Personal Risk Management

Preparing Your Vacation Home for Hurricane Season

noreply@blogger.com (OBX) — Wed, 19 Apr 2017 12:45:00 +0000

With the start of the 2017 hurricane season almost here and the potential to impact the entire East Coast from vacation home owners to those vacationing in places like the Outer Banks, it's important to be prepared. This article from Money Q and A provides some great insight into getting yourself prepared.

How to How To Prepare Your Home For Hurricane Season Right Now!

The 2017 Atlantic hurricane season predictions call for 11 named storms – four hurricanes, two of which are estimated to be major ones. While a slower season is expected, there is an increase in historic-level storms, floods, and fires that cause massive devastation. Hurricanes activity is up 80% since 1980.

The increased activity is one of the main reasons why a preparedness plan has become so essential. But, so many don’t take the time to put together a thorough plan that protects their family.

Hurricanes are unpredictable. You need to have your finances in order as the heart of hurricane season approaches in September. Now is the time to prepare your finances for the hurricane season.

Additional Supplies and Provisions

After Hurricane Hugo in 1989, my family and I were without power for almost a week. I can remember walking through our neighborhood and all of the neighbors cooking food before it spoiled on their barbeque grills. I ate a lot of free hamburgers and hot dogs in the neighborhood that week.

My parents were fortunate. Cousins from the upstate where we stayed to ride out the storm lent us a portable gas generator to use when we got home.

It’s also a good idea to have plenty of non-perishable food and water set-aside for every member of your family in the case of a hurricane. Don’t forget about your pets’ food and water too.

Another item that many people forget about is cash. If the power is out for an extended period of time, you could find it near impossible to use a credit card or get cash out of an ATM. You should consider having a small stockpile of cash in the event of an emergency. Maybe you keep a small portion of your emergency fund at home in a fireproof safe in cash.

1st Crowdfunded Real Estate Investment Trust

noreply@blogger.com (OBX) — Wed, 24 Aug 2016 13:26:00 +0000

LOS ANGELES--(BUSINESS WIRE)--RealtyMogul.com, a leading online marketplace for commercial real estate investing, today announced the launch of its first commercial real estate fund, MogulREIT I. Structured as a real estate investment trust (“REIT”) with a minimum investment of $2,500, the fund is open to nearly all* investors and offers the potential for consistent cash dividends and equity appreciation.

MogulREIT I has been designed to offer investors a number of distinct advantages. By investing in the “REIT,” investors will gain access to a diversified pool of commercial real estate investments with one single investment. The fund intends to invest in a variety of commercial real estate, including multifamily, retail, self-storage and office.

The fund is also designed to have low fees. Traditional non-traded “REITs” employ a highly manpower-intensive sales method, resulting in upfront sales commissions of 7 percent, on average, and total expenses of up to 15 percent.** By offering MogulREIT I exclusively on its platform, RealtyMogul.com affords investors direct online access to the product with no sales commission and offering expenses capped at 3 percent.***

“Beyond the zero commissions and lower fees, the fund’s strategy is exciting because it allows us to leverage RealtyMogul.com’s hundreds of inbound inquiries for financing on commercial real estate and curate them to find suitable opportunities,” said RealtyMogul.com CEO Jilliene Helman. Read More

How to Choose the Right Auto Insurance Company

noreply@blogger.com (OBX) — Tue, 16 Aug 2016 11:05:00 +0000

It seems as if there is a car insurance company for just about every type of vehicle, every type of coverage, and every type of budget. The way to find the right car insurance provider for your needs is to define that those needs happen to be, and then identify the car insurance providers that will meet those needs.

From there, it is just a matter of setting up the criteria to compare auto insurance providers with one another, so the best option is chosen. Here are some guidelines to help identify auto insurance companies that will work for you.

Should You Choose A National Or Local Car Insurance Company?

Some people simply do not feel comfortable dealing with car insurance providers that are not well known. If name recognition is important, then there are plenty of excellent choices. Check into Progressive Auto Insurance or State Farm Auto Insurance. Both companies have reasonable rates and agents in just about every city and town in the country. Both will provide a car insurance quote that breaks down the costs so you can compare apples to apples.

Perhaps something more localized, such as a regional car insurance provider might be more to your taste. If that is the case, you can check into such offerings as the quotes by USAA Auto Insurance and Safeco Auto Insurance.

The advantage there is that the regional providers often have a streamlined operation and may offer some really good rates. Plus, they often try to cultivate stronger ties with their clientele than some of the larger players in the market. If you are looking for New Jersey car insurance, Georgia car insurance, or Utah car insurance, going regional may be a good choice.

How to Find Cheap Car Insurance

For cheap car insurance, you may find it helpful to check with some of the independent insurance agencies in your area. While many of them specialize in high risk insurance coverage that is often costlier, many independent agents will also have one or two low cost insurance providers in their arsenal as well.

Cheap auto insurance does not necessarily mean bad insurance. Most states have minimum standards and these options will meet those standards. If you need to think in terms of budget car insurance, an independent agent may be able to provide you with just what you need.

Finding Classic Car Insurance

Classic car insurance is also a concern for many auto owners. There are a number of options when it comes to protecting a vintage automobile.

