Articles on this Page
- 11/02/17--12:38: _HPE has shrunk so m...
- 11/02/17--12:43: _Paul Manafort's Bro...
- 11/02/17--13:19: _HGTV 'Flip or Flop'...
- 11/03/17--05:01: _Inside Los Angeles'...
- 11/03/17--10:38: _Shark Tank star Bar...
- 11/05/17--18:47: _Uber might make mor...
- 11/06/17--06:45: _Wealthy millennials...
- 11/06/17--09:43: _A 58-story skyscrap...
- 11/07/17--05:34: _There are so few ho...
- 11/07/17--11:24: _The most expensive ...
- 11/08/17--10:01: _These are the 15 mo...
- 11/09/17--08:22: _The richest 1% of N...
- 11/09/17--10:14: _An Under Armour co-...
- 11/09/17--12:41: _I'm a financial pla...
- 11/13/17--05:01: _What a $500,000 hom...
- 11/13/17--11:00: _No one wants to buy...
- 11/15/17--10:47: _A 20-year-old YouTu...
- 11/15/17--14:12: _Sam Zell explains h...
- 11/16/17--09:25: _Condo prices at Tru...
- 11/16/17--10:56: _Here's how much mon...
- Two years after the breaking up of Hewlett-Packard Co, Hewlett Packard Enterprise is selling its headquarters in Palo Alto, California.
- After years of layoffs and restructuring, the company will consolidate some of its Silicon Valley offices.
- HPE will move its headquarters to the HPE Aruba office in Santa Clara. The office was recently built to house the team at Aruba, which was acquired by HPE in 2015.
- Two brokers are in talks to list Paul Manafort's home in Brooklyn.
- Special counsel Robert Mueller has alleged that the townhouse was part of a money laundering and tax evasion scheme.
- Sources say that the home could be priced as high as $9 million.
- "Flip or Flop" is HGTV's most popular series next to "Fixer Upper."
- The show, now in its seventh season, chronicles Tarek El Moussa and his now ex-wife Christina's adventures in house flipping.
- When HGTV asked El Moussa to do 13 house flips in just 10 months for the show's first season, he felt in over his head.
- Before taking a $1,000 loan at age 23 to go into real estate, Barbara Corcoran was working at a diner in New Jersey - one of over 20 jobs she had while growing up.
- With that initial $1,000, she built The Corcoran Group, a real-estate behemoth she sold in 2001 for $66 million.
- From there she fought for a role as one of the hosts of "Shark Tank," now in its ninth season.
- Former White House press secretary and Fox News host Dana Perino
Zillow CEO Spencer Rascoff
- Lyft president John Zimmer
- Celebrity chef José Andrés
- Uber is reportedly selling its 380,000-square foot building to the CIM Group for $220 million.
- Uber isn't profitable. In August of this year the company shared that it had lost $645 million in its second quarter of 2017.
- Selling the empty real estate in Oakland may be the Bay Area startup unicorn equivalent of searching beneath couch cushions for loose change.
- Historically, young people have shied away from investing in the stock market, and millennials are no different.
- Wealthy millennials own more expensive homes than the average 20-something, but real estate makes up a smaller percentage of their net worth.
- Some wealthy millennials own second homes, while the average 20-something struggles to pay off student loans.
- There are 12% fewer homes for sale today than there were a year ago.
- Buyers typically search for months and sometimes make multiple offers on different homes before one gets accepted.
- Zillow's CEO, Spencer Rascoff, shared four tips for winning a bidding war, from choosing a reputable agent to writing the seller a letter.
- 11/08/17--10:01: These are the 15 most expensive homes for sale in New York City
- The most expensive available listings in New York City range from $50 million to $85 million
- Many feature scenic views of Manhattan and vast amounts of indoor and outdoor space.
- Some of the most luxurious amenities include yachts, chef services, wine cellars, and steam rooms.
- Under Armour cofounder Kip Fulks is selling one of his homes for $13.5 million.
- Located in St. Mary's, Pennsylvania, the property contains over 7,150 acres and has amenities for hunting, fishing, and skiing.
- The property can house up to 38 guests.
- Real estate can be profitable if you're patient.
- Unlike investments in the stock market, real estate investments aren't liquid or diverse.
- Always understand the risks before making a big bet in real estate.
- 11/13/17--05:01: What a $500,000 home looks like in 15 major cities across America
- The price per square foot for homes can vary drastically from city to city.
- You can get a lot more space in Dallas or Chicago than in Boston or San Francisco.
- To compare home size across housing markets, real estate listing site Trulia pulled listings in the $500,000 range for the 15 biggest US metros.
- A Martha's Vineyard estate is now for sale for $17.75 million.
- It's been on the market for years and has seen several price cuts.
- It was used by the Obama family as a summer getaway in 2013.
- Social media star Jake Paul has reportedly bought a new mansion in Calabasas, CA.
- It covers 15,000 square feet over 3.5 acres, and he paid $6.9 million for it.
- Paul had previously stirred up controversy by annoying his neighbors.
- 11/15/17--14:12: Sam Zell explains how to make money in today's real estate market
- Sam Zell is founder and chairman of Equity Group Investments.
- He was recently interviewed by Goldman Sach's Top of Mind newsletter about his views on the market today.
- Condo prices are plummeting at Trump Tower.
- A report said average prices are down to their lowest rates since the financial crisis.
- Donald Trump's presidency could be partially to blame for the dropoff.
- Rents in New York City are increasing at double the rate of incomes.
- In many neighborhoods, the median monthly rent is much higher than the median income in its borough.
- Manhattan is home to the city's most expensive neighborhoods.
After two years of massive restructuring and staff reductions, Hewlett Packard Enterprise (HPE) is selling its headquarters on land it has owned in Palo Alto, California since 1957, the company announced on Thursday.
The headquarters will move to nearby Santa Clara, at a new 23,000 square-foot office complex originally built to house Aruba, a company acquired by HPE in 2015. Some of the staff will also move to existing offices in San Jose and Milpitas.
HPE wouldn't disclose how many people work in Silicon Valley, but the company has around 45,000 employees globally.
“Over the past two years we’ve made tremendous progress towards becoming a simpler, nimbler and more focused company,” said Meg Whitman, CEO of HPE, said in a statement. “I’m excited to move our headquarters to an innovative new building that provides a next-generation digital experience for our employees, customers and partners. Our new building will better reflect who HPE is today and where we are heading in the future.”
A home of 60 years
Both companies have remained at the Palo Alto property, which was originally acquired by HP Co sixty years ago, since the split. But HPE has worked out of separate offices that were built on a portion of the land in 1979. HPE will sell those buildings, while HP Inc will remain on its portion of the property.
Since becoming an independent organization, HPE has shrunk by divesting its technology services unit and signing a deal to sell its software division.
The reorganization has already involved several rounds of layoffs, including a major restructuring in June 2016, which saw the departure of numerous company veterans and the consolidation of its sales organization.
In September, Bloomberg reported that HPE would lay off around 5,000 people— 10% of its global workforce — before the end of the year.
The Corcoran Group has a contract to sell the Carroll Gardens townhouse owned by indicted former President Trump campaign manager Paul Manafort, sources told The Real Deal.
The property was cited in the Monday indictment, in which special counsel Robert Mueller alleged that Manafort bought the townhouse as part of a larger money laundering and tax evasion scheme.
If Manafort is convicted, the property is subject to forfeiture to the federal government.
Two brokers in talks to list the home, Cheryl Nielsen-Saaf and Cara Sadownick, as well as a spokesperson for Corcoran, did not respond to requests for comment. The agents began looking for comps on the townhouse at 377 Union Street in June, according to documents obtained by TRD.
In 2012, Manafort paid $3 million for the townhouse. Since that time, renovation work to convert the three-apartment, 4,400-square-foot brownstone into a single family home has been slow and irregular.
Brad Zackson, an associate of Manafort's who previously partnered with him in an unsuccessful bid to redevelop the site of the Drake Hotel, is handling sale arrangements on Manafort’s behalf. Zackson told TRD that the property could list for as much as $9 million, but also said that he and Corcoran had not yet finalized pricing.
Nielsen-Saaf and Sadownick are two of the most active brokers in Brownstone Brooklyn, with over 40 closed sales over $2 million. Their largest active listing is a carriage house at 20 Verdanah Place in Cobble Hill that's on the market for $4.4 million.
The most expensive listing in Carroll Gardens is a renovated, 5,400-square-foot townhouse at 181 President Street. It’s on the market for $9.95 million.
