. Sherrod Brown (D-OH), Michael Bennet (D-CO), Ron Wyden (D-OR), and Richard Durbin (D-IL), introduced legislation to expand the EITC for parents and significantly boost it for the childless — increasing the maximum amount a childless worker could get from $529 to over $2,000. It also allows recipients to access up to $500 ahead of tax time, which would hopefully provide families relief throughout the year, not just in one lump at tax time, so they don’t have to turn to payday lenders or go into debt when emergencies arise. The bill has garnered support from nearly every Democrat in the Senate.
In 2017, Brown and then-freshman Rep. Ro Khanna (D-CA) put forward a plan that would have expanded the EITC even more for a poor family with two children, increasing it from the current maximum of about $5,700 to more than $10,000, while childless workers would see their credit grow six-fold. The two lawmakers, along with Rep. Bonnie Watson Coleman (D-NJ), resurfaced the idea in February and extended it to students and people caring for young children, aging parents, and other relatives — none of whom are currently eligible.
If the regulatory system had been less Balkanized and more capable of addressing the risks, if crisis managers had been empowered all along to use overwhelming force to avoid financial collapse, and if there had been mechanisms in place from the start to ensure that the financial system would pay for its own rescue, the fire would have been less intense, and the firefighting would have seemed less inconsistent and unfair.
A DECADE LATER, the vital question to ask is whether the United States is better prepared today. We believe the answer is: yes and no.
As of last year, the city had produced less than one-quarter of the low- and very low-income units needed to satisfy its 2021 targets, according to the California Department of Housing and Community Development.
“We need to build more affordable and workforce housing, but we need more tools to do this,” said Ryu.
SB 50 would require cities and counties without certain affordable housing requirements to include affordable units in buildings with more than 10 units. In buildings with more than 351 units, for example, 25 percent would have to be set aside for low-income tenants.
“It doesn’t do enough to stop displacement,” said councilmember Mike Bonin. “It has to do a hell of a lot, a hell of a lot more, to get us a lot more affordable housing, and have real significant protections in there to protect what exists now.”
The estimated cost to end homelessness in the San Francisco Bay Area is $12.7 billion and additional billions annually to fund ongoing services to the needy, according to a report released Wednesday.
... It estimated the average per unit cost of housing each homeless person in the Bay Area region at $450,000 but also noted that housing costs in San Francisco are more than $700,000 per unit when land is factored in.
“Despite a growing economy and low unemployment, homelessness in the Bay Area grew at an annualized average of 2% between 2011 and 2017,” the report said. “The growth of homelessness during an economic expansion is attributable to the region’s inability to build homes at a rate appropriate for its job and population growth.”
Overall, California has nearly 130,000 people experiencing homelessness, or 24% of the nation’s total homeless population, according to U.S. government estimates. New York follows with about 92,000 homeless individuals and then Florida with just over 31,000.
Pay Less in Taxes: Essential Deductions for Rental Property Investors
5 Reasons the Fourplex Is the Perfect House Hack
Q & A With Real Estate Attorney: Structuring JVs, Newbie Closing Mistakes, and How to Build Your Team:
I think the number one mistake real estate investors make is that they do not include the right contingencies. Or, even worse, they don’t put contingencies at all.
A lot of real estate deals—from tiny deals to complex transactions—have skeletons. And you, as an investor, should have an option to get out of the deal if the deal turns out not to be what you signed up for.
Remember the 3D investor?
No, I’m not talking three dimensional. I’m talking the 3D equation—death, divorces, defaults—three instances in which an investor sees opportunity.
Well, there’s actually a fourth: distress.
My finance guy constantly gets requests for refinancing, funding, whatever. Some deals just aren’t financeable, for whatever reason.
If the owner can’t pull money out of the property, guess what liquidation option remains. Yup. Selling the property.
In other words, you now have a seller that’s extremely motivated. And guess who hears about it way before a broker has a chance to even know what’s happening?
Bingo! The same people the lender’s already doing business with.
For this research project, Long and Corns will use data from the Meramec and Missouri basins to train a deep learning neural network to determine how deep and how quickly floodwaters will rise.
Utilities have for decades diluted the waste, which includes such toxins as arsenic, boron, lead and radium, and stored it in open pits called ponds. And while coal plants’ air pollution and greenhouse gases get more national attention, residents and officials in some states are now forcing plant operators to clean out their ponds.
Typically separated from rivers and groundwater by clay, rocks, and dirt, the ponds have at times burst, unleashing thousands of tons of waste into rivers in Tennessee and North Carolina.
Millar warns that LNG is especially hazardous because of its ability to easily warm to a vigorous boil, forming a flammable gas cloud that can erupt into an unquenchable fire. A 1944 explosion in Cleveland killed more than 100 people after liquefied natural gas from an East Ohio Gas Co. storage tank seeped into the city’s sewer system and ignited, leveling homes and businesses across several city blocks, he said.
Now a new study titled “Minding the Protection Gap,” just published in the Connecticut Insurance Law Journal, concludes the prevalence of under-insurance among American homeowners might be closer to 80 percent. ...
... It’s tempting to instead enter fewer parameters to the software tools to estimate coverage and simply quote the most competitive premium they can.
We always encourage property owners to include as many parameters as possible.
Deadly Storms Sweep Through Texas, Southern States:
Powerful storms that rolled across the South over the weekend spawned tornadoes, damaged homes and killed at least four in Texas, including two children, authorities said.
