Data Collection and Income & Expense Analysis of Apartment Buildings

Data Collection and Income & Expense Analysis of Apartment Buildings

Here is the first post in many to come on analyzing residential income properties. This is directly from my course on property valuation and analysis.

Learning Objectives of this Post on Analyzing Apartment Buildings and Residential Income Properties: Data Collection and Income & Expense Analysis

  1. Identify sources of data
  2. Describe the components of an income & expense sheet
  3. Understand how to arrive at Net Operating Income (NOI) from Gross Scheduled Income (GSI)

The first step to accurately determine the market value of a real estate investment is a solid program of data collection and analysis. Each property will have its own unique considerations

All should at least begin with:

  • Property type
  • Overall condition of the improvements
  • Type of construction
  • Neighborhood analysis
  • Overall market conditions
  • Income and expense analysis
  • Legal requirements, zoning etc
  • Comparable property data

This list is broad in scope, but it’s a good foundation for the data collection plan. The data collected from the market on comparable type property will be used to determine the appropriate capitalization (CAP)  rate and make market comparisons in a later step. Unsure of what a Cap Rate is? Check out my blog post that explains everything you need to know about this powerful valuation metric.  The next step is the actual collection of the data.

Data Sources

The data required for the analysis is obtained from many of the same sources as the information used in residential sales.

  • Owners records
  • Multiple Listing Service (MLS), Costar, Loopnet, Commercial Agents & Property Owners, Public records
  • Census data
  • Chamber of Commerce
  • Local Housing Authority
  • Appraisers
  • Trade associations
  • Local Council of Governments
  • Tax assessment records

This should give you an idea of a few of the possible sources of data and the steps to begin the data collection process. Once the data has been collected the next step is the analysis of the data.

The Operating Report (Profit and Loss Statement)

When analyzing a real estate investment, we begin with an existing operating statement, also known as a profit and loss statement. The operating report will consist of both income and expense items attributable to the property. In the first step of the analysis, we will only be concerned with the cash income and expense of the property. We will consider depreciation and other non-cash benefits in a subsequent calculation.

Gross Scheduled Income

The gross scheduled income is the amount of money that the property would produce on an annual basis if it were fully occupied. Included in gross scheduled income would be any income attributable to the property from non-rent sources.

What types of sources can be included for determining gross scheduled income?

These sources could include income from laundry and vending machines, parking and storage fees, as well as other owner operated concessions.

When analyzing the gross income, consideration is given not only to the existing rents being charged, called contract or current rent, but also economic or market rent, which is the rent the property would command if it were available for rent in the current market. An adjustment can be made to the gross income if the market indicates that market rent differs from the actual rent. If such an adjustment is made, that should be plainly noted on the operating statement (see loss to lease).

 

Vacancy & Collection Losses and Effective Gross Income

The chief component in the calculation of effective gross income is the vacancy and collection loss rate. Most properties are not expected to remain fully rented for the entire period of ownership. When a tenant vacates, often there is at least some rental income lost during the turn over period due to repair or remodeling time. In addition to this consideration, one must face the reality that there may be a situation where a tenant becomes unable or unwilling to pay rent as agreed. In this circumstance there will be some rental income lost.

The vacancy and collection loss is usually expressed as a percentage of the gross annual rental income. There are several generally accepted methods for determining the amount of the vacancy and collection loss

  •  Historical data on the subject property
  • Published figures for the community
  • Market analysis

Other places to get historical operating data is

None of these things by themselves will probably give you a 100% complete picture but combining different resources the picture will become much clearer.

Historical data and market analysis are perhaps the most accurate, because typically published figures for the community are an average, and may not be representative of the property you are analyzing. Once the appropriate rate has been developed, the loss is subtracted from Gross Scheduled Income to derive at Effective Gross Income.

