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Navigating NYC’s Changing Airbnb Law: A Guide for Seasoned and Newbie Real Estate Investors

September 28, 2023 by Realty411 Team

By Hugh Zaretsky

*Introduction:*

The world of real estate investing is ever-evolving, and staying ahead of the curve can mean the difference between success and challenges. In the bustling city of New York, one recent change has sent ripples through the real estate and short-term rental markets – the new Airbnb law. As seasoned investors who have seen it all and newcomers eager to get started, you must understand how to adapt to this shifting landscape. In this article, we’ll explore the recent changes to the Airbnb law in NYC and how to not just survive but thrive within the new regulations.


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**Understanding the New Airbnb Regulations**

The new regulations are crystal clear – you cannot rent out an entire apartment or home for less than 30 days, even if you own or live in the building. This rule applies across the board to all permanent residential buildings in NYC. Furthermore, hosts are only permitted to offer short-term rentals if they remain in the same apartment or unit with their guests. There’s also a strict limitation on the number of paying guests – no more than two are allowed at a time. Violating these regulations can result in a hefty $5,000 fine.

**A Success Story in Compliance**

In the midst of these changes, one seasoned investor, Hugh Zaretsky, has not only navigated the new regulations successfully but has thrived within them. Hugh, who was approved by New York City as one of the few hosts to continue offering Airbnb stays, has a track record of investing in cash-flowing properties, businesses, and training entrepreneurs. His story is a testament to the power of adaptation and compliance.

Hugh’s experience shows that compliance is not just about following the rules; it’s about maximizing your return on investment. By adhering to the new Airbnb regulations, you protect your investment from costly fines and legal troubles. It’s a strategy that pays off in the long run.

**Impact on the NYC Airbnb Market**

The repercussions of the new law have been significant. The number of available Airbnb listings in NYC has dropped dramatically, from over 15,000 or 9,000 units (depending on the data source) to a mere 300 options as of now. This shift is expected to bring the number closer to 3,500 available units. For investors who comply with the law, this reduced competition could translate into higher nightly rates, potentially making legal hosting even more profitable.


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**The Importance of Compliance**

Compliance with the new Airbnb law is not just about avoiding fines; it’s about safeguarding your investment and ensuring the longevity of your real estate endeavors. Hugh Zaretsky, with his background in real estate and entrepreneurship, is a prime example of how considering the law when making investment decisions can lead to success.

Hugh has also taken his expertise and experience in the field to teach other real estate investors how to operate Airbnb and short-term rentals legally. This highlights the need for education and mentorship, especially in times of change.

**Adapting to the Changing Landscape**

Hugh’s journey into the world of Airbnb investing began in 2012, and his adaptability and willingness to embrace emerging trends have been instrumental in his success. As seasoned and newbie real estate investors, it’s crucial to recognize the value of staying one step ahead. Tech expertise, mentorship, and a willingness to adapt can make all the difference in thriving in evolving markets.

In conclusion, the changing Airbnb law in NYC may have presented challenges, but it has also created opportunities for those who are willing to adapt and comply. By understanding the regulations, prioritizing compliance, and seeking mentorship, both seasoned and newbie real estate investors can find success in this evolving landscape. Hugh Zaretsky’s success story is proof that with the right approach, you can not only survive but thrive in the ever-changing world of real estate investing.

Thank you,
Hugh

646 584-5818


By Hugh Zaretsky
Real Estate Investor, Agent, Speaker, Training and Amazon Best Selling Author in 4 Categories

www.hughzaretsky.com

www.thelaunchbutton.net

www.eframily.com

[email protected]


Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Filed Under: investing tips, news Tagged With: Hugh Zaretsky, NYC changing Airbnb law, real estate investing tips, real estate investor, real estate investor guide, real estate magazines, real estate wealth, realty 411, realty magazine, realty411, rei magazine, rei wealth, REIwealth

Short-Term Equity Financing

September 27, 2023 by Realty411 Team

By Tod Snodgrass

Due to rising interest rates, conventional funding from banks, hard money sources, etc. is becoming increasingly problematic for many Real Estate Investor Professionals (REI Pros). For example, say a REI Pro needs capital to plug a temporary financial hole—say $50,00 or $100,000 or $250,000 for a very short period of time, say just one day? Virtually no lender will provide funds for such a short period of time.

