Why your 2020 portfolio needs real estate cash flow: Ken McElroy

Here are 5 reasons why investors should add income-earning real estate properties to their portfolio

For 2020, investors should seriously consider adding real estate assets that generate positive cash flow to their portfolio versus putting more money away in a 401k or IRA. By generating multiple streams of income through revenue-generating real estate, you’ll be better prepared if you face a major “outlier event” such as an illness, major home repair, major stock market correction or loss of a job.

While stocks soared almost 30 percent higher last year, as measured by the S&P 500, many analysts are predicting a 10 percent correction this year. And while a recession is never certain, many believe a more reliable statistic is that U.S. stocks fall at least 10 percent from all-time highs once every 18-24 months.

So here are the top 5 reasons that investors should add income-earning real estate properties to their portfolio this year:

Prepare for Economic Change – Yes, we’re living in the longest bull market in history with the stock market skyrocketing to new highs every week. But what happens if a breaking news event, global recession or the 2020 election suddenly cause your 401k portfolio to drop by 50 percent? While this fall in value may sound drastic, many investors saw this decrease on their financial statements during the Great Recession in 2008 and 2009. So don’t wait any longer to invest in real estate cash flow assets. When the next downfall happens (and it will), you will not feel as big of an impact.

Beat Inflation with Real Estate Returns – Banks are now paying pitiful interest rates that don’t even come close to keeping up with inflation. Many investors do not understand that they are losing buying power every year by keeping money in a savings account. For example, if inflation is 3 percent and your money market is making 1.5 percent, you lose 1.5 percent of every dollar. So, a dollar, after a year, is really worth only 85 cents. In comparison, real estate investments tend to go up consistently if you research and buy the right property at the right time.

Generate Rental Property Income – You want to start investing in property that can result in positive cash flow every month. For example, if you buy a condo, and your mortgage is $2000, but you can rent it for $4,000, you’re making $2000/month income. Yes, you are still in debt for owning the property, but your renter is paying the mortgage! And if you already own a home or vacation property that is empty part of the year, why not consider renting it through Airbnb to generate additional cash flow?

Increase Your Tax Savings – There are many tax benefits for real estate investors. With the right tax strategy, investors can put money back in their pocket by simply investing in the property. Home renovations, maintenance, new equipment, expansions, property management fees, insurance and more may all be tax deductions. Investors can also gain tax breaks if the property is rented out via Airbnb, VSCO or others.

Produce Revenue from Land Assets – To increase your income based on the land, consider investing in a property that grows produce. The fruits and vegetables can feed you and your family, along with providing additional income. The land may have apple trees, a vegetable garden or honey bees, which can all generate positive cash flow.

Yes, you will need to take out a mortgage unless you have a lot of cash to invest. However, it’s important to understand that there is a difference between good debt and bad debt. Good debt results from investing in an asset that generates income. Bad debt is racking up credit card debt. It’s impossible to get ahead with interest rates on credit cards soaring, so take time to invest in assets that will generate monthly cash flow back to you instead.

Your overall goal should be to generate enough cash flow from real estate assets to become financially free. So if you buy 5 rental properties that generate $2000/month, it quickly becomes $10,000/month in positive cash flow income. If this $10,000 monthly cash flow income covers your total expenses, then you are officially out of the 9-5 rat race and can relax more.

Instead of buying that boat that you don’t need, put the money into a real estate income-earning property this year. So start researching real estate assets across the U.S., work with people who understand the space, and start adding positive cash flow properties to your portfolio in 2020!

See the original article on FoxBusiness.com


Cascade Living | February 2020

Enjoy our Cascade Living events and newsletter! We cover notable events and news happening in Central Oregon, Portland, Southwest Washington, The Columbia River Gorge, and The Oregon Coast.

Click below to see the newsletter for your region:

Central Oregon
Columbia River Gorge
Oregon Coast
Portland
SW Washington


6 Media Rooms That Steal the Show

Whether for the Super Bowl, action-packed blockbusters, or acclaimed foreign films, these media rooms have the top-tier components, specially designed lighting, and comfortable furnishings that ensure you and your friends have the best seats in the house.