Manafort's construction loan agreement for 377 Union indicates that the post-renovation value of the home is expected to be at least $8 million, according to the indictment papers. The Daily Beast reported on Monday that Manafort has recently sped up renovation work, in what may have been a last ditch attempt to spend real money on construction, as dictated by the terms of the loan, which was issued by Federal Savings Bank.
An asset forfeiture attorney told TRD that the indictment makes a potential sale of 377 Union inadvisable until the litigation is resolved. In the meantime, prosecutors could move to deter a sale, such as by filing a lis pendens on the property.
A spokesperson for Mueller's office declined to comment on whether it would block a sale of Manafort's brownstone.
SEE ALSO: Read the indictment of Paul Manafort
Tarek El Moussa started selling real estate in Southern California at just 20 years old.
Around 2008, when he was 28, the US housing market fell into crisis mode. Americans were defaulting on their mortgage loans en masse and there was a huge uptick in the number of homes being sold or auctioned off for dirt cheap.
"The market had obviously become very depressed and I started seeing all these different deals coming across the table, and at the time I wasn't a house flipper so I wasn't buying those properties, but I saw that the [potential] profit was huge," El Moussa, now the star of HGTV's top-rated series "Flip or Flop," told Business Insider.
El Moussa was intrigued by the idea of buying a home below market value, investing money to renovate it, and selling it for a profit. After frantically reaching out to family and friends to raise funds, he found a business partner and they bought their first property in Santa Ana, California, for $115,000.
After putting in $20,000 into renovations and closing costs, they sold the house for $169,000, netting $34,000 in profit. That was when El Moussa "became addicted" to house flipping.
He was so obsessed with it, in fact, that he decided to pitch a TV show. El Moussa hired a production company to put together a short video about their budding house-flipping business and sent it to several networks.
A whole year — and two more successful house flips — passed until El Moussa heard from HGTV. They eventually shot a pilot episode starring El Moussa, the real estate broker, and his wife Christina, the designer.
When HGTV picked up the show for a full season, they asked El Moussa to do 13 house flips in 10 months.
"At the time I had no idea how I was going to pull it off, but I knew that somehow I could make it happen, so we signed the contract — we ended up pulling it off," he said.
The first season debuted in 2013 with little marketing, said El Moussa, because the network was worried it may be "out of their element and they weren't sure ratings were going to be good."
Within weeks, the show struck a chord with viewers and HGTV moved it to primetime. In 2016, "Flip or Flop" attracted a total of 17 million viewers, according to the network. The success has spawned an HGTV franchise with "Flip or Flop" seasons set to film in Las Vegas, Atlanta, Fort Worth, Nashville, and Chicago featuring other house-flipping experts.
Looking back, El Moussa is glad filming the show pushed him to take on more investments, even though it seemed intimidating at the time. Five seasons have aired since the first, and they've bought, renovated, and sold at least 14 homes in each season. "The bigger the disaster, the better the makeover," El Moussa says during the show's opening credits.
"We built a good brand, the show turned out really, really well — it's fun, fast-paced, exciting," he said.
The show will return this December with new episodes.
The most expensive apartment for rent in Los Angeles was just unveiled — and it comes with a $100,000-a-month price tag.
The brand new, 18,000-square foot penthouse spans the top two floors of the LEVEL building in downtown Los Angeles, which houses one-, two-, and three-bedroom, fully-furnished apartments.
Keep scrolling for a peek inside this over-the-top apartment.
In the entryway, two custom, glass-enclosed, temperature-controlled wine rooms display over 1,000 bottles of wine.
The sprawling kitchen has white marble countertops, custom cabinetry, Sub-Zero appliances, and an adjoining wet bar with a mounted TV and additional seating.
On the rooftop level, there's another kitchen with a BBQ area and plenty of dining and bar seating.
See the rest of the story at Business Insider
Before finding fame on "Shark Tank" and before building her New York real-estate empire, Barbara Corcoran was one of 10 kids in a working-class New Jersey family.
“We watched my father get fired and hired and fired and hired — he must have interviewed well,” Corcoran said on Business Insider’s podcast, “Success! How I Did It.”“He would always come home and tell the story as to why he was fired, and it always came down to the same bottom line: He would tell Mr. Stein where to take that job and shove it up where the sun don't shine, and we'd go, 'Yay, Dad!'”
If nothing else, she learned how to take a risk. She started with a $1,000 loan from her then boyfriend to go into the real-estate business.
They broke up, then the company broke up, and she built her half into the Corcoran Group, a real-estate behemoth that she sold for 66 million dollars in 2001. From there, she landed a spot co-hosting the hit reality-TV show “Shark Tank.”
Corcoran discusses all this and more in the episode, including how she stands out in a competitive field. Her advice was pretty controversial:
“I wore bright-colored suits, short skirts, I had great legs — that was my best asset. I flaunted them, no doubt about it.”
You can listen to the podcast below:
Following is a transcript, which has been lightly edited for clarity and length.
Alyson Shontell: Thank you so much for coming, Barbara. Really excited to have you. I understand you are from New Jersey, from Edgewater, right across the river?
Barbara Corcoran: A stone's throw away.
Shontell: Exactly. And from what I understand, 10 kids all fit in a two-bedroom house with one bathroom?
Corcoran: Yeah, but you have to remember, my mom was super organized. She organized us — it was run like a boot camp. She had a place for everything, and we made a mess like every other kid in town. But when my mother cracked the whip, boy we knew where to put things. We knew how to do it fast she's very organized.
Shontell: And you were the second oldest, right?
Corcoran: Second oldest, but I'd like to say I'm the smartest. Not really. I'm the second oldest and the shortest in the family, and that always made me try harder.
Shontell: And nine out of 10 of you are entrepreneurs?
Corcoran: Nine out of 10 are entrepreneurs. Yes. We all kind of grew up thinking we don't want to work for somebody. I had 20 jobs before I started my real-estate brokerage firm when I was 23.
Shontell: What were some of those jobs?
Corcoran: I was a playground supervisor. I was an assistant lifeguard at the kiddie pool. I was a dispatcher for the Bergen Evening Record delivering papers at night. And you know we dropped the bundles at night you drive the truck. That was fun.
And the most important thing that I learned the most from was waitressing. I had so many waitressing jobs. You had to keep everybody happy. It was a commission-based business. If you smile, you made people happy, you got a bigger tip, you had to do five things at once. You had to stay organized. I learned a lot through waitressing.
Shontell: And it seems like your mother was a particularly big influence on you. She was really organized she ran that house of 10 kids. Like it was nothing.
Corcoran: She was a drill sergeant.
Shontell: And so what kind of lessons did you learn from her that you think have helped you in your career?
Corcoran: Well, I really did a mimic of my mother in building my brokerage firm. I ran the firm exactly how my mother ran the house. We were super organized. We had a place for everything. And I can tell you the minute you have more than one or two people working for you, efficiency has a lot to do with building a big company.
On top of that, and probably the more important gift I got from my mom, was my mother was very inspirational. She would decide what your gift was, as a child. She would name one thing. For me, she said I had a wonderful imagination. And then she would cast you in that role in the family unit, which was like a small town.
And I am great at spotting the gift, and people I could interview — someone who's trying for a bookkeeping job and totally convince them they'd be a star salesman. Which doesn't fit into their résumé, but it sure fit into them. So I think those two things help me build my business more than anything else.
Shontell: And one thing that I think you've talked about some on "Shark Tank" is that you aren't drawn to the rich kids.
Corcoran: I'm a little biased — it's terrible because I have two rich kids now! Let me tell you, if you don't have anything, you have a huge advantage over the rich kid. I feel bad — I shouldn't say this but — I think a poor kid has a better shot than a rich kid. So my bias toward the poor person coming up is they're usually hungrier. They're more injured. They have more to prove. They haven't been given a lot of privilege in their life to make their landing softer. So they've had a few bumpy endings and they're used to failure, and, my God, what's more important in building a business than failing?
It’s not that I don't like rich kids. I love my children, and they’re rich kids now. But I think they, with their good education and the coddling that even I've given them and their father is giving them, makes kids a little softer in the belly.
Shontell: So how do you think about that as you're raising them into great adults?
Corcoran: It's a tough one. The values I learned in my family was my mother and father loved us to death and would do anything for us. I'm that kind of a parent of course for my children. But what we also saw without even trying is what struggle was all about and what team-menship was all about, and what ignoring the negatives and focusing on the positives is all about.