This is where a Short-Term Equity Financing (STEF) source can come in handy. STEF’s are not brokers; they are direct equity funders using their own private capital. They write the checks. The buck stops with them when it comes to final decision-making.

STEFs do not provide loans. Instead, a temporary Joint Venture Agreement (JVA) is created—a form of equity–with the REI Pro. The STEFs profit normally comes from a share of the REI Pro’s profit. Typical markup is 50% of the amount funded. If the STEF provides $100,000, they receive $150,000 in return. Obviously, all the paperwork involved has to be carefully crafted to offer maximum protection to all parties, with appropriate security and collateral issues spoken to successfully, which is why STEFs normally require that doc prep, title and escrow functions all be assigned to service vendors chosen by the STEF.


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4 STEF Case Studies

CASE STUDY NO. 1

Situation: A homeowner has fallen way behind with his monthly mortgage payments due to the fact that he lost his job. The bank recently sent him a NOD (Notice of Default) and the property is now in pre-foreclosure status. With insufficient time to fix up the place and subsequently sell it for top dollar, the homeowner has come to realize that he needs to prepare to move away from the residence, sooner rather than later. He reaches out to a local real estate broker who in turn puts him in contact with a cash buyer investor who is interested in purchasing the property—at a discounted price—via a double close (involving two separate escrows).

Problem: In addition to the overdue first position mortgage on the property, it is also encumbered with several liens: mechanics, HOA, property tax, as well as a lawsuit, including a lis pendens filing. The seller has no money to clear up the title, so it remains clouded, and the property remains unsold. Due to the high-risk factors involved, everyone (including the cash buyer) is reluctant to front the money to pay off the liens beforehand. The homeowner is stuck.

Solution: Seeking a way out of his client’s deteriorating financial situation, the broker reaches out to a Short-Term Equity Financing source for help with paying off the liens which created the clouded title logjam in the first place. Once all the pieces of the financial puzzle are properly in place (agreements and contracts signed, proper escrow instructions prepared, all monies needed for the deal are sent into both escrows), both closings can occur pretty quickly.

Result: The property owner came out OK via a cash-for-keys/deed-in-lieu arrangement with the cash buyer; the buyer got the property at a good discount from FMV; the STEF was amply rewarded for its involvement; and last but not least, the broker earned a 5% referral fee from the STEF (based on the amount that the STEF funded) for their time, trouble and expertise.


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CASE STUDY NO. 2

Situation: A General Contractor Investor (GCI) owns two acres of prime residential real estate, free and clear, with no loans or liens against the property. The land had already been successfully subdivided, entitlements are all in place, architectural drawings and plans are 100% complete for all the SFRs. Further, the GCI has already arranged a construction loan with a major bank for all the new houses, to be built one-after-another, in a series. The only thing left to do, prior to starting work, is to pay for the permits on the first few houses.

Problem: The wife of the GCI recently filed for divorce, tying up all the CGI’s assets, including the funds he had previously put aside to pay for the permits.

Solution: A STEF was brought in to provide funds for the permits. The STEF was provided with collateral via liens against the lots the CGI owned free and clear. Based on that, the STEF fronted the money for the permits, which had already been previously approved. By prearrangement, the bank providing the construction loan had agreed to “overfund” the construction loan in order to provide payback to the STEF for the funding they provided + the STEF’s markup.

Result: That same day, the loan got funded and the permits were issued. Construction soon got underway. It all turned out OK at the end for all parties.

CASE STUDY NO. 3

Situation: A property was part of an estate. The owner died and the property went into Probate. While the property had a lot of equity in it, there was still an outstanding first mortgage with a modest amount still due, which the court ruled in this case had to be paid off completely before Probate could close. Once probate closed, then the four beneficiaries could each receive their respective six-figure proceeds.

Problem: To say that the four heirs to the estate did not get along well would be an understatement. There was apparently long-standing bad blood between several different family members. The result is that, because of a total lack of trust, none of them could or would agree to pay off the amount due on the mortgage. It was a financial standoff.

