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Despite the continuing challenges in the commercial real estate sector, the U.S. economy has managed to avoid a recession. Consumer spending has played a significant role in supporting the economy. Economic forecasts have shifted, with some economists becoming less pessimistic about the future. The Federal Reserve is credited with successfully guiding the economy toward a “soft landing.” Oxford Economics (OE) predicts economic stagnation in 2024, characterized by slow growth, high unemployment, and mild job losses. The real gross domestic product is projected to grow by 1%, with some quarters experiencing no growth. The following Factors Influence these Forecasts: Retail sales have continued to grow, though at a slower pace. Resumption of student loan and tax payments, along with higher interest rates, has had a smaller impact on consumers than anticipated. The term “rolling recession” is used to describe variations in economic performance across different sectors. The National Bureau of Economic Research follows six indicators to determine the overall economic situation. While some indicators have contracted, no recession is evident when considering all indicators collectively. While some Potential Risks are still hanging around: The labor market is showing signs of slowing job gains. Real disposable income fell in August and September. Core inflation has risen by 4% in October, potentially leading to further tightening of credit conditions by the Federal Reserve. The following are Recession Indicators: The Conference Board’s leading economic index has been falling for nineteen consecutive months. Interest rate spreads continue to show a contraction. While some challenges in the housing market remain, including near-record low housing affordability, despite a marginal increase in the supply of existing houses for sale. Higher mortgage rates and a potential cooling of income growth may impact the housing market. Please consider joining us for commercial & investment real estate education with the Trinity team. And if you know someone who is looking to sell or buy, or rent a property, please call or email us with their information, and we’ll be sure to take excellent care of them! As always, thank you for your business and continued support!

Helpful hints to keep you and your home safe throughout this Holiday season. Holiday home safety is essential to ensure that you and your loved ones have a joyful and worry-free celebration. Here are some helpful tips to keep your home safe during the holiday season: 1. Secure Doors and Windows Check that all doors and windows are locked when you leave your home. Consider installing deadbolt locks for added security. 2. Install a Security System A security system with monitoring can deter intruders and provide peace of mind. Display security system signs and stickers to discourage potential burglars. 3. Outdoor Lighting Install motion-activated outdoor lighting to deter trespassers. Keep pathways and entryways well-lit to prevent accidents. 4. Timed Lighting Use timers for indoor and outdoor lights to make it appear as if someone is home, even when you’re not. 5. Fire Safety Avoid overloading electrical outlets and use surge protectors. Test smoke detectors and change batteries if needed. Keep flammable decorations away from open flames and heaters. 6. Candles Use flameless, LED candles as a safer alternative to traditional candles. If you do use traditional candles, never leave them unattended, and place them in sturdy, non-flammable candle holders. 7. Christmas Tree Safety Water your live tree regularly to prevent it from drying out and becoming a fire hazard. Keep the tree away from heat sources, such as radiators and fireplaces. 8. Electrical Safety Inspect holiday lights for frayed wires, broken sockets, or damaged bulbs. Do not overload electrical outlets, and unplug lights when not in use or before going to bed. 9. Kitchen Safety Stay attentive while cooking, especially when using the stovetop. Keep flammable items, like kitchen towels and oven mittens, away from the stovetop. 10. Childproofing If you have young children visiting, ensure that potentially dangerous items like cleaning supplies and small decorations are out of their reach. Use safety gates to block off areas with potential hazards. 11. Package Deliveries If you’re expecting packages, arrange for a neighbor or friend to collect them to prevent theft. Consider using a package locker or delivery service with secure drop-off options. 12. Social Media Awareness Avoid posting your travel plans on social media to prevent potential burglars from knowing when your home will be vacant. 13. Emergency Contact Information Make sure all family members and guests are aware of emergency contact information, including local authorities, poison control, and nearby hospitals. 14. Plan for Winter Weather Keep walkways and driveways clear of snow and ice to prevent slips and falls. Have essential supplies on hand in case of power outages or severe weather. By following these holiday home safety tips, you can help ensure a safe and joyful season for you and your loved ones.

