However, this market is unlike any other. For that reason, the generalist investor who is seduced by the idea of owning a hotel can have some troubles.

The real estate investor, Adam Hochfelder, shares the Top 5 “Must do’s” for the new generalist investor in hotels:

Know your Market

This is the first and crucial stage of hotels and in real estate investing in general. It is significantly important to know your competition, who they are and how they trade. Also, it is important to know what the future supply horizon looks like, and the major demand generators of a hotel. In Adam Hochfelder’s experience as a managing director of Merchant Hospitality, a detailed study on the dynamics of the competitive market at an early stage is time well spent.

Understand what the hotel brand actually delivers (rather than what the brand owner says it does!)

Hochefelder suggests taking time to challenge the brands on their system delivery stats. Studying how they are going to add value to your hotel is from crucial importance. It is advisable to monitor these results once the hotel is operating.

Hochfelder also indicates to not be afraid to circle back on promises made.

Invest in Your Asset

Investing in your asset is a crucial element, particularly, when it comes to acquiring an existing trading hotel that requires refurbishment. At the early stage of any acquisition, Hochfelder commissions detailed building surveys and property condition reports. The wrong belief that you can fundamentally change the fortunes of a hotel without investing in it, can set you up for a fail.

Hire an exceptional General Manager/Management Team

Hochfelder doesn’t underestimates the importance of hiring the right General Manager (or Management Team), who is capable of translating your investment strategy into the day-to-day operation of the hotel. This real estate investor, who has a wide experience in real estate investing, suggests motivating them to achieve your profit targets and including them within investment strategy meetings.

They are a crucial part of the team and the face of your hotel.

Get comfortable with Operating Risk

The concept of “Operating Risk” is increasing with the rise of the franchise and third-party management contracts.

Adequately, this equalizes the value of your hotel to the profit levels it achieves.

As mentioned by Hochfelder in his articles on Realty Times, this is a cyclical industry. Profits can go up and down. According to this real estate investor, the best practice is to prepare a Plan B, if the things do not play out as you had originally envisaged.

For Adam Hochfelder as a sector-specialist hospitality investor, these measures may seem so blindingly obvious so as to not warrant further consideration. However, generalist investors can too easily overlook exactly these areas of a hotel real estate investment.

The post The 5 Keys to Unlocking Returns in Hotel Real Estate Investing appeared first on Adam Hochfelder.

Property managers have the power to enhance the value of the properties they manage. If they are driven by the right reasons they could also expand their wealth of knowledge to new assets in need of professional handling. Over the past few years the growing property management role has led to higher expectations from asset managers and owners. As a result, asset managers are relying on property managers to provide a wider range of services and advise on different areas. As property management continues to evolve, the sector now includes so much more than increasing efficiency and tenant retention. Nowadays property managers are considered as real estate professionals. Because of the continually growing demands, many property managers have found it beneficial to take education courses.

As Hochfelder, the managing director of Merchant Hospitality, explains, property management teams must align management with overall client objectives. That means they need to incorporate asset management practices and the owner’s financial objectives to be effective. In addition to that, property managers have the role to reduce operating costs, and to generate a positive impact on the asset’s net operating income. Institutional property owners on the other hand must also have broad, company-wide objectives connected to their portfolios. Those initiatives must be incorporated into the property management strategy.

Enhancing the tenant experience is, and always will be an important aspect in property management. Enhancing the tenant experience through sustainability and energy-efficiency initiatives is the starting point of tenant retention. A successful tenant retention strategy should provide the best possible value. The property management team should also make sure that the asset is well positioned in the marketplace. According to Adam Hochfelder, In order to compete in the commercial real estate market, property management teams have to differentiate themselves with innovative new services that attract clients.

You can read more about Adam Hochfelder in the about section.

The post Property Management appeared first on Adam Hochfelder.

In a recent interview for SCALAR, Adam Hochfelder shared that in order to achieve your investment goals one of the most profitable ways is to acquire and rehabilitate a family real estate positioned on an attractive location. These markets possess both qualitatively and quantitatively characteristics that can be of one benefit.