Custom Theater with Balcony Seating

16400 Jordan Rd, Sisters
Listed by Pam Mayo-Phillips & Brook Havens

R&B Ranch is 507 acres with stunning Cascade Mountain Views. The main home is a custom NW style single level 14,666 square foot, 8 bed, 8.5 baths, with high-quality finishes throughout. This legacy ranch includes a barn with saloon, indoor arena, rec barn, 9 bay shop, racetrack, livestock barn, 193 acres of water rights, a 6,263 square foot guest home, 3,727 square foot managers home, stocked pond and additional building sites. This estate property is one of kind in Oregon!

Banner Estate in West Linn

1707 SW Schaeffer Rd, West Linn
Listed by Tina Wyszynski

Villa de l’or is named for the bountiful treasures this banner estate offers – amazing privacy, exceptional views of the three mountains – Mt. St. Helens, Mt. Adams and Mt. Hood, offering old-world formality blended with modern living and luxury. A compound built with entertaining in mind, the sprawling main residence has a welcoming entry, formal living and dining rooms designed in royal fashion.

The Y Bell Ranch

8055 SW Powell Butte Hwy, Powell Butte
Listed by Rachel Rhoden & Jered Rhoden

Distinctive, iconic, unmatched…The Y Bell Ranch is a sophisticated, one of a kind retreat that effortlessly unites inspiration, landscape, and architecture, offering uncompromising attention to detail, craftsmanship, and luxury. Framed by breathtaking Cascade Mountain views, the expansive, thoughtfully designed floorplan features materials sourced from the property itself, including a massive Rock Fireplace situated in the Grand Entry.

Riverfront Estate

14441 SW Wilsonville Rd, Wilsonville
Listed by Kristen Kohnstamm

Riverfront estate, Hunter Creek Farm has 43+ acres of flat, irrigated lawns with approximately one-half mile of Willamette River frontage. Two docks, one of them new with boat and jet ski lifts. Newly remodeled home with timeless high-end finishes, a glass wine cellar in the basement and rec room. The home has a pool with a 2 bedroom pool house. There is also a barn, caretakers house, fully fenced grounds and stately gated entry.

Divine Proportion

60990 Bachelor View Rd, Bend
Listed by Brian Ladd

Here is a home quite like no other, built following appropriate mathematical elements in its design, harkening the builders of old, creating what is known as the Divine Proportion. The Divine Proportion exists everywhere in nature, but here the principle is applied to modern architecture. Famed cathedrals and the like adhered to this concept in an attempt to inspire all those who entered, and this home does not disappoint. Upon entry, the pavered drive is reminiscent of an Italian villa courtyard with authentically proportional solid limestone columns quarried in Indiana, shaped in Michigan and sent by train to Oregon. From a grand foyer, you can see the home is perfectly symmetrical, each wing a mirror image of the other, perfectly proportionate.

Private Golf Course Estate

8585 SE 242nd Ave, Damascus
Listed by Veronica Park & Jason Mendell

Close to downtown Portland yet worlds apart, this exquisite private estate boarders Persimmon Golf Course with breathtaking views of Mt. Hood, Mt. St. Helens and Mt. Adams. This truly one of a kind custom home features a two-story master suite on the main, a resort-like indoor pool/spa complex, hand-crafted exotic woodwork and luxurious finishing throughout.


February First Friday Art Walk – Downtown Bend

Please join us for First Friday on February 7th at our Downtown Bend Showroom (821 NW Wall St., Bend OR) from 5-8 PM to enjoy the artwork of Greg Oldfield.

Artist Bio:

Myself and family have always enjoyed a simple lifestyle, rich in experience of nature’s rewards and family importance, we make it our own. All of us being raised in Eastern Oregon, we understand its beauty, bounty and challenges.

I have worked in various professions from timber, as a farrier to an electrical contractor. But at the end of the day, my heart always called to crafting ideas and making them real. With an anvil and hammer in my shop I work to capture the things I enjoy and care about.