With my children, I try to go out of my way to teach good values, and I think they're not spoiled kids — I hope to God you know, and all I know is I am doing the best I can — but where did they really learn those values? They stepped into my life, older in my life, when I had a lot of money. I had my first child at 46 and my second at 56 - they stepped into an affluent lifestyle. And so where would they learn those struggle values? They don't see it among their friends. Right? And so what I do is I try to demonstrate how hard I work for what I do. I'm working as hard now as I ever worked. OK? And I certainly am older than most people working this hard, OK?
My son, when he was 17, and he called me from the street and said, "You know, Mom, my shoes are pretty bad, my loafers for school. Do you mind if I buy a new pair of loafers?"
I said, "Well, that's so nice of you to call and ask of course! Go ahead — buy those loafers. No problem." And I really hung up the phone thinking, "Wow, did I do a great job!"
Well, an hour later, he walks into the house with a shoe bag — they were $600 loafers! And he walked in and trotted by and goes, "Hi, Mom!" and I see that bag and I want to kill him. I'm, like, "You didn't say you were shopping for those loafers — you said 'loafers'! Do you know how old I was before I had that brand of loafer!"
And he says, "Mom, if you want me to have your values, you could raise me in Edgewater with 10 kids. Rather than Park Avenue with the maid. And I thought, 'Shit. That's kind of true.' Like, how does he learn those values? You know, all the kids at school had expensive shoes on.
And so I tried to do my best by kindness to other people, always being even-handed to everyone. I don't care who they are. I treat everybody the same, and of course not to think they're more important than the next guy. That is such a terrible trait in people, and it can happen very easily when people do well and make a lot of money. Too easily I'm afraid.
How Corcoran turned $1,000 into a real-estate behemoth
Shontell: So let's talk about you getting your start in real estate. Tell me who Ramone Simone is.
Corcoran: Oh, well, he was the dream date that walked into the diner, the Fort Lee Diner one night, and offered me a ride home. I hadn't had a boyfriend until then. I was 21 or 22. Within a year he suggested I'd be great at real estate. I was working as a diner waitress. I quit that started working as a receptionist for Giffuni Brothers in New York answering the phone: "Giffuni Brothers! Giffuni Brothers!" And then a year later he said, I should start my own company. He'd give me a thousand dollars and he'd take 51% give me 49%.
And so that became the birth of Corcoran-Simone company. His name was Ramone Simone. I later learned his real name was Ray Simon — he just put "E" and an accent on each one it looked fancy.
And then seven years later of course he came home one night and said he was going to marry my secretary. So that was such a shocker. Like, I thought, we were an item, but we weren't anymore. And so then, probably a year after that, I ended that company when I found the courage. Again — what did I have to lose? Not that much. And start again as the Corcoran Group, and that was the beginning of my own firm.
Shontell: If I think about starting a thousand-dollar business right now —
Corcoran: That was then.
Shontell: That’s right. So I think with inflation that's $5,000?
Corcoran: Yup, $5,000.
Shontell: So how do you what did you do with that money? You bought some ads in The New York Times.
Corcoran: Well, I plotted it out. Remember I had an organized mother who made ends meet, and I watch her operate, you know, for Christmas gifts and things like that. What I simply did is I took that thousand dollars. I found out what an ad in The New York Times was. I forget what it was then, but let's say it was $12 for an ad, a three-line ad — that was the minimum ad. Most people were doing five lines but you could get a three-liner, OK? If he didn't use bold type on the header, OK?
So then I got started that way placing my first ad. But what I did, because I had so little money, is very carefully placed that first ad. And so I went back to Mr. Giffuni and asked if I could have one of his listings to advertise, and he gave me the one next to 3L, the super's apartment. Next, J was something where the super was.
And I went into it — it was an L-shaped living room like every other apartment in New York with a small bedroom in a doorman building. And I looked and looked and looked at the New York Times ads and saw there were hundreds and hundreds "One bedroom 320 month,""One bedroom 330 a month,""Doorman one bedroom: 340 a month," and they all looked alike. And so I went back and said, "Could you build a half wall between the L and the living room so I could advertise as "One bedroom and den"? So that Sunday, my ad went in even before the wall was built, "1 BR Plus Den: 340." It fit on one line, right margin, and I probably got 80 phone calls that next morning.
Because it was a gimmick. Because why would you call on every other ad if you get a one bedroom for $340 when you get a one bedroom and a den for 340? And you know what: Within the first two days I had a check for $340. So I always doled it out and you know even until I sold my business when I had a thousand people strong as sales agents I still use the exact same methodology. I was always running against the clock thinking, "Well, at least I have nine months now, I have 10 months now," and carefully keep my overhead and spend every dollar like I was poor.
Shontell: So Ramon does the stereotypical ex thing. He's got 51% of the company. You have to split it in two then.
Corcoran: I put the rules down. I said, "This is how we're going to end the business. You picked the first person. I'll take the second." We divide our receivables, we divide our cash — the little we had. And then I moved two floors above him in the same building. I went immediately to my landlord to ask for a new lease on another space and it was a tough market. He happily gave it to me and it was cheaper than my other lease by a few hundred dollars a month. And I loved getting out of that elevator with Ramone Simone and his new wife every day and saying, "Sorry, I'm going up."
Stupid ego lifts that you do in life, right! But somehow that made a difference. If I was below him, psychologically it would not have been good.
Shontell: And from what it sounds like, he said to you on the way as you guys are closing the business and closing the relationship, "You'll never survive without me." Which still sounds like it burns a fire in you today.
Corcoran: Oh my gosh. It's almost as heated as the day I heard it. When I walked out the door that Friday afternoon to start my new business on Monday morning, he said, "You know, you'll never succeed without me." In his giving me those words a funny thing happened. It just hit me in the gut and I felt that fever in my body like, "I'll be damned if you ever see me not succeed." I felt like I would kill not to let that thing happen.
And you want to know? He gave me an insurance policy. Some people are motivated by insult. I happen to be one of them. I've succeeded on a lot of difficult situations by being insulted, even on things that I don't really want, just to prove somebody wrong. Isn't that sicko?
Shontell: So he burns this fire and you thrive off it.
Corcoran: I thrive off it, thank God.
Shontell: Yeah, and eventually you build this company to a $66 million exit. What were some of the important steps you took to make sure that he wasn't right about you, that you were going succeed?
Corcoran: Well, to stay in business as the No. 1 charge. I mean, you know, in real-estate brokerage, cycles go up and down. So that was the first thing I learned how to do. How the hell do you stay in business in the bad troughs? And what you have to do is you have to be more creative. I mean, whenever something's wrong in any marketplace, any business — now I've learned with many years on "Shark Tank," not just real estate — whenever something's wrong in business, there is some huge opportunity there if only you have the foresight or the intelligence or the need to see it.
And so I remember I got through the closest I got to bankruptcy. I was literally writing the speech and making sure I had everybody's name to thank everybody, for the Monday meeting, and bingo, as I'm writing and I was thinking of the Ramone’s Simone’s word, and bingo I think: "Wait, I could sell those 88 apartments that an insurance company owns who didn't want an auction." It just popped in my head and I went back and I priced them all alike, got the same dollar but I priced one bedrooms, two bedroom, studios, all alike, I sold them for the same price.
And for those 88 sales I went from owing 300 — I remember exactly — $348,000 is what I owed out at that time. And I came in with over $1.2 and commissions within a week. How did that happen? Bad times made it happen. I was desperate. And that's what popped the idea in my head.
And that always happens. So surviving — the survival instinct of what could you come up with, where you jiggle out to get you through, is such — it's probably the most important trait if you're going to build a business. One thing for sure is you’ll have bad times; you can count on that one.
Shontell: It sounds like you built a strong corporate culture. Retention rates are incredibly high. Nobody ever left.
Corcoran: Yeah, we had a happy family is what we have. I did what my mother did. I adored my children. I would do anything for them. I would kill for them. And I nurtured them and I loved them and I tried to give them as much freedom as I could. I pushed them forward, got them to believing they could do a lot more than they were doing. And they did! Because people don't really know what they're capable of. And I made them love each other. I knew how to create teams where everybody got along and everybody respected the different attributes that people have and forgive the ones that were bugging them, you know?
I learned how to get rid of complainers. Complain in my company, I couldn't wait till Friday to get you out, OK? So I felt like they were attacking my young.
And then what I was particularly adept at was what I learned from my dad: how to have fun. My father knew had more fun with our family than anyone in town, even though we had no money to do it. So what I learned in my corporate "culture," if you want to call it — I wouldn't call it a culture; it was just a gathering of sorts — is I learned to make sure everybody was having fun. We had bizarre ... probably today maybe illegal-type parties, I don't even know the way I had people dress for them at all. But we had parties galore. We had spontaneous events. All I did was think of, “What can we do that's fun?”