When a person is purchasing a real estate planned to be re-used, like renovating or transforming an office building into an apartment or condo building, according to  Adam Hochfelder it is important that the purchaser knows not only the real estate itself but the market in which it is located as well. Operating expenses, occupancy rate, access to transportation, and competing properties should also be included in the detailed analyzes.

If all those factors aren’t analyzed properly, and the real estate operating performance and intrinsic value isn’t accurately measured, Adam Hochfelder fears it might lead to undermining the operative income altogether. For Adam Hochfelder, the most important consideration we must take into account is the acquisition cost, that is whether the real estate can be upgraded to a higher profile attracting a higher income renter.

So if you possess an older real estate with attractive attributes that are difficult to replicate such as great location in a major urban area, nearby retail and other services, proximity to job centers, you might have an opportunity to upgrade it and create a more upscale rental property and with that enhance its value. For more read the following triumph story about Mr. Hochfelder.

The post Real Estate Opportunities appeared first on Adam Hochfelder.

Aside from his professional RISD projects, Adam Hochfelder has also successfully funded the development of the NYC Parenting Center created for assisting the first time mothers in need. In addition, Hochfelder has developed low-income housing in New York and Philadelphia has contributed to HELP USA and serves as an active coach in youth sports in Manhattan. He has been honored by several national charities for his involvement and contributions to multiple causes.

The post Hochfelder’s Triumph Story appeared first on Adam Hochfelder.

If you’re just beginning to invest in real estate, you’ll find that there’s a lot to learn. As Adam Hochfelder already mentioned in his interview for Social Lifestyle Magazine, because of the financial, legal, and extensive due diligence requirements involved, real estate investing is more complicated than investing in stocks. With that being said, giving yourself a solid education before you purchase your first investment property is more than a good idea, it is an absolute must. When you understand the basic factors of investment, economics, and risk, real estate investing really can be as conceptually simple.

When investing in real estate, the goal is to put money to work today and allow it to increase so that you have more money in the future. The profit, or “return”, you make on your real estate investments must be enough to cover the risk you take, taxes you pay, and the costs of owning the real estate investment such as utilities, regular maintenance, and insurance. It goes without saying that each type of real estate investment has its own potential benefits and pitfalls, including unique quirks in cash flow cycles, lending traditions, and standards of what is considered appropriate or normal, so you’ll want to study them well before you start adding them to your portfolio, states Adam Hochfelder.

As new investors are getting started, there are plenty of wrong moves to make that can cost them both time and money, notes Adam Hochfelder. One of the keys to success for a new real estate investor is to quickly get pointed in the right direction. However, with hundreds of different directions to move, that can be a challenge. So, if you’re a real estate investor just starting out, you need your goals in mind. As you go along this journey, you need to know what kind of investor you want to become and what type of investments you want to try. Even though you’ll learn and understand most things through experience, it is crucial to have a plan before you go in. Your long-term goals will help you stay on track and focused as you learn.

The post Adam Hochfelder Lays Down the Basics of Real Estate Investing appeared first on Adam Hochfelder.

Assuming that you’ve done your research, you’ve visited the country and property more than once, you’ve assessed the local real estate market, and you are confident that your purchase meets your lifestyle and investment objectives, Adam Hochfelder reveals the key facts related to making an international purchase in an overseas real estate.

Like real estate anywhere, real estate overseas is a hard asset, and as Mr. Adam Hochfelder indicates, in the current investment climate, hard assets are considered as the most sensible investment class. Regardless of its location, a piece of real estate is a real asset that you control and can’t disappear altogether. Even more, over time property investments can grow in value and deliver reliable cash flow.

Investing in an overseas property is an opportunity to use real estate as both an investment vehicle and a strategy for a new and better life. Furthermore, an overseas real estate is great for creating and preserving legacy wealth while at the same time you reinvent your life and salvage your retirement. Real estate overseas can serve as a holiday home, a retirement plan, and can even be part of a legacy or heritage that can you leave to your descendants.