Look for an auto insurance quote from providers that specifically have packages for classic vehicles, such as AA Car Insurance. Gather three or four car insurance quotes and compare the deductibles and coverage amounts. Chances are you can insure your classic vehicle for a lot less than you think.

When Should You Choose to Buy Insurance for Your Home Business

noreply@blogger.com (OBX) — Thu, 11 Aug 2016 17:57:00 +0000

HOME BUSINESS INSURANCE

Unfortunately, many home based business owners don’t realize they have little or no coverage under a standard homeowners policy. If something were to happen such as a delivery person slipping while making a business related delivery, then as homeowner you could find yourself without any coverage.

If you have started a home business, then obtaining home business insurance may have not been high on your list of priorities. In fact, you may have never heard about home business insurance before. But the fact of the matter is that everyone who operates a small business has a great need for insurance coverage as any other type of business. Many professions that work from home like real estate agents, can benefit from learning how home business insurance should be an important part of their personal risk management program.

Here are some points to consider on home business insurance, including some tips on where to look for affordable home business insurance.

There is more than one type of home business insurance to consider. One that will perhaps be more familiar is affordable home business health insurance. Since you now work for yourself, you will have to make decisions about health coverage. Small business associations are often great resources for health insurance options. Also, many health insurance providers will allow you to participate in a group plan with as few as two enrollees. Check into your options for health insurance for home business needs and you may find something that is less expensive that you might think.

Along with health insurance, you need to think about home business liability insurance. If your business sells goods in particular, this is a good idea. Home based business liability insurance protects you from any issues that may arise from use of the product, and allows you to keep operating even if something went wrong with one product. Craft home business insurance would also protect you in the event someone is injured while in your home performing work for your company, which is another matter you should consider.

Insurance for Home Based Businesses

Business insurance for home based businesses runs the gamut of what any business needs, from health to liability to workman’s compensation coverage. Finding home based business insurance that meets the needs of today and will grow with your company is what every home business owner needs to think about. Fortunately, there are all sorts of avenues for locating in home business insurance that were not there just a few years ago.

A number of providers now make their insurance available on the Internet. Spend some time investigating the terms and conditions you have to meet in order to comply with basic criteria. While you are at it, look for home business insurance coverage endorsement from small business associations for one home business insurance company or another. This will help you to steer clear of some of the more questionable firms and focus on those that have established a solid reputation.

How Safe Are Water Slides?

noreply@blogger.com (OBX) — Mon, 08 Aug 2016 19:23:00 +0000

With the recent death of a 10-year old boy at a Kansas amusement park USA Today has a look, Water slide death casts shadow on summer tradition, at the safety levels of water slides and amusement parks?

In New Jersey, water parks are the biggest source of injuries for amusement park-related incidents, NJ.com reported.

From 2009 to 2014, 122 of the 552 amusement park accidents happened on a water slide and 40% of all accidents occurred in some water-related attraction, NJ.com reported, citing state Division of Community Affairs statistics. Water rides only account for 11% of all rides allowed to operated in the state.

Read the Article

Make Sure Your Small Business Marketing Events Are Insured

noreply@blogger.com (OBX) — Sun, 07 Aug 2016 17:44:00 +0000

Saw this article on a small business marketing blog and thought it worth mentioning. Many times when doing one-off events, small business owners neglect to think about the insurance ramifications. It is especially important to consider the liability if people are going to be on your property or you are hosting an event.

Innovative entrepreneur Neil Patel (Quicksprout, Crazy Egg, KISS Metrics, NeilPatel.com) has a great article in Forbes with some excellent ideas for how to market a small business, from using handwritten notes to hosting/organizing events. One thing that immediately jumped to mind is that for many of the ideas it would be important to check or change your small business’s insurance coverage.

From Try These 10 Rarely Used Marketing Ideas For Small Businesses…

Sponsor a kids day.
What do kids love? Bounce houses, balloons, candy, and games.
What do parents love? Taking their kids to the aforementioned events for free.
What are you waiting for? Rent a few bounce houses, hire a balloon artist, and turn up the music. A rousing kids day at your place of business is good clean fun. Plus, it showers your business with the good graces of kids and parents alike.

Host a block party.
Why is it that residential neighborhoods get to have all the fun? Get your small business in party mode.
You can start a party wherever you are. Invite other local businesses, rent a barbecue barrel, prepare some free soft drinks, and have some fun!
If you’re lucky, you might even get some news coverage!

Definitely take the time to read the whole article and see what you could apply to your business.

As a small business owner it’s definitely important to check your insurance coverage before planning and hosting a kids day or block party. Bounce houses have a high number of injuries and every now and then make the news for coming untethered. (Bounce House Injuries Become an ‘Epidemic’ – Time Magazine)

You wouldn’t want what could be an excellent marketing opportunity to become a nightmare. Taking the simple step of checking your insurance coverage and the insurance coverage on any vendors you use to provide like the bounce houses.

The same advice goes for anyone planning a block party or summer barbeque. If there is going to be alcohol at any event, it is especially important to be sure you are covered for the liability associated with having alcohol, catering, and an on-site event.

