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Do you enjoy spending your hours at work in the office, or do you like to be outside? Do you find it fun and exciting when a deal is done, or are deals just more busy work for your day?

If any of those questions have got stuck on repeat in your head, then these real estate investment trusts might be a good career path for you.

The short answer: Real estate investment opportunities are plentiful and they come with varying degrees of risk and reward depending on what you’re looking for.

I know from experience that real estate investment trusts can be a good career path.

So if real estate investing sounds like something that might be right up your alley, keep reading!

What are Real Estate Investment Trusts?

Real Estate Investment Trusts, or REITs, are a type of investment that receive tax concessions from the government. This is because they are designed to promote the development and growth of the real estate industry.

Investors can put their money into diverse projects, such as hospitals, schools, warehouses, and hotels.

In addition, REITs are publicly traded companies that buy, sell, and operate cash flow-producing commercial real estate. There are some privately traded REITs as well.

Why REITs as an Investment?

REITs have many investors who make up their stock portfolio. These can be individuals such as retail investors like you and me or other businesses.

What’s more, is that REITs are trusts similar to mutual funds which offer stability for both short-term and long-term investments in property assets.

Finally, REITs offer investors a reasonable return on investment.

What are the different types of real estate investment trusts (REITs)?

Real estate investment trusts, or REITs, are a type of security that allows people to invest in real estate without actually having to own any property. They are similar to mutual funds, with the exception of their working procedure.

There are two major types of REIT: equity and mortgage. Each type has its own specific benefits and drawbacks.

Equity REITs

Equity REITs are the most common type of REIT and they generate their revenue primarily through rents, not by reselling properties. This makes them a relatively stable investment option and they are often used as a way to diversify an investor’s portfolio.

Mortgage REITs

Mortgage REITs are a type of real estate investment trust (REIT) that invests in mortgage-backed securities. They are similar to other types of REITs, but they tend to have a higher yield as they earn their income from the interest margin on the mortgages they own.

This makes them potentially sensitive to interest rate increases as it could reduce the spread between what they earn on loans and what they pay out in funding costs.

Hybrid REITs

Hybrid REITs use a combination of the two strategies. They own properties like equity REITS and use the money from investors to purchase mortgages like mortgage REITs.

How to Buy Real Estate Investment Trust

Real estate investment trusts, or REITs, are a type of security that allows investors to purchase shares in a company that owns and manages income-producing real estate.

There are three types of REITs: publicly traded, public non-traded, and private.

  • Publicly traded REITs are the most common and are listed on major stock exchanges. They offer liquidity and transparency but also come with higher risk.
  • Public non-traded REITs are not listed on exchanges but offer more liquidity than private REITs.
  • Private REITs are not available to the general public and have less liquidity than both publicly traded and public non-traded REITs. Private REITs can be sold only to institutional or accredited investors.

Pros and Cons of Investing in Real Estate Investment Trusts

When it comes to making money, real estate is always a sound investment. And with the popularity of real estate investment trusts (REITs), you no longer have to be a landlord or developer to invest in properties.

REITs are becoming increasingly popular because they offer investors diversification and liquidity- two key features that any good investment should have.

But like anything else, there are pros and cons to investing in REITs. Here are some things you should consider before you put your money into this type of trust:

Pros of REITs:

1) Diversification: Real estate is a very diverse asset class, and by investing in a REIT, you’re automatically spreading your risk across many different properties. This helps reduce the volatility associated with stock market fluctuations.

2) Liquidity: A key advantage of REITs is that they’re highly liquid- meaning you can sell your shares at any time without penalty. This gives you the freedom to take profits when the market is doing well or reinvest them when prices are down.

3) Professional Management: When you invest in a REIT, you’re essentially hiring professional property developers and managers to do all the hard work for you. This takes away the hassle of dealing with tenants, repairs, and other day-to-day tasks associated with owning property.

Cons on REITs:

1) No Say in Management: Unlike directly owning property, you have no say in how the REIT is managed. If you don’t agree with the way the managers are running things, there’s not much you can do about it.

2) Taxation: The tax laws surrounding REITs are a bit complicated, so make sure you consult an accountant before investing. In general, taxation is much easier than owning the property yourself, but it’s still something to keep in mind.

3) Fluctuating Values: Just like stocks, real estate prices can go up and down quickly. So if you’re looking for a stable investment that will always give you a return on your money, REITs might not be right for you.

How successful are real estate investors?

Real estate investment is a popular way to make money, but it’s not without its risks.

Those who are successful in this field often have a lot of money or access to money (private money, hard money, bank financing, self-directed IRA).

It can be a career if you’re willing to put in the work, but it’s important to think carefully before making that decision.

Real Estate Career Path

Many different real estate jobs offer high salaries and great opportunities for career growth. Plus you can match your experience to find the best real estate career path.

These jobs offer a variety of opportunities and allow you to work in a wide range of settings.

What are the Requirements of Managing a REITs?

Real estate investment trusts, or REITs, are a type of mutual fund that allow both big and small investors to pool their money together and invest in real estate. REITs offer a variety of benefits to investors, including an opportunity for capital appreciation as well as a strong income stream.