And when you get people laughing their asses off and drinking too much and dressing in things that they've never dressed in before, guess what happens? You wind up with a creative company, so we wound up being in the creative hothouse as well but we never had anybody leave — except, of course, the people who exited quietly on Friday. "But why — I'm selling. Why? My sales are good?""'You just don't fit in here baby — OUT!"
Shontell: Yeah, I think you said it well with the complainers. I mean, if you have someone who's toxic in your work environment it can infect all the people around it.
Corcoran: One negative person will take the energy out of 15 great people quietly. That's why I think of complainers as thieves in the night; they don't work upfront. They quietly are zapping you.
Sex appeal, marketing the Corcoran way, and going all out in family and work
Shontell: So you had to make it in an industry that was traditionally owned by men. Salespeople were often women; the business owners were a lot of men. How did you do that? And I know that you've talked about some tactics you've used: I think you've talked about sometimes playing "the dumb blonde" card.
Corcoran: Yeah, that's always useful. Or "the dumb anything" card. People underestimate you.
Shontell: Sometimes, like, even "the sex appeal" card.
Corcoran: Of course! I wore flashy bright-colored suits, short skirts, I had great legs. That was my best asset. I flaunted them, no doubt about it.
Shontell: So do you think that would fly today if you were building a startup? Because like now we've got to deal with things like Harvey Weinstein, and Donald Trump even, and there's this whole focus on women and sexual harassment by powerful men. I mean, do you — would you advise that same sort of strategy today?
Corcoran: Of course you know all that is is marketing, good marketing. What is good marketing on any level, whether it be individual or for a corporate campaign? Marketing is a point of difference. How do you stand apart from the pack? Who wants to be like the rest of the pack? You don't get noticed. You could spend all the money in the world on it, you won't get noticed, all right?
So any opportunity you have to stand apart from the pack — which starts with you, if you're owning the company, you're the leader of the company, you're a billboard. As are your managers. So yeah, you have to use whatever you have. And that happens to be what I was particularly adept at: marketing. I knew how to work angles and market.
So sure, I would do the same today. The great advantage I had — and still have, because I travel mostly in a man's world still — is just by being a woman. I stand apart from the pack. I never saw it as a liability. I saw that as an advantage. Like, "Look, I'm the only girl in the room." They might not remember my name but they'll say, "The girl in the room," where they wouldn't say, "One of the 50 boys in a room." Right? So no, I think you just have to play up whatever you can to get positive attention, because attention brings business.
I got very good at creating noise in the press, cause story ideas — from the "What's happening in the market" to "Teaching dogs how to shake hands in Central Park so we could get them through the co-op board." Stupid stuff like that. Or smudging an apartment, rang bells, and burned incense — because the apartment couldn't sell — and getting the New York Post and The New York Times are up watch it. All that nonsense stuff. Why? Because our name was always in the paper.
Shontell: Do you think that you can get ahead just by brains instead of beauty now as a woman?
Corcoran: I don't think anyone — listen. Think about what a consumer has: They have ears, they have a mouth, they have a nose, and they have eyes. So you're asking, can you get ahead trying to ignore the eyes of the consumer? No. The eyes of the boss of the colleague? No!
You're in a visual world. No, you have to use everything. You have to be well-spoken, communicate clearly so people aren't trying to figure out what the hell you're saying. You have to look good. You have to look the part. You even have to smell good — you can't go into work smelling bad — you're not going to get ahead on that one right. So you've got all your barrels going. You know, you just have to use every advantage you can. And lucky for you, you're good looking. Now I ask you: Do you think that would be an advantage here, that you look exactly like the girl next door?
Shontell: I've definitely found myself underestimated because of how I look... So yeah, no, I understand the instinct. But I was curious for your perspective. Thank you. So I know you mentioned you started your family after you had a hugely successful career. And I read that you did IVF.
Corcoran: Seven times actually. Yeah, I’m glad I had the money.
Corcoran: A lot of people don't.
Shontell: Exactly. And I've heard people say now that they think that IVF will actually be as empowering for women who are in their careers as birth control and things like that.
Corcoran: More empowering.
Shontell: Yeah, because it basically makes it so that you could have kids later and essentially become like a guy.
Corcoran: It puts you in charge. You know, I know a lot of young women two generations down, early 30s, serious about their career who are producing eggs and banking them. I mean, that would have sounded absurd years ago, but I'm all for it. I just think anything that you can be in charge of yourself about is always good for everybody, not just you. The future kids you will or won’t have, your colleagues, the people you associate with. I just am so much a believer in not giving away your power to the universe, see where it will land. You know?
Thank God that I was able to take control back when I couldn't get pregnant and have children. I did it with the help of my baby sister, honestly. In the end she produced the fertile eggs. All five of my sisters volunteered but I took my youngest, the one who is in best shape with the best grades. I'm like, ‘OK, this is an opportunity to create the best baby.’ And so thank God.
But then also I didn't want to go back there again, but wanting more children I adopted a child. I mean, no, I'm all for anything that is going to put the power in anyone's hand — man, woman, child. I mean, so you can make your own life as you wish it to be.
Shontell: And did you find that it was helpful to establish yourself to rise to the top of your career before having a family?
Corcoran: Helpful?! It had to play out that way. If I'd had my brokerage business and had kids on the side, I would have certainly made a good living as a real-estate salesman and perhaps had a smaller firm, but I would have put my kids first. It's instinctive really, when you have any children and a job; in the end the children feel more important, and they are. Well, that's my opinion.
So I could have never built a Corcoran Group if I had had children earlier. Never. It was meant to be. I kind of lived life like a free man, like a bachelor, I did whatever I wanted. I could put myself at risk. I think that I lived life kind of in reverse: I went all out on building my career. And then when that chapter — when I wanted to wind down, I went all out on building a family. But of course little did I know that I would be all out on both in short order.
Were it not for one email she 'spent 8 minutes writing,' Corcoran never would have been on 'Shark Tank'
Shontell: That's great. I'm glad it all worked out for you.
So let's talk about your "Shark Tank." You were obviously a hugely successful businesswoman. Now you are a hugely successful investor in tons of startups and nine years of "Shark Tank." It's amazing — congrats.
Corcoran: No, it's great. I can't believe it's been nine years; it feels like four. But that's what happens when you're having a good time.
Shontell: Exactly. So at first you didn't get the job, right?
Corcoran: Well, actually, I was offered the job, and I took the job and signed the contract and sent it back without even reading it. That's how excited I was about getting my first gig, you know? And after all I had never been to Hollywood — "I'm going to Hollywood!"
Shontell: You had never been to Hollywood?
Corcoran: Never! I never been to California, but I think I told everyone I knew I'm going to Hollywood — I'm going to Hollywood!
Egg on my face of course. They call and say they've changed their mind; they've invited another woman for the one female seat. I just couldn't believe it. It was like Ramone Simone all over again. It really felt like that, like how could that be? How could that be?!
At least I had the presence to get angry, right? And sit down and write a very potent text to Mark Burnett who owned the studio. And I had the people sense to make his assistant promise me over the phone that if I wrote it she'd print it out and how to walk it over to him. And I think I opened it with — I should have this on my wall in my office because it's one of my proudest accomplishments — because it made a nine-year difference in my life. Think about it: Just for writing an email that took about eight minutes. OK, but it was really more than that. I was standing up for myself. That's why I earned it. I feel in hindsight now.
But anyway, the first line I think I said, "Mark, I understand you've asked another girl to dance instead of me and I appreciate you keeping me as a fallback." How insulting! Who wants to be a fullback? But anyway I said, "But all of the best things have happened in my life on the heels of failure starting with Sister Stella Maria who told me I'd always be stupid because I couldn't learn to read or write. I'm not stupid."
And I said, "I hope you invite both women to compete for the seat and I expect to be on the plane on Thursday," and the next day I got the call: "OK, we'll let you compete for the seat." Thank God.
But the importance of standing up for yourself. I had learned that over and over again because even if it doesn't work you feel self-pride. You'd think if you really tried something and you didn't get it that you would feel embarrassed but I never found that to be the case. I felt self-pride that I tried and then of course so many tries you wind up getting a few yeses along the way and this happened to be one of those yeses.
Shontell: And as you said sending one email that took eight minutes changed nine years of your life.
Corcoran: Yeah, but it was an act of courage, you see, or an act of persistence or obstinance or craziness. Call it what you want, but it was a very little effort, but it was born out of a lot of years of experience of learning to persist and getting back up, you see? Or I probably would have rolled over maybe and cried. But I was near tears honestly because I couldn't imagine why something I envisioned — I already had bought two new suits and signed autographs. I thought I was going to be like a Hollywood star. I think I got the movies mixed up with reality TV somewhere there.
