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Home buyers need to earn $47,000 more than in 2020

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The income needed to comfortably afford a home is up 80% since 2020, while median income has risen 23% in that time Home shoppers today need to make more than $106,000 to comfortably afford a home, a new Zillow® analysis finds. That is 80% more than in January 2020, showing how the math has changed for hopeful buyers, who are more often partnering with friends and family or “house hacking” their way to homeownership. In 2020, a household earning $59,000 annually could comfortably afford the monthly mortgage on a typical U.S. home, spending no more than 30% of its income with a 10% down payment. That was below the U.S. median income of about $66,000, meaning more than half of American households had the financial means to afford homeownership. Now, the roughly $106,500 needed to comfortably afford a typical home is well above what a typical U.S. household earns each year, estimated at about $81,000.1 “Housing costs have soared over the past four years as drastic hikes in home prices, mortgage rates and rent growth far outpaced wage gains,” said Orphe Divounguy, a senior economist at Zillow. “Buyers are getting creative to make a purchase pencil out, and long-distance movers are targeting less expensive and less competitive metros. Mortgage rates easing down has helped some, but the key to improving affordability long term is to build more homes.” A monthly mortgage payment on a typical U.S. home has nearly doubled since January 2020, up 96.4% to $2,188 (assuming a 10% down payment). Home values have risen 42.4% in that time, with the typical U.S. home now worth about $343,000. Mortgage rates ended January 2020 near 3.5%, keeping the cost of a home affordable for most households that could manage the down payment. At the time of this analysis, mortgage rates were about 6.6%. For a household making the median income, it would take almost 8.5 years before they would have enough saved to put 10% down on a typical U.S. home, about a year longer than it would have in 2020.2 It’s no wonder, then, that half of first-time buyers say at least part of their down payment came from a gift or loan from family or friends. With the cost of a mortgage rising, most millennial and Gen Z buyers say “house hacking” — the ability to rent out all or part of a home for extra cash — is very or extremely important. Co-buying with a friend or relative is another way to help with affordability, something 21% of last year’s buyers reported doing. Metro areas where a buyer could comfortably afford a typical home with the lowest income are Pittsburgh ($58,232 income needed to afford a home), Memphis ($69,976), Cleveland ($70,810), New Orleans ($74,048) and Birmingham ($74,338). The only major metros where a typical home is affordable to a household making the median income are Pittsburgh, St. Louis and Detroit. There are seven markets among the major metros where a household’s income must be $200,000 or more to comfortably afford a typical home. The top four are in California: San Jose ($454,296), San Francisco ($339,864), Los Angeles ($279,250) and San Diego ($273,613). Seattle ($213,984), the New York City metro area ($213,615) and Boston ($205,253) complete the list. To help find a home within budget, home shoppers on Zillow can filter search results by