In order to qualify as a REIT, they must be registered with the SEC and meet certain other requirements.

1. Managed by Board of Directors or Trustees

In order to be a REIT, the company has to appoint a board of directors or trustees. The board is responsible for making sure the REITs comply with the regulations set by law and also exercise their fiduciary duties. Furthermore, the board approves important decisions such as changes in investment strategies, acquisitions, and dispositions.

2. Taxable Income Paid to Investors

One of the key requirements for managing a REITs is paying out at least 90% of its taxable income to the investors. This leaves limited room for the manager to use the REITs’ income for their own benefit and also minimizes taxes. As a result, it is crucial that a REITs manager has a strong understanding of tax laws and can effectively communicate with the investors.

3. Gross Income Generated from Real Estate Investments

In order to be a REIT, an organization’s income must come from at least 75% of its total assets in real estate. The other 25% may be invested in cash, securities, and other assets. This allows the company to grow without having to worry about being classified as a security corporation.

4. Number of Shareholders or Investors

Another requirement for managing a REIT is that there must be at least 100 investors and shareholders. In addition, no one shareholder can hold more than 50% of the shares (at least). This protects the interest of all shareholders and ensures that no one person or entity can control the REIT.

How to get started in the real estate investment trusts industry

There are many different ways to get started in the real estate investment trusts industry.

There is no one-size-fits-all answer when it comes to starting a career in this field. Every individual has their own strengths and weaknesses that they need to take into account.

  • One way is to start as an intern or apprentice and then work your way up the ladder.
  • You could get your business degree and find a career in REITs.
  • Another option is to become a real estate agent and specialize in commercial real estate.

There are many online courses and programs that can teach you about the industry, and there are also many books on the subject.

Whatever route you decide to take, remember that it’s important to do your research and learn as much as you can about the real estate investment trusts industry before jumping in headfirst.

How to Get Started as an Investor in the Real Estate Investment Trust industry

Real estate investment trusts, or REITs, can be a great way to invest in property and achieve your financial goals. However, in order to be successful, you will need cash to be able to invest in the REIT.

In addition, the cash must not be needed in the recent timeframe.

My favorite REIT platforms are:

What skills do you need to be successful in real estate investment trusts?

This section is specifically for those wanting to know… is real estate investment trusts a good career path?

First and foremost, you will need to have a degree in finance or another relevant discipline. This qualification will give you the basic analytical skills required for success.

In addition, experience in real estate is essential; it is one of the most complex and fast-paced industries around.

You will also need strong marketing skills. REITs are all about generating income through rent or capital gains, so you need to know how to market properties effectively.

Finally, good communication and people skills are important too; after all, you’ll be dealing with clients and tenants on a regular basis.

If you possess these skills, then real estate investment trusts could be the perfect career path for you!

In fact, if you keep using these good excuses to miss work, then a job change is probably needed.

The future of the real estate investment trusts industry

The real estate investment trusts (REITs) industry is rapidly growing and changing. In fact, REITS account for 2.9 million direct jobs (source).

As the world progresses, so does this industry, with new opportunities and challenges arising constantly. REITs offer a unique career path for those who are passionate about real estate and interested in making money.

Money should not be an issue in this sector, as REITs offer a rewarding career path for those who are willing to invest in it.

Check out the best paying jobs in real estate investment trusts.

Career Options within REITs

REITs offer the opportunity to be paid as an investor or career within the industry. Pay can vary depending on the company and its structure; however, most companies within this sector pay well.

If you work for a REIT, you can learn about investing in the real estate industry by being a part of it–an invaluable experience if you’re looking to invest personally into real estate yourself one day.

As the industry grows, so does the need for new people to enter it; companies are constantly looking for new people. In fact, they typically add 555,000 jobs per month (source).

Within the real estate investment trusts industry, there are various career paths that one can take.

Acquisitions

One common job within the REIT industry is acquisitions; which involves buying or selling real estate assets. This position requires a good understanding of the market and the ability to make quick decisions.

Analysts

In the real estate investment trusts (REITs) industry, analysts typically start out earning a salary of around $80,000 per year. With experience, they can move up to a management or executive role and earn a six-figure salary. Additionally, there are many opportunities for career growth in the REITs industry as it continues to grow.

Property Developer

In the real estate investment trusts (REITs) industry, the developers are the team responsible for building new projects from scratch. They identify potential investments, obtain the necessary permits and funding, and manage construction until completion.

This is an important role in the REITs industry as it drives expansion and innovation.

Property Managers

Property managers are famous for getting things done, and they are essential members of any REIT team.

There is no standard education background necessary for becoming a property manager; however, you need skills in project management and construction management.

Real Estate Agents

Agents typically earn more in commissions than their peers working in traditional real estate brokerages, making this a lucrative career path to consider.

Which real estate career makes the most money?

Real estate is a great way to invest and grow your money.

There are a variety of different ways to get involved in real estate, but one of the most popular ways is through real estate investment trusts (REITs).