At a time when diversification beyond U.S. markets and outside the U.S. dollar is more important than ever before, real estate overseas may be the ultimate diversification strategy. Namely, purchasing property overseas provides portfolio diversification in the form of currency diversification, market diversification, and diversification of asset type. As Adam Hochfelder explains it, no matter how many kinds of investments you hold, if they’re all invested in U.S. markets, you are not diversified. That means your eggs are still in one basket and you are at the mercy of U.S. markets and events, which can be a dangerous place, especially right now.

Another practical benefit for Americans owning real estate outside the United States has to do with the fact that real estate overseas is safe and private. Namely, Americans are required to report all foreign financial assets to the IRS each year, except for two foreign assets that the IRS doesn’t insist on knowing about. One is gold and other precious metals, and the other is foreign real estate held in your personal name.

However, if you are new to buying and investing in international real estate you are likely to have a lot of questions. Even seasoned real estate investors like Adam Hochfelder can have trouble deciding where and when to buy in international markets. That’s why, before buying any property overseas, it’s important to check the local laws and ensure the transaction is conducted in a manner that will protect your property rights.

The post Buying Real Estate Abroad as an Investment appeared first on Adam Hochfelder.

Location

Investing in real estate is usually all about capital growth, so choosing a property that is more likely to increase in value is the most important decision you will make. When you’re on the lookout for investment properties, try to do research into the area it’s in.  Look at criteria, such as proximity to transportation, hospitals, proximity to universities and colleges, major business centers, local restaurants, and shopping. It is also important that your property suits the demographics of renters in the area. For example, if your property is located near a university more bedrooms will be in greater demand than a big backyard or a lavish dining room. A family home situated on a quiet street that is close to schools and parks will be preferable over a property on a busy road. Adam Hochfelder also advises conducting a thorough check of ownership, type and intended usage of neighboring areas, and amenities like parks, malls, restaurants and movie theaters.

Determine Your Return

While it may seem simple and easy to capitalize on investment opportunities, there’s actually a lot of legwork involved. As Adam Hochfelder puts it, it takes a certain type of person to handle investment property well, and if you aren’t ready for the work, it is most likely that you aren’t going to turn the profits you could potentially. For income properties, monthly rent is the principal standard. Ensuring a steady rental income stream is also vital because the cash flow will make the holding of the asset more affordable and provide income. So, learn the average rental rates in the area you’re investing. At the very least, you’ll need to cover your mortgage payment, taxes and miscellaneous expenses like insurance. For every dollar you invest, you need to know the return. A 6 percent return in your first year as a landlord is considered healthy, especially given that number should rise over time. Constructing a financial plan and budget prior to purchasing is key as you’ll be covering not only the mortgage but also taxes, maintenance, design costs, improvements and unforeseen complications.

Size and Condition

A large property means higher budget and more repairs. Even if it isn’t a fixer-upper, eventually there will be problems which will fall on your shoulders. If you’re new to the business, the last thing you want is to get in over your head too quickly. That is why the real estate investor and developer, Adam Hochfelder, recommends staying away from fixer-uppers and anything that seems like it’s going to pose more problems to you in the long run. Before you purchase, you could engage a professional building inspector, and then once a year, conduct a thorough inspection of the property to find any potential problems.

The post Things to Consider with Real Estate Investment Opportunities appeared first on Adam Hochfelder.

This real estate businessman and investor have decades of experience in overseeing commercial and residential real estate developers, property owners, construction contractors, real estate brokers, and property managers with respect to residential, commercial and mixed-use real estate transactions. Hence, he has helped many clients through the American real estate investment process.

As he explains, acquiring property is the first step of the real estate development process. In this article, Adam Hochfelder shares the knowledge and skills needed to acquire the property with attractive price and terms, add value by successfully completing critical tasks, and sell the improved property to a willing buyer.