But I just couldn't imagine that what I had envisioned wasn't going to come true because any time I dreamt of anything from the first day of dreaming about being the queen of New York real estate I saw it in my mind as clear as it happened 25 years later. So I saw everything so clearly and I thought, "How could that be? I saw this clearly! How could this be?" And I think it was that disbelief that got me to write down or write that damn e-mail.
Shontell: Well, congrats. Huge win.
Corcoran: Thanks you.
Shontell: So I was reading actually in the Sony leaks there was an email from Mark Cuban about salary negotiations on "Shark Tank." It feels like he thinks he's irreplaceable. I mean, he was given, I think, $30,000 an episode for season five.
Corcoran: He was insulted.
Shontell: He was very insulted. And he actually wrote to the producers and said, "Start taking me out of the promos now."
Shontell: Do you have that same tactic when negotiating something like a salary for the show?
Corcoran: No, you know, I'm not as — I'm more clever than I am smart, actually. I'm a little foxy. What I did is found out who Mark's attorney was a couple of years ago, because he's the biggest man on campus, if you think about it. He's the only billionaire on set — right away that qualifies him as the biggest guy on campus, in my opinion. OK? We're all millionaires, measly millionaires. He's a billionaire. That’s a big difference.
But what I did immediately is find out who his attorney was and hired the same woman. She's about 6-feet-2 and intimidating! Smart as can be, scary when she walks into the room. So she negotiates both contracts. I mean, that's my sneaky way of like being tough. Like, "Let me let me grab onto who's got a tough person and go for the ride!"
Shontell: Smart. It works.
Shontell: So what is the day like on set for you? Talk about when you're filming this show what time do you wake up. How do you get ready?
Corcoran: We spend about an hour in makeup and hair maybe an hour and a half. Then it’s pressure, pressure, pressure get on the set. We shoot from ... we start usually eight in the morning and we finish at maybe 7 at night, so we have generally the 11-hour days. I actually had to think about that. They don't feel that long as they click by. We sit on the set and we're hearing pitch after pitch after pitch. We know nothing about the pitch.
Within two minutes I know I'm definitely out on without even knowing a thing about the business. OK? Because they just fall apart. You can see them falling apart in front of the big cameras in their faces. And so the day goes on and on and on - we're literally exhausted. The lunch is like, I think we have 20 minutes, we're back in makeup and hair. Back on the set. It's a marathon. And the day goes on and on and on. It's a lot of fun, it's very competitive. You're spending real money, which adds a layer of pressure to you because you really don't want to lose your money. You know?
I think Mark had said it last time. I wholeheartedly agree — the hardest part of "Shark Tank" is coming up with a new reason for going out. Because a lot of times basically, my attitude in my head is, "You know what, I don't like you. I'm out," but you can't say that, you gotta go, "You know about those projections."
Shontell: Yeah, that's true. I guess you have to get creative.
Corcoran: I mean, there are a lot of outs in a season of "Shark Tank"— you've got to make them sound all different.
Shontell: Absolutely. Well, sounds like a long day but a fun one. Do they tell you like what kind of personality they want you have, like they say, "Kevin, we want you to be like Simon Cowell of the show" or anything like that?
Corcoran: No, Kevin picks that one for himself. Mark picked the billionaire for himself. OK, you're a big, tough billionaire. Lorry picked the merchandise person, the smartest one on the set that could sell anything. But we're not told what to be.
You know, it's interesting, for the first four or five seasons of "Shark Tank" our producers would always meet with us before the season, "We'd like to see more of this, less of this, more of this, less of this." And it used to make me so neurotic. And then one day Mark Burnett — I think it was season three, when we knew we were starting to have a hit on our — invited us all to his beautiful Malibu home for dinner on the cliff, just like a Hollywood set.
Anyway, we get over there and he says, "Here's my advice: Ignore what everybody says and be yourself" and my shoulders went down. It was so much better to just have to be yourself, and that was great advice, and he's the smartest guy in the whole industry. So I listened to him.
Shontell: So you said when you got out to Hollywood for the first time you thought you're going to be movie-star famous. And I would argue that you are pretty much there. Like I think you're a household name at this point. Everyone knows you as Barbara Corcoran businessperson and Shark. What's it like to be famous? Is there good, is there bad?
Corcoran: Well, fortunately for me, I love people. So I'll talk to anyone and really enjoy the conversation, not pretend to enjoy it, because I find people eternally curious, odd, interesting in every way. OK? And so with having people constantly come up and talking to you like they know you. The minute they introduce themselves like you've been pals.
So it can intrude on your personal life, so I don't go out for restaurant owners anymore, period. It's work because I just have to really pose for selfies, right? I don't do a lot of things. I don't do parties anymore. 'Cause I almost feel like a paid entertainer. I don't do a lot of stuff anymore. But it's all right with me because I'm really a homebody want to be cooking myself. I want to be home with my kids and my close friends and family, so it works out. Yeah, so that's what it's like.
Shontell: Bringing it back to the entrepreneurs. You've made a lot of investments and you've made a lot of impact on their businesses. And by now you've seen so many people. What what’s your advice for people who want to start their own thing, to get going, and what is the trait that you see them at most the people who are successful?
Corcoran: Well, I'll do it and reverse. The successful trait is identical in every one of my most successful businesses. They're street smart. And when they're slammed they don't feel sorry for themselves. That's it.
I've talked to more entrepreneurs after I've invested within the first of maybe eight, nine months, after the shine of "Shark Tank" is gone after the rush of sales is behind them, where something goes wrong and then I'm on the phone or on a Skype call with them and I hear them blaming it on someone else, like, "The shipment never came in! The guy didn't do this such and such."
Right! It's another version of "Oh, poor me." The minute I hear that, I go right to my wall where I have all my entrepreneurs and frames, beautifully matted, and I hang that picture upside down. And why do I do that? Just to remind myself that I shouldn't spend any time with that person, because they're never going to succeed. Every one of my successful businesses are run by entrepreneurs who are so good at taking a hit and getting back up. They just don't feel sorry for themselves. That's a trait.
Well, Barbara, thank you so much. It's been really inspiring and just awesome to talk to you.
Corcoran: Very easy to talk at those starry eyes you have.
Uber looks like it's on track to make more money selling a building it owns in Oakland, California, than it has selling rides over the last 10 months.
In 2015, Uber bought the old Sears building in downtown Oakland with the intention of moving 3,000 of its employees to an expanded headquarters in the smaller, less–filthy-rich city just across the Bay from San Francisco, which the company currently calls home.
That never happened. And now Uber is selling its 380,000-square foot building to the CIM Group, a Los Angeles–based real estate investment firm, for $220 million, according to a report from the Registry, a website that covers Bay Area real estate deals. Uber bought the building in 2015 for $123.5 million, but after never moving in as planned, the company announced in August that it was considering putting the building up for sale.
Uber isn't profitable. In August of this year the company shared that it had lost $645 million in its second quarter of 2017, which was actually a decrease from the $708 million it lost in the first quarter. Uber booked around $20 billion in rides in 2016 and, excluding its China subsidiary, which it sold in July last year, the company clocked in $6.5 billion in revenue.
Still, Uber ultimately lost about $2.8 billion that year. (The company subsidizes rides.) All of which means that the roughly $96 million the company is pocketing off its Oakland property appears to be a far better return on investment than its main business, at least in the very short term.
To be clear, just because Uber is hemorrhaging money doesn't mean it won't one day turn a substantial profit. It remains, for one thing, in expansion mode. Amazon, after all, didn't register meaningful profits for two decades and now the e-commerce empire is one of the most valuable companies in the world.
Uber's investors don't seem to be too worried about its losses. In May, Jason Calacanis, an early Uber investor, congratulated the company for growing its sales while narrowing losses — again, in a quarter in which it lost more than half a billion dollars.
The reason Uber gave for leaving Oakland was that the company was looking to "strengthen our financial position," which is probably a good idea considering the hell ride the company has been on for the past 12 months. That turbulence included forcing out its pugnacious founder Travis Kalanick as CEO, explosive allegations from a former Uber engineer Susan Fowler detailing a culture of widespread sexism and sexual harassment across the company, and a lawsuit from Google's parent company Alphabet that could cost Uber more than $2 billion.
Selling your empty real estate in Oakland may be the Bay Area startup unicorn equivalent of searching beneath your couch cushions for loose change. And Uber needs a lot of change right now.
