Is Real Estate a Good Career? a Laid Off, Houston Anchor Closed  Million As a New Realtor

Is Real Estate a Good Career? a Laid Off, Houston Anchor Closed $28 Million As a New Realtor

  • Lily Jang grew to become a authentic-estate agent in 2017 following performing typically as a broadcast-news anchor.
  • She obtained into authentic estate for the reason that she’d experienced lousy ordeals with brokers and preferred adaptable several hours.
  • To stand out to her customers, she presents social-media promotion, household staging, and Tv set placement.

In advance of she was a effective genuine-estate agent closing on just about $28 million in discounts in 2022, Lily Jang was a news anchor for KHOU-Television set in Houston.

She never would’ve still left the broadcasting world, she explained to Insider, had the Television set station not gone through a management improve and subsequent layoffs.

“You generally know in the back of your head this could come about: New management arrives in, and they’re going to thoroughly clean house, and you could be a casualty — and that is exactly what took place to me,” she stated.

The blow was primarily difficult for her since a person of the key factors she moved to Houston was to choose treatment of her growing old moms and dads, particularly her father, who has Parkinson’s sickness. Contrary to other broadcasters who could select up and move to one more metropolis for a career, Jang wanted to continue to be and get treatment of her family members.

“That was the most devastating time in my everyday living. Anybody else would’ve springboarded to Chicago, New York, LA, or Miami, but I couldn’t,” Jang, who experienced labored in other states in advance of shifting to Texas, stated. “I sat in a corner and cried for two months, but I claimed to myself, ‘I’m going to have to pivot. I have to determine this out.'”

And determine it out she did — by the conclusion of her to start with 12 months at Keller Williams, she’d closed $8 million in serious-estate transactions and surpassed her income as a news anchor. In 2021, four several years soon after she received her begin, she made approximately $900,000 in gross earnings.

“I took my job as a information anchor, my advertising and marketing techniques, and leveraged anything I experienced and who I was, and I applied that in genuine estate,” Jang reported. “I created my journalism career on relationships, communication, and integrity, and I parlayed all that into my new vocation pretty seamlessly.”

Here is how she crafted a enterprise that’s thrived by social media and organic and natural advertising.

Earning the pivot

Jang’s fascination in true estate was spurred by her activities searching for homes.

“I experienced bought and bought residences in the previous, and I understood how very little my Realtor did for me,” Jang claimed. “I was like, ‘I can do this improved than you, and you’re not even advocating for me.'”

A different benefit, she extra, was the possibility to be her have boss and established her personal work several hours.

In 2017, immediately after paying out roughly a month accomplishing a six-portion on-line system with the Champions Faculty of Authentic Estate, Jang declared her career change on Facebook and immediately began receiving messages from outdated high-university mates and colleagues inquiring irrespective of whether she would choose on their listings. 3 months later, she had 3 houses in her portfolio — two of which ended up luxury properties priced at additional than $750,000.

Jang worked 80-hour months for the to start with six months.

“I bear in mind crying at the conclusion of some months from pure exhaustion,” she stated. “I realized that my company was entirely dependent on me acquiring a way to sector myself differently and on a greater system when there ended up tens of hundreds of other Realtors out there.”

Nowadays, Jang has discovered a better perform-lifetime harmony and has outsourced numerous features of her company, which include selecting a transaction coordinator to handle paperwork and a comprehensive-time certified assistant to assist in a variety of tasks.

Making use of social media and Tv to entice shoppers

Jang mentioned her exclusive strategy to offering assisted her establish a company entirely from referrals and organic queries from sellers, prospective buyers, buyers, renters, and fellow real-estate agents. For her shoppers, Jang supplies videos, residence staging, and Instagram exposure on her account, which has 35,000 followers.

“I have hardly ever created a one cold phone, and I’ve hardly ever knocked on any doors. My business is 70{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} referral from working day 1 and 30{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} social media,” she said. “My Tv set history gave me an organic and natural system of men and women who felt they realized me, trustworthy me, and required to operate with me.”

On social media, Jang walks by way of several of the wonderful, glossy features of a household but also points to instructional information that possible customers would want to pay focus to, like ceilings that have experienced former repair service get the job done, wall corners that give clues to the issue of a home’s basis, and other issues that indicate the structural integrity of a home.

Jang also shares on social media what she does off the clock, like her overseas travel and great eating. She reported this is underrated among real-estate agents, primarily when they want to do the job with luxurious clients, lots of of whom probable want enter on great eating places and journey locations.

“It reveals men and women all the levels of who I am, how I journey, what my hobbies are, and what authentic estate seems to be like in other areas of the globe,” she claimed. “People function with persons they like and sense most linked to.”

