COVID-19, SBA Grants and Loans, Mortgage Payment Forbearance and Deferments

Last week was a profound time of change for most businesses. I wanted to share important updates with you that I have shared with my family, friends, clients and colleagues.
As you are working to find a new way of managing your business affairs, please know that I am here as a resource for you and you should feel free to reach out any time to set up a call so that I may help you in any way I can.
For those needing assistance with the SBA disaster relief programs, click to apply

Also, here is a compilation of small business resources shared by the California State Treasurer, Fiona Ma:
California Governor Gavin Newsom has made an irresponsible statement claiming that three of the largest banks will allow their borrowers deferrals on their current mortgage payments up to three months due to COVID-19, however this isn’t the case.
Homeowners that have not been able to work (who have proof of unemployment), have non-essential businesses or are impacted with health issues which currently have mortgages impacted by this pandemic are eligible to file for forbearance with a valid proof of hardship which will allow them not to make payments for the next three months.

However, after the three months expire, homeowners will have to make those payments, either in a lump sum or six or twelve month installments. Currently, there are no other options and while several lenders are considering traditional forbearances (which means that the missed payments will be tacked on to the end of the mortgage) this option is not currently available but what lenders are offering instead are Loan Modifications (formal processed to modify the terms of an existing loan). It is important to keep in mind that each of these options runs the risk of putting homeowners in default or foreclosure situations.

Stay Responsible.
Using this time to get a break from mortgage payments can put the Real Estate industry, Real Estate Market and our nation’s economy in a very similar crisis to 2008 due to the shortage of liquidity. Can you imagine millions of homeowners deferring their payments all at the same time? If you are blessed to currently have a job or funds to make your payment in the next month, this will help our country protect its financial well-being and preserve your economic standing.

Are you in the Real Estate or Mortgage Industry?

If you are, now is the time to educate your clients, family and friends. Shortcuts don’t exist in times like this. Each of us has a responsibility to spread facts and accurate information to help one another navigate our way through this crisis. It is our job to guide society through this crisis when it comes to their financial and economic decisions.

Let’s all do our part as professionals to not only help people get their dream homes and build Real Estate portfolios but to also keep their homes, assets and liabilities intact.

If you’re eligible for a cash payment 

Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a check and families would get $500 per child. That means a family of four earning less than $150,000 can expect $3,400.

If you or someone you know has lost a job

States will still continue to pay unemployment to people who qualify. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months. 

If you’re a small business owner

The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses who qualify for the Economic Injury Disaster Loan to cover immediate operating costs,


There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books, or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.

If you’re a freelancer or independent contractor

Typically, self-employed people, freelancers and contractors can’t apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program that provides unemployment coverage through the end of the year to freelancers and independent contractors and also provides an additional $600 per week for 4 months in addition to regular state benefits.

If you’re a property/homeowner

Borrowers of federally-backed mortgage loans can request a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days. Please contact your mortgage services and ask for specifics. 
Multi-family borrowers may request a similar forbearance for up to 30 days. In addition, foreclosures on similar mortgage loans are prohibited for at least 60 days and evictions from properties related to several federal programs are also prohibited for a 120 day period

Renting: The First Step Towards Home Ownership

Buying a home is a goal that many people have. In the USA alone, over 5 million homes are bought and sold annually. These homes come in all different shapes, sizes and price ranges. However, before you rush and buy a home, it is good to rent first. Renting offers a lot of flexibility and is a logical first choice for someone.

Not only is buying a home very expensive, but there are numerous things you need to think about and consider beforehand. Instead of rushing into it and making a mistake, it’s a good idea to rent first and take your time with the purchasing decision. With that in mind, this blog post is going to look at a few reasons why renting is the first step towards home ownership.

Hand with keys

Let’s You Try Before You Buy

Renting is the perfect opportunity to essentially try living on your own before you tie yourself down to a home. In addition to making sure you actually are ready to live on your own and buy a home, renting allows you to find out if the city, town or neighborhood is really right for you. If you buy a home in a city you think you like, only to find out there is nothing there for you, you can’t just wait until your lease is up and leave.

You will be stuck there for decades unless you sell or rent out the home. Both of which can take a lot of time, work and money. Finding places to rent in your area is incredibly simple, especially if you use a site like to find available rentals in your city. As a result, trying out any area you want by renting is simple and will save you from buying in the wrong place.