monthly cost instead of by list price. The tool simplifies the complex calculation of translating a home’s list price into the monthly cost, factoring in the latest mortgage rates. MetropolitanArea* SizeRank Income Neededto Afford aMortgage,January 2024 Change inNeededIncome SinceJanuary 2020 Zillow HomeValue Index(ZHVI),January20243 MonthlyMortgagePayment,10% Down4 Years toSave a10%DownPayment Pittsburgh, PA 27 $58,232 $23,675 $201,487 $1,286 5.3 Memphis, TN 43 $69,976 $31,717 $230,807 $1,473 6.9 Cleveland, OH 34 $70,810 $30,227 $211,712 $1,351 6.0 New Orleans, LA 46 $74,048 $19,203 $232,870 $1,486 7.0 Birmingham, AL 50 $74,338 $31,875 $246,805 $1,575 6.7 Oklahoma City, OK 41 $74,732 $31,057 $226,048 $1,442 6.3 Detroit, MI 14 $75,662 $31,124 $236,025 $1,506 6.1 Buffalo, NY 49 $76,884 $34,744 $242,435 $1,547 6.5 St. Louis, MO 21 $76,895 $31,880 $238,231 $1,520 5.9 Louisville, KY 45 $77,450 $31,185 $243,810 $1,556 6.8 Indianapolis, IN 33 $82,037 $38,150 $267,301 $1,706 6.6 Cincinnati, OH 28 $86,027 $38,050 $267,423 $1,706 6.8 Kansas City, MO 31 $92,896 $40,742 $289,290 $1,846 7.2 Houston, TX 5 $95,374 $39,779 $300,955 $1,920 7.5 San Antonio, TX 24 $95,767 $38,307 $283,161 $1,807 7.5 Columbus, OH 32 $95,821 $43,405 $297,637 $1,899 7.3 Milwaukee, WI 40 $100,822 $42,613 $321,037 $2,049 8.5 Virginia Beach, VA 37 $102,703 $43,989 $332,820 $2,124 8.2 Chicago, IL 3 $104,757 $39,716 $300,906 $1,920 6.7 Richmond, VA 44 $106,170 $47,930 $349,558 $2,231 7.9 United States 0 $106,536 $47,490 $342,941 $2,188 8.4 Philadelphia, PA 7 $109,257 $47,837 $343,102 $2,189 7.5 Jacksonville, FL 39 $109,271 $51,617 $348,665 $2,225 8.2 Charlotte, NC 23 $111,051 $55,239 $368,712 $2,353 9.2 Hartford, CT 48 $114,109 $52,114 $334,712 $2,136 7.3 Minneapolis, MN 16 $114,344 $41,867 $355,511 $2,269 7.3 Baltimore, MD 20 $114,348 $44,063 $367,861 $2,347 7.6 Atlanta, GA 9 $115,430 $55,989 $370,548 $2,364 8.0 Tampa, FL 18 $116,329 $58,577 $370,474 $2,364 9.8 Las Vegas, NV 30 $119,529 $54,172 $407,516 $2,600 10.6 Dallas, TX 4 $121,398 $53,679 $366,690 $2,340 8.3 Orlando, FL 22 $121,418 $58,140 $386,687 $2,467 9.9 Nashville, TN 36 $128,535 $59,508 $425,827 $2,717 10.1 Raleigh, NC 42 $130,472 $62,410 $430,562 $2,747 8.7 Phoenix, AZ 11 $131,322 $65,017 $447,074 $2,853 9.9 Providence, RI 38 $142,928 $65,387 $449,025 $2,865 10.1 Austin, TX 29 $149,267 $65,144 $451,322 $2,880 8.8 Miami, FL 8 $151,163 $74,834 $472,970 $3,018 12.3 Salt Lake City, UT 47 $154,455 $72,592 $523,832 $3,343 10.6 Portland, OR 25 $161,624 $65,664 $528,724 $3,374 11.0 Washington, DC 6 $166,551 $64,078 $539,116 $3,440 8.2 Sacramento, CA 26 $172,261 $69,908 $559,243 $3,569 11.6 Denver, CO 19 $172,704 $71,338 $566,692 $3,616 10.7 Riverside, CA 13 $173,375 $81,676 $563,468 $3,595 12.6 Boston, MA 10 $205,253 $86,967 $650,890 $4,153 11.6 New York, NY 1 $213,615 $78,696 $627,944 $4,007 12.9 Seattle, WA 15 $213,984 $94,163 $697,824 $4,453 12.2 San Diego, CA 17 $273,613 $131,018 $902,199 $5,757 16.9 Los Angeles, CA 2 $279,250 $121,457 $918,247 $5,859 19.4 San Francisco, CA 12 $339,864 $119,614 $1,104,853 $7,050 16.0 San Jose, CA 35 $454,296 $191,071 $1,493,255 $9,528 18.8 *Table ordered by income needed to afford a mortgage in January 2024. 1 Median household income is taken from the American Community Survey (ACS) through 2022. Present-day estimates combine changes in the Employment Cost Index provided by the Bureau of Labor Statistics to forecast current median