Example:
Gross Scheduled Income $12,000
Vacancy and Collection Loss (5%)  (600)
Effective Gross Income   $11,400

Gross Operating Income

To figure the gross operating income you go through the following steps:

Gross Scheduled Income
– Vacancy & Credit Loss
= Effective Gross Income
+ All Other Income (garage rent, laundry income, vending, etc)
= Gross Operating Income

The figure derived from this process is what we will call rental income. This is the actual income received after taking into account vacancy and credit loss against potential income.

Other income can come from a variety of sources. In apartments, it is quite often laundry, but it could be rental on furniture for furnished apartments, garages, etc.

The resulting figure of gross operating income is all the income left over after subtracting out the above mentioned items. It is your actual income in hand before expenses. Therefore it is a very important number.

Operating Expenses

The next step in the analysis process is to determine the total operating expenses for the property. Like income, expenses will be analyzed on an annual basis. The investor will do a detailed analysis of the expenses of a given property, so it benefits the practitioner to have done a thorough analysis in the beginning.

It is important to carefully analyze all categories of expenses to accurately portray the financial condition of the property. There are different categories of expenses, depending upon the type of property you will be analyzing, however all expenses are segregated into two basic categories, fixed expenses and variable expenses.

What are three fixed expenses and 10 variable expenses?

Fixed Expenses

A list of typical fixed expense categories will include

  •  Property taxes
  • Insurance
  • Landscaping and service contracts
  • Any expense that does not change from month to month

What determines a fixed expense is the fact that the expense will not vary in response to changing levels of occupancy.

Do not include mortgages as part of operating expenses!Mortgages are not part of operating expenses and are categorized elsewhere.

This group of expenses is not difficult to document for your analysis, but be careful to consider the fact that these expenses may not be the same for a new owner; i.e., the building insurance may go up and most likely the real estate property tax may be reassessed upon transfer.

Real Estate taxes can be one of the largest expenses so make sure to calculate any new tax increase or decrease in your analysis.

Variable Expenses

This category of expenses is much longer, and categories to consider will vary depending on the type and size of the property under analysis. This category will include all of the expenses necessary to maintain the income stream of the property and to provide agreed upon services to the tenant. To attempt a comprehensive list of all expense categories for all types of properties might be impossible and, certainly, is beyond the scope of our study. We will discuss the more common types of expenses in some detail, remembering that each property has unique characteristics and may include its own unique expense categories.

Off-Site Management

Many properties will be managed completely by off-site personnel. The cost of off-site management is determined and subtracted as an expense of operation. It should be noted that a management expense is a valid deduction from income even if the owner is managing the property. There are many firms specializing in this field; they usually charge between 4% and 10% of the rental amount.

 Payroll On-Site Personnel

Resident management is used when the day to day activities of the property require constant supervision. A resident manager is sometimes given free or reduced rent. If that is the case, you must include the managers unit rent in gross scheduled income, then enter the amount of free rent as an expense. In California, if a property has 16 or more units it is the law to have a resident manager on site.

 Expenses/Benefits

This would be for other management costs. For instance, office and administrative expense, performance bonuses paid to an on-site manager, and any health insurance or retirement plan contributions would be listed here.

Taxes – Workers’ Compensation

Whenever there is an employee, there are various taxes the employer is responsible for. Among these are: Social security tax, unemployment tax, as well as local, state and federal income taxes. These taxes are payable by the employer, and in addition, the employer is required to withhold some amount from the employee’s pay and forward it to the IRS.

Repairs and Maintenance

This is the total amount of repairs and maintenance necessary for the year. This would not include any money spent on capital improvements. A capital improvement is any improvement which substantially increases the useful life of the property. If you find a property which has not had any maintenance expense in the recent past, you will probably find a trade off in the overall condition of the property.

Utilities

This is probably the most difficult portion of the operating statement to complete accurately. This information is most easily obtained from the owner. NOTE: If the owner is paying the utility bills and is then reimbursed by the tenant, the full utility cost will be listed here and the amount reimbursed to the owner would be listed as other income (this is referred to as R.U.B.).