Definitely build-in any insurance cost associated with the event into your total budget for the event.

Reprinted from Small Business Website Advice Blog: THE IMPORTANCE OF INSURANCE WHEN USING INNOVATIVE SMALL BUSINESS MARKETING IDEAS

Mitigating Your Family's Social Media Risk

noreply@blogger.com (OBX) — Mon, 01 Aug 2016 12:34:00 +0000

As social media use becomes increasingly ingrained in our daily lives, the potential for something we post to be taken out of context or misconstrued is only going to increase. When adults are being sued for negative yelp reviews and parents are being held liable for their child’s Facebook use, it seems the more active your family is on the Internet—and particularly social media—the greater the potential you could have to defend yourself from a lawsuit.

Just take cyberbullying, for example. A recent study found 43% of teens were victims of cyberbullying the previous year. A Google search for “cyberbullying lawsuit” results in 276,000 results, pointing to specific suits filed in California, Florida, Georgia, Louisiana, Tennessee, Texas, and elsewhere.

For parents the risks associated with social media use are magnified due to several factors. Children, especially teenagers, often have multiple social media accounts, are the most active of users and the earliest adopters of new technologies. These factors when combined with a lack of understanding for the permanence and potential repercussions of information they share can lead to significant problems for parents.

How to Determine Your Family's Risk on Social Media

Since there is no exact formula for determining the exact amount of risk you face, the key is to understand what you could be liable for and just how serious these risks can be.

During a recent conversation about liability and social media use, Joe Clark of Willis Private Client mentioned, “Most people aren’t aware of the risk they face from children posting, tweeting, and blogging. Unrealized risks like Internet and social media—especially for the affluent—are some of the most often overlooked areas of personal risk programs.”

Everyone’s Risk is Not the Same

For those in prominent positions or in professions considered high earning, it is exponentially more important to take steps to mitigate as much of the risk as possible. In today’s litigious society, paying to defend you or your family from a mere accusation could easily exhaust the limits of even a high-end homeowner’s policy. It is important to take a concrete look at how much risk you are willing to accept. An in-depth look at your assets, liabilities, and earnings potential provide a basis for calculating your risk potential.

Best Way to Cover Your Family’s Risk

Before you decide to purchase any insurance policy, it is important to understand what you are buying. For a “personal umbrella,” it is important to understand that this type of coverage is secondary. This means it requires you having primary insurance such as a homeowners or renters policy. The reason it is called a “personal umbrella” is that it sits over your primary insurance policies.

Since it is supplemental, it works when the limits of the primary policy have been exhausted. For this reason, it is important to understand the relation between the limits on your primary insurance and excess liability coverage. The coverage on personal excess policies does not start until the underlying limit has been reached. In this instance, it is extremely important to match your primary policy limit to your umbrella limit, so no gap in coverage exists.

The coverage offered under personal excess liability policies varies. One important item to consider is whether or not the money for defense is included within the coverage limit or is separate.

Having a Family Social Media Policy

While insurance coverage is great, the best way to protect you and your family is to adopt a family social media policy. A family social media policy can include a number of items but most of all, you should look to establish what is ok to be shared and what type of information needs to remain private. Below are a few best practices to consider when establishing a family social media policy.

Additional Steps to Protect Your Family on Social Media

Use the privacy settings on social networks
Use strong passwords – (12 characters, include numbers, symbols, capital and lower-case letters)
Talk to your kids about the dangers of social media, emphasizing that once something is posted, is there forever.
Consider establishing family rules to govern social media use
Regularly check your child’s privacy settings
Keep your security software, operating systems, and firewalls up to date.

Planning Is the Key to Mitigating Risk

The fact that a lifetime of work and assets could be wiped out with one settlement, is a very real possibility. Start by assessing your family’s potential for risk. Take steps to mitigate the risk by incorporating social media best practices. Finally consider the benefits of how a properly designed personal risk program can protect you and your loved ones.

Additional Benefits of Having Life Insurance

noreply@blogger.com (OBX) — Wed, 27 Jul 2016 14:16:00 +0000

This article from US News & World Report offers a good look at some of the additional benefits available to having life insurance.

Life insurance seems like a straight-forward financial product. Insurance companies receive premiums and in exchange they pay out a death benefit to policyholders' beneficiaries. However, these plans can be much more complex than that.

"There are a lot of options – much more than people realize," says Cliff Wilson, chair of the board of directors for Life Happens, a nonprofit that educates the public on insurance matters.

Some policy perks are geared toward certain populations, such as the USAA Military Future Insurability Rider, which lets service members convert a military policy upon retirement. But other life insurance perks can be had by virtually anyone.

One of the best ideas from the article was the possibility of adding a LTC rider to your policy.

1. Pay for long-term care expenses. Long-term care insurance is expensive, and adding a rider to a life insurance policy can be an effective way to get this coverage. Specialty products that combine life and long-term care insurance are also available.

Whether the coverage comes as a rider or a specialty policy, using long-term care benefits typically reduces the amount of the death benefit. While there is an extra cost for adding long-term care coverage to a life insurance policy, it can be more cost-effective than buying two plans.

