HiddenCash Millionaire Identified - Business Insider | Real Estate Investing |
- HiddenCash Millionaire Identified - Business Insider
- Crowdfunding Expands To Local <b>Real Estate Investments</b> | News <b>...</b>
- <b>Real estate</b> a 'crappy <b>investment</b>': Shark Tank's O'Leary - CNBC.com
- Investing Clubs – Silicon Valley <b>Real Estate Investment</b> Group <b>...</b>
- Emerging Opportunities For Big <b>Real Estate Investing</b> Profits
HiddenCash Millionaire Identified - Business Insider Posted: 05 Jun 2014 04:54 PM PDT NBC LA A few weeks ago, news broke that someone was planting money all over San Francisco, using the Twitter feed @HiddenCash to give the locations of the upcoming drops. The phenomenon soon spread to San Jose, California, Los Angeles, and even to New York. The man told local news station KTVU that he "is just doing this as a social experiment for good, that he wants to give back." He has a friend who is helping him do the drops, since it's a pretty big undertaking.
But other than the fact that he made his millions in real estate, nobody knew anything about the mystery do-gooder. Until now, apparently. The TV show "Inside Edition" thinks it's cracked the case. In a clip that air's tonight, the show's Jim Moret got on the phone with someone claiming to be the man behind @HiddenCash, and asked him if he's Jason Buzi. When asked if he's Buzi, the mystery man said no. However, "Listening closely to his voice and comparing it to the voice of Jason Buzi which we found on a real estate podcast, they sure do sound the same." Check out the podcast for yourself and compare it to Buzi's voice below: That bit of evidence isn't very conclusive, of course, so take it with a grain of salt. But there's other evidence out there that seems to point to Buzi as being the guy. For one, Buzi ran CashTomato.com, a video website that was similar to YouTube, that gave away cash prizes every week. And even gave money to people who simply signed up for the site. He also hid tomatoes all over San Francisco and New York, that people would have to find in exchange for money. But it caused people to riot and was eventually shut down. That lines up with his explanation for wanting to remain anonymous. "There are a few reasons I would like to keep my privacy," the man behind @HiddenCash told SFGate. "One, some people close to me wouldn't like that I am giving money away. Two, I enjoy having my privacy. Three, (I) had some publicity before and nothing good ever resulted from it." But wait, there's more. Buzi's LinkedIn profile is strikingly similar to the @HiddenCash M.O. as well: "In addition to real estate investing, Jason Buzi tries to be involved in the community and give back to those less fortunate. He has volunteered in East Palo Alto as a mentor and is an active donor to the East Palo Alto Kids Foundation. He is currently working with refugee families through the International Rescue Committee." Regardless of whether Buzi is the man behind @HiddenCash, or whether it's someone else, one thing is certain: things don't seem to be slowing down anytime soon. He said that he plans to continue hiding money "with no end in sight." And there's already at least one copycat money dropper in the U.K., San Antonio, Chicago, And based on a comment left on a Business Insider story claiming to be from the guy behind @HiddenCash, more U.S. cities are coming soon: Screenshot We've reached out to Jason Buzi and will update this story if we hear back. |
Crowdfunding Expands To Local <b>Real Estate Investments</b> | News <b>...</b> Posted: 06 Jun 2014 07:15 AM PDT Photo: Gretchen Frazee Mainstreet executives meet with potential investors during a pitch meeting in Bloomington. Crowdfunding, where companies ask individuals to directly invest in their product, is being expanded to a new arena: real estate. When many people think of crowdfunding, they think of sites such as Kickstarter. In that model, for example, a band might need money for a CD. They ask people to contribute, and, in return, those people get a CD or, if they donate a large amount of money, a private concert. But crowdfunding is taking off to a whole new level. Real estate developers are starting to use crowdfunding sites to ask for contributions to their projects—and in return, you become an investor. How Real Estate Crowdfunding WorksTake real estate investment company MainStreet as an example. They want to build a short-term rehabilitation center in Bloomington. "We think there's a massive opportunity, here in Bloomington, in Indiana more broadly and across the country for these short-term stay facilities," says Mainstreet Chief Operating Officer Scott White. The facility would offer an alternative to nursing homes and at-home care when people are discharged from the hospital. They plan to have eight to ten on-site common amenities such as a movie theatre, a music room, a hair salon, as well as two to three on-site restaurants. The goal is to provide patients with a "luxury experience." Traditionally to build this kind of a facility, Mainstreet would go to banks and investment brokers to get funding. But this time, the company's leaders wanted to try a new approach. "These types of investments in the past were available to institutions, to Wall Street, to those that had special access," White says. "We want to democratize that." On a recent weekday in Bloomington, White is pitching the idea to a room full of potential investors. He's hoping to raise $1.5 million of the project's $13 million cost from individual investors. He shows them diagrams of what the facility will look like, explains how their previous