No matter how much you learn about people dying, especially children, you can't get used to it. The poor parents who were only a few feet away!
Many tenants are gig workers.
The rights include informing workers about the working conditions such as duration and remuneration from day one.
Workers will also be able to refuse, without consequences, an assignment outside predetermined hours or be compensated if the assignment is not canceled in time.
Employers will not be allowed to hinder workers from working for other companies and will have to provide free mandatory training.
"I'm all for taking it (infrastructure legislation) up once the president and Democrats, everybody says okay, here's how we're going to pay for it. As soon as that magically appears, I think we have a way forward," McConnell said. [Source]
Is he saying he doesn't know where money comes from? He knows. He just doesn't want to say it or use it.
Issue the money. Spend it right on infrastructure. That's all there is to it. The contractors and their employees will love it. They'll take their earnings and spend it back into the economy. The money will circulate. The GDP will go up, up, up. The public will love having better infrastructure. What's not to like?
Make the infrastructure green, and we'll have made the world a better place.
The article has been updated. All landlords in Chicago should be aware of the rules stated in the article.
Some examples of lender’s mortgage overlays can include:
Increased down payment requirements
Minimum credit score requirements
Stricter debt to income ratios
Requiring an appraisal on a FHA streamline or VA IRRRL refinance
Stricter appraisal requirements [Source]
They are aimed at renters with annual salaries of between $50,000 and $80,000. Monthly rents range from $1,250/unit to $2,000/unit. [Source]
Affordability had no statistically significant role in motivating homeowners in reducing their risk of structural damage. [Source]
For any investor, measuring opportunity against risk is critical. And for real estate investors in particular, risk is rising exponentially in the age of climate change.
To that end, big real estate firms are pouring significant resources into calculating climate risk and its likely effect on property portfolios — everything from increasingly extreme weather to a rise in sea levels.
"This process will be painful for investors who are caught off guard, but those who are prepared have the potential to outperform," a new report from the Urban Land Institute said. [Source]
Since hard money lenders are not concerned with the details of the borrower, what do they base their decision to lend on? The answer is simple: the value of the collateral.
Hard money lenders focus their concern on what is called the loan-to-value ratio, or LTV. The LTV is the loan amount divided by the value of the property.
While the LTV requirement is unique to each vendor, you can generally expect it to be around 60 to 70 percent.
This means, if someone is looking to take out a $100,000 loan, the property they plan to leverage with the lender needs to be valued somewhere between $140,000 to $160,000. That way, even if the borrower fails to pay anything back, the lender remains secure since the property is valued higher than the amount of money loaned.
Because these loans are specifically suited for investments that will turn a profit quickly, interest rates can go as high as 18 percent. In contrast, traditional loan interest rates usually hover around 5 percent. [Source]
Here’s an example of a cost segregation study on a building under $500,000 in basis. This study, in particular, was done on a single family residence. The building was placed in service in 2016 with an original basis of $94,180.
Prior to cost segregation, this building accumulated $5,851 in depreciation deductions. Post-cost segregation, $9,128 of additional depreciation deductions were added, bringing the total accumulated depreciation to $14,979. Way better than not doing a cost segregation study, right? [source]
Evaluating a property is one of the most important aspects of real estate investing. However, many new investors don’t have a lot of money to spend on fancy analytical tools.
Luckily, most of what you’ll need is available for free if you know the right places to look. Here are some of the best free resources to evaluate real estate investments. [Source]
Leave it to the American Enterprise Institute (AEI) to keep retreading the canard that Fannie and Freddie caused the Wall Street, deregulated, toxic, mortgage-securitization Great Recession.
Fannie and Freddie came late to the game and only had problems because fraudsters were submitting toxic debts to Fannie and Freddie that those Government-Sponsored Enterprises didn't catch in time. They did come back to the issue and did recoup a great deal of money from the fraudsters.
The Great Recession was cause by deregulation, not Fannie and Freddie.
What the AEI wants is privatization, which never goes better than leaving things the way they were. The reason AEI wants privatization is because then the richest of the rich, who fund the AEI, can skim more profits for themselves. They are not out to benefit the general public.
Watch and listen to the nonsense: We don't need Fannie or Freddie for a fixed mortgage rate, says...
Slated for floors 41 through 47, the project’s new “International Collection” will offer compact studio, one-, two- and three-bedroom floorplans ranging from 325 to 850 square feet in size. Pricing starts at $313,000 for a studio and tops out at under $1 million for three-bedroom units .... [Source]
During the investigation, Vincent claimed responsibility for over 100 fires spanning a 30-year period, including fires he set in New York. [Source]
Spring floods could yet impact an even bigger area of cropland. The U.S. government’s National Oceanic and Atmospheric Administration has warned of what could be an “unprecedented flood season” as it forecasts heavy spring rains. Rivers may swell further as a deep snow pack in northern growing areas melts.
To be fully covered by crop insurance, Iowa farmers must plant corn by May 31 and soybeans by June 15, as yields decline dramatically when planted any later. Deadlines vary state by state. The insurance helps ensure a minimum price farmers will receive when they book sales for their crops. [Source]
“I’m sure that because of this incident, it’s causing people to pause and maybe rethink some of the infrastructure around” the region, Alvarado said. [Source]
Would the Green New Deal help get rid of this risk? It would.