It can also be a good choice for people who want long-term care insurance, but aren't sure if they will need it. "They are going to get coverage, but they aren't spending money on a policy they aren't going to use," says Jimmy Lee, CEO of The Wealth Consulting Group in Las Vegas.

Read the Entire Article

Are Restaurant Earnings a Sign of The Economy Slowing

noreply@blogger.com (OBX) — Wed, 27 Jul 2016 14:15:00 +0000

The Orlando Sentinel has an interesting look at how McDonald's recent earnings announcement, One challenge for McDonald's: More Americans are packing their lunches.

Americans packed lunches and made more dinners at home this spring, leading to traffic declines across the restaurant industry. For McDonald's, the trend led to disappointing second-quarter results after months of strong growth.

A Stifel Nicolaus analyst on Tuesday downgraded his ratings on a number of restaurant companies, including Chipotle and Panera, predicting that the U.S. will fall into a recession early next year. A slowdown in the restaurant industry is one of the first indicators of an economic slowdown, because dining out is one of the first things people give up when they're feeling uncertain about the future.

Read the Article

Most Important Question to Ask Before Considering Home Flipping

noreply@blogger.com (Admin) — Mon, 18 Jul 2016 17:41:00 +0000

Daniel Goldstein writes in MarketWatch:

With low interest rates, tight inventory and high demand for entry-level homes, the number of houses being flipped (i.e., bought and resold within 12-months) in the U.S. in the first quarter of 2016 reached nearly 44,000, or 6.6% of the total home and condo sales in the U.S. That’s the highest percent since 2006, when nearly one in 10 houses bought was a so-called flip, according to Irvine, Calif.-based RealtyTrac, a real-estate research group.

The article lays out why a number of factors are creating the favorable current conditions for house flipping. The question I hear when talking with most first-time home flippers is what is the single most important thing to consider if you've never flipped a home before?

The answer is always the same. It's all about the price you but the home at, not sell. The author asked a seasoned real estate lender his thoughts and he said:

While it seems backwards to think the money is made on the front end of the deal rather than the back end, that’s just how a veteran house flipper approaches it, said Richard Levine, president of Greenbriar Lending LLC in Rockville, Md., a private lender for real-estate investors who has personally worked on or financed about 500 flipping deals.

It's a great read for anyone considering, flipping a house for the first-time. One thing I would add for the first-time home flipper is that you want to do 10X the amount of research you think you would need.

Flipping a home offers a significant potential for profit or pitfall. Having as much analysis as possible, should help minimize your total risk.

Lastly, as the author noted is helps to have a number of friends or professional acquaintances that are familiar with the real estate industry.

To be a successful home flipper, you’ll need a lot of friends, especially friends who are contractors, home inspectors, accountants and lawyers, not to mention real-estate agents.

Read: 6 things to know before you flip a house

Are Warehouses Better Than Skyscrapers for Real Estate Investors?

noreply@blogger.com (OBX) — Mon, 18 Jul 2016 11:11:00 +0000

Interesting read from JLLRealViews.com, The new trophy buildings of U.S. real estate, on the increasingly global competition for US Industrial real estate...

Move over, iconic Manhattan skyscrapers: warehouses are becoming a big play for global investors, too. It used to be that global investors focused on U.S. real estate investment were only interested in glitzy office towers in just a handful of high profile locations, like Manhattan, Los Angeles or Miami.
Now, those investors – hailing from locations as diverse as the Middle East, Germany, Singapore, China and Canada – are feeling pressure to achieve returns. To find opportunities in a competitive market, they are looking beyond tall towers to the more horizontal planes of the country’s strategic logistics corridors filled with enormous “big box” institutional-quality distribution centers.

Over the last five years, ownership of industrial real estate has been illustrated by a phenomenon of major investors building or aggregating large-scale portfolios across the country instead of taking on buildings one-by-one. Most notably, the 2015 acquisition of the Industrial Income Trust’s (IIT) 58 million-square-foot, $4.55 billion U.S. industrial portfolio made Singapore-based Global Logistics Properties (GLP) the second-largest owner of industrial property in the United States, second only to San Francisco-based Prologis. Additionally, the Abu Dhabi Investment Authority (ADIA) and PSP Investments of Canada purchased Exeter’s entire portfolio of industrial assets in December for $3.2 billion, comprising of roughly 58 million square feet.

Read the Entire Article

1 Reason Businesses Fail to Change Their Business Model

noreply@blogger.com (Admin) — Sun, 17 Jul 2016 10:43:00 +0000

Very interesting look at the failure of Eastman Kodak, to handle a successful transformation of their business into the digital world, by Scott Anthony (@ScottDAnthony).

The right lessons from Kodak are subtle. Companies often see the disruptive forces affecting their industry. They frequently divert sufficient resources to participate in emerging markets. Their failure is usually an inability to truly embrace the new business models the disruptive change opens up. Kodak created a digital camera, invested in the technology, and even understood that photos would be shared online. Where they failed was in realizing that online photo sharing was the new business, not just a way to expand the printing business.