Accounting and Legal

This is the amount for the bookkeeping required on the property. It will include any amounts paid for payroll reporting or for monthly profit and loss statements. This should also include any legal expenses associated with evictions, drafting of leases, etc.

Advertising, Licenses and Permits

Many larger properties will have ongoing advertising expenses. At the very least there will be some cost at each vacancy. This includes the amount spent for advertising, as well as any licenses or permit charges; e.g., city business license, pool inspections, and/or housing code inspections.

Supplies

This might include supplies for the vendors mentioned previously: Bug spray, batteries for smoke detectors etc.

Miscellaneous

That’s right! There should always be a category for those expenses too insignificant to warrant their own category. This would include any additional expenses which were not accounted for elsewhere in the analysis.

 Contract Services

These are services which are supplied by outside vendors not already accounted for under fixed expense categories. These are additional services such as maintenance contracts, design services, appraisals and as many others as necessary.

Here is a list of the more common expenses in alphabetical order. Some of them we list without explanation because they are rather obvious:

  • Accounting and Legal expense
  • Advertising
  • Gas
  • Insurance
  • Licenses and permits
  • Miscellaneous and other expenses Property Insurance
  • (Property) Management
  • Payroll and Workers Compensation
  • Real Property Taxes
  • Repairs and Maintenance
  • Services
  • Sewer
  • Supplies
  • Telephone
  • Utilities (Such as the electric bill)
  • Water

Total Operating Expenses

This is the total of the expenses calculated. This is not to include vacancy or credit losses. Remember that what we are attempting is to give as accurate a picture as possible of the property’s financial condition. The property’s value will be dependent upon the ability to produce income, so it is important to be as accurate as possible in estimating both income and expenses.
The total operating expenses are now subtracted from the effective gross income.

Example:
Effective Gross Income $11,400
Total Operating Expenses (4,500)
Net Operating Income $ 6,900

Net Operating Income (NOI)

The net income that a property is capable of producing will be one of the first indicators of the worth of an investment. Later when we begin to apply the capitalization rate to the property, the NOI will be used to estimate total investment value.

The calculation of the net operating income does not take into consideration the effect of any potential financing of the property. This may seem odd at first, but in consideration, it will not take long to realize that the property should have a value that is completely independent of any financing that an investor might use to acquire that property.

Measure NOI correctly in order to properly value property

NOI is arrived at as follows:

Gross Operating Income
– Operating Expenses
– Capital Expenditures
Net Operating Income

Sales Proceeds

The sales proceeds that come from divesting yourself of a property are as follows:

Sales Price
– Selling Expenses
= Net Sales Proceeds
– Adjusted Basis _
= Taxable Gain
– Depreciation _
= Capital Gain / Loss

 

Data Analysis

Having discussed the income and expense analysis in detail, we will concentrate on the balance of the data and other considerations. The property will be analyzed for the following:

  •  Income quantity
  • Income quality
  • Income durability
  • Special risks

All of these considerations will be compared to other investments available in order to determine the appropriate rate of return and measures of value for the property being analyzed.

Test Your Knowledge: Data Collection and Income & Expense Analysis Questions

1. What is the chief component in the calculation of effective gross income?

2. How do you come to Effective Gross Income?

3. Circle the following that are considered an operating expense:

Property taxes Insurance The owner’s income taxes
Mortgage debt service Payroll taxes Utilities
Property maintenance

4. How do you arrive at NOI from Gross Operating Income

5. How do you arrive at the capital gain / loss from the sales price?

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The Foundations of Commercial Realty

The Foundations of Commercial Realty

Foundations of CRE

Foundations of Commercial Real Estate: Players & Properties

Commercial Real Estate

If you think about it, there really are only two facets to dealing in property; the people, and the properties.  Everything falls into or between these.  So let’s begin your entrance into the world of commercial real estate (CRE) and take a deeper look at both of categories.