While losing Uber might seem like a blow to any city eager to bring in new jobs and revitalize the economy, especially as more than 200 cities across the country recently scrambled to court Amazon's new headquarters, at least some residents in Oakland are embracing the company's reversal with a sigh of relief. Uber's move to Oakland, some feared, would contribute to rising housing prices, gentrification, and displacement throughout the city.
"I've seen what they've done to Market Street in the city," Oakland resident Nicky Bourque in told theEast Bay Times back when Uber first announced plans to sell its real estate in August, referring to the impact of the tech boom on San Francisco, just across the Bay. "It's become a lot less friendly."
Yet Uber isn't totally out of Oakland. For one, the ride hail company continues to operate in there, and second, the company reportedly plans to lease back a portion of the office space it's selling.
There's been much talk about millennials being fearful of the stock market. They did, after all, live through the financial crisis, and many are shouldering record levels of student loan debt, while grappling with rising fixed costs.
The truth is that historically, young people have always shied away from investing. A whopping 89% of 25- to 35 year-old heads of household surveyed by the Federal Reserve in 2016 said their families were not invested in stocks. That's only two percentage points higher than the average response since the Fed began the survey in 1989.
MagnifyMoney analyzed data from the 2016 Survey of Consumer Finances, conducted by the the Federal Reserve, to determine exactly how older millennials — those aged 25 to 35 — are allocating their assets.
In 2016, wealthy millennial households, on average, owned assets totaling more than $1.5 million. That is nearly nine times the assets of the average family in the same age group — $176,400. Included were financial assets (cash, retirement accounts, stocks, bonds, checking and savings deposits), as well as nonfinancial ones (real estate, businesses and cars).
While the wealth of each group was spread across just about every type of asset, the biggest difference was in the proportions for each category.
To add an extra layer of insight, we compared the savings habits of the average millennial household to millennial households in the top 25% of net worth. We also took a look at how the average young adult manages his or her assets to see how they differ in their approach.
Millennials invest 60% of their money in the stock market
Despite significant differences in income, we found that both sets of older millennial households today (average earners and the top 25% of earners) are investing roughly the same share of their financial assets in the market – about 60%.
Among the top 25% of millennial households, those with brokerage accounts hold more than 37% of their liquid assets, or about $224,000, in stocks and bonds and an additional 26%, or $154,000, in retirement accounts. Meanwhile, just over 14% of their assets are in liquid savings or checking accounts.
By comparison, the average millennial household with a brokerage account invests a little over $10,000 in stocks and bonds, or 22% of their total assets, and they reserve about 21% of their assets in checking or savings accounts.
Millennial households invest most heavily in their retirement accounts, accounting for around 38% of their financial assets, although they have only saved $18,800 on average.
Wealthy millennials carry much less of their wealth in checking and savings, compared with their peers. Although wealthier families carry eight times more in savings and checking than the average family — $84,000 vs. $10,300 — that's just roughly 14% of their total assets in cash, while for the ordinary young family that figure is around 20%
The Fed data show that those on the top of the earnings pyramid are able to save far more for the future, even though they're at a relatively early stage of their careers.
Across the board, older millennial families hold the greatest share of their financial assets in their retirement accounts. Although that share of retirement savings is smaller for wealthier millennial families (26% of their financial assets, versus 38% for the average older millennial family), they have saved far more.
When looking at the median amount of retirement savings versus the average, a more disturbing picture emerges, showing just how little the average older millennial family is saving for eventual retirement.
The median amount of money in higher earners' retirement account is $90,000 (median being the middle point of a number set, with half the available figures above it and half below). But the median amount is $0 for the typical millennial family, meaning that at least half of millennial-run households don't have any retirement savings at all.
Wealthy millennials have less of their net worth tied up in the value of their home
Most of millennial households' wealth comes from physical assets, such as houses, cars and businesses.
While nearly 60% of young families don't own houses today, the lowest homeownership rate since 1989, homes make up the largest share of the family's nonfinancial assets, Fed data show.
For the average-earning older millennial family, housing represents more than two-thirds of the value of its nonfinancial assets — 66.4%. On average, this group's homes are valued at $84,000.
The homes of rich millennial households are worth 4.6 times more, averaging $470,000 — though they represents a lower share of total nonfinancial assets — 50%.
Cars are the second-largest hard asset for the average young family to own, accounting for about 14% of nonfinancial assets.
While rich millennials drive fancier cars than their peers — prices are 2.4 times that of average millennials' cars — their $42,000 car accounts for just 4.5% of their nonfinancial asset. In contrast, they stash as much as 31% of their asset in businesses, 20 percentage points higher than the ordinary millennial.
It's worth noting that young adults in general are not into businesses. A scant 6.3% of young families have businesses, the lowest percentage since 1989, according to the Fed data. (Among those that do have them, the businesses represent just over 11% of their total nonfinancial assets.)
Wealthy millennials have way less student debt
Possibly the starkest example of how wealthy older millennials and their ordinary peers manage their finances can be seen in the realm of student loan debt.
A significant chunk of the average worker's household debt comes in the form of student loans, making up close to 20% of total debt and averaging $16,000. In contrast, the wealthiest cohort carries about $2,000 less in student loan debt, on average, and this constitutes just about 4.6% of total debt.
With less student debt to worry about, it's no surprise wealthier millennial families carry a larger share of mortgage debt. About 76% of their debt comes from their primary home, to the tune of $233,500, on average. This is 4.5 times the housing debt of a typical young homeowner.
In some cases, the top wealthy have another 11% or so of their total debt committed to a second house, something not many of their less-wealthy peers would have to worry about — affording even a first home is more of a struggle.
When is the right time to start investing?
For many millennials the answer isn't whether or not it's wise to save for retirement or invest for wealth but when to start. Generally, paying off high interest debts and building up a sufficient emergency fund should come first. Once those boxes are ticked, how much young workers invest depends on their tolerance for risk and their future financial goals.
"It's never too much as long as you've got money for the emergency fund, and as long as they are funding their other goals not through debt," says Krista Cavalieri, owner and senior advisor at Evolve Capital in Columbus, Ohio.
The biggest mistake that Cavalieri has seen among her young clients is that very few have been able to establish an emergency fund that will cover at least three to six months' worth of living expenses.
Kelly Metzler, senior financial advisor at the New York-based Altfest Personal Wealth Management, said older millennials may not be able to save outside of retirement accounts yet, which can be a concern if they want to buy a house or have other large purchases or unexpected expenses ahead.
Cavalieri said that's because young adults' money is stretched thin by the varies needs in their lives and the lifestyle they keep.
"Their hands are kind of tied at where they are right now," she said. "Everyone could clearly save more, but millennials are dealing with large amounts of debt. A lot of them are also dealing with the fact that the lack of financial education put that in that personal debt situation."
The lawsuits are piling up at the "leaning tower" of San Francisco.
Millennium Tower is a luxury residential high-rise that has sunk 17 inches and tilted 14 inches since it was completed in 2008. Though an inspection by the city showed it's safe to occupy, the situation has sparked an exodus from the building. Residents say they're selling multimillion-dollar condos at a loss, with the value of their homes tumbling $320,000 on average.
There are at least 20 parties involved in lawsuits related to Millennium Tower, according to a "60 Minutes" segment that aired on Sunday. One disgruntled resident told producers that with so many lawyers involved, it takes the court 30 minutes just to take attendance during legal proceedings.
Here's what we know about Millennium Tower.
Millennium Tower rises 58 stories above San Francisco's Financial District.
The city's fourth-tallest skyscraper contains over 400 multimillion-dollar condo units. It soars 645 feet, giving residents with panoramic views of the Bay Area.
Completed in 2008, Millennium Tower includes top-notch amenities, such as a pool, fitness center, wine cellar and tasting room, movie theater, and concierge service.
Source: Millennium Tower
See the rest of the story at Business Insider
It's a seller's market.
On an episode of Business Insider's podcast, "Success! How I Did It," Zillow's CEO, Spencer Rascoff, told Business Insider US editor-in-chief Alyson Shontell that buyers generally search for about four months before they find a place and sometimes make multiple offers on a dozen homes before one gets accepted. (A 2016 Zillow report indicates that about one-quarter of buyers make three or more offers.)
Listen to the full episode here, or listen later with the buttons below:
Rascoff also shared his best advice for standing out in a sea of prospective buyers:
1. Choose a stellar agent
"He or she can advocate for you and provide you advice," Rascoff said. "You should read reviews of real estate agents on Zillow or any website. I don't really care where you read reviews, don't just rely on a referral from a friend."