REITs allow you to invest in a portfolio of properties without having to go out and find them yourself. This can be a great way to get started in real estate investing and build your wealth over time without day-to-day management.

Turn to Real Estate Career Pathway

Real estate investment trusts (REITs) are a good career pathway if you want to come up with better investment strategies. They can provide opportunities to learn about the market, make contacts and develop skills. However, it is important that you reflect on what skills you have, your resources, and where you align before entering this field.

There is a lot to consider when making the decision whether or not to pursue a career in real estate.

It is important to do your research, reach out to people in the industry, and reflect on what you’ve learned. Only then can you make an informed decision about your future.

It ultimately comes down to what you want and what you’re willing to do.

If real estate is your passion, then go for it!

But make sure you do your research and understand the risks involved. There’s no right or wrong answer, but be sure to weigh all of your options before making a decision.

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

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This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Right now, many people are exploring different industries looking for the right career change.

As such, people are intrigued about the real estate market, but don’t want to start their own company. So, working for a REIT may be a good fit for you.

Real estate investment trusts, or REITs, are publicly traded investment vehicles that allow investors to pool their money and invest in a wide variety of real property assets. These assets can be diversified by investing in an ETF that holds a portfolio of different REITs.

First of all, careers in REIT tend to be highly lucrative and the industry is growing by leaps and bounds.

When viewed as an industry, REITs make significant contributions to the tax base and the job market. Plus the community is the benefactor of all real estate improvements.

in 2020, REITs contributed an estimated 2.9 million full-time jobs to the U.S. economy (source).

In this article, I will tell you how many positions are available in REITs and what these jobs entail.

What are real estate investment trusts?

Real estate investment trusts, or REITs, are a type of security that owns and operates income-producing real estate. REITs are a great way to invest in real estate without having to be a property owner.

When you buy into a REIT, you are not actually buying any real estate yourself–you are simply investing in a company that owns and operates real estate. The company will not resell the properties it acquires; instead, it will hold on to them and generate profits from rent or lease payments.

How many real estate investment trusts are there?

There are a great number of real estate investment trusts, or REITs, across the globe. These trusts have a combined equity market capitalization of $1 trillion and hold a vast array of properties- from apartments to hospitals to data centers.

In the United States, there are more than 225 real estate investment trusts (REITs) that are registered with the Securities and Exchange Commission (SEC) and trade on one of the major stock exchanges.

Over 1,100 REITs have had tax returns filed according to the IRS. Thus, most REITs are privately held.

What is the job outlook for people in real estate investment trusts?

The job outlook for people in real estate investment trusts is good because the real estate industry is growing and there is a lot of opportunity for people who are interested in this field.

The real estate industry is always changing, so it is a good field to be in if you want to have a lot of opportunities for growth.

The job market for people in real estate investment trusts is expected to grow at a rate of about 10% per year. This means that there will be more high-level positions available in the next few years. In addition, 30% of all REIT jobs require a business degree to start at a managerial level. However, you can find entry-level positions to begin your career.

How Many Jobs are Available in Real Estate Investment Trusts

Currently, there are over 1,500 jobs available in real estate investment trusts on Linkedin and 3000 more on Indeed.

There are many different career paths that one can take on within the industry of real estate investment trusts, with different salaries and opportunities.

Best paying jobs in Real Estate Investment Trusts

Asset managers, for example, can make upwards of $200,000 per year. Other high paying positions include those of developers, acquisitions professionals, and investor relations personnel.

It is important to remember that these roles often intersect and overlap, so it is important to be aware of what companies are hiring for what positions. There are many industries in which you can work for a REIT, including construction projects and residential leases.

Real estate investment trusts, or REITs, are becoming more popular as a way to invest in the real estate market. These trusts are responsible for every aspect of a real estate project, from finding and acquiring properties to managing them and leasing them out. This requires a variety of different professionals, including asset managers, accountants, lawyers, and engineers.

Types of Jobs Available

There are also many jobs available in the field of real estate investment trusts (REITs). A REIT is responsible for every aspect of a real estate project, from development to management.

The company also needs to ensure its success, which requires a lot of hard work and dedication. There are professionals managing the trust’s assets and overseeing its portfolio.

If you’re interested in working in this field, there are many opportunities available to you including:

  • Property Manager
  • Commercial Developer
  • Acquisition Team Member
  • Financial Analyst
  • Marketing Coordinator
  • Construction Supervisor

Check out the full list of available jobs in real estate investment trusts.

Each of these positions has different responsibilities and duties.

For example, a real estate agent is responsible for helping REIT buy or sell properties. A property manager is responsible for overseeing the maintenance and operations of a property, while a financial analyst decides whether or not the assets are living up to their financial obligations. Finally, a commercial developer is responsible for designing, constructing, and managing commercial developments.

How do I become a real estate investment trust professional?

You should be able to identify opportunities and analyze data to make sound investment decisions.

You should have experience in financial analysis, accounting, and investing. Excellent communication and interpersonal skills are also important, as you’ll need to work with clients, investors, and other professionals in the industry.