When investing in commercial real estate, it’s vital to protect your assets. Property insurance is a cornerstone of risk management, and understanding its requirements is crucial. Here’s a breakdown of property insurance requirements in commercial real estate: Property Insurance Types Property Insurance: This covers physical damage to your property, including the building and its contents, due to perils like fire, storms, vandalism, and theft. Liability Insurance: Liability coverage protects you in case of lawsuits stemming from injuries or property damage that occur on your premises. Insurance Requirements Minimum Coverage: Lenders often have specific requirements for property insurance coverage. Be sure your policy meets or exceeds these minimums. Named Perils: Policies can be either “named perils” (covering specific events) or “all-risk” (covering any cause except exclusions). Ensure your policy matches your property’s risk profile. Valuation Method: The valuation method (actual cash value or replacement cost) determines how claims are paid. Replacement cost provides more comprehensive coverage but comes at a higher premium. Deductibles: Selecting an appropriate deductible affects your premium. Higher deductibles lead to lower premiums, but you’ll pay more out of pocket in the event of a claim. Policy Limits: Ensure that policy limits align with the property’s value. Regularly update these limits to accommodate changes in property value and market conditions. Endorsements: Consider adding endorsements or riders for specific risks not covered by a standard policy. For example, flood insurance may be necessary if your property is in a flood-prone area. Business Interruption Insurance: This coverage compensates for lost income if the property becomes uninhabitable due to a covered event. Additional Considerations Tenant Requirements: If you lease your property, lease agreements may stipulate specific insurance requirements for your tenants, such as liability coverage. Co-Insurance Clause: Some policies include a co-insurance clause, which can penalize underinsurance. Review this carefully to avoid unexpected costs. Loss of Rents Coverage: This coverage compensates for lost rental income while the property is being repaired. Commercial & investment real estate education with the Trinity Team, and if you know someone who is looking to sell or buy, or rent a property, please call or email us with their information, and we’ll be sure to take excellent care of them! As always, thank you for your business and continued support!

Steps for Turning Off Your Sprinkler System Turning off your sprinkler system is a relatively simple process that you can typically do on your own. Here are the general steps for turning off a typical automatic sprinkler system: 1. Shut Off the Water Supply Locate the main shut-off valve for your sprinkler system. This valve is usually located in your basement, crawl space, or an outdoor utility box. It may also be in a valve box in your yard. Turn the valve handle clockwise (to the right) to shut off the water supply. If the valve is in a valve box, you may need a special valve key to access it. 2. Drain the System Open the drain valves or drain caps, if your system has them. These are typically located at the low points of the system. This step is important to prevent water from freezing in the pipes during the winter. 3. Turn Off the Controller If you have a timer or controller for your sprinkler system, turn it off. This step will prevent the system from automatically running. 4. Manually Activate Each Zone If you want to ensure that the lines are empty, manually activate each zone from the controller or the individual valve boxes. This will allow any remaining water to be released. 5. Protect Above-Ground Components (Optional) If you have any above-ground components like backflow preventers or above-ground piping, consider protecting them from freezing by wrapping them with insulating materials or blankets. 6. Mark Valve Locations (Optional) If you have underground valves that are hard to locate, you may want to mark their locations with stakes or flags for easier access in the spring. 7. Regular Maintenance (Optional) This is a good time to inspect the entire system for any visible damage or issues. You can also clean or replace sprinkler heads if necessary. Remember that the specific steps may vary depending on your sprinkler system’s design and components. If you’re unsure about any part of the process or if you have a more complex system, it’s a good idea to consult the user manual for your system or seek the assistance of a professional irrigation service to ensure it’s done correctly. Additionally, consider the climate in your area, as winterizing your system may be necessary in colder regions to prevent freezing and damage to your irrigation system. Oh, by the way. If you know someone who is looking to rent, sell, or buy a property, please call or email us with their information, and we’ll take good care of them!