Solution: A STEF was referred into the situation by an attorney. The STEF provided sufficient capital to pay off the one remaining encumbrance: the first loan, so the property could be sold a ready buyer.

Result: Probate was able to close; the property sold; the heirs got their money and STEF was paid off for its investment + standard markup. All parties walked away with a smile on their respective faces.

CASE STUDY NO. 4

Situation: A successful REI Pro owned several commercial and industrial properties free and clear. He recently identified an investment property he wanted to buy from a distressed seller. The REI Pro calculated that he could turn right around and immediately sell the property for a handsome profit, since it came with an extraordinary amount of equity. The REI Pro had the property under contract. Further, the REI Pro had already lined up a cash buyer to purchase the property. The buy and sell would only take one day to successfully accomplish.

Problem: The REI Pro, at that time, was “asset rich and cash poor”. He had no ready cash to use to buy the investment property he wanted to immediately flip. To further complicate things, he had recently defaulted on a bank loan, which had caused his FICO score to plummet. Due to the hit on his credit score, no banks in the area were willing to loan him the money he needed to buy the equity-rich property he had his eye on.

Solution: A STEF was brought into the picture who fronted the purchase price, once the REI Pro pledged several properties he owned in order to cross-collateralize the deal.

Result: It all wrapped up to everyone’s satisfaction.


NOW AVAILABLE:

A. We currently offer two different funding programs for professional real estate investors: Short-Term Equity Financing & Down Payment Assistance Funding.

1. We help make deals happen that might not otherwise close, absent our funding.

2. We are happy to pay you a 5% referral fee, based on the amount we fund. For example, if you send us a lead and we fund $100,000, we send you a check for $5,000 at closing.

B. Short-Term Equity Financing: As described above.

C. Down Payment Assistance Funding Program. For more information, see https://creativetransactionfunding.com

1. Are you a Real Estate Investor Pro (REI Pro) who has a property you want to buy, with a 70% LTV or better, but you lack some of the Down Payment (DP) money needed to close the deal? You need say, 25% DP, but can only come up with 10% and need 15% more (DP money?

2. The good news is if your deal meets our standard criteria (70% LTV or better = 30% or more equity in the deal, etc.), CTF can provide the missing 15% in DP funding. By not having to put out all your own capital into DPs–especially if you are low on cash–you’ll be able to do more deals. With your DP source already in place, it will shorten your time for getting positive confirmation from your primary lender, and for getting more deals successfully closed.

D. If you would like to receive free information about our funding programs, please send an email to: [email protected], with the following three lines of (your) info:

1. Full Name
2. Phone number
3. Email address

Any questions, please advise.

Sincerely,

Tod Snodgrass
President
Creative Transaction Funding LLC
Providing Down Payment Assistance & Short-Term Equity Financing to investors, nationwide.
[email protected]

Learn more about Tod Snodgrass, President of Creative Transaction Funding LLC, visit https://creativetransactionfunding.com


Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Filed Under: financing, news Tagged With: Creative Transaction Funding LLC, real estate investing tips, real estate investor, real estate magazines, real estate wealth, realty 411, realty magazine, realty411, rei magazine, rei wealth, REIwealth, short-term equity financing, Tod Snodgrass

4th Annual Los Angeles Real Estate GRAND Expo

September 26, 2023 by Realty411 Team


Hello Real Estate Investors,

We just returned from our Lone Star Investor Wealth Summit in Texas. What a fantastic time we had meeting our readers from throughout the area. Thank you to all those who participated.

Now, we would like to invite everyone in our national and international network to join us for the 4th Annual Los Angeles Real Estate GRAND Expo. This event, which is a collaboration with two of our long-term associates and friends, is the largest real estate event we host every year!


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You simply don’t want to miss the opportunity to network with active real estate investors from throughout the Golden State, the nation and world, in sunny Southern California.

The GRAND Expo is conveniently located in West Los Angeles and is a short driving distance from top tourist attractions, shopping, restaurants and nightlife in Beverly Hills, Santa Monica, Malibu, Marina del Rey and Venice Beach.