There are many things to consider when you’re thinking about becoming a real estate investment trust professional. The most important factor is making sure that this is the right career path for you. There are many benefits to working in REITs, but it’s important to make sure that you’re ready for the challenge.

Once you’ve decided that this is the right career for you, there are some basic steps that you need to take in order to get started.

The first step is getting educated on the topic. There are many courses and programs available that can teach you everything you need to know about real estate investing. After you’ve completed your education, it’s time to start building your network. Meeting other professionals in the industry and getting connected with potential mentors will help set you up for success.

The final step is finding a job in the industry. There are many opportunities available, so it’s important to do your research and find the company that’s right for you. Working in REITs can be a rewarding experience, and with the right preparation, you can be on your way to a successful career in real estate investment trusts!

What are the requirements to work in a real estate investment trust company?

The requirements to work in a real estate investment trust company vary depending on the company, but typically a degree in business, finance, or economics is required, along with experience in the real estate industry. Some companies may also require experience in accounting, investment banking, or the law.

In order to work in a REIT company, you must meet some requirements.

First and foremost, you must be passionate about real estate investment. Secondly, you must be able to devote the time and resources necessary to do your job well. Finally, you must be able to meet the company’s standards and uphold its values.

REITs are required by law to invest in real estate–so it’s important that you have a firm understanding of the market before working in this industry. In addition, REITs are limited in terms of the number of shareholders they can have (no more than 50% held by five or fewer people). Lastly, REITs are mandated to pay out 90% of their taxable income each year so that investors can benefit from regular dividend payments.

How Much Can You Earn Working for a REIT?

Smaller companies with lower profit margins usually offer the lowest-paid jobs. Larger companies with higher profits and more complex job tasks often pay more than smaller ones do.

According to Payscale, the average base salary for the REIT industry is $75,000 a year (source). This is above the median salary of $60000. Thus, jobs within the REIT industry are more lucrative than you can find in other industries.

Lead Analysts and Senior Analysts are the most popular jobs within the industry with annual salaries of $80,000 and $90,000. It’s important to note that these figures are national medians and may vary depending on location.

Executive-level jobs offer the highest earning potential with the average salary for a senior executive position reaching well over six figures ($105,000). However, it is also worth mentioning that these earners typically have an ownership stake in their company.

Therefore, if you’re looking to maximize your earnings as a REIT employee then working for a large company is your best bet.

How Many Are Real Estate Investment Trust Jobs Being Created Each Year?

The number of jobs in real estate investment trusts is growing rapidly, with more than 1000 positions becoming available each year.

REITs are a type of business that creates many jobs.

The number and percentage of these jobs will vary depending on the specific industry in which the REIT operates; however, there are always many opportunities for those interested in this field. It’s important to research the particulars of each position in order to decide which is best for one’s interests.

Individuals can be employed in a variety of positions in the REITs sector, including accountants, construction managers, leasing consultants, property managers, and financial analysts.

There are a variety of job opportunities in REITs, depending on the specific department or position you’re interested in.

Many even are early morning jobs too!

Other jobs in real estate investing

Plenty of different jobs are available in the real estate industry and can be broken down into three main categories: 

  • People who invest in real estate
  • Those who manage or develop properties
  • Employees who provide support services.

There are a variety of job descriptions to fit your experience level. 

In fact, if you keep using these good excuses to miss work, then a job change is probably needed.

REITs – Real Estate Industry a Possibility for You?

It is important to know how many jobs are available in a particular field so you can see if it’s worth pursuing as your career.

As this article showed, real estate investment trusts, or REITs, makeup one of the higher paying jobs. Surprisingly, it has one of the lower barriers to entry as a career field.

Plus, there are more than hundreds of thousands of people who are employed by REITs.

You can earn a lot of money working for a REIT, depending on the company you work for and the job you have.

Start your job search now.

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

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The April Residential Construction Report from the U.S. Census Bureau and the Department of Housing and Urban Development shows mixed results in April. Permits fell off slightly from March levels and housing starts showed some improvement.

Construction permits were issued at a seasonally adjusted annual rate of 1.416 million units. This is 1.5 percent fewer than the 1.437 million units permitted in March.  Single-family permits rose 3.1 percent to 855,000 units and multifamily permits fell 9.7 percent to a rate of 502,000 units  Permitting overall was down 21.1 percent from the 1.795 million level in April 2022 and those issued for single-family homes and multifamily units were down 21.2 percent and 23.0 percent respectively.

Any improvement in housing starts was blurred by a substantial revision to the March numbers. Originally reported at an annual rate of 1.420 million units, an 0.8 percent increase, the rate of starts was downgraded to 1.371 million in today’s report. This accounted for the 2.2 percent gain in April to 1.401 million, the highest rate thus far in 2023.  A similar revision to single-family starts (861,000 units became 833,000) made the 846,000-unit rate in April a gain of 1.6 percent. Multifamily starts jumped 5.2 percent to 542,000 units. Starts were down 22.3 percent from a year earlier, single-family starts lagged by 28.1 percent, and multifamily starts were 11.7 percent lower.