Ever find yourself asking, “Should I invest in commercial real estate?” Well, we have the answer, YES, of course. Commercial real estate has been a reliable investment regardless of the market cycles. Despite the recent turmoil caused by COVID, commercial real estate has shown its resilience. This type of investment will be a positive addition to anyone’s investment portfolio. Here is a list of the top 5 reasons you might want to consider commercial real estate as a top choice for your investments. Strong, stable cash flow. Like your stock distributions, commercial real estate is structured to deliver regular dividends to the investors. Unlike stock distributions, the return is usually greater and more stable. Diversification of your portfolio. This will protect you against losses if one of your investment classes underperforms or there’s instability in the stock market; your commercial real estate investment will likely be unaffected. There is the added diversification in commercial real estate with the multiple property types that can be chosen from. Making an even broader, more diversified investment portfolio. Real estate is tangible and a hard asset. Unlike your investment in the stock market, which can be one value today and a completely different value the next day, real estate tends to maintain its value over time. Even though property values may rise and fall, the tangible asset does not go anywhere. Tax Advantages. Owning real estate provides you with tax advantages and deductions. Unlike stocks and bonds, where the investor must put aside some of their income to pay the capital gains tax and less the investment as part of their retirement account. However, with commercial real estate, capital gains may be reduced or avoided altogether (remember to consult with your CPA or accountant). Co-investing/ Sponsorship. First-time investors or average investors generally don’t have the expertise to buy, sell, operate, and manage commercial properties. In today’s investment market, most investors aren’t doing it on their own. With sponsorships and co-investing opportunities, it is easier than ever to jump into the commercial real estate investment market. To wrap it up, there is a great opportunity for commercial real estate investors. The tangible asset yields robust and steady cash flows and represents diversification in anyone’s investment portfolio. The favorable tax benefits and buffers against the instability of the economy make commercial real estate a sound investment. Commercial & investment real estate education with the Trinity Team Oh, by the way. If you know someone who is looking to rent, sell, or buy a property, please call or email us with their information, and we’ll take good care of them! As always, thank you for your business and continued support!

Commercial renters might be difficult to find. The ideal tenant is priceless, but the unsuitable one might waste your time, effort, and money. There are a variety of ways to discover companies to rent space to, but these three are the ones I’ve found to be most successful on my properties. For more property owners, finding tenants and leasing business space can take a lot of time. especially if you do not invest full-time. 1. Hire a Commercial Real Estate Brokerage The simplest and most effective approach to locate tenants is by far this. Simply ask a commercial real estate broker to do it on your behalf! Office, retail, and industrial real estate are all covered by commercial real estate brokerages, which specialize in leasing and selling commercial property. Brokers are the greatest source to learn which companies are searching right now and which ones could need to migrate soon, since commercial real estate lacks a listing database. To stay informed about market developments, they maintain frequent contact with company owners, property management firms, and other brokers. Since commercial real estate brokers have a fiduciary duty to you and are thus acting in your best interests, you won’t have to pay them until they have given you a completely completed lease, since their fees are based on a percentage of the overall lease amount. Employing brokers helps landlords identify better renters and strike more advantageous leases. 2. List Your Space Online You may start by poking around and being familiar with the market using options like Loopnet, CREXi, and Craigslist so that you at least have a fundamental idea of what you’re looking at. As long as you are as specific as you can when listing your property, you should only attract targeted prospects. These platforms do allow tenants to search by product type (such as office or retail), the total square footage available, and (other than Craigslist) other minor details, such as loading docks, ceiling height, or access. 3. Place High-Quality Signage on The Property Feel free to include whatever details you see relevant about the area, such as its size and kind, on the sign. Although you won’t be able to utilize that sign for any other properties, keep that in mind.