2. Be patient and persistent
"Be prepared to make multiple offers," Rascoff said.
3. Write a letter to the seller
"It can't hurt," Rascoff said. "But appealing to their emotions can be successful. I've had success a couple of times with that."
See the rest of the story at Business Insider
Real estate site PropertyShark recently pinpointed where it's most expensive to live in the city now.
To compile the Q3 ranking, the company found median prices for residential properties sales closed between July 2017 and September 2017 (including single-family homes, condos, and co-ops).
To keep up with the city's rising population, Mayor Bill de Blasio implemented an affordable housing plan in 2014 that aims to preserve or create 200,000 units of housing with regulated rents by 2024. As of July 2017, 77,651 affordable units— with rents no higher than $3,461, depending on the household income — have been financed by the city.
Below are the 10 most expensive New York City neighborhoods, along with their median home sales prices, as of this fall:
10. Dumbo, Brooklyn — $1.58 million
9. NoMad, Manhattan — $1.69 million
8. Red Hook, Brooklyn — $1.92 million
See the rest of the story at Business Insider
New York City is no stranger to expensive homes and apartments, many of which have astronomical price-to-square-footage ratios.
While celebrities and billionaires continue to snatch up the city's most luxurious residences, sometimes as financial investments rather than living spaces, there are still plenty of options available for anyone with $50 million to spare.
These are the 15 most expensive listings currently available in New York City, according to Streeteasy.
15. 854 Fifth Avenue — $50 million
With nine floors and plenty of views of Central Park, this townhouse was designed by the architects behind Grand Central Station, who were inspired by the Palace of Versailles.
14. 219 East 44th Street — $53 million
Featuring six units on the top seven floors of a 35-story building, this "mansion in the sky" penthouse has floor-to-ceiling windows that provide scenic views of Manhattan.
13. 4 East 66th Street — $55 million
Combining architectural styles from the 1920s with modern flourishes, this apartment features a private elevator and views of Central Park.
See the rest of the story at Business Insider
When an apartment or penthouse isn't big enough for wealthy New Yorkers, they get creative.
In recent years, several have combined multiple townhouses or building floors to create supersized homes — or Frankenmansions, as New York magazine's S. Jhoanna Robledo calls them.
To construct these Frankenmansions, some prospective buyers purchase multiple buildings at once, while others approach their neighbors to offer multimillion-dollar buyouts. (In either scenario, they need the city's approval before combining properties.)
Check out these 12 Manhattan Frankenmansions owned by big names — including Madonna and Sarah Jessica Parker — outlined below in red.
Former New York City Mayor Michael Bloomberg's Frankenmansion is nearly complete.
Bloomberg has bought five of the six apartment units in the building next to his 7,500-square-foot townhouse over the last three decades. After connecting four units in 2009, he grew his home to 12,500 square feet, according to the New York Post. The buildings are steps from Central Park.
A 25-bedroom pair of townhouses sold for $18 million.
The Missionary Sisters of the Immaculate Heart of Mary, an NYC-based convent of nuns, acquired the townhome on the right in 1948. Four years later, the group bought the one next door and connected the space via a doorway on each floor.
Throughout the years, the order has rented some of the complex's 25 bedrooms to other congregations or young women in need. The 15,600-square-foot space went on the market for $19.75 million in June 2016, according to the New York Times. And according to Streeteasy, it sold to an unknown buyer two months later for $18.8 million.
Sarah Jessica Parker lives in a pair of twin townhouses worth $34.5 million.
The star of "Sex and the City" snatched the two brick townhouses above from the nonprofit United Methodist Women, then fused them. The organization listed the pair of buildings (which were not connected) for $44 million in 2016, but Parker paid $34.5 million, according to The Real Deal.
The 13,900-square-foot mansion includes nine bedrooms, eight bathrooms, a 2,100-square-foot private garden, and five floors.
See the rest of the story at Business Insider
Under Armour has struggled to keep up with its athletic apparel competitors, failing to gain traction with athletes and consumers. But one of the company's co-founders, Kip Fulks, may stand to gain over $13 million if his home sells close to what he's asking for it.
Located in St. Mary's, Pennsylvania, the property known as North Fork Lodge is on the market for $13.5 million, the Wall Street Journal reported.
Sprawling over 7,150 acres and able to hold dozens of guests, North Fork Lodge allows residents an escape from the bustle of city life. Take a look at the property below.
Fulks and his wife, Beth, bought the property for around $7.8 million in 2007. Fulks has long been fond of it, claiming "it was love at first sight," when the property came to his attention.
Source: Wall Street Journal
The property sits next to a lake and also contains a brook trout and bass pond for fishing.
Source: Hall and Hall
There are also plenty of trails and hunting grounds.
See the rest of the story at Business Insider
There's always been some kind of starry-eyed dream around the idea of making a big payoff in real estate investing. I'd say about half my clients have floated a real estate idea in one form or another to me over the years.
I think it's because of the "cocktail party" effect (or "BBQ effect," if you aren't the cocktail party type, which I'm not). The stories are juicy. They are hard to ignore: "Yeah, my buddy Jim made $500,000 on an apartment complex in Austin. He's asking me if I want in on his next deal." I have a number of friends still living Austin from my engineering days at Dell, and the quote above is based on a real conversation.
I mean, it makes sense, right? You invest a bit, hold onto the property for some random length of time, then walk away with even more money when property values rise. I think it's also appealing because it's a physical asset. Most investors are familiar with homes, apartments, etc., and you can go see it if you want.
But before you get sucked into the latest real estate investment scheme, take a deep breath and open your eyes to these cold hard facts about real estate investing.
1. Real estate is not like the stock market
Unfortunately, the concept of timing your buys when the market is low and selling when the market is high, and getting caught up in the market hype does not always translate to the real estate arena.
Real estate can be profitable with patience. Homes grow in value over time, not overnight. You pay so many fees when selling property that even if you are making a bit of profit from built-up equity, you are paying out thousands when you sell. Depending on the turnaround time and the number of times you do this, you could be throwing away tens of thousands to fees that you could have invested better.
2. Real estate is a leveraged investment
Plain and simple, a leveraged investment is using borrowed money to invest and crossing your fingers for an even bigger return. Here's the thing: when leverage works, you multiply your winnings. But when it doesn't, it's doubly bad: You magnify your losses. Remember when home values dropped to crazy lows in 2008? It wasn't that long ago. Some borrowers ended upside-down: their mortgage balances were above what their homes were worth.
Leverage isn't inherently good or bad, but it's risky. Are you comfortable taking on extra risk with your hard-earned dollars?
3. It limits your diversification ability
First, take a look at your assets. How much do you have set aside for retirement? What about for extra investing, education plans, contingency funds? How much additional cash are you bringing in each month that you can put towards saving?
Now answer this: How much are you willing to cut out of higher-priority investing to dump into a real estate deal? People who tend to invest in seductive real estate propositions put a disproportionate amount of their wealth in real estate. All the excitement can easily cause a concentrated, leveraged bet in real estate.
Every individual should be investing according to the asset allocation that is right for them based on their goals, risk tolerance, and time horizon. If you own your own home and have 5% of your portfolio dedicated to real estate investment trusts (REITs) via mutual funds, you have plenty of real estate exposure. Don't make real estate an inadvertent concentrated bet.
4. Lack of liquidity
Liquidity is a big word to describe how quickly you can get your hands on your cash. Unfortunately, real estate is considered the least liquid of assets because of how long it can take to sell. If you are investing too much of your wealth in real estate, you might end up banging your head against a wall if you ever need quick access to funds.
5. The real estate market is high
Unlike a mere five years ago when the housing market was slowly recovering from the 2008 crash, house values are currently quite high. That's great news for you if you purchased a home anywhere between 2008-2012, but not great if you want to get into real estate investing right this second. If there is growth in the coming years, it probably won't be as drastic as it has been.
False comfort won't get you far
The stock market can be confusing. It's this weird entity, seemingly controlled by unknown factors, and that freaks a lot of people out. Real estate, on the other hand, can be seen and touched. It makes sense. You can see what factors add up to increase the value of a home, and to that end, you feel a sense of control. But false comfort does not equal true peace of mind. Don't be lured into so-called once-in-a-lifetime real estate schemes without understanding the risks. Rise above the hype, educate yourself and build wealth smarter.
Greg Brown is a fee-only financial planner and the founder of Pathway Financial Planning.
Space is hard to come by in some of America's most popular housing markets.
Homebuyers in Boston and San Francisco, for instance, are paying over $1,000 per square foot right now, while buyers in Detroit and Chicago are paying closer to $200 per square foot.