 

Many people who are commercial developers have a background in brokerage. While there are many similarities, the largest key difference between the two is that emotions play a much smaller role in commercial real estate as compared to residential real estate.  Buyers, sellers, tenants & landlords are much more motivated by profit than by individual preferences.  Of course, commercial real estate transactions are often much more complex and take longer to complete as well.

 

Now, let’s consider the major players involved in the commercial real estate industry:

 

The Major Players

Commercial Real Estate Key Players

Real Estate Brokers

As anywhere else, the job of the broker here is to find and facilitate a transaction between a buyer and a seller.  Most who play this role in CRE call themselves brokers, however, this is not necessarily 100% accurate as some people hold a broker’s license, while others hold a salesperson license.  Brokers working for buyers, more often than not, need to find properties suitable for purchase outside existing MLS listings.  Whereas brokers working to sell a property need to target a high niche segment of buyers and investors.  As commercial real estate transactions are quite complex, brokers may or may not be involved in the entire spectrum of the transaction.  Additionally, they may or may not refer other professionals during the course of the transaction.

The key thing for residential realtors to realize is, that their previous buyers may prefer to deal with or through them, rather than a commercial real estate broker who they don’t know.  Thus, it is highly recommended for residential realtors to joint venture with or refer to a commercial broker who has the experience….. that their clients can be served without losing business or relationship value.  (Let us know if you are looking for tips on evaluating the right commercial real estate brokerage to associate with and how to negotiate with them, we will have an article on that soon.

Plus, it is crucial to note that the Code of Ethics laid out by San Diego’s Association of Realtors ® (SDAR) recommends against brokers practicing beyond their expertise.  For more details, refer to their publication here.

 

Lenders

As with any real estate transaction, finance needs to be secured.  While most buyers have their own source of financing, the broker needs to have relationships with various types of lenders; construction, acquisition, equity and permanent.  These relationships are useful during preliminary valuations and can also be crucial in enabling financing of the final transaction.

Just like most commercial real estate players, it’s important to have a lender who specializes in the product type you are dealing with.

 

Architects, Engineers & Planners

During development and redevelopment (and sometimes even leasing) buyers may need the assistance of any of these professionals, so it is important that a broker has developed such relationships beforehand to enable a smooth transaction.

 

Accountants

As the profit motive is significantly larger in commercial real estate deals, buyers and sellers will often want financial and tax advice.  This is usually done by consulting with their own accountants and financial advisors, which is recommended, however, when appropriate, it can be helpful for the broker to be involved in these transactions so the broker can better advise on the real estate portion of the transaction based on the items the principal financial advisor recommends.

Attorneys

There is no doubt that legal advice will be needed in any commercial real estate transaction and as a broker, unless you hold a license in law, you are not permitted to provide that advice or draft legal drafts and deeds.  It is, again, important that the commercial real estate broker has established relations with competent lawyers who can facilitate transactions rather than killing them.  Are you looking for such attorneys to work with?  Let us know and we would have happy to provide references.

Appraisers

Sellers want appraisers’ valuations in order to establish a selling price.  Buyers pay for appraisers as mandated by lenders before they extend the loan in order to purchase the property.  Appraisers need to be not only specialized in commercial real estate, but also in the type of commercial real estate as the property under consideration.

 

Others

Depending on the type of transaction, various other professionals may need to be involved.  This will change from time to time and here are a few scenarios elucidating the requirement of additional outsider help:

  • Rezoning
  • Historical
  • Traffic
  • Environmental
  • Business Brokerage

 

This brings us to the closure of this part of the article.  Do you know any of these professionals who you would like to recommend?  Are you looking for any such professional for your transactions in San Diego Commercial Real Estate?  Or do you just have some questions?  Drop a comment and share; we would love to hear from you.