Read: Kodak’s Downfall Wasn’t About Technology

Social Media Risks Abound for the Wealthy

noreply@blogger.com (OBX) — Wed, 22 Jun 2016 11:09:00 +0000

ThinkAdvisor.com has a very insightful article, Unique Cyber Risks Your HNW Clients’ Kids Face, that examines how social media use among the children of affluent and ultra high-net worth parents, can lead to quite the cyber risk.

For high-net-worth families, such risks are exacerbated by the fact that their wealth is a target. In some cases, affluent people also are public figures whose children can be easily tracked on Twitter, Instagram, Snapchat, Facebook and other online platforms. Even if your children are highly responsible, they may find themselves with others who are not.

Cyberbullying can be as seemingly naive as 10-year-old Jimmy group-texting his pals that 10-year-old Maya is “ugly and stupid.” But if Jimmy continues to make such hurtful comments, and Maya physically harms herself because of them, his parents may be liable for defamation, not to mention Maya's emotional distress, sleeplessness, anxiety and worse.

Many parents have no idea their child is texting, emailing or sending photographs deemed to be defamatory and libelous. They may be similarly shocked to learn their homeowners insurance may not cover the legal losses related to these activities. “Few homeowners policies address and absorb personal injury losses from libel and slander,” said Lucarelli. “If parents aren't vigilant, they can lose all their assets.”

Many insurers do not provide coverage protecting families from the financial costs related to cyberbullying, such as the settlement or verdict amount or the legal costs of defending the lawsuit. I definitely agree with the author. The amount of cyber risk the affluent and high-net worth individuals and families face is only going to grow. Back in June 2015, I wrote, Do You Need A Family Social Media Plan...

Not Everyone’s Social Media Risk is the Same

How to Lower Your Family’s Social Media Risk

In addition to mitigating your family’s social media risk, it is important to consider a cost-benefit analysis of proper insurance coverage. One of the most cost-effective ways to ensure you and your family are protected is through purchasing excess liability coverage. This type of coverage is most often referred to as a “personal umbrella.”

Before you decide to purchase any insurance policy, it is important to understand what you are buying. For a “personal umbrella,” it is important to understand that this type of coverage is secondary. This means it requires you having primary insurance such as a homeowners or renters policy. The reason it is called a “personal umbrella” is that it sits over your primary insurance policies.

Since it is supplemental, it works when the limits of the primary policy have been exhausted. For this reason, it is important to understand the relation between the limits on your primary insurance and excess liability coverage. The coverage on personal excess policies does not start until the underlying limit has been reached. In this instance, it is extremely important to match your primary policy limit to your umbrella limit, so no gap in coverage exists.

The coverage offered under personal excess liability policies varies. One important item to consider is whether or not the money for defense is included within the coverage limit or is separate.

Creating A Family Social Media Policy

Financing Commercial Real Estate Investments With Crowdfunding

noreply@blogger.com (OBX) — Fri, 03 Jun 2016 19:59:00 +0000

From National Real Estate Investor

Crowdfunding Fills Construction Lending Gap Left by Banks

“Construction financing is getting much more challenging,” says Doug Opalka, senior managing director with HFF, a financial intermediary. Some lender are offering smaller loans for new construction projects. Others are less likely to lend at all.
Regulations created after the global financial crisis force banks to kept cash in reserve to offset the risk of investments like construction loans.

The rules are now finally being enforced, after years of uncertainty over how they would be put into action, notes Opalka. Many banks have already lent as much as they can without putting more cash on reserve.

“Multifamily real estate is a very common property type for crowdfunding… Real estate continues to represent somewhere north of 90 percent of crowdfunding,” say Roderick. Apartment properties provide steady cash flow and stability.

Also, rental housing is a type of real estate many crowdfunding investors are already familiar with. Apartment development still seems like a relatively safe bet, compared to other investment options. Even though developers are opening hundreds of thousands of new apartments, strong demand seems likely to fill the new units in most markets.

The percentage of vacant apartments nationwide is still far below 5.0 percent, even if that percentage is growing slightly. Rents continue to grow at a healthy rate in most markets, according to data firms including Reis Inc., and MPF Research.

Most crowdfunding websites still provide loans for new apartment projects. The products range from permanent loans to smaller, mezzanine loans, or preferred equity.

Read the Entire Article

America's Largest Private Real Estate Development Hudson Yards - Opens First Building

noreply@blogger.com (OBX) — Wed, 01 Jun 2016 15:19:00 +0000

Forbes has a recent article, Hudson Yards, America's Largest Private Real Estate Development, Opens First Building, on the progress being made at Hudson Yards. If you're not familiar with Hudson Yards as the title of the article states it's the largest private real estate development in the US.

10 Hudson Yards - www.hudsonyardsnewyork.com

Below are some interesting insights from the article...

Hudson Yards is expected to add about $19 billion annually to New York City’s gross domestic product once the entire development is completed in 2025, according to Appleseed, a consulting firm that provides economic research to government and corporate clients. That’s 2.5% of the city’s GDP, but perhaps more notably, more than Iceland’s entire output last year.

The 10 Hudson Yards building is 96% leased. Over the course of this year, six other tenants will move in, including L’Oreal USA, Boston Consulting Group , German software firm SAP, consultancy VaynerMedia, Alphabet’s (formerly Google) urban-technology subsidiary Sidewalk Labs and media-tech firm Intersection (which is partly owned by Sidewalk Labs).