I have spent years in the Creeks and Rivers of Oregon, Idaho and Montana. Searching for the elusive monster trout that I was sure was only a castaway. Occasionally, I was lucky enough to find it, enjoy its beauty, thank it and watch it disappear back to the fast clear water from where it came. After a while, it was not just the fish, but the habitat that enchanted me. Such a fragile and beautiful place these fish live in. My sculptures try to capture a vision of this sensitive environment.

These sculptures are what I see when I’m stalking trout, they give me solace to get me through a difficult day and peace when I lay to sleep at night.

I hope you enjoy them as much as me.


2019 Yearly Market Reports

Our 2019 Yearly Market Reports for Central Oregon, Portland Metro, Oregon Coast, Columbia River Gorge, Southwest Washington, and Southern Oregon are here.

Our Market Reports offer an overview of trends, insight and existing market conditions in key communities throughout Oregon and SW Washington. The reports cover the history of key areas, communities, and sectors such as residential, residential with land, townhomes and condos, farm & ranch.

You can see all of our reports below or by visiting CascadeSothebysRealty.com/Market-Reports.

Central Oregon

Columbia River Gorge

Oregon Coast

Portland Metro

Southwest Washington

Southern Oregon


Fritz Junker’s penthouse with Portland’s only 180-degree circular living room is for sale at $1,450,000

Authored by Janet Eastman | 503-294-4072
jeastman@oregonian.com @janeteastman
See the original article here.

Daring designer Fritz Junker has a pad, tucked halfway up Portland Plaza’s iconic downtown tower, that is being promoted as perhaps the city’s sexiest condo for sale.

Forget the photos of mood lighting in the curving living room, the master suite’s mirrored ceiling or the bathrooms’ black tile double showers and oil-filled towel warmers.

It’s the teasing marketing video that publicizes that this “mid-level penthouse,” priced at $1,450,000, was designed to be like no other.

In five minutes, viewers can watch Junker and Bree Kemp dodge a spoofy villain type as they glide past the Portland Plaza residential tower’s amenities, from the round-the-clock concierge staff to the sophisticated lobby, before escaping to their high-tech home with darkening windows and a concealed safe room.

She changes outfits, from playful to pool to formal, while he remains in his tuxedo, even while working out in the gym with a dumbbell in one hand and martini in the other.

Junker’s script inspiration: After showing his friend the midcentury condo Junker gutted and rebuilt at 1500 S.W. 5th Ave. #1101, the friend had a one-word reaction to the experience: Illicit.

“There’s something going on here that’s sexy and sleek,” says Junker, who was an independent filmmaker before founding his design-build general contractor and interior design firm, Fritz Jünker Design & Remodeling, in 2007.

When Junker put his remodeled condo on the market, he and listing agent Jason Mendell of Cascade Sotheby’s International Realty decided to produce a “fun little video with a James Bond vibe that would showcase the home,” he says.

The elevated home is unique. In 1973, the original owner — some longtime residents believe it was the developer — somehow acquired a custom, double unit. This meant more than extra space, but granted him a circular living, dining and lounge space with 180-degree glass panels that curve and capture a view of Mount Hood.

Single condos in the triangular tower have a wall dividing the round corners, making those living rooms a half moon shape. You can see that figuration in a condo Junker remodeled and sold on the sixth floor.

He has lived for 15 years in various units inside the 25-story, glass-and-aluminum tower designed by celebrated architect César Pelli and the Los Angeles firm DMJM (now AECOM).

Junker served on the homeowners’ association board while the property, which consumes the entire block across from Keller Park, underwent a $10-million modernization completed in 2017.

The renovation design team included Opsis Architecture, interiors firm Staicoff Design Company and Lango Hansen Landscape Architects.

Junker said it was important for the changes to reflect the building’s heritage and original caliber of design, and to “reclaim its status as a premier Portland address.”

He has been hired by other Plaza homeowners to update their condos. High-end, well-crafted finishes play up the views from floor-to-ceiling windows. Upgrade can cost around $200,000.

For his home, he wanted to showcase 1970s finishes such as black glass and natural wood paneling. Here, gray-washed oak floors float on top of rubber underlayment.

Museum-quality oak display cases cling to concrete walls and columns, and LED lights outline curving soffits and coves.

He removed the galley kitchen to create an open kitchen with black leathered granite surfaces and a bar area with black glass cabinets.