Jang has also been equipped to use her broadcasting background to her advantage, initially with a nearby phase identified as “Lily’s Listing” on KPRC, then, immediately after that was canceled since of Hurricane Harvey, a 30-moment genuine-estate demonstrate named “Property 2 Household with Lily Jang,” where by she functions house listings as very well as interviews with loan providers, builders, inside designers, and other true-estate gurus.

Jang’s connections and knowledge in the broadcasting planet served her url up with Jerry Martin, the now retired common supervisor of KPRC. He brainstormed several authentic-estate-display strategies with Jang in advance of landing on the principle for “Lily’s Checklist” following Jang showed him a video clip sample of what she had in mind.

“I believe I closed a few transactions in the limited six months we had been on the air,” she stated. “‘Lily’s List’ was just as important as social media for me in reaching prospective consumers.”

Promoting properties in the recent marketplace

When fluctuating fascination fees and slowing demand may make other true-estate brokers anxious, Jang is not much too worried about the alter of rate. She mentioned that even though stock is lower, she’s continue to looking at numerous offers on properties with essential features, these types of as great neighborhoods and the ideal value place. Jang’s tips to those purchasing in Houston is to often order a house zoned to dependable, effectively-rated faculties.

As for her confidence in how she’ll accomplish in a tighter, a lot more-aggressive marketplace, Jang mentioned she’s happy to flip a page on the wildness that 2021 and early 2022 introduced. She stated there was an inflow of “tens of hundreds of new” serious-estate brokers who benefited from historically lower curiosity fees, which created true-estate transactions more rapidly, simpler, and additional lucrative, but now periods are a lot harder.

“When the sector shifts like this and normalizes, there is certainly a systemic exodus of brokers for the reason that not all agents are making product sales they are employed to in get to make a living,” she reported. “The Realtors who benefited from a sturdy industry are now not making as much.

“They have dues to pay out without closings, so our industry has normalized and new brokers who received into the video game through the surge of document residence gross sales failed to automatically have to have resourceful advertising and marketing abilities, business enterprise setting up, and putting in the do the job and hustle to make profits, and quite a few have to switch to a salaried job with a lot more protection.”

Jang stated she believes the authentic-estate brokers who will thrive are the ones totally invested and integrated in the industry, as opposed to all those with no a “pulse on the marketplace each and every single day.”

Bonus! Delaware Statutory Trusts Can Be Both an Anchor and Buoy Investment

Bonus! Delaware Statutory Trusts Can Be Both an Anchor and Buoy Investment

For investors currently considering a Delaware Statutory Trust investment for either their 1031 exchange or direct-cash investment, one of the first things to consider is what investment strategy should be pursued? For example, is the goal to achieve greater appreciation, even if it means investing in an asset that carries greater risk? Or rather is the long-term strategy to have steady monthly income, even if it means lower overall appreciation potential?

Sometimes, investment professionals call this the “anchor and buoy” investment theory. One of the beautiful things about Delaware Statutory Trust investments is that they can potentially provide investors the benefits of both the anchor and buoy investment strategies.

How Can a Delaware Statutory Trust Be a ‘Buoy Investment’?

A Delaware Statutory Trust is a real estate ownership structure that allows multiple investors to each hold an undivided beneficial interest in the holdings of the trust. The term “beneficial interest” means that investors hold a percentage of the ownership, and no single owner can claim exclusive ownership over any specific aspect of the real estate. The laws of DSTs allow the trust to hold title to one or more investment properties that can include commercial, multifamily, net lease, retail, office, industrial, self-storage, etc. 

To better understand how to use the anchor and buoy theory to evaluate potential DST investments, consider a multifamily building that has 500 tenants. First, while residential properties use comparable sales or “comps” to approximate valuation, multifamily properties are also valued based on the amount of net operating income (NOI) they produce. NOI is calculated by subtracting a property’s operating expenses from its gross income.

  • Gross income is derived from the sum of all sources of income for the multifamily property. While the vast majority of income comes from rent payments, there could also be ancillary sources of income, such as covered parking fees, laundry/vending income, pet rent income and even rent for storage unit access.
  • On the flip side, operating expenses are the costs required to run the multifamily property on a day-to-day basis. Although these amounts vary depending on the type of building, the line items typically will be very similar. These can include utilities, taxes, insurance, maintenance, property management fees and even legal fees.

In this example, the multifamily building has a diversified tenant base of 500 tenants who are paying rent each month. Additionally, because most multifamily assets use an annual lease, landlords have the opportunity to potentially raise rents every year. In addition, any vacancies can provide owners another opportunity to potentially raise rents when filling the vacancy. In this way, multifamily properties act like a buoy, moving and adjusting with the conditions.