Read the Whole Article

Is the Real Estate Market Going to Get Cold During Summer 2016?

noreply@blogger.com (OBX) — Tue, 31 May 2016 21:17:00 +0000

There is an interesting look at the current state of the US real estate market by Andrew Hecht on seekingalpha.com. He writes about some concerns he has about the current state of today's market.

Markets have recovered since 2008 as central banks around the world lowered interest rates and policies of quantitative easing dealt with the effects of the financial meltdown. Today, we are still feeling the consequences of the events that transpired eight years ago; interest rates remain at or close to historical lows.

Many of the issues that caused the housing crisis in the U.S. have been addressed by increased regulation, particularly on the lending side. While before 2008, anyone with a pulse could get a mortgage, today credit is tight, and only the most qualified borrowers can finance a home.

However, the low interest rate environment and improving economy has caused real estate values to come storming back and now they are approaching highs once again. There are some signs that housing could be overheating as the Fed is now in a tightening cycle that began with the first rate hike in nine years last December.

If you are not familiar with Andrew Hecht, he is the Chief Market Strategist at Carden Capital and Carden Futures. He has an interesting history with the real estate market...

In 2003, I wrote a provisional patent for the development of a trading market for real estate derivatives...The rationale behind the product was that it would provide a method for hedging real estate values for those with large and small exposures...They all told me the same thing in 2003; real estate never goes down in value.

Read the Entire Article

Crowdfunding Continues to Change Real Estate Investing By Empowering Investment

noreply@blogger.com (OBX) — Thu, 26 May 2016 15:59:00 +0000

Great insights into the changes crowdfunding is bringing to real estate...

The Power of Crowdfunding in Real Estate

Within a decade, they expect online fundraising to become not just accepted, but ubiquitous throughout the industry, as part of a multi-channel approach that will include both traditional sources such as banks and private equity firms, and a direct-to-investor channel.

“What we’re really talking about is the modernization of how you fund commercial real estate,” said Darren Powderly, co-founder of CrowdStreet, a three-year-old Portland, Oregon–based firm that provides an online platform for real estate developers and managers to raise capital from investors. “Ten years from now, it’ll be a no-brainer. People will be saying, ‘Of course, I raise money online.’ ”

In some ways, CrowdStreet exemplifies the conceptual evolution of real estate crowdfunding. The venture capital–funded startup’s main thrust has been building a marketplace in which institutional-quality real estate investments—both debt and equity—are offered to a database of accredited investors. In that fashion, CrowdStreet has done 40 deals with an average raise of about $850,000, Powderly said. “We could have done 400 deals, but our marketplace is highly curated,” he said. Last year, CrowdStreet debuted a new product called Sponsor Direct, a “white label”—that is, rebrandable—version of its software that allows developers to do crowdfunding on their own websites as well.

According to GeekWire, more than 20 real estate firms already are using it. “Clearly, technology is dis-intermediating, disrupting,” Powderly said. “This is happening in every industry. It’s shocking that it isn’t happening even more rapidly in our industry, commercial real estate. But it is happening.” Panel moderator Martin S. Burger, chief executive of New York–based real estate development, investment, and management firm Silverstein Properties, said that one of crowdfunding’s advantages is the potential ease of providing investors with documentation.

As an example, he cited the platform developed by Fundrise, which allows investors to pull up information such as construction budgets and commitment letters for projects. “You could touch the transaction,” Burger said.
Read the Whole Article

Personal Insurance Risks For Hosting Private Parties and Galas

noreply@blogger.com (OBX) — Tue, 24 May 2016 18:43:00 +0000

Courtesy of AIG Private Client Group:

Whether hosting a birthday party or a charity gala, organizing a successful event requires looking beyond the festivities your guests will enjoy. To lessen the likelihood of accidents or injuries, incorporate the following steps into your planning process.

Screen Your Vendors

Obtain a signed contract documenting the function or service that the each vendor will provide.
Ensure via physical documentation to confirm that each vendor is licensed and bonded, if applicable.
Vendors must be insured (general liability, auto, workers compensation, etc.) with appropriate coverages depending on their service.
Make sure that vendors are adequately supervised. A responsible representative of each vendor should be on site at all times that their personnel are present.
Create written property rules/non-disclosure agreement (NDA) to be signed by vendors that identify expected behavior. For example, you may want to designate certain "no-go" areas on your property or prohibit photos.

Why it matters: In the event of problems caused by your vendors (faulty lighting, food poisoning, a disruptive employee, etc.), you could be held responsible if underlying coverage is not in place.

Minimize slipping hazards

Ensure that all walkways and stairs are clear of obstacles and in good condition. Immediately before the event, and during the event if necessary, walkways should be cleared of snow, ice, wet leaves, moss, or anything slippery.
Maintain adequate lighting in high traffic areas. Consider placing rugs or other covering on polished floors in order to prevent slipping. Remind guests to watch their step around staircases and other changes in surface elevation.
A staff member or sign can be posted in hazardous areas to alert guests of the elevation change. Why it matters: Slip and fall incidents can injure guests, disrupt the event and potentially lead to legal action against the homeowner. However, they often can be avoided if simple preventative measures are followed.