Permits came in slightly higher than consensus estimates from analysts polled by Econoday. They were expected to be at an annual rate of 1.430 million units. The forecast for housing starts was only slightly above the mark at 1.405 million.  On an unadjusted basis, there were 117,400 permits issued in April, down from 131,300 in March. Single-family permits fell to 74,900 from 79,400. Starts totaled 127,100, 78,800 of which were single-family homes. In March the totals were 113,600 and 70,800, respectively.

During the first four months of 2023 there have been 461,500 residential construction permits issued, a 23.0 percent decline from the same period in 2022. Single-family permits are down 30.1 percent to 266,600 and multifamily permits have fallen 10.9 percent to 178,400 units.  Year-to-date starts are 20.3 percent lower than those in 2022 at 441,600 and single-family starts have fallen 29.2 percent to 266,400. Starts on units in buildings with five or more are down only 1.0 percent from the previous year to date.

There were 107,500 homes completed in April, almost 20,000 fewer than in March. Single-family completions fell by 11,000 to 76,400. So far this year, completions are up 8.7 percent from the same period in 2022 to 441,200 although single-family completions at 311,800 are 0.5 percent lower than the first four months of 2022.  At the end of April, there were an estimated 1.675 million housing units under construction, 698,000 single-family houses and 959,000 multifamily units. There were also 139,000 single-family and 147,000 multifamily permits outstanding.

Permitting in the Northeast region fell 23.6 percent from March levels and was 29.4 percent lower on an annual basis. Starts were down 23.4 percent and 2.2 percent from the two earlier periods.  In the Midwest there were 15.2 percent fewer permits issued than in March and 28.5 percent fewer year-over-year. Housing starts surged 32.6 percent from March levels but remained down 21.9 percent compared to 12 months earlier.  An increase of 4.3 percent in the rate of permits in the South leaves that rate down 17.8 percent compared to the prior April. Starts were down 6.3 percent and 23.7 percent.  The West saw a gain of 3.8 percent in monthly permitting leaving the annual deficit at 21.3 percent. Starts were even stronger, rising 34.6 percent. However, starts are still down 25.5 percent on an annual basis.

Source: mortgagenewsdaily.com

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The watchdog for the U.S. Department of Housing and Urban Development (HUD) says an audit discovered that the temporary policy for endorsement of loans with COVID-19 forbearance activity had multiple compliance issues.

The Office of Inspector General for HUD said the department should improve two major areas –  ensuring lenders follow the outlined policy, and improving its records regarding indemnification agreements, according to a report released on Monday.

“We audited the [HUD] temporary policy for endorsement of loans with COVID-19 forbearance activity because an analysis of data in HUD’s systems showed that there may have been loans that did not comply with the policy’s requirements,” the HUD OIG said in its announcement of the report. “The policy was one aspect of HUD’s broader emergency response to COVID-19, which also included an eviction moratorium and loan forbearance for borrowers experiencing financial hardship.”

The audit set out to determine whether HUD’s temporary endorsement policy for COVID-19 forbearances was properly followed by lenders, whether or not HUD monitored and enforced indemnification agreements for loans that were subject to it, and HUD’s reasons for ending the policy during the pandemic, “and its plans to evaluate and use such policies in the future,” the OIG said.

The report said that HUD did not properly ensure compliance with the policy by lenders. It also found that the Department did not ensure that “indemnification agreement data and records related to the policy were complete and accurate,” which the OIG attributes to a lack of necessary updates for its oversight strategy to “specifically cover the policy and reconcile relevant data and records,” the OIG explained.

This led the Federal Housing Administration (FHA)’s insurance fund to be “exposed to greater risk from at least $83 million in loans for which lenders did not follow requirements,” the OIG said. HUD’s ability to monitor and enforce indemnification agreements “could be compromised” until it makes necessary corrections and updates its records, the findings read.

Limited use of the policy ultimately led to its discontinuation, but HUD did not put plans in place to evaluate a potential future need should another recognized disaster require it.

“As a result, HUD did not know whether using a similar policy during future disasters and emergencies or permanently could manage risk to the insurance fund while increasing lender participation,” the OIG said.

To address these identified issues, the OIG made six recommendations. The first is to require lenders to execute five-year indemnification agreements for loans found to be missing required agreements; the second is to “request and analyze data from lenders for loans at risk of noncompliance to identify loans that should have been subject to the policy,” OIG said.

Other recommendations include more adequate recording of indemnification agreements; better review processes regarding indemnification data on applicable loans; updating incorrect or incomplete indemnification agreements; and to provide more consideration on how such a policy could be used in the future.

In a comment response posted in the report, FHA Associate Deputy Assistant Secretary for the Office of Single-Family Housing Julie Shaffer said the audit is missing some key contextual information.

“While we acknowledge opportunities for improvement in the delivery of FHA programs, we believe the draft report does not fully capture the unprecedented nature and complexity of the circumstances that preceded this temporary COVID-19 policy,” Shaffer said.

She goes on to say that pending a review of the loan samples used to conduct the audit, review of the available data shows “consistency with FHA’s performance in facilitating successful outcomes for borrowers during the COVID-19 National Emergency while maintaining the historically strong capital position of the Mutual Mortgage Insurance Fund.”