Train Yourself to be a Homeowner

If you have only lived with your family, there is a good chance you haven’t always been as responsible as you should. Your costs were likely low and if you screwed up, the consequences weren’t likely that dire. If you have your own place and are responsible for it, there are major consequences if you can’t pay your bills or mortgage.
Renting gives you a chance to essentially find out what it’s like to have more responsibility, without quite being fully exposed to it. For example, when you rent a place, you will have bills to pay, but likely won’t be responsible for things like repairs. It gives you a taste of what it’s like to own a home, without exposing you to the same costs and risks.
By renting first, you give yourself time to work on your budgeting, get your credit score right, and even learn how much you can afford to spend. Essentially, renting can train you on what it’s like to be a homeowner.

Allows You to Take Time to Find the Right Home

If you are moving out of your families home and immediately want to buy a home, there can be a lot of pressure to do it quickly. However, a home search isn’t something that you want to rush. You need to take time and make an informed decision.
By renting, you will have a couple of months to really put time into what you want out of a home, and what things you don’t. Sure, it will cost you money to rent. But a few months of rent is nothing compared to what you might lose if you end up buying the wrong home and being stuck there for decades. Big decisions should have a lot of time put into them, and buying a home is one of the biggest decisions you will ever make.

Person with a laptop


In conclusion, renting is a great first step towards home ownership. We hope this article has been able to show you why.

Subleasing: Pros And Cons For Landlords

Is Subleasing Worth It?

As a landlord, there is much to manage, and much to think about. Property must be maintained, taxes must be handled, tenants must be evicted, and tenants must be acquired. Many landlords are strategic: they’ll allow one of their tenants to live in the property rent-free provided they help manage the premises. This isn’t feasible if you’re a landlord of a smaller property; it’s something more common to larger rental arrangements. However, the value such a tenant can bring is actually quite considerable. Rent in many parts of the country is around $800 a month—barring places like Los Angeles, where a shack in a basement is well over a thousand dollars for a single renter.

In a thirty-one day month, you’re looking at $25.81 a day. For $25.81 a day, someone who pays their rent by working for you can get a lot done. If they just spent two hours a day changing light bulbs, weeding, taking out trash, or cleaning minor messes, you’re saving money as a landlord. $12.91 an hour isn’t a rate most maintenance people will take; especially if you’re only paying them $800 a month. However, someone who lives for free on the premises provided they do two hours of chores five days a week will be more than happy to do so. You might even get more work out of them, depending. It’s a win-win for everyone. Similarly, as regards subleasing, you can find a win-win—but there are pros and cons. This writing will explore them.


Pros Of Subleasing

If you approach subleasing right, you can be more sure you’ll get rent on time from tenants. Consider the scenario where rent is around $800 a month. At this website,, you can find rental units that start at only $796 a month. Now imagine that’s divided two or three times between people in one unit.

You’re looking at between $265.33 and $398 a month for a $796 single, depending on if the unit is sublet two or three times. That’s pretty darn affordable. At the $265 rate, it’s just a little under $9 a day. At the $398 rate, it’s a little under $13 a day per person. That’s cheaper than lunch. It’s quite affordable. You’ve just got to approve those in a sublet scenario.

Something else that can be done is a slight rent hike. Say your unit was generally $800 a month for a single tenant. Pop that up to $1,000 if there are two living there, and you make an extra $2,400 a year, while the tenant subletting the property gets an even better deal.


Cons Of Subleasing

If you don’t vet those your tenants are dividing up their unit with, there could be some real trouble. Sometimes a tenant starts subletting their unit because they themselves are low on resources. Now you’ve got two people who are broke on your premises, compounding wear and tear while making late payments.

There can also be some legal considerations. What if the person seeking a sublet opportunity is a fugitive from another state? You’ve got to have an apparatus in place which will allow you to vet whoever is on your premises. If you don’t, and that individual is found out, there could be a legal case to be made that you aided and abetted a fugitive.

Certainly this wasn’t your intention or expectation, but the right lawyer can do a number on an honest man. When you’ve got disorganized subletting solutions, you increase such risks substantially—by a factor of two, if you allow subletting across your premises.

Even good tenants who open up their units to those who can be trusted will still increase normal wear-and-tear. Also, sometimes pets show up when you’re not intending them to in such situations. That’s also quite bad for your building’s longevity.