And he installed $100,000 worth of audio-visual equipment, lighting and shades controlled by touchpads or apps.

The theater has an 82-inch Samsung ultra-high definition screen recessed into the custom cabinetry and Flagship Paradigm speakers and Anthem amplifiers. There is also a 4K LED TV in the bedroom.

“This condo is for someone who appreciates architecture and fine design,” says listing agent Mendell. “It’s a home built with precision and style and is a great example of the best of the best here in Portland.”

Mendell says he sees many spectacular luxury condos in the city, but nothing quite like this 2,436-square-foot unit.

“There is a level of creativity and craftsmanship at play here that isn’t typically available in our market,” he says.


Home Buyers Brunch and Bubbles

With employment up and interest rates staying low, 2020 is looking like a great time to buy!  Join us for a fun, interactive Home Buyer’s Brunch where industry professionals will share their knowledge on the home buying process in today’s market.  Buying a home is exciting but can come with a lot of questions and sometimes even fears, this makes sense, buying a home is one of your largest investments you will make.  

We will have Matt Bassit, Branch Manager at Northwestern Home Loans along with mother-son Realtor team; Melanie and Josh Maitre at Cascade Sotheby’s International Realty to walk you through the entire buying process, sharing different loan programs that can meet people’s specific needs and even specific first time home buying programs, how to successfully navigate through a tight housing market and get through the possible hurdles along the way, in this type of market why it is even more important to have a Realtor that represents you and answer any other questions or concerns you may have.

Our hope is for you to walk away with all your questions and fears answered and leave you with nothing but hope for 2020 and the year you become a homeowner! 

No commitment.  Just information…and free Brunch & Bubbles!

RSVP is appreciated!
Melanie Maitre – Melanie@TheMaitreGroup.com | 541.480.4186
Josh Maitre – Josh@TheMaitreGroup.com | 541.678.3341


CES 2020 | 5 High-Tech Picks From the 2020 Consumer Electronics Show

As is always the case, the start of a new year brings us another incredible showing from the tech industry at the Consumer Electronics Show (CES). Further deepening the integration of technology into our lives, the world’s innovators in fitness, home security, automobiles, and more delivered truly stunning products to the show floor in Las Vegas. Join us as we explore 5 tech-fueled debuts from this year’s show.

Fitness

Home fitness has long been a staple space for many homes around the world. Companies like NordicTrack and ProForm have been producing exercise equipment for in-home use, but when Peloton and MIRROR burst on to the scene in the last decade, these brands showed fitness enthusiasts how they could bring workout classes home with them like never before.

In 2020 Amazfit, known for their fitness wearables, introduced their “Home Studio” offering. Debuted at CES, the Amazfit Home Studio features an immersive 43” HD Screen and 3D TOF camera system, high-end slat belt treadmill, surround sound customized JBL speakers, and classes on-demand.

Home Entertainment

According to Nielsen, the average American spends more than 1,800 hours a year watching TV. It’s no surprise that with numbers like that, TV and TV-connected device manufacturers often play a large role at CES; this year was no different. Among the many entries in this category, Samsung’s cutting-edge 8K QLED line offers a true glimpse into the next generation of ultra-high definition.

Shockingly thin, with remarkable sound technology and built-in AI, these 8K sets represent a strong example of a household name pushing the envelope in what’s possible in their field.

Autos

Whether you are a commuter, collector, or self-advertised “gear head,” automobiles are an undeniable part of our lives. While companies like Tesla are focused on revolutionizing the industry itself, others are looking to make an already luxurious or enjoyable experience all the more so. Enter the Lamborghini Huracán EVO – the Italian luxury car maker’s tech and power driven dream car.

Starting at $267,000 and available now, this Alexa-enabled powerhouse of a car goes from 0-60mph in less than 3 seconds and has a top speed of 202mph.

Home Security

Most stats place a home burglary occurring every 13 seconds in the United States – this unsurprisingly places home security high on the list of must-haves for home owners. Acquired by Amazon in 2018 for more than $1 billion, Ring  offers doorbells, cameras, and whole-home security systems – all of which are among the more popular choices when looking into home security options. With an impressive setup on the CES show floor, Ring widened their already broad offering of smart-home tech.