How to Earn Passive Income Through Real Estate Investment In a world governed by risk, it’s common knowledge that real estate is one of the safest, most profitable investment options. Property is an extremely stable asset, as it’s almost always in demand and offers numerous income-generating opportunities. However, not every investor wants to play a hands-on role in managing a property, maintaining it, or handling the administration that accompanies this type of investment. Fortunately, investing in real estate and playing an active role don’t have to go hand in hand. You can still earn a substantial passive income through real estate investment without needing to actively manage it yourself. There are even ways to invest in real estate without directly owning it. In this article, we’ll look at the various ways in which you can earn a stable income from investing in real estate while remaining in a passive, low-effort position. 6 Ways to Generate Passive Income From Real Estate Investments With a high investment success rate, real estate is one of the best assets to invest in for relatively low-effort, passive income over time. And if you choose the right investment strategy, you can enjoy its financial rewards without losing focus on other projects or interests. Here are six ways to generate passive income from real estate investments: 1. Rent Your Property Out via a Third-party Agency Without a doubt, one of the most straightforward ways to earn passive income through real estate is simply to buy property and rent it out via a third-party broker. This way, you generate a consistent monthly income with very little direct input. The agency you hire can assume responsibility for finding tenants, arranging maintenance, and generally managing the rental affairs for a fee while you tend to your regular business. This removes any administration from your side, and you simply pay a set monthly fee for their services. The monthly rental payments can make fantastic passive income that goes straight into your bank account for savings, tuition, healthcare, or other investments to grow your wealth. 2. Invest in REITs REIT stands for Real Estate Investment Trust. A REIT is a company or firm that owns income-generating real estate across a wide variety of property sectors. Purchasing REITs on the stock market is a popular way to make passive income through real estate. How? Once you’ve purchased a REIT, you can earn whatever dividend that particular REIT pays out, many of which have a record of being increased on an annual basis. This makes REITs one of the most accessible and reliable ways to generate profit from real estate without needing to directly invest in, manage it, fill the role of a landlord, or employ the services of an agency. 3. Let Others Invest With Your Funding If you’re interested in the idea of investing in property without owning it yourself, it may be a good idea to let someone else invest through you. For instance, if you have the money to invest in a property, consider lending it to a real estate investor you trust to make the purchase themselves and handle all the maintenance and administration that comes along with it. When they do rent it out or flip it for profit, you can receive a portion of the finances, thus giving you an easy way to make an income in a passive—but—still—productive way. This is a smart way to generate passive income. However, you do need to ensure that you have watertight contracts in place to ensure that your money and your future earnings are secure. 4. Crowdfunding Real estate crowdfunding may be a relatively new way of earning passive income, but it’s quickly gaining recognition as one of the most accessible and effective. In this strategy, you may be empowered to make real estate investments that wouldn’t ordinarily be possible, such as investing in a high-rise commercial building or new development. You may also benefit from the experience and expertise of other investors who can add value to the property itself. To make passive income from real estate crowdfunding, you can either start or participate in crowdfunding to invest in a piece of prime real estate. Then you, along with the other experienced investors, will co-manage and earn from the property. However, it’s important to note that crowdfunding is almost always illiquid, meaning its value rarely liquidates into cash. This may be relevant to those with liquid preferences. 5. Wholesaling Wholesaling is another way to earn money from real estate investment without owning it actively yourself. This process involves purchasing a real estate contract, but then, instead of going through with the sale, you sell the contract to a buyer for a profit. Wholesaling is a simple yet highly effective way to reap the benefits of real estate investment that doesn’t require huge amounts of investment experience. If you have a list of potential buyers or make use of real estate lead generation companies to find them, you can quickly close a wholesaling deal. It’s not strictly passive income, but it can provide you with a substantial lump sum that can be drawn from over time instead. 6. Ground Leases Ground leases are leases on land rather than buildings, which still happens to be a sought-after and fairly low-risk form of property investment. Landowners tend to rent to building owners whose buildings are positioned directly above the land they buy. Ground leases generate relatively predictable passive income due to their consistent and lower-risk investment style. However, because of this, they do tend to have lower earning potential and can require a more substantial up-front cost in order to purchase. Final Thoughts Investing in real estate may be a financially fruitful endeavor, but it can also be laborious. There’s a lot of experience, knowledge, and effort required to keep a commercial or residential property in good condition to continue being profitable, and a lack of experience could lead to losses. But there are lots of ways to go about investing in real estate, and only a few of them involve active ownership. Passive income is a great way to grow your wealth without becoming too distracted with projects outside of your career, all the while diversifying your portfolio. Investing in REITs, creating a crowdfunding initiative, wholesaling, and lending out money to other investors can all result in generating passive income through property. Contribution by: Mae Franco

