Property Manager Daily Update: Digital Advertising, Crowdfunding, and Looser Lending Standards

8 Digital Ad Tips for RE Investors

 Chad Gallagher gives the rundown on how real estate investors can use digital advertising better. Before getting into property management and real estate investment, he started as a digital ad guru. So lets dive in to the 8 tips he gives for using digital mediums to accelerate your business growth.

  1. Develop a Goal
  2. Track Relentlessly
  3. Build an Effective Website
  4. Use Search Engine Marketing
  5. Build your SEO potential
  6. Build a Facebook Presence
  7. Create Blog and Video Content
  8. Retarget Visitors of your Site

And of course, always be iterating and continuously improving on your digital ad strategies. To get the details on each tip, head over here.


Fitness Replaces Retail

As retail brick and mortal disappears, some believe fitness will replace the empty mall space. In fact, fitness chains claim that up to 10% of retail space will become pilates, yoga, crossfit, or other fitness studio. It sounds like a lot of speculation to me, but hey, if the space becomes cheap enough, why not? We could all do with a little healthier living every day. USA Today delivers a quick blog piece on the subject.


Banks Loosen CRE Lending Standards

For the first time in 3 years, banks ease lending standards for commercial real estate loans across important lending terms like - maximum loan size and the spread of loan rates over cost of funds. These looser lending standards applies to multifamily loans. Is this an early danger sign of a commercial real estate bubble? 

Some Fed officials may not be comfortable with the easing in the commercial real estate market. Financial conditions have remained easy despite the central bank hiking interest rates. Boston Fed President Eric Rosengren has expressed concern that low interest rates may be sparking a bubble in the commercial real estate sector.

Visit MarketWatch to get the full analysis.


Real Estate Crowdfunding Platforms

Real estate crowdfunding kickstarted 5 years ago (pardon the pun) and these firms are still trending at double and triple digit growth year over year. It is a still a fresh space, but Brett Crosby the cofounder of PeerStreet believes there will be a consolidation in the crowdfunding industry over the next few years. He says, “The guys that really built and invested in a good tech platform and infrastructure are seeing the fruits of their labor pay off, adds Crosby. There is more separation between the strong and growing platforms and the smaller players."

RealtyShares, another platform that raised $750 million, is shifting its focus toward the commercial middle market space to differentiate itself from competitor platforms. Groundfloor is another such example focused on the "fix and flip" market. Others are edging to break out of the accredited investor mold:

Some crowdfunding platforms, such as Fundrise, Realty Mogul and Rich Uncles, have introduced e-REITs as a way to reach non-accredited investors and expand their potential customer base. But for the most part, crowdfunding firms are firmly focused on raising capital from accredited investors. Marketing direct real estate debt and equity offerings to non-accredited investors is a lot more complicated and expensive—from a regulatory perspective.

As these funding platforms provide new dollar streams into the residential and commercial real estate space, we may see a rise in demand for property management professionals to drive operational efficiencies for all the crowdfunding platforms that can't actually manage long term properties.