facilities have been built and what kind of return they have seen from those projects. But not everyone listening to White's presentation will be allowed to invest. The JOBS Act allows companies to solicit investments through crowdfunding, but right now the Securities and Exchange Commission is limiting that to accredited investors–people who make at least $200,000 a year or have a net worth of more than $2 million. The SEC is limiting the investment opportunities because this type of crowdfunding is still a relatively new phenomenon and because there's an inherent risk in investments like the one Mainstreet is offering. "The bad as I characterize it sometimes with these crowdfunding platforms is the potential for naïve investors being coupled with naïve entrepreneurs and the result of that can be something that is not satisfying for either of them," says Todd Saxton, an associate professor and Indiana Venture Faculty Fellow at the IU Kelley School of Business in Indianapolis. The Risks and Rewards of CrowdfundingBut so far, people seem to be willing to take that risk—especially for the 14 percent return Mainstreet says it can produce. "That's a pretty alluring figure, so I definitely want to go on their website and look at facilities that they have developed," says Bloomington resident Lauren Cowen, who attended the investors meeting. "I'm actually going to go with a few people that were her today to a couple of the facilities in Carmel and Kokomo to see what they've been building." And that's what makes real estate crowdfunding stand out from other investments. There's actually a building, previously built facilities or, in the Bloomington case, a plot of land that potential investors can see. In fact, at the end of the presentation, Mainstreet executives were handing out directions to the site where the facility would be built. "It's very powerful because it's local. You can see it. You can touch it. You can feel it. " Saxton says. "That's very different from putting an extra $1,000 in my TIACREF account that might grow at 5 percent to 7 percent. That's not very personal. You really don't know the companies or the founders that that money is going to." But Saxton says people need to think critically about any company before investing. Crowdfunded real estate projects are popping up all over the nation—from Indianapolis to New York City, and most of the time, people use websites such as Fundrise or Crowdstreet to invest. That can provide added protection if you know the website is reputable, but it can also make the investment less tangible. So, Saxton says, investors need to check into the business' track record, read all the fine print, and, make sure it's legitimate. This is especially important because SEC is in the processes of establishing rules that would open up crowdfunding to everyone–not just accredited investors. That is something Mainstreet is excited about. "We're always looking to innovate. We call it positive dissatisfaction," White says. "This is working great—how can we do it better? How can we improve on what we're doing? And one of those things may very well be you've found success with accredited investors, now, when the rules are written, would you go more broadly to all investors? Absolutely." Since the investors meeting in Bloomington, Mainstreet has raised $1.8 million, which is more than it was originally seeking from individual investors. That success, along with the success of other projects in the state, is prompting Mainstreet to rely more heavily on crowdfunding—a trend financial experts say is only expected to grow. |
<b>Real estate</b> a 'crappy <b>investment</b>': Shark Tank's O'Leary - CNBC.com Posted: 04 Jun 2014 02:23 PM PDT Real estate will be a "crappy investment" over the next five to 10 years thanks to rising interest rates and stagnating home prices, investor Kevin O'Leary told CNBC's "Closing Bell." "I am convinced that at some point later this year we'll see the first 25 basis point rise. It'll rip through the infrastructure of utilities, and REITS and real estate," said O'Leary, one of the stars of the reality show "Shark Tank." For example, if a couple took a $200,000 loan for a $250,000 house, that house would have to go up 6 percent a year to cover the debt, transaction fees and taxes, he said. However, after five years, O'Leary doesn't think that home will be worth more than the original sale price of $250,000. Read More Low rates do nothing for mortgages "Don't buy any real estate. Don't do it," O'Leary said. Instead, he thinks investors should rent their homes and spend their money in the market—50 percent stocks, 50 percent bonds—for a better return and more liquidity. Mortgage rates fell last week, as did applications for refinances and home purchase loans. Pending home sales were just up 0.4 percent in April, according to the National Association of Realtors, and the S&P/Case-Shiller composite index showed home prices jumping in March. Read More Housing is still 30% below normal: Lennar CEO —By CNBC's Michelle Fox |
Investing Clubs – Silicon Valley <b>Real Estate Investment</b> Group <b>...</b> Posted: 05 Jun 2014 09:00 PM PDT Founded by Dani Beit-Or, the Silicon Valley Real Estate Investing Group brings together anyone interested in creating cash flow and wealth through real estate. After attending other groups that only focused on promoting their own businesses, Dani decided to create his own club where members could come to gain quality information about investing in real estate. Real estate club: Silicon Valley Real Estate Investment Group Why did you decide to start a real estate investing group?