Making The Right Choice

To sublet, or not to sublet? It’s quite a question! The truth is this: provided you put an apparatus in place which vets those who are paying your tenant rent, you should be okay. Just assure you’re not letting any fugitives in, and that those renting from one of your renters aren’t destroying the premises.

If you play your cards right, such options can allow you to make more money from a single unit, and assure that payment maintains regularity over the long-run. If you don’t, you’ll see more wear and tear, as well as the possibility of legal issues. At the end of the day, whether or not these things are a deal-breaker is your call.


What The Future Brings: The Impact of Technology on Commercial Real Estate

Technological, social, and economic challenges of the future will change the way people live, work, and shop. These changes can significantly impact today’s climate, not just in residential, but in the commercial real estate sector as well and its portion of the value chain. The ultimate question is who will profit and who will lose money in the future world of commercial real estate. 

What can we expect?

The present evolution of technologies towards digitization and automation will cause massive changes within the industry. The job profiles that exist today will change, along with the clients’ demands on how the job is executed. There will be an increase of redundant low-skilled, blue-collar workers while, white-collar jobs will be more driven by data, performed remotely, which will impact the need for office spaces, as well as functional office design and furnishings. These developments promise to reshape the commercial real estate environment. 


The future is mobile

With autonomous cars just around the corner, we can expect major changes to the ways cities are built and developed. Property managers will have to evaluate how they use space. The decreased need for parking spaces both on and off the street will free up large areas for development. In some cities, landlords are converting parking space into commercial real estate, taking advantage of the premium location and street-level access. The new space requirements will include re-configured parking solutions for driverless cars and warehouses for automated loading machines. 

Tenant health and wellness

As global environmental concerns are gaining momentum, people are more concerned about the impact of commercial spaces on their health and wellness. A global 2016 survey by Deloitte that targeted the Millennial population showed that young professionals consider employee well-being as one of the most important qualities of a workplace. To meet these demands, companies are considering how to improve the health and well-being of their commercial tenants and residents. The overall prediction is that commercial properties that don’t meet the needs of modern tenants won’t see modern tenants. The survey analysis recommends that real estate companies should include tenants in decision-making, so they can better understand design elements that cater to health and wellness. 

Rise of smart energy products

With the UN predictions that the world population will reach 9.7 billion in 2050, over 66% will live and work in cities. As a consequence, commercial places will have to become increasingly urbanized with unprecedented integration of smart technologies, drones, autonomous vehicles, and automated services. The modern urban architecture will rely heavily on smart energy products like industrial lighting solutions shown here, as well as on data and technology to make life more comfortable. As a result, the cost of both commercial and residential real estate is expected to rise in those districts.

3D printing

We won’t have to wait long before builders are able to print entire floors with immense time savings. In China and Dubai, there are already low-rise commercial properties being developed with 3D printing, and the builders are reporting construction time reduced by 70% and cost by 80%. With its huge implications for construction, 3D printing is both a threat to traditional warehousing, as less space will be required, but also an opportunity for retailers to respond on-demand. 

Event-driven shopping

The rapid increase of online shopping will further reduce demand for retail real estate assets, with more demand for just-in-time logistics. Amazon is already experimenting with drone delivery service, claiming it’s much safer and faster than going through couriers or postal service. This way, logistics centers could be located at the periphery, freeing more space in the city center. Upper-end high street miles will still exist, primarily through the leisure PR function, but smaller retail businesses in decentralized regions will suffer the heaviest blow. To meet the demands of new customers and build interest, shopping malls will need to resort to more event-driven concepts that emphasize on experience rather than shopping. 


Fading relevance of real estate brokers

As individual market players in the real estate arena, real estate brokers will become increasingly redundant due to market transparency policies and automated rental negotiations between owners and lessees. Real estate transactions will be based on technologies like blockchain, which eliminates the need for the middle-man. On the other hand, the government won’t miss an opportunity to benefit from new developments through new tax models, such as a tax for automation. Part of this income will be much needed for mitigating social problems due to increased unemployment, which is a result of automated processes. Although the future banks will certainly take advantage of the high degree of debt financing for real estate projects, crowdfunding platforms will take their share as strong competitors to traditional banking. 