As an investor, what you pay for the property is only a part of the bigger picture. The return you get on your investment is of greater importance and finding just the right piece of property is crucial when it comes to making the best possible investment. So, acquiring a commercial property is a multi-step process that goes well beyond negotiating a purchase price and signing a sales agreement.

Hochfelder is a huge proponent of networking, as that has been his main source of deals for most of the properties he has purchased. It is the acquisition strategy that he primarily uses and it has yielded the greatest return compared to everything else he has tried so far. Networking with are investor-friendly real estate agents and reliable wholesalers bring in the most leverage for finding deals. These are the people who understand the benefit of being in a relationship with investors and have ongoing work with them.

Learning how to network effectively is a must if you work in real estate. After all, networking is fundamental to the success of any real estate business. As a real estate developer, you are only as good as the people who surround you. In addition to professionals with whom Adam Hochfelder works and collaborates internally, he also relies on relationships he has built with individuals and firms in his community.

The post Simple but Effective Real Estate Acquisition Strategies appeared first on Adam Hochfelder.

Technology is becoming more ingrained in every aspect of life, allowing us to come up with new engaging, next-generation experiences. Statistics show that around 80% of all home buyers are searching online. They no longer have to rely on the good old newspaper, nor do they need to drive down streets looking for ‘For Sale’ signs. Today’s modern buyers are looking online for their future homes and they want to know every detail before they go and see it in person. That means we’re all competing to capture the attention of consumers, and the best way to do that is through visual marketing. Since this savvy method is here to stay, it’s better to embrace it or you’ll lose marketing anchorage, says Adam Hochfelder.

The focus of today’s technology in real estate, is often on interactivity, because interactive information provides a much bigger picture than simple content, and it makes the job of buying and selling homes more fun than ever before. Interactive media is the future of technology, and it’s going to play a big role in the future of real estate. This allows buyers to explore homes and neighborhoods on their own, to discover information by themselves, and gives them more power and control during the buying process. Interactive content is good for buyers, realtors, agencies, and marketers and designers for many reasons. Because of the many advantages of interactive technology, it’s becoming increasingly common to see it used in real estate.

Another way to pique a buyer’s interest is to add a video walkthrough. People generally go online to obtain information, to solve a problem or to be entertained, and a video helps them do all three at once! Adding a video walkthrough promotes visibility on your listing, doubling both the number of shopper views and how often the home is saved to look at later. With more views, you can increase your home’s ranking and visibility to shoppers. According to Mr. Hochfelder, virtual reality will drive real estate sales in the future.

Real estate video marketing conveys information effortlessly and quickly. More and more consumers now prefer to view real estate via video, adds real estate executive Adam Hochfelder. There is no better way to show off the virtues of a home than through video. Video can garner attention, communicate valuable information to prospective buyers and sellers, and allow potential buyers to get a better idea of the actual space. Viewers can see how rooms and spaces connect and get a feel for the flow of the house or property.

Virtual tours are the next best thing to being able to see a house in person, and they’re ideal for out-of-town buyers who want a first-hand experience of viewing a home, even if they can’t be there physically. The 3D imaging technology creates the most vivid pictures and allows you to walk around the house at will, explore different elements, and even see things up close.

A good virtual tour will grab a buyer by the hand and lead her from room to room, whether 360 or a video. The two-minute silent video gives home shoppers a chance to experience your home before they visit in person by showing the flow of your home and how the rooms connect.

The post Visual Real Estate Content appeared first on Adam Hochfelder.

First of all, if you want to become a real estate developer, you’ll need to determine if this career path is a good fit for your skills and interests. Being a successful real estate developer requires a fully developed set of analytical, financial, organizational and marketing skills, which enable real estate developers to make the right choices when purchasing, financing, developing and then selling or leasing properties.

As Hochfelder points out, in reality, there is no specific path to becoming a real estate developer. In fact, many real estate developers come from a variety of educational and professional backgrounds, and some even begin with no professional experience whatsoever.

The post A Career in Real Estate Development appeared first on Adam Hochfelder.