To find out how home sizes compare across America, we asked Trulia to gather listings in the $500,000 range for the largest metro areas.
Below, check out how much square footage buyers get for homes priced between $489,000 and $525,000 in 15 popular cities.
New York City
Listing price: $499,000
Square feet: 550
Price per square foot: $907
Listing price: $489,000
Square feet: 871
Price per square foot: $561
Listing price: $519,000
Square feet: 2,600
Price per square foot: $200
See the rest of the story at Business Insider
This isn't just any ordinary picturesque Martha's Vineyard estate — it has a presidential pedigree.
President Obama and his family rented this sprawling, 7,000-square-foot mansion for an entire summer in 2013, according to The Wall Street Journal. But that seems not to have made the house any easier to sell.
Now it'll be just a little bit cheaper to live like the First Family all year round. The house listed in July 2015 for $22.5 million. Just three months later, the house already had a 15% price chop.
Now, nearly two years later, the house is still for sale, at a discounted price of $17.75 million.
Sotheby's International Real Estate has the listing.
Brittany Fowler contributed reporting to an earlier version of this article.
The Wall Street Journal notes that the rural town's seclusion was what drew the Obamas to the property.
Sitting on over nine acres of land at 120 feet above the Atlantic, the home affords bountiful ocean views of the South Shore and Chilmark Pond.
A private driveway leads to the estate, which includes a half basketball court, a dock, and access to three private beaches.
See the rest of the story at Business Insider
20-year-old social media star Jake Paul has a habit of annoying his neighbors, so anyone who lives near his new, $6.9 million mansion in Calabasas should be on high alert.
Before Paul reportedly bought it, the home had been listed for $7.395 million, according to the Los Angeles Times.
Paul, who became famous by making short videos on the now-defunct social media platform Vine, has built a following of over 11 million subscribers on YouTube. He also acts on the Disney Channel show "Bizaardvark" and started a management company for social media personalities.
After he claimed that his neighbors tried to kill him in July, it makes sense that Paul would be looking for a new home.
Here's what his new, 15,000-square-foot mansion looks like.
The mansion sits on a total of 3.5 acres of land.
Source: Open Listings
Built in 1990, the house features incredibly high ceilings and large rooms.
The entrance leads to a spiral staircase that rises three stories.
See the rest of the story at Business Insider
Sam Zell is one of the market’s most successful and influential real estate investors. Zell is the Chairman of Equity Group Investments, the private investment firm he founded in 1969 and also chairs five public listed companies including Equity Residential, the most substantial apartment REIT in the US.
The latest issue of Goldman Sachs’ Top of Mind research newsletter features an interview with Zell. Within the interview, he discusses the current state of the equity markets, where he’s finding value today, and his views on the US real estate market.
Sam Zell on value hunting in today's market
Zell's interview starts by discussing his outlook for the economy. He can't offer much of a guided view but does believe that the election of Donald Trump has dramatically increased business optimism, which has given more life to the bullish business environment.
And despite all the noise surrounding the Trump administration, Zell believes that the president has made significant headway on deregulation. Proposed changes to Dodd-Frank are just one of the factors helping improve optimism in the business community.
Even if tax reform hits a wall, Zell is still positive on the outlook for US growth:
"I think tax legislation will be passed and will definitely feature a reduction in the corporate tax rate, likely some adjustments on the taxation of repatriated income, and maybe some reduction in taxes for middle-to-low-income people. Beyond that, I don't have much expectation for significant tax reform. And if it fails to pass, I think the opposition will be blamed, not Trump."
However, despite his views about the US economy, Zell believes that some assets are showing signs of stress. Specifically, Zell points to "opportunities when day-to-day activities don't make any sense to me:"
"I tend to see those opportunities when day-to-day activities don't make any sense to me. And there is probably nothing more relevant to seeing around the corner than assessing supply versus demand. For example, when I see people building office space without being able to identify the future tenants, as I do today, that is a warning sign that supply is engulfing demand."
As well as commercial real estate, Zell is skeptical about the valuation of Tech firms. He says that in order to justify the multiple that Amazon trades at today, "the company would have to be worth 25% of the US economy five years from now." The company could grow to this size, but it's highly likely US policymakers will step in to restrict the business's influence if it becomes such a major part of the US economy.
"I'm also generally concerned about the size, scale, and influence of these companies, which I think is out of hand and dangerous to our overall society. Absolute power corrupts absolutely, and these companies are being set up to do exactly that."
Big tech has undoubtedly dominated the minds of investors all over the world this year. With these companies growing at the rate they are, it makes sense to want a piece of the pie. But while fund managers and private investors rush to get in on the action, Zell is finding pockets of value in the corners of the market, corners other investors have overlooked.
"The most crowded areas are in technology, applications, “disruptions,” and all of the magic words that are driving people today. But the excitement over them doesn’t make them compelling. In many cases, I don't think you're getting paid for the risk involved—and the risk, by the way, may be unbridled competition.
By contrast, I see opportunities in much more mundane areas. For example, we made a big investment this year in a trash-hauling business. We're building waste-to-energy facilities. We've been buying refineries. We're looking at agricultural investments. These are all assets that people value inappropriately, in my view. And, while perhaps less flashy than tech, that's the kind of stuff that I'm always looking for."
Put simply, even though some regions of the market look undervalued, Sam Zell believes that there are still bargains out there, and he's putting his money where his mouth it.
Zell isn't the only fund manager still finding value. In the latest issue of ValueWalk's exclusive magazine Hidden Value Stocks, we profiled two value hedge fund managers who each discussed two separate value stock picks.
SEE ALSO: How 37 big banks combined into just 4
The prices of condos at New York City's Trump Tower have plummeted since President Donald Trump launched his campaign in 2015.
The dropoff is so severe that real estate in the Fifth Avenue building has reached its lowest value since the Great Recession, The Wall Street Journal reported last week.
The average price per square foot in the property is $2,100, down 13% from 2016 and 23% from the year before, according to The Journal.
Analysts are pointing to multiple factors that could explain the cheaper prices, including heightened security since Trump was elected, a general dislike of Trump, or an overall deceleration in the luxury condo market in the area.
However, Trump Tower's condos are dropping more rapidly than other properties in Midtown Manhattan. Excluding new developments, the average price per square foot in the area has seen a slight uptick of 0.3% since 2015.
"There is no way of knowing whether prices have taken a nose dive because of the restrictions that are now associated with living in the building — such as the Secret Service and police presence — or because the Trump brand so closely aligned with the building is having a depressing effect on prices," Gabby Warshawer, director of research at the real-estate website CityRealty, told The Journal.
Boaz Mashiach, whose real estate group lists two Trump Tower properties for $7.8 million, said Trump's presidency could be a factor in the building's declining condo prices, but added that the market was "very soft right now."
"Some people don’t like to live in his building — and there are some people who want to live only in his building," he told The Journal.
Trump Tower, standing 664 feet tall, occupies prime real estate near Manhattan's Central Park. It was the headquarters for Trump's presidential campaign and was the site of several protests and demonstrations following Trump's election.
The skyscraper isn't the only one of Trump's properties in an apparent slump. The nearby Trump International Hotel and Tower has seen a 24% drop in its average price-per-square-foot rate since 2015, down to $3,600, according to The Journal.
On Thursday, the Independent reported that the Trump Organization is worth just one tenth of the value it previously claimed.
As New York City rents become more expensive, many residents are facing the possibility of being priced out of their apartments or having to dedicate large portions of their incomes to housing. In fact, in the past seven years, rents have increased at double the rate of incomes, according to StreetEasy, which means that you need to make six figures to afford living in many of the city's most desirable neighborhoods.
To illustrate the disparity between wages and housing expenses, StreetEasy calculated the median rent in most of the neighborhoods in New York City and determined the amount of money you would have to make each year to ensure that rent does not consume more than 30% of your income, which is the real estate company's definition of affordability.
The website then compared the recommended incomes to the actual median incomes of those living in each borough and found that in many cases, New York City residents were spending a significant portion of their incomes on rent. You can find the full results here.
These are the four most expensive neighborhoods in Queens, Brooklyn, and Manhattan — and the amount of money you'd need to make to afford living there.
Long Island City, Queens
Median Asking Rent: $2,570
Recommended Income: $102,800
% Compared to Borough Median Income: 65.3%
Little Neck, Queens
Median Asking Rent: $2,575
Recommended Income: $103,000
% Compared to Borough Median Income: 65.6%
Median Asking Rent: $2,695
Recommended Income: $107,800
% Compared to Borough Median Income: 73.3%
See the rest of the story at Business Insider