The word ‘smart’ has changed slightly in meaning over the last decade, as new technologies granted us even more features that help us manage our lives. The increasing automation of running the business will bring profound changes in the commercial real estate sector, that go far beyond smart buildings and shared workspaces.

5 Emerging Real Estate Trends to Get Ready for in 2020

Real estate seems to be one of those investment classes that is always viable to investors, simply due to the versatility of the asset and the numerous ways you can build a positive ROI. Whether you are selling or leasing, or if you’re buying during an economic shift for an affordable price with the intention to wait until the property prices rise again, there are numerous ways you can capitalize on your real estate investment. For example, in 2019 in the US alone, median home prices went all the way up to $316,000, making it one of the best years for real estate agents and experienced investors.

Now that 2020 is well under way, it’s time to prepare for the new emerging trends and adjust your strategy for the new year, whether you are a buyer or a seller. Let’s take a look at some of the top trends you need to get ready for and act on sooner rather than later.

Home prices continue to rise

The growth trend for home prices in the US that has been persevering through 2018 and 2019 seems to the waning, and experts even predict that, while it will continue to rise, the average home price in 2020 will grow by only 2.8%. This means that investors and homebuyers, in general, will be able to take their time selecting the best properties for their needs, without fear of losing out on a good deal and having to overinvest. If you are a seller, you can expect fewer homebuyers to come your way simply because the elevated prices are squeezing them out of the market, however, that also means that affluent buyers will stay in the game.

On the other side, if you are a buyer, you will have to tend to some meticulous financial planning, forecasting, and property research. It’s important that you figure out the monthly mortgage payment according to your budget, and then make sure you stay within that amount. Search for properties that are low on the price list that you can fix up over time and as you build up your financial capabilities. 

Real Estate Trends 2020 (1)

Accommodating seniors and Gen Z-ers

While the majority of homebuyers are still millennials, it’s important to note that other demographics are jumping into the fray and that real estate professionals need to optimize their offers and portfolios for other types of customers. Namely, 2020 will see a rise in senior buyers as well as Gen Z buyers. With millions of people entering their silver years and millions of young people entering their home-buying years, it’s important to adapt and stage every home according to the unique needs of these generations.

This is the only way to appeal to the modern buyer irrespective of age, as both generations will have very different lifestyle preferences and requirements. When you’re showing a home, you have to appeal to their current and future needs, which means thinking strategically about what seniors need vs what young people might be looking for. Remember to emphasize indoor safety for the senior buyers, and high-tech features for the tech-savvy Gen Z-ers.

The rise of display homes

Now that buyers are taking a more careful and calculated approach to property acquisition, it’s important to note that their decision-making process is evolving as a result. Whether they are looking to buy into a property development project that in its early stages, or if they are looking into plots of land to build their own homes, people are becoming very particular about the architects and builders they work with. In countries where property prices are sky-high, such as Australia, this has already become a major trend.

This is also why the popularity of luxury display homes in Sydney has skyrocketed in recent years, and why it will continue to rise in 2020, as Australian buyers want and need to examine the builder’s capabilities in real life rather than looking at online portfolios, pictures, and case studies. Display homes will become more popular in all high-priced regions of the world, so be sure to prepare for this trend whether you are an investor, an architect, or a buyer.

The neighborhood is not a deciding factor

Surprisingly, the neighborhood where the property resides doesn’t seem to be a deciding factor anymore. Yes, buyers will still research the neighborhood thoroughly, but they will be more inclined to give less-than-ideal neighborhoods a pass if the property is more affordable, or if there are other valuable features that the home can provide. For sellers, this is an opportunity to sell a home in a less popular neighborhood, and for buyers who are working with a limited budget, this is an opportunity to find a new home without breaking the bank.

Real Estate Trends 2020 (2)

Technology will fuel market research

Finally, all investors and real estate experts need to invest in technology in order to capitalize on industry trends and market insights this year, and in the years to come. With more and more valuable data flowing around the digital realm, it becomes impossible to conduct predictive analytics manually anymore, which is why you need to integrate AI-driven data analysis into your operation to organize all of that data into actionable reports and create accurate forecasts that will drive your business strategy forward.

Wrapping up

In 2020, many trends that have been persisting in the past will stay relevant, but some will bring significant change to the industry that all parties should be aware of. With these insights in mind, go ahead and optimize your processes for the new year and pave the road to success.