Make your California vacation a reality by joining us at the 4th Annual Los Angeles Real Estate GRAND Expo. Meet us for just one day and make connections for life. For additional details, please read below.

4th Annual Los Angeles Real Estate Grand Expo

We are very excited to announce our 4th Annual Los Angeles Real Estate Grand Expo. The Grand Expo returns on Saturday, October 21, 2023, 9:00 am to 6:00 pm. We’re taking over the entire Iman Cultural Center for the day – it’s all ours!

The North Hall (vendor exhibition area), the South Hall (workshops), and the middle parking lot (loaded with workshop tents and food trucks). The theme of this year’s Grand Expo will be “Hedge Inflation – Buy Real Estate”.

Last year, the Grand Expo was the largest real estate event in Southern California. We had over 800 investors, 64 vendors, and 12 national speakers…this year will be even BIGGER! An entire day celebrating real estate investing and you can be involved. Best of all, the Grand Expo will be FREE to attend.

This Expo is going to be big, really BIG! We are hosting investors from around the nation once again.


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EDUCATORS. There will be national guest speakers (in three breakout rooms). Here is a partial list of our top educators:

1. Jonah Dew – “The Money Multiplier”
2. Eddie Speed – “Buying Discounted notes”
3. Rusty Tweed – “1031 Tax-Deferred Exchanges”
4. Joe Arias – “How to Get Started Investing”
5. Christopher Meza – “Developing Raw Land”
6. Tony Watson – “Tax Advantages for R.E. Investors”
7. Dani & Flip Robison – “Fixing & Flipping Houses”
8. Abbas Mohammed – “Investing in Multi-Residential Properties”
9. Marco Kozlowski – “How to Buy Lots and Lots of Houses”
10. Amanda Brown – “Invest in Commercial Real Estate”
11. Shawn Tiberio – “Marketing for Real Estate Investors”
12. Joseph V. Scorese – “How to Finance Your Next Deal”
13. Jeremy Rubin — “From Employee to $100M in Flips”
14. Steve Price (Keynote) – Vice President at Auction.com

INVESTMENT EDUCATION. An all-day in-depth educational extravaganza celebrating real estate investing. Most importantly, this will NOT be a sales pitch. So regardless of whether you are a new investor, already own properties, or are very experienced, our Grand Expo is for you!

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Filed Under: events, experts, Featured, Important 411, Important Post, networking, news Tagged With: 4th Annual Los Angeles Real Estate Grand Expo, California Expo, Grand Expo, Hedge Inflation - Buy Real Estate, in-person real estate event in California, live real estate investor event, real estate investing tips, real estate investor, real estate magazines, real estate networking, real estate speakers, real estate wealth, realty 411, realty magazine, realty411, rei magazine, rei wealth, REIwealth

Update on Events in PA, CA and More!

September 25, 2023 by Realty411 Team

Please review this important post. Thank you.


Advertisement:

Dear Readers,

We are thankful to all of our subscribers, friends, and sponsors who are helping us host and/or co-produce many LIVE events around the country! We hope to reach many of you in person in the next few months.

We have more LIVE events in CA and PA coming up this year. Plus, we are already promoting The Great Mile High Real Estate Investors Summit in beautiful Colorado next year, too!

Be sure to scroll down and review information about each unique event. Even if you are not in the area, perhaps you can refer a friend, associate or family member to join us. We would certainly appreciate your support.

Don’t miss the opportunity to connect in Philadelphia, Pennsylvania once again for an insightful educational boot camp. At this event, guests will have the opportunity to learn directly with top business and real estate leaders.

Experienced educators will share their knowledge and strategies for guests to have a better understanding of the current real estate market. Join us and gain the insight to implement a game plan for success. This boot camp will include top-level industry information and fantastic networking.