Still, HUD agreed to propose a management decision in response to the report’s recommendations that will include action plans and target dates.

“We look forward to working with HUD during the audit resolution process,” the OIG said.

Source: housingwire.com

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How will artificial intelligence — Chat GPT and image-generating programs such as DALL-E — change the way the home furnishings industry does business? A handful of home décor executives, some of whom are experimenting with the technology and others who are still in watch-and-see mode, shared their thinking with Home Accents Today:

Jamie Merida

Bountiful Home

As far as it being an AI tool for writing and language, I don’t see it being an asset to us, but I am intrigued by AI photo generators as a brainstorming tool. Typing in a few prompts, like “pinecone toile” or “modern red living room” creates dozens of interesting results that could help sync a client’s vision with my design.

Maura Dineen

Creative director, Moe’s Home Collection

Moe’s is an innovative and forward-thinking company, always searching for new ways to approach our work. We’ve been utilizing AI across multiple teams, and Chat GPT has become another tool in our tool kit. Like any tool, it’s excellent for some things but not everything. Without giving anything away, we strive to provide a seamless experience using the most cutting-edge technologies, and Chat GPT is no exception. We’re excited to see how AI evolves in supporting our business.

Brian Berk

President, Howard Elliott Collection

I am not super familiar with the capabilities or limitations of Chat GPT. I think that it might be helpful for writing product content.

Brownlee Currey

President Currey & Company

It already has! Chat GPT can’t duplicate a specific written voice, but it is a whiz for keywording, formatting and laying out written documents. Personally, I’ve been using it since early this year to ease the writing process and get words on paper quickly.  In the not-so-distant future, we will all be integrating software such as Chat GPT into our workflows, for a variety of purposes.

Alyssa Abrams

Marketing director, U.S., Eichholtz

At this time, no. We have an incredible team of customer service reps that are knowledgeable and friendly, but furthermore, are an extension of our brand experience. There is no replacement for human interaction when it comes to building relationships with customers!

Emma Lowry

Vice president of product development, Elk Home

Yes. Absolutely, there are a myriad of ways ChatGPT is going to change our business. I have been using it for marketplace analysis, meeting agendas and product descriptions. We are looking into how it could be used for digital marketing strategies, data analysis and the list goes on. We have also been playing around with DALL-E which generates AI images for new design concepts.

Pam Cain

President, Chelsea House

Chat GPT is one of the most mind-blowing technology releases I’ve seen, which is backed by both the number of users it’s generated quickly and the number of use cases it supports. Running a brand in the design industry requires a delicate balance of business savvy and design-eye, and there’s no doubt Chat GPT can make companies in any field more efficient and process-oriented. For every task it can easily handle, we free up more time to discover trends, design thoughtful and beautiful furnishings, and connect with our audience in meaningful ways. We’ve already begun using it!

Giovanni Marra

Director of marketing and digital strategy, Nourison

We’ve experimented with Chat GPT. It might help with research and some simpler tasks, but it can’t really write for you in your brand’s voice. It is interesting to test but we’ll keep focusing on our talented writers for our main content creation.

Shari Kline

Owner and creative director, TL at Home

If I’m being perfectly honest, I think I’d probably enjoy using it to help jumpstart the process of writing product descriptions. But I think overall it’s probably more insidious than helpful in the long run.

Monty Rathi

Chief operating officer, Kaleen

It’s an innovative idea and it definitely would help out our business as we continue growing. We haven’t experimented with it yet but we will soon, and we hope to find ways we could use it in the future.

Austin Craley

Vice president of sales, Loloi

I don’t know if it will be an asset, but it will change a lot in our industry, and quickly.  Many jobs will become simpler and easier to do.  The long-term implications are still to be determined.

Emily May

Director of advertising and public relations, Feizy 

Yes, when you have a very small team, even having a rough draft of content created can be incredibly helpful. Some projects, like collection copy or brochure language for a specific program still require a lot of human oversight, but templated communications are a great way to embrace this new technology. I could really see this being helpful to distribute companywide communications, re-weather-related closures, changes in personnel and company policies.

Greg Jordt

Executive vice president Sales and marketing, Harounian Rugs International

The fact that I had to Google ‘ChatGPT’ probably tells you and me, that we will not be offering it any time soon. ChatGPT is a natural language processing tool driven by AI technology that allows you to have human-like conversations and much more with the chatbot. The language model can answer questions and assist you with tasks. At this time and in the foreseeable future, I don’t see how this technology will enhance the capabilities and the service of our current customer service department.

Ned Baker

Key account manager, Tamarian Rugs

I suppose it could be a tool for dealing with some of the “hard facts” of the rug industry; history, production info, sales/trend gathering, etc. But it seems to me there would be a limit in the creative aspects of the work and would remove the human interaction that is the “secret sauce” to the high-end rug market. I also feel something is lost in the “authenticity”, again, because the human element is removed. There is little left of a “journey” to achieve something, therefore less is learned, less is gained.