While all real estate investments have some form of material risks associated with them, such as interest rate risks, vacancies, general market conditions and financing risks, many investors like assets like multifamily and self-storage because they have the potential to appreciate over time. In addition, multifamily and self-storage are considered good “buoys” to potentially hedge against inflation, because owners can hopefully raise the rents each year to help offset rising costs.

How Can a Delaware Statutory Trust Be an ‘Anchor Investment’?

So, if a multifamily building or self-storage facility are considered “buoy” DST investments, then what is an “anchor” DST investment? Many investors consider a commercial net lease type of asset as more of an anchor investment for their DST 1031 exchange investments. Net lease arrangements are where the tenant pays a portion of or all of the expenses associated with the commercial property, including taxes, insurance fees, and maintenance costs in addition to a base rent.

Net lease properties can be considered more of an anchor because instead of using NOI and market capitalization rates (cap rates) solely as a valuation measurement, most commercial net lease assets are going to additionally tie the valuation of the property with the creditworthiness of the tenant. For example, Joe’s Pizza Shop is not as creditworthy of a tenant as FedEx or Walgreens, both of which are considered investment grade tenants. Joe’s Pizza Shop can shut down, and investors are left with an empty building, which comes with the potential for expensive maintenance costs and unpaid rent.  While it is possible that FedEx or Walgreens can also shut down a location, the odds are that these multibillion-dollar public companies will continue to pay rent as they have investment-grade credit ratings by Standard and Poor’s.

In addition to the creditworthiness of the tenant, anchor investments also use the length of the lease as another important factor to take into account. For example, a FedEx distribution center with a 10-year lease is an inherently valuable asset because there are 10-full years of potential income that has a corporate guarantee on the lease to pay the landlord the predetermined amount each month. However, while this type of asset can act as an anchor over the course of many years, there is typically not an opportunity to raise rents as can be found in multifamily or self-storage facility DST investments.

How Delaware Statutory Trust Investments Blend Both Anchor/Buoy Philosophies

DST investments provide investors several ways to incorporate both anchor and buoy investment strategies by incorporating diversification into a real estate portfolio. For example, DSTs can create diversification through geography, property type and investment structure.

Geography

The beautiful thing about Delaware Statutory Trust investments is they can hold real estate assets in any state across America, helping investors target properties in specific markets they believe will deliver a desirable combination of ongoing income and potential appreciation. For example, investors might decide to invest in tax-friendly, high-growth states like Texas, Florida or North Carolina, among others.

Property Type

Delaware Statutory Trusts also allow investors to achieve the potential for greater diversification through property types as well. For example, DSTs can include a wide range of asset types, including apartments, distribution centers, medical buildings and self-storage facilities. Essentially any asset that can qualify as a “like kind” 1031 exchange property can potentially be structured as a DST.

Investment Structure

Another way DSTs help investors incorporate both anchor and buoy investment strategies is through investment structure. A good way to explain this is to recognize that while many DSTs consist of a single property, other DST investments consist of a larger portfolio of similar assets, e.g., multiple apartment complexes, self-storage facilities, office buildings or retail properties. In this way, a DST portfolio can create a “built-in” diversification component that many investors find attractive.

In conclusion, an investor could place their entire exchange proceeds into a multifamily or self-storage DST if they were seeking greater upside potential that the buoy strategy is seeking.  The downside is that if the economy were to suffer – if another pandemic or any other myriad black swan events were to happen – that investor could easily see cash flow cut in half or suspended entirely.  So, in an effort to enhance appreciation potential, the investor sacrifices the stability of income that many investors are seeking in today’s volatile environment.

However, many investors these days are achieving the goal of potential appreciation by utilizing the buoy investment strategy of multifamily and self-storage DSTs and at the same time blending in the anchor strategy in an effort to gain potential stability of income by utilizing long-term net leased DSTs with tenants such as FedEx and Walgreens.

This blended anchor and buoy combination strategy is gaining popularity as investors consider where we are in today’s economic and geopolitical environment.

To see a complete list of anchor and buoy DST properties and other real estate investment options, please visit www.kpi1031.com. And to learn more about 1031 exchange replacement properties, sign up for our webinar.

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing.  IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation.  There are material risks associated with investing in real estate securities, including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed.
Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRA.

Founder and CEO, Kay Properties and Investments, LLC

Dwight Kay is the Founder and CEO of Kay Properties and Investments LLC. Kay Properties is a national 1031 exchange investment firm. The www.kpi1031.com platform provides access to the marketplace of 1031 exchange properties, custom 1031 exchange properties only available to Kay clients, independent advice on sponsor companies, full due diligence and vetting on each 1031 exchange offering (typically 20-40 offerings) and a 1031 secondary market.