Advertisements:


4th Annual Los Angeles Real Estate Grand Expo

We are very excited to announce our 4th Annual Los Angeles Real Estate Grand Expo. The Grand Expo returns on Saturday, October 21, 2023, 9:00 am to 6:00 pm. We’re taking over the entire Iman Cultural Center for the day – it’s all ours! The North Hall (vendor exhibition area), the South Hall (workshops), and the middle parking lot (loaded with workshop tents and food trucks). The theme of this year’s Grand Expo will be “Hedge Inflation – Buy Real Estate”

Last year, the Grand Expo was the largest real estate event in Southern California. We had over 800 investors, 64 vendors, and 12 national speakers…this year will be even BIGGER! An entire day celebrating real estate investing and you can be involved. Best of all, the Grand Expo will be FREE to attend. This Expo is going to be big, really BIG!

SPEAKERS. There will be national guest speakers (in three breakout rooms). Here is a partial list of our top educators:

1. Jonah Dew – “The Money Multiplier”
2. Eddie Speed – “Buying Discounted notes”
3. Rusty Tweed – “1031 Tax-Deferred Exchanges”
4. Joe Arias – “How to Get Started Investing”
5. Christopher Meza – “Developing Raw Land”
6. Tony Watson – “Tax Advantages for R.E. Investors”
7. Dani & Flip Robison – “Fixing & Flipping Houses”
8. Abbas Mohammed – “Investing in Multi-Residential Properties”
9. Marco Kozlowski – “How to Buy Lots and Lots of Houses”
10. Amanda Brown – “Invest in Commercial Real Estate”
11. Shawn Tiberio – “Marketing for Real Estate Investors”
12. Joeseph Scorese – “How to Finance Your Next Deal”
13. Jeremy Rubin — “From Corporate Employee to $100M in Flips”
14. Steve Price (Keynote) – VP at Auction.com.

INVESTMENT EDUCATION. An all-day in-depth educational extravaganza celebrating real estate investing. Most importantly, this will NOT be a sales pitch. So regardless of whether you are a new investor, already own properties, or are very experienced, our Grand Expo is for you!


Advertisements:


NEW MAGAZINE!

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Filed Under: events, experts, expo, Important 411, Important Post, networking, news Tagged With: 4th Annual Los Angeles Real Estate Grand Expo, California Expo, Grand Expo, Hedge Inflation - Buy Real Estate, in-person real estate event in California, live real estate investor event, real estate investing tips, real estate investor, real estate magazines, real estate networking, real estate speakers, real estate wealth, realty 411, realty magazine, realty411, rei magazine, rei wealth, REIwealth

Lease Protector – Inspections Made Easy

September 25, 2023 by Realty411 Team

Please review this important sponsored post, thank you.

Inspections Made Easy

Lease Protector is proud to announce our simple Inspection App!

Move Inspector provides a simple but extremely powerful tool that allows landlords to do inspections. Save time and money and protect your assets.


Landlords can lose up to 2-3 months worth of rent on unforeseen damages

Landlords are responsible for covering the cost of wear and tear and keeping the property in good shape. And Tenants are responsible to keep the property in good condition and pay for damages they cause. Everyone agrees with this but how do you determine what each party is responsible for?

The solution is an accurate report with photos shared with both parties.

Inspections are simple and can be customized to fit your needs. As many areas as needed can be added to the report. Areas can be assigned to rooms, parts of rooms or even the whole property!

Inspections can be done using the mobile app to take pictures or on the web browser by uploading photos.

After completing the inspection, a report is created that provides all photos and notes. The report is saved as long as you need and can be downloaded or shared to any email needed.

Perfect for documenting the property, security deposit deductions or even insurance claims!

Copyright 2023 Lease Protector©, All rights reserved. https://leaseprotector.com

Filed Under: Sponsored Posts Tagged With: inspection app, Lease Protector, Move Inspector, real estate investing tips, real estate investor, real estate magazines, real estate wealth, realty 411, realty magazine, realty411, rei magazine, rei wealth, REIwealth

Unveiling the Truth: Shattering the Top Three Myths of Financial Planning

September 22, 2023 by Realty411 Team

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Filed Under: financing, Members, news Tagged With: financial planning myths, Healthy Money Happy Life, Kris Miller, Legacy Wealth Strategist, real estate investing tips, real estate investor, real estate magazines, real estate wealth, realty 411, realty magazine, realty411, rei magazine, rei wealth, REIwealth

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