 

San Diego Commercial Property Types

San Diego Commercial Property Types

Commercial Properties

As mentioned already, commercial real estate transactions are much more complex than residential real estate ones.  As a result, brokers often need to be specialized within specific types of properties of commercial real estate.  However, if the geography is a small market, it is possible for the broker to service most segments within commercial real estate.  But in more larger markets, including San Diego Commercial Real Estate, it is very difficult to know the market for every product type. Make sure the broker you are working with has specific experience in the type of property that you are interested in.

 

While there are many types of properties with the San Diego Commercial Real Estate Industry, the major ones are ;

 

  • Multi-Family 5+ Units (more on this later)

  • Office

  • Industrial

  • Retail

  • Land

 

Some of the smaller segments include hospitality, storage, and multifamily, which is last in this list, but the largest within this category of sub-segments.  Interesting to note that Gabhart Real Estate Advisors has experience within most of these segments in San Diego!

 

Now let’s consider each major type of property within the commercial real estate segment:

Office

Each type of user has their own requirements.  As a broker, it’s important to understand the factors that tenants would consider important for their business. What is important for a law firm is not likely to be important for an IT startup, and so forth. While there are many sub-categories (converted homes, low-rise, mid-rise, high-rise, specialty etc.) within this category, most of San Diego’s office properties fall under the following:

 

Office Showroom

Footfall, window and internal display & layout are the more important variables in this type of property.  In San Diego Office, showrooms often fall within prime localities in order to attract the most customers.

 

Office  Warehouse

As the name suggests, a space suitable for storage of goods (depending on the type of goods) as well as administrative and sales teams. Location, price, and usability are often the most considered points in such transactions.  Certain suburbs of San Diego are well known for office warehouses.

 

Independent Warehouse 

Security, storage capabilities, bonded, climate control is some factors to consider. Most of San Diego’s warehouses are located in suburban areas around the 13 cities.

 

Manufacturing 

Here, often legal matters matter the most.  Free trade zones, licensing for light and heavy manufacturing are of prime importance.  Availability of labor nearby is another key consideration.  Free Trade Zones # 153 in the San Diego / Tijuana area is very popular for various manufacturing concerns for precisely these reasons.

 

Self Storage 

Is another type of industrial product

 

Apart from the factors mentioned in various types of office spaces above, there are various more which apply to some or all such properties.  They are:

 

·         Labor pool availability

·         Proximity to customers

·         Transportation access

·         Price

·         Space configuration

·         Ceiling Height

·         Floor Load

·         Utilities

·         Docking area

·         Sprinkler systems

·         Zoning laws

·         Govt. Incentives (local, state & national)

·         Buy vs. Lease

 

Additional resources recommended by National Association of Realtors ® is available at the website of Society of Industrial and Office Realtors ® www.sior.com and the CCIM Institute www.ccim.com

 

Retail

Again, this is a wider segment than most may imagine and carries various subcategories of properties within the retail real estate segment.  They are:

Single User 

These are used by destination orientated retailers such as banks, retail chains or even grocery shops.

 

Credit Tenants 

When retail is being financed, the tenants business strength is reviewed for considering the tenant’s lease as a security for a loan. Financially stronger tenants in San Diego (and other places) are often granted better terms.  However, these terms may change during the course of tenancy based on the business outcomes of the tenant.

 

Big Box 

Big Box properties in San Diego are limited to large national or International companies.  These are companies that require 25,000 + sq. ft. of space, sometimes even more than 50,000 sq. ft.

 

Small Strip Center 

There is no death of San Diego’s small strip centers.  These are buildings which contain numerous mom and pop shops i.e. retail outlets which are typically owned and operated by the same person.

 

Neighborhood Shopping Center 

Every San Diego neighborhood has one as each such center services within 1-3 mile radius.  There is always several anchor tenants, which vary from cleaners, nail shops, grocery stores et al.  Recent trends observed by the National Association of Realtors ® notes that drug stores used to be a part of such shopping centers, however increasingly they have become stand-alone shops near the parking lot, and as such, are known as an “outparcel”.