As the business development spokesperson for Trinity Team Property Management and the first connection most owners have, it’s my job to share what the current rental market looks like. Often, it’s an owner’s first exposure to the various ins and outs of the rental process and procedure. For the Trinity Team, the market has been stable with referrals steadily flowing in as usual. What we have seen change is the decline of insanely high and multiple offers on agent listings. In the first quarter or so, agents experienced 10-15 offers on a home for sale. As of today, the market has returned to a more ‘normal’ market for sellers and buyers. However, some owners did not expect to have their home listed for sale for more than a week before it had multiple offers to choose from. Our property management division is now listing homes for rent that sellers just don’t want to sit on any longer. I’m often asked how long it takes to procure a qualified tenant. The answer can vary according to holidays and winter weather. Typically, we secure a tenant in about 7-10 days in the spring and summer. Winter months are still successful, with the average marketing time increasing to 30 days at times. We’re really happy that we can be a resource for agents and clients who need our services to alleviate the stress that can come with a vacant property. If the Trinity Team can help you, don’t hesitate to reach out! Oh, by the way. If you know someone who is looking to rent, sell, or buy a property, please call or email us with their information, and we’ll take good care of them! As always, thank you for your business and continued support! [email protected]

What You Should Know About Buying vs. Leasing Commercial Real Estate The Pros & Cons Some businesses start small, in a home office, basement, garage, or kitchen. Many businesses grow to operate out of commercial spaces such as flex/industrial spaces, storefronts, or offices. If you’re launching a new business or expanding an existing one, you may have to decide whether to lease or purchase commercial real estate. There are pros and cons to both leasing and purchasing, so it is wise to review the benefits before making your decision. When purchasing a property, you can either pay cash upfront or finance it with a loan. You could consider a loan guaranteed by the Small Business Administration (SBA) as a first option. The SBA offers two loan programs that can be used for commercial real estate: 7(a) loans and 504 loans. While 7(a) loans are general-purpose loans, 504 loans are specifically designed for the purchase or refinance of commercial property. With a lease, you rent the property for a set term, at which point you must renegotiate if you wish to continue using it. Several factors go into choosing the right strategy for your business, including cash outflows, recurring costs, tax implications, property value, business equity, and more. The following are pros and cons to consider when purchasing commercial real estate.  

First of all, let me remind the readers that I’m not an attorney, nor am I giving legal advice. I’m simply sharing some of the issues that we come across in the world of property management. There are specific procedures we must follow when a tenant declares bankruptcy. Bankruptcy is a federal matter dealt with in federal court (NOT a state matter). The purpose of declaring bankruptcy is to give a debtor a fresh start. When the tenant files a bankruptcy, the ‘automatic stay’ stops all actions from creditors, and we must stop the eviction process. Automatic stays can apply to credit card companies and medical billing as well. Normally, we would be notified by mail of the matter, and everything would be put on hold. It’s not all doom and gloom for the owner/landlord, though. Most tenants don’t want to jeopardize the lease and can exclude someone in their bankruptcy, and of course, this needs to be in writing. Some do continue to pay their rent! Chapter 7 seems to be the most common form of bankruptcy we see in property management. It’s important to have witnesses if you’re having a conversation about a potential bankruptcy or one in progress with a tenant. For detailed legal advice, contact Tschetter Sulzer Attorneys and Counselors at Law. Oh, by the way. If you know someone who is looking to rent, sell, or buy a property, please call or email us with their information, and we’ll take good care of them! As always, thank you for your business and continued support! [email protected]