Source: homeaccentstoday.com

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Real-time real estate payments are part of KeyBank’s larger embedded finance strategy.

Joe Buglewicz/Bloomberg

Closing on a house can take almost two months, making it a prime target for instant payment settlement. 

To get keys into homeowners’ hands even faster, KeyBank is working with The Clearing House and EMTransfer, a real estate cash management platform, to apply the RTP rail to real estate transactions.

“We’re all aware of the time for wires or e-checks or paper checks,” said Jon Briggs, head of commercial product for KeyBank. “This will enable us to process these payments in a manner of seconds.” 

TCH is looking to expand use cases for its RTP network to gain more usage as the FedNow system gets set to launch in the coming weeks, while KeyBank hopes instant settlement will boost the bank’s embedded finance strategy. 

“Firms have been dipping their toes in RTP for real estate,” said Cheryl Gurz, vice president of RTP product development for The Clearing House, adding that some title companies have used the rail to connect to a buyer or seller’s bank “here and there” but not in a large scale way. EMTransfer will greatly expand RTP’s use for real estate, Gurz said. 

EMTransfer will access real-time settlement through a KeyBank application programming interface. The API enables real-time payments to be sent over the RTP Network. EMTransfer consolidates payments for title companies, insurance firms, lawyers, or other parties that need to be paid during a real estate closing. Residential real estate closings take an average of about 50 days, according to RocketMortgage.

“A real estate transaction has a complexity of a single payment that has to be parsed out to a number of recipients,” Briggs said. “There’s the seller, the real estate agent, the title company, insurance companies, sewer hookup, etc.” 

The collaboration will mitigate fraud risk via immediate confirmation of receipt for all parties in a real estate transaction, TCH said. There’s also an opportunity to reduce per diem payments, or the fees charged for closings that linger beyond the previously scheduled date. Agent commissions can also be paid faster, and the product can be used in states that allow buyers and sellers to use different title and escrow companies. In those cases, the RTP network can be used as a bridge between companies if the banks are on the RTP network. 

“What makes this interesting is RTP is a 24x7x365 rail,” Briggs said. “We all have day jobs. We’re not thinking about settling a real estate transaction.” 

The RTP network has more than 300 bank members, covering about 70% of the addressable bank accounts in the U.S. 

It faces potential competition from the launch of FedNow, which is scheduled for July. FedNow will be accessible to more than 9,000 financial institutions, though it will take a year or more for the institutions to add support for FedNow. RTP has been live for about five years already.

Real estate firms already use third-party software to aggregate their payments, and these software providers can use real-time payments to transact outside of business hours, according to Gurz. “The payment can be processed at any time.”

The next phase will be to include TCH’s Request for Payment, or real-time billing. Real-time billing combines digital bill presentment with the RTP network, enabling payments to be processed at the time of billing or at a predetermined time based on the payers’ cash position. That feature is under development for real estate closing, Gurz said. 

KeyBank is also hoping the use of real-time processing for real estate can inspire use for other financial services, as it looks to grow its embedded finance strategy, Briggs said. Embedded finance refers to the use of payment credentials to offer a variety of financial services, often from third parties. 

As use cases for real-time settlement proliferate, disbursements similar to real-estate closings — where payments that are related but sent to multiple recipients — will be a primary area of focus, according to Albert Bodone, director of commercial and enterprise payments for Javelin Strategy & Research. 

“Immediate clearing and settlement can be extremely important when you’re making these types of payments,” Bodone said. 

Payment technology firms such as AptPay, for example, are positioning real-time payments as a way to enable insurers to send and receive payments upon request. This could help policyholders who need to access compensation fast after a loss. Policy premium payments and refunds are another real-time settlement use case for insurance firms. 

In auto lending, U.S. Bank partnered with e-commerce site Driveway.com in 2022 to support instant settlement for car sales. TD Bank released a similar product at around the same time. U.S. Bank later added support for real-time loan funding to dealerships after the bank finalized the loan contract. 

Given the limits in real-time transactions — the RTP network has a limit of $500,000 and the pending FedNow service has a $1 million limit — transactions will likely be in line with the typical closing costs for an auto loan or a house. 

“Real-time pay for disbursements will be used more in the consumer space than commercial early on, but there is a fair amount of delay where there are layers of people who need to be paid as part of a larger transaction,” Bodone said.

Source: nationalmortgagenews.com

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After falling 0.8% in March, housing starts were back up again in April, according to a report released Wednesday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD).

Home starts checked in at an estimated annual pace of 1.401 million in April, up 2.2% month over month. Despite this increase, housing starts were down 22.3% on a yearly basis. 

The monthly uptick in starts came via increases in both single family (1.6%) and multi-family (5.2%) building, with paces of 846,000 homes and 542,000 homes, respectively. 

“Single-family housing starts have improved modestly alongside cautious builder optimism, as homebuilder sentiment inched into positive territory in May, increasing for the fifth consecutive month.” Odeta Kushi, the deputy chief economist at First American, said in a statement. 

Industry economists attribute the uptick in housing starts and builder confidence to the low level of existing home inventory. 