Be smart when serving alcohol

Never serve alcohol to minors.
Designate or hire a responsible bartender to help monitor alcohol consumption, and instruct the bartender(s) to stop serving anyone who appears to have consumed too much.
Consider hiring a bartender who has a state Professional Server Certification/Bartender Certification Training.
Consider offering alternate transportation for guests.
Keep a lock on your wine cellar, and ensure that guests to do not have direct access to bottles.
If you are serving wine from your personal collection, ensure that bartending staff have clear instructions on what you want (and don’t want) poured.

Why it matters: Laws vary widely, but in some but in some states a homeowner can be sued for “social host negligence” if an intoxicated guest leaves the event and causes an accident or injury.

Carefully consider activity choices

Supply safety equipment, such as life jackets or bike helmets, if it’s required for an activity. If that is not feasible, instruct guests to bring their own equipment.
Have basic medical first-aid equipment on hand to treat minor injuries. Use professionals when it’s appropriate. For example, if the event involves swimming, have a certified lifeguard on duty. Even if your guests are very skilled, it is best to have a nonparticipant on hand to oversee the activity.
Ensure that activities are allowed by your local jurisdiction. Obtain the proper permits to avoid the risk of incurring fines or having the event shut down by local authorities.

Why it matters: It’s an unfortunate fact that accidents happen. While many incidents can be prevented with proper safety protocols, those that can’t be avoided can lead to catastrophic injury as well as costly liability claims.

Make parking part of the plan

Determine if any zoning restrictions are in place and obtain permits if required. If you plan to have guests park along the street, obtain permission from local government, your community association (if applicable) and neighbors.
For large events, consider offering valet parking or a remote lot with transportation to the event.
Ensure there is adequate lighting in the driveway and parking areas.

Why it matters: A good parking experience can set the stage for a well-organized and enjoyable event. One host learned the hard way after many guests’ vehicles were towed, causing an unneeded disruption and thousands of dollars in towing and recovery fees.

Consider additional safety measures

Be mindful of media exposure. It is wise to be aware of what photographs are taken of your home, how they will be used and where they might be distributed.
Block off any parts of your home that you consider private and not part of the party venue. Don’t assume that visitors will respect your privacy.
Securely lock up guns or other weapons that are in your home. Even objects on display should be secured if they will draw attention and can be accessed.
If not part of the entertainment, put away nuisance attractions such as dirt bikes, ATVs, skateboards or anything else that guests may be tempted to try without the necessary skills or experience.
Lock up valuables in a secure safe or consider temporarily moving them to a bank vault or other secure storage. Also consider moving fragile items (décor, artwork) out of high-traffic areas.
Implement and enforce a guest list to deter “party crashers” from attempting to blend in with invited guests for the purpose of causing trouble, free-loading or stealing personal property.
Unless they are specifically part of the entertainment, all pets should be separated from the event. Guests may be afraid of certain pets or suffer from allergies. All animals, regardless of how docile, can lash out unexpectedly if they feel threatened.
If small children are present, make sure that adequate staff is assigned to closely monitor them and all access points to lakes, pools, whirlpools or other water features.

Those with significant assets or earning potential would best be served by contacting Myrna Smith myrna.smith@willistowerswatson.com Willis Private Client

Great Advice for Life and Business From Napoleon Hill

noreply@blogger.com (OBX) — Tue, 24 May 2016 18:19:00 +0000

Napoleon Hill is correct...Go out and #achieve today! Take that #Motivation into your #life and #business
A photo posted by Small Business Website Advice (@smallbusinesswebsiteadvice) on May 14, 2016 at 7:39am PDT

Crowdfunding Real Estate Platforms Continue to Evolve With Propellr Becoming Broker-Dealer

noreply@blogger.com (OBX) — Tue, 24 May 2016 17:54:00 +0000

Crowdfunded real estate platforms continue to evolve. As Crowdfund Insider is reporting, Propellr Becomes a Broker Dealer Raises $1.6 Million in Convertible Debt.

Propellr, an accredited investment crowdfunding platform focusing on the real estate sector, has now registered as a broker-dealer. Simultaneously, via a small group of existing investors, Propellr has raised $1.6 million in convertible debt. Proceeds from the new funding will be utilized for business expansion including compliance and engineering.... Propellr, while having focused solely on real estate, said it intends to broaden its approach and is in the “process of rolling out multiple innovative alternative asset classes previously limited to a select few.”

Liberty Mutual Insurance Launches $150M Venture Capital Fund

noreply@blogger.com (Admin) — Mon, 23 May 2016 18:57:00 +0000

Insurtech competition continues to heat up....

From FINSMES: Insurtech, Liberty Mutual Insurance Launches $150M Venture Capital Fund.

Liberty Mutual Insurance’s personal insurance business unit, Liberty Mutual Global Consumer Markets, has formed a new venture capital initiative. Liberty Mutual Strategic Ventures (LMSV) is a $150m early-stage fund focused on the intersection of innovative technology and services and the insurance industry supporting entrepreneurs to bring products and services to market faster.