 

Community Shopping Center

These buildings service a larger community than neighborhood shopping centers.  They typically service up to a 10-mile radius and house a major retailer such as Walmart, or Movie Theaters etc.  Fashion Valley & Westfield UTC Mall are a few that fit this category.

 

Regional Shopping Center

As implied, these buildings service a wider region and are often known as malls even though they need not be an enclosed space.  Tenants include a variety of regional & national tenants including boutique stores.  The size of such stores ranges between 400,000 sq. ft. and 2 million sq ft.  Beyond that, and they are known as super regional.  However, it is not just the size of the mall that determines if a mall is a super regional shopping center, but also the tenant mix and sales per square foot to ensure that the building is actually popular amongst customers.

 

Specialty Center

These centers vary in size and objective.  They can house certain types of décor such as antique or be geared towards a certain segment such as parents by selling just baby related items.  Belmont Park is an example of a San Diego specialty center, focusing on wearable and accessories for beachgoers.  Surfs up, dude!

San Diego Land for Sale

Land Sales

Land

This is where monuments are made.  Realtors ® focusing on land deals are often (or should be) Accredited Land Consultants, which is a designation imparted by the Realtors Land Institute.  This is a highly-specialized niche within commercial real estate as planners, architects, engineers, developers, and brokers are all often involved.  Some of the key considerations in San Diego’s Land transactions are:

 

·         Zoning

·         Utilities

·         Accessibility

·         Suitable Soil

·         Nearby Amenities


Curtis Gabhart and Gabhart Investments, Inc – 2018 All Rights Reserved
The information presented in this article represents the opinions of the author and does not necessarily reflect the opinions of Gabhart Investments, Inc. The material contained in articles that appear on gabhartinvestments.com is not intended to provide legal, tax or other professional advice or to substitute for the proper professional advice and/or commercial real estate due diligence. We urge you to consult a licensed real estate broker, attorney, tax professional or other appropriate professionals before taking any action in regard to matters discussed in any article or posting. The posting of an article and of any link back to the author and/or the author’s company does not constitute an endorsement or recommendation of the author’s products or services.

 

80/20 Rule, Real Estate, and the Great Thing About America

80/20 Rule, Real Estate, and the Great Thing About America

Why Am I Not Succeeding in Real Estate?

While I was scanning the forum that I post on frequently I came across a thread that asked some important questions like:

  1. What is the amount of net cash flow of debt-free income properties [units] nationally divided by the number of individual private investors=what amount? That number would be ROI or cap rate.
  2. Do the similar math for total residential real estate commissions earned nationally divided by the number of licensed agents = what amount? Again, either some assumptions or raw data might be used.
  3. Take the ‘average profit/gain’  from residential sales nationally by investors both seasoned and newbies who either do wholesale flips or forced appreciation thru retailing. The ‘newbies’ would include those who have not done any deals yet.
Pareto Principle

Pareto Principle

In another post I came across, someone commented on the 80/20 rule (Pareto principle) which in summary states that, for many events, roughly 80% of the effects come from 20% of the causes. Personally, I like this rule, whether it is exact or not the principal is good. 80% comes from the 20% which helps keep me focused on the 20%.

Another posted that they read 95% of would be real estate investors lose money on their first deal then quit. Similarly, think about how many small businesses go out of business in the within 1, 2, 5 years of operation.

So after some more bantering about exact numbers and the 80/20 rule really being a 96/4 rule or a 60/40 rule my response was this.

Whatever % you want to use, the great thing about America is that it is possible to be in that top 20% or 2% or…

For me some important things I take into account when looking at a venture

  1. Can someone else do it and how did they do it?
  2. Can I duplicate what they are doing through hard work, perseverance and a little luck sprinkled in?
  3. In what time period can this happen?
  4. What is wrong with it and why WONT it work? (I keep on looking for this and until I find it I keep going. If I do find it, I’ll see if there is a solution and if not, I move on)
  5. I don’t want it to be easy because things that are easy that everyone can do get compensated less. i.e. digging ditches vs. finish carpenter.