Although there were other groups around, I felt like none were serving my needs. When we started, there were a lot of little groups, but most of them were only active for the purpose of promoting their own businesses. I wanted to build a community of real estate investors that could meet, talk, network and cross pollinate each other with investing ideas. What goals did you put in place when you started the group? How did you attract your first members? From the beginning, our focus was to bring quality speakers and content. I thought that if we were good at that, people would spread the word and tell their friends about us. What do you think people like the most about your investing group?
We also choose interesting topics and speakers that are not already regularly speaking to local groups. Many times, we work with the speakers to help them improve their content so it brings a higher value to attendees. Furthermore, we don't allow any sales pitches at the meetings and check up on speakers before they present. We really want our members to get a lot out of one evening. Have you ever had to deal with competition from a similar real estate group in your area? I have been in the real estate industry and the REIAs scene for over a decade. It amazes me to see some of the other groups bringing the same speakers again and again, not to mention the fact that they also jump around between clubs. Yes, we have had some of those speakers too (some of them are simply great and bring great value), but we also make an effort to find new ones or ones that are not already known in the local community. How do you keep members engaged? How do you fund events that you host? What advice would you give to those looking to start their own real estate group?
Lastly, be very careful of sales-pitch speakers. I have seen speakers at other groups that come in to sell a product and give members one or two great tips and that's it! For me, that's insulting and as an attendee, you have just wasted my time. If you teach me useful information I'd be more interested to learn about you, your services and even buy your product and that's the type of speakers we want to have at our meetings. |
Emerging Opportunities For Big <b>Real Estate Investing</b> Profits Posted: 02 Jun 2014 08:00 AM PDT New economic data and real estate forecasts from the Washington Real Estate Forum highlight emerging opportunities for real estate investors. Those who pay attention to these real estate trends could position themselves in a place to make large profits while staying ahead of the curve. The comprehensive NAR presentation at the DC economic and property forum this month paints a picture of a rebounding housing market, which will be moderated by a sluggish economy. The forecast is calling for extended, but tempered growth. However, those real estate investors that look deeper into the data should be able to pinpoint a variety of niches which are ripening. Those fast to position themselves have the potential to dominate emerging market segments before the majority of industry professionals even realize they are the next biggest trends, and capitalize on the niches providing maximum margins and velocity. With job availability still disproportionately low compare to the current population, areas with the fastest growing business hubs and job markets are likely to provide the most appreciation and transaction volume in the short to mid-term. Hot states for jobs reportedly include CA, CO, FL, NV, ND, and TX. Note that this may change, and some of the top areas for jobs could be those where new construction takes off. In fact, with housing inventory levels being held back by a multitude of factors, upward momentum relies on new construction to fuel the market with new inventory. While getting into the building side of real estate investing can bring more risks, and may not generally increase profit margins, new home prices are currently continuing to spike upwards and separate themselves from existing home sale prices. With the right strategy and marketing, there could be great real estate investing and brand building opportunities. While much focus has been devoted to distressed properties and underwater properties in the last few years, NAR reports 30% of U.S. homeowners are free and clear of mortgage debt. This provides a huge market of potential sellers with a variety of potential motivations for selling at attractive discounts. On the buy side, vacation home sales are reportedly one of the most consistent market segments which have being seeing volume steadily rise over the past few years. Specializing in this niche could not only offer a strong and growing market, but a great group of affluent clients to work with. Multifamily and single family rental homes continue to be a staple for cash flow real estate investing. The exit of large funds is helping to alleviate the competition, while their cash being pumped back in via investor loans is making it easier to grow portfolios. Both affordable rentals and properties with room for multigenerational housing a well-recognized niches by now, but certainly remain under served. However, there is a huge market which will be increasingly neglected, yet be building pressure. The media continues to be intensely focused on pushing urbanization as a trend. Urban living might be hot, and U.S. aren't likely to empty overnight. However, NAR suggests the largest segment of the market which is pent up is an overdue purchasing boom of single family homes. It will come. Those that differentiate themselves by serving this niche while others are focusing on micro apartments in the city could have a significant advantage. 40% of the population will soon be location independent and able to work remotely. Providing there is good internet, suburban housing, even bordering on rural, with more house being given for the money could be a great market for some investors to focus on. ![]() |
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