“Despite elevated mortgage rates and a slower-than-typical spring housing market, homebuilders are feeling confident about the outlook for new housing demand because the inventory of existing homes for sale remains very constrained,” Lisa Sturtevant, the chief economist of Bright MLS, said in a statement.

“In April, the inventory of existing homes for sale totaled just 980,000, far lower than the long-term average of about 2.3 million homes.”

While housing starts were up in April, the number of permits issued was down 1.5% month over month to a pace of 1.416 million, thanks to a 9.7% monthly decrease in the number of multi-family permits issued to 502,000. However, there was good news for single-family home builders as the pace at which permits were issued rose 3.1% from March to 855,000. 

Year over year, the number of permits issued was down 21.1%.

Compared to the building boom in 2021 and 2022, “new construction has slowed considerably,” said Nicole Bachaud, Zillow’s senior economist. “However, the permits pulled, and units started a year ago are making their way to the market now with completions up over last year, adding some new inventory to the market.”

Housing completions were also down in April, dropping 10.4% from the month prior to a pace of 1.375 million. However, on a yearly basis, completions were up 1.0%. While single-family completions were down 6.5% month over month to a pace of 971,000, multi-family completions were up 5.2% to 400,000. 

With existing home inventory so low, builders are working to get more new homes on the market. 

“Existing-home inventory remains limited as the majority of homeowners are rate-locked into their homes. As a result, prospective buyers may turn to the new-home market. If finding an existing-home is difficult, a new home at the right price is a good substitute,” Kushi said. “While new homes have historically made up approximately 1% of total inventory, that share has increased to nearly 30% in recent months. Estimates of the nation-wide housing shortage vary, but tend to range from between 3.5 million to 5.5 million housing units. This implies that even if all units under construction came to market tomorrow, we’d still be underbuilt by millions of units. As such, new supply of housing is more likely to ease than erase the national housing shortage, although this will vary by location.”

As builders work to fill this void, they are still faced with multiple challenges.

“Builders continue to face obstacles, including high material costs and a lack of labor,” Sturtevant said. “One of the biggest challenges are  local regulations that often limit the amounts of types of housing that can be built. Unless localities allow more residential development, housing demand will outstrip supply and housing affordability will continue to be a challenge.”

Regionally, housing starts were up month over month in the Midwest (32.6%) and the West (34.6%) but were down 23.4% in the Northeast and 6.3% in the South.

On a yearly basis, homebuilders’ housing starts were down in all four regions, with the West posting the largest decrease at 25.5%.

Source: housingwire.com

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How much is your home worth?

A good home appraisal is one of the most important components of getting approved for a mortgage.

This appraisal ultimately decides just how much a bank is willing to lend to you, and a bad appraisal can kill your plans for a new home faster than a bad credit score.

A home appraisal is the best way for a lender to see if they wont lose their seat on the deal.

The lender wants to make sure that they have an asset that they can sell to get their money back in case of default. The home appraisal is also a way for you to see if the home you are wanting is overpriced or not.

Lets say that John Doe wants to secure a mortgage on a home that cost $180,000. His credit score is very good, yet the home only appraises for $150,000.

Will John get his loan? You better believe he won’t. The sale price will have to be lowered for the lender to consider to loan John the money. This is also a warning for John, that the home that he is trying to secure may be overpriced.

So what does an appraiser look for?

An appraisal usually starts with an inspection of the inside and outside of your home, as well as sale and ask prices for comparable homes in the area.The appraiser will create a report for the lender that includes:

  • An explanation of how the appraiser determined the value of the property
  • The size and condition of the house and other permanent fixtures, along with a description of any improvements that have been made and the materials used
  • Statements regarding serious structural problems, such as wet basements and cracked foundations
  • Notes about the surrounding area, such as new or established development, rural acreage, and so on
  • Evaluation of recent market trends of the area that may affect the value
  • Comparative market analysis that supports the appraisal: maps, photographs and sketches

An important thing to note is that, an appraiser is not a home inspector. An appraiser will make note of obvious issues but dose not inspect the home to see if it is up to code. For this you will actually need to hire someone to do a home inspection to avoid any costly nightmares in the future if something is wrong with the house.

How much is this going to cost me?

Appraisals typically cost in the range of $300- $400. This price can change though depending on the location of the property, square footage of the home, or property type. The appraisers fees are usually included in the closing costs of the home, unless a deal on the property is not made.

Is it time to throw in the towel if the appraisal is too low?

First you need to see why the appraisal was low. It could be something that the homeowner could correct, or the home could be overpriced. If it is overpriced see if the homeowner would come down on their price. You can also request another appraisal on the home, keep in mind that you are the one paying for these appraisals.

As a seller what can you do to make up for a bad appraisal?

The first thing you need to do is see why it was appraised lower, it could be because of maintenance or repairs. If this is the case you can get another appraisal after they have been fixed.

Another way to increase the appraisal price is cosmetics, especially in an older home. New paint, appliances, carpet and replacement windows are all ways to add to the value of your home.

Source: goodfinancialcents.com