One of the things that got me interested in real estate is that the potential is so broad. (I also did some MLM when I was younger and was able to make enough to make payments on the first new car I ever bought) 

You can be a mom & pop investor who buys a house here or there while working and have a great retirement. Or you can become Sam Zell who started buying student housing in Chicago while going to college who then was brave enough to acquire lot’s of property during a downturn while others were selling.

Real Estate can be your business, or just an investment vehicle. I would say the ratio of success and failure really depends on how soon and quick you try to make it your business.

People who try to immediately make it there business without any other means of income I believe exponentially increase there chances of failure. They fail like the majority of business’s they become under-capitalized and can not meet their overhead obligations.

They usually have no experience and lack of money – 2 things that are most often the cause of failures for businesses.

Real estate really is a simple business but it takes a tremendous amount of effort and hard work (like most business). What I find happens is everyone wants to be a millionaire…. Until 5pm hit’s and they want to go home or the alarm goes off at 4am and they decide to show up at 9am, or until it doesn’t work out exactly how they plan (hint – it NEVER does).

You get all these gurus and infomercials talking about how easy it is and you need NO money and NO credit to succeed. Well that may be true just like you can start a company that then becomes Google (obviously the odds are better than starting a Google but you should get the point).

Well there is my rant that really gave no answers to your numbers. The reasons for many of the failures are stated above.

p.s. Here is a question for your question… Do you fail when you do not accomplish your goal or when you give up and stop trying?

 

For the most updated information & news on real estate & Gabhart Investments go to our Facebook & Twitter pages


Curtis Gabhart and Gabhart Investments, Inc – 2018 All Rights Reserved
The information presented in this article represents the opinions of the author and does not necessarily reflect the opinions of Gabhart Investments, Inc. The material contained in articles that appear on gabhartinvestments.com is not intended to provide legal, tax or other professional advice or to substitute for the proper professional advice and/or commercial real estate due diligence. We urge you to consult a licensed real estate broker, attorney, tax professional or other appropriate professionals before taking any action in regard to matters discussed in any article or posting. The posting of an article and of any link back to the author and/or the author’s company does not constitute an endorsement or recommendation of the author’s products or services.
Gratitude….

Gratitude….

Is it just me or does this election seems to be pretty crazy and very divisive?
A conversation today on Facebook about how bad our system is got me thinking….. Are things so bad? Really?
Don’t we live in a country that even the poorest are in the top 1% of the world?
We live in a time that everyone has food and shelter if he or she chooses…. Remember that A third of the world lives on less than $2 per day.happy
Sure we can complain about everything that is wrong with this country and this world, or we can choose to be grateful for a wonderful life IF WE CHOOSE to be grateful. Because ultimately it is what’s in your head and your perceptions that create your reality.

I just want to say I am grateful for my beautiful daughters who can go outside and are safe, that they know how much they are loved. I appreciate my family (the crazy ones and all) and the friends I have met over the years. Moreover, I look forward to meeting so many more friends.
So yes, our political system and the world can seem like a mess if you let the news consume you or we can focus on being grateful for what we do have and strive to continue to improve and learn.

We get so caught up with all the negative news that we forget that we are the ones who determine our destiny. I want you to know that I am grateful for everything I have and hope this message can take our focus off what’s wrong with the world to what is right and what can we be grateful for? Money does not bring happiness, gratitude does. Here is a great article on being happy.

http://www.inc.com/jeff-haden/want-to-be-a-lot-happier-science-says-do-any-one-of-these-9-things.html

Block Party + Open House + Charity Event + Bon Voyage Party = Bon Voyage 4 A Cause

Block Party + Open House + Charity Event + Bon Voyage Party = Bon Voyage 4 A Cause

Bon Voyage 4 A Cause

A couple weeks ago we put on a great event for a new listing we have in Del Sur.

Had a great block party and raised money for charity in the process while promoting this new listing.