Ring introduced their smart LED bulb and hub, solar-powered external lights, the Access Controller Pro for opening gates remotely, and hinted at their new X-Line – a premium offering with more details to come.

Self Care

Rest and relaxation are chief among human necessities – people recharge in many different ways, but for most, the time we spend in the shower is an easy way to replenish energy and reflect. Kohler seeks to improve the time you spend in the shower with their Moxie Voice – a smart speaker crossed with a shower head.

Built with the quality Kohler is famous for, this sleek-looking shower head’s speakers are powered by the audiophiles over at Harmon Kardon. Head on over to their site and sign up for to be notified when this product is available.


Beyond leads: What are other metrics of real estate marketing success?

When your business feels like a moving target, take aim at measurable data points. Looking at lead generation is the most basic indicator that outreach is being received by the right stakeholders. In the latest Leading in Luxury article on Inman.com Frank and Dawn Bodenchak, Real Estate Professionals with Sotheby’s International Realty in Bridgehampton, New York, recognize that today’s marketing can go so much further.

Start with simple math

It’s still important to begin with the essentials. “I track the number of phone and email inquiries on a listing, the number of showing requests per week, and the percentage conversion of showings into interested parties,” says Frank Bodenchak of his monitoring process. In luxury real estate, metrics like these have always been the easiest way to see, at a glance, whether your marketing efforts are generating the results you want.

But there are two more simple stats that ought to be monitored: the number of days a home has been on the market, and the number of showings per home. “If you aren’t getting enough showings, or if showings aren’t generating offers, then marketing, product offering, and price need to be revisited to improve these metrics,” notes Dawn Bodenchak. The longer a property sits, the likelier potential buyers will expect that either the seller will lower the price or that there is something amiss with the home.

No one likes to wait

23636 Ten Barr Trl, Bend, Listed by Julie Reber

If you have a customer relationship management (CRM) system, chances are it’s measuring how often you correspond with your leads and clients, and reminding you periodically to follow up with them. If you’re not using a CRM system, then it’s critical to proactively track your email, phone, and in-person exchanges.

The Bodenchaks make a habit of always tracking response time — how much time has elapsed since a lead’s initial inquiry. The average response time, according to one study by Inside Real Estate, is about 15 hours and 30 minutes, though research has also shown that a staggering 48% of inquiries fall through the cracks.

You also need to be cognizant of the time that elapses between follow-ups, which, surprisingly, is reported to be the most overlooked aspect of real estate lead generation. By closing these gaps, agents will easily start to see a growing number of qualified leads.

Make the most of online

“We still use magazine ads for brand awareness and reminding buyers and brokers about a listing, but the first line of contact is internet-based,” says Frank Bodenchak. “Over the past decade, we’ve moved away from relying on print for information dissemination to relying on email blasts, real estate search engines, and social media.”

Google Analytics is a fundamental way to watch your web traffic. You can review how many people visit your site and track their browsing behavior. For instance, keeping an eye on your bounce rate will inform how quickly visitors leave your site after they arrive. You’ll also be able to assess which of your pages are the most popular. Adding these metrics to your marketing rubric gives you the bigger picture of how your efforts are succeeding.

Frank and Dawn Bodenchak have seen firsthand the benefits that social media brings to their marketing. Facebook and Instagram provide feedback to help agents monitor their social channels, stay notified on engagement and responses, and maintain real-time marketing awareness. “By switching to a business account on Instagram, we are now receiving all kinds of key insights from posts,” says Frank Bodenchak. “Beyond likes and comments, Instagram tells us the gender, age, and location of our audience. With even a small budget for online marketing, we can make an impact.”

The basics still apply

23636 Ten Barr Trl, Bend, Listed by Julie Reber

“Know the landscape, know the pricing, and know the product — and most importantly, know how the product can be adapted to work for a buyer,” says Dawn Bodenchak. “The metrics we use to evaluate our marketing success may not have changed, but the means to achieve them have.” Now there are more tools in agents’ inventory to make sure that their strategies are successful — and, by extension, that their leads, prospects, and clients enjoy the best service possible