Focus areas, aligned to Liberty Mutual Global Consumer Markets’ overall innovation strategy, are centered on the Connected Home, Next-Generation Vehicle and Sharing Economy. The fund has made its first investment in August Home, a provider of smart locks and other smart home access products and services.

From Fortune: Liberty Mutual Launches Venture Capital Group

“We’ll have three core focus areas,” says Russ MacTough, a managing director with Liberty Mutual Strategic Ventures. “The connected home, next-generation vehicles and the on-demand economy.”

MacTough adds that the group’s goal is to invest between $1 million and $5 million per deal ― usually as a co-investor ― which could range from institutional seed rounds through Series B.

Is New Jersey Ripe for Real Estate Investing?

noreply@blogger.com (Admin) — Sun, 22 May 2016 01:30:00 +0000

The article takes a local look at how the Southern New Jersey real estate market is still feeling the impact from the real estate meltdown.

From Philly.com:

Still No. 1: New Jersey's supply of 'zombie' homes The number of U.S. houses left vacant because of foreclosure was down at the start of the second quarter compared with the same period last year. But New Jersey's share of these "zombies" continues to be tops in the nation, real estate information provider RealtyTrac said Thursday.

There was an interesting takeaway from the RealtyTrac report, "Investment Properties Account for 75 Percent of all Vacant Properties Nationwide." For that reason it is important to carefully consider any real estate investments in 2016.

Real Estate in Miami Continues to Stay Hot

noreply@blogger.com (OBX) — Fri, 22 Jan 2016 20:36:00 +0000

Real estate in Miami continues to be fueled by investments from New Yorkers according to the NY Post,

Fed up with cold, dark days, deep-pocketed New Yorkers are buying second homes in sunny Miami. And despite reports of a market slowdown, there are still plenty of projects both ready for occupancy and still in development.
The residences currently available range in styles and tastes. From large-scale to small, riverside to oceanfront, Fort Lauderdale to South Beach, builders anticipate buyers of all demands and budgets.

While this is definitely good news for the Miami real estate market it will be interesting to see what happens this year as interest rates are expected to continue rising. Fortunately, data was released this week that showed mortgage rates declining as money has been pouring into treasuries due to concerns about the health of both China's and the world economy. Ritz-Carlton Sunny Isles - Miami

Will Crowdfunded Real Estate Investments Eventually Trade As Easily As Stocks?

noreply@blogger.com (OBX) — Tue, 12 Jan 2016 19:49:00 +0000

From CrowdfundInsider.com....

CFX Markets, a secondary market for crowdfunding assets, announced on Wednesday its online market is now open to the public.

According to the company, the secondary market effectively acts as a stock exchange for crowdfunding investments, allowing investors to buy and sell shares from other participants in the market (subject to SEC resale restrictions)

Juan Hernandez has a quote in the Chicago Tribune about the new platform...

“Our goal is basically to make it as easy to buy somebody’s private investments as it is to buy and sell shares of Microsoft stock...There’s this tremendous number of new platforms out there that have high-quality investment opportunities that people can now participate in, but what happens after you’ve invested in one of these properties and it's one to two years later and you need to cash out on your position for whatever reason?”

FinanceMagnates.com has a good explantion of how the platform will work...

Commenting on the process, Daniel Kelly, Head of Operations at CFX Markets, explained to Finance Magnates that customers create an account with CFX Markets. Upon being authenticated and verified with the platform’s partners, eligible investment assets are connected to the users CFX Markets account and can be listed on the exchange.
Similar to other exchanges, CFX Markets will provide historical pricing of assets that have been listed for reference for ongoing deals. According to Kelly, assets are able to sell assets “subject to SEC resale restrictions” which he stated “generally require a 1-year waiting period”.
Currently, CFX Markets is only being integrated with US based crowdfunding platforms. However, Kelly stated that international investors are welcome to open accounts and purchase shares on the platform.

Will Crowdfunding Be A Viable Source of Raising Capital For Startups In 2016?

noreply@blogger.com (OBX) — Mon, 28 Dec 2015 14:16:00 +0000

This excellent article, Listen for the Roar of the Crowd(Funding) - Has true equity crowdfunding finally arrived?, provides a thorough explanation of the rule changes under the JOBS act and how they will apply to companies looking to raise capital through crowdfunding.

The authors present some interesting thoughts on whether or not startups and small businesses will find crowdfunding as a viable source for raising capital. They write...

Some of the restrictions put in place to protect unsophisticated investors, such as having reviewed or audited financial statements and requiring the use of an intermediary, will make equity crowdfunding more costly than traditional methods of raising capital from accredited investors in a private placement.

Also, companies that use the exemption must be willing to post their financial information and annual report on their websites for the world (including competitors) to view. This company information could remain confidential if, for example, Regulation D were utilized to offer securities.

Considering that the heart of crowdfunding is small investments by many unsophisticated investors, a company should consider the potential corporate governance and communication challenges of a dispersed investor base, many of whom may not otherwise be affiliated with the company.

These challenges are magnified for small businesses and start-ups, which typically have very limited personnel and financial resources.

Read - Listen for the Roar of the Crowd(Funding) - Has true equity crowdfunding finally arrived?