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Quinn Residences

Purposefully Built for Rent By Carole VanSickle Ellis It was a very happy Valentine’s Day in February 2020 when Quinn Residences closed on its first project, a 93-home community in Raleigh, North Carolina. The company had big plans for the townhome community, including a shift from the for-sale community it had been to something that was still emerging as a distinct industry in early 2020: a purpose-built community of single-family homes for rent. The community consisted of 13 completed homes and room for another 80, so things were going to take off fast. It was an exciting time, recalled Quinn’s chief executive officer, Richard Ross. “We felt (and still believe today) there is a really big opportunity to build a best-in-class operating platform that gives people a truly institutional experience that just makes living easier, safer, and more accessible for people,” Ross said. “At that time, no one had really done a great job of utilizing technology and the advantages of the institutional experience for a community consisting entirely of rentals.” The fledgling company dove into the project, but just one month later, a global pandemic changed everything. Of course, said Ross, that community and the ones that came after ended up being just what residents wanted and needed as lockdowns began and an increasing portion of the population realized they needed more living space and fewer “shared walls” in the era of COVID-19. “Starting a new business is always a little uncertain, but we knew we had a very solid business plan,” Ross said. “It turned out even in the middle of a pandemic, we were offering exactly what people wanted and needed: a place of their own where they could find quality, opportunity, community, and a high level of service.” From that point on, Quinn Residences has not slowed down. Just four years later, the company boasts 38 communities comprised of more than 5,000 homes spread throughout the southeast from Florida to North Carolina and in various stages of development. At present, fully 1,900 homes are completed and operating across 17 communities. Recently, Quinn’s first community, Houndswood Village, was featured on Market Place Morning Report in July 2023, showcasing the fact that it is dedicated to families that love their pets. Every home offers amenities tailored to the needs of a loving pet owner, including phone-controlled locks that let dog walkers inside without permitting access to the rest of the house, scratch-resistant wooden floors, and even a special “dog cubby” under the stairwell with room for a dog bed, water bowl, and a little bit of canine décor. Of course, the community also offers a dog park, dog-washing station/pet spa, and plenty of neighbors with furry friends. “Houndswood, like all of our communities, is modern, energy-efficient, and offers homes with a two-car garage, private backyard, and office work area,” observed Colleen Yeager, chief operating officer at Quinn. Although Houndswood is the only Quinn Residences community with such a distinctly “furry friends” theme, all Quinn communities are designed with community, eco-friendliness, and high-caliber service in mind, she added, noting, “Most of our communities have or will have a dog park, playground, and greenspace, [while] larger communities will provide a swimming pool and clubhouse facilities.” “Our homes are brand-new, offer smart-home technology, and are designed to offer residents a no-maintenance lifestyle with outstanding customer service,” said Ross. He continued, “A large portion of the renting population today is renting by choice rather than necessity, and that means offering flexibility and low- or no-maintenance options is a huge driver in this business.” Quinn offers app-based service and maintenance request options as well as lawn maintenance. “We want to build not just homes, but actual communities that enrich people’s lives,” said James Howley, chief investment officer at Quinn. “People are raising families and making cherished memories in our communities, and they are doing it while paying reasonable rates on places they can be proud to call home.” A Permanent Shift for the Better Historically, renting in the United States has been viewed solely as a steppingstone to homeownership. As recently as 1981, academics like Allan Heskin, professor emeritus in the University of California Los Angeles Department of Urban Planning, were publishing research stating unequivocally, “Being a tenant has never been part of the ‘American Dream’” and “Tenant’s immediate interests seem to lie in opposition to those with property” (International Journal of Urban & Regional Research, July 1981). Just four decades later, however, Quinn Residences leadership finds this verbiage no longer describes the majority of the renting population. “The preference for renting is going to be permanent [for this generation],” stated Ross. “From what we have learned since our inception in 2020, a third of our residents will eventually move out and buy a home when they are able.” He went on to say these residents are able to save money for that down payment in part because Quinn communities tend to be between 40% and 50% less expensive than owning a comparable property in the same area of the country and the company also diligently reports “positive credit,” meaning rent payments made on time. This helps residents improve credit scores over time. For this group, renting from Quinn Residences is a solid step on the path to homeownership. However, the remaining two-thirds of Quinn’s renting population are what Ross refers to as “renters-by-choice.” They are not on a path to homeownership because they do not choose to be, but they are choosey about where they rent. Ross explained, “These people want the flexibility of renting, the bells and whistles that come with brand-new homes, the no-maintenance lifestyle, the eco-friendliness, and the community that is created when people are not moving out every year but staying for extended periods of time. The American Dream is changing for a substantial percentage of the population, and it is not necessarily buying a house, living in it for 30 years, and then cashing out anymore.” Yeager noted Quinn’s communities are designed to foster the elements

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Detroit, Michigan

The “Motor City” is Coming Back for More By Carole VanSickle Ellis At the end of 2023, Detroit, Michigan, was enjoying some unseasonably warm weather thanks to a “no-snow December” that posted high temperatures in the 40s and about one-tenth of an inch of snow for the Motor City (vs. “normal” December temperatures around 30° Fahrenheit and snowfalls of more than 10 inches). Maybe it was the real estate market. Detroit’s housing prices have been significantly hotter than usual – just like the weather. “Detroit raced past Miami as the fastest-appreciating housing market,” gushed the New York Post in early January 2024. Miami spent 16 months in the top spot, but fell in November, CoreLogic reported, thanks to Detroit’s 8.7% year-over-year appreciation (vs. 8.3% in Miami). Al Bazzy, Detroit turnkey provider Strategy Properties broker and property specialist, thinks Michigan business and tax policies could have something to do with the Motor City’s “win.”  “Michigan has one of the lower corporate income tax (CIT) rates in the country at just 6% and a flat income tax of just over 4% on taxable income,” Bazzy observed. Detroit is also among the most affordable major metro areas in the country with a cost of living lower than most other cities of its size. A Downtown Revitalization Continues to Yield Returns a Decade Later In 1903, when Henry Ford founded the Ford Motor Company in Detroit, he laid the foundation for what would become a booming economic engine that would power much of the state. By 1920, the “Motor City” was the fourth-largest city in the country and hosted General Motors, Ford, Chrysler, Packard, and Studebaker. When the automotive industry began to decentralize in the 1960s and 1970s, the Motor City and its residents suffered in the fallout. Between 1950 and 2010, the city lost 61.4% of its population and experienced a dramatic increase in poverty. In the wake of the housing crash in the mid-2000s, nearly one-third of Detroit’s 139 square miles were considered abandoned land and the city lacked resources for basic municipal services like streetlights. Many believed the city had seen its last heyday, but groundwork laid by Dan Gilbert, CEO of Quicken Loans, when he decided to move his company’s headquarters and 4,000 employees to downtown Detroit in 2007, changed the city’s downward trajectory. Following Quicken’s lead, Blue Cross Blue Shield of Michigan, DTE Energy, and other corporations also moved into the downtown area, acquiring properties and redeveloping vacant land. Beginning in 2014, JPMorgan Chase committed more than $200 million to the downtown revitalization, including putting funds toward reviving real estate, launching small businesses, and jobs training for residents. Michael Illitch, founder and owner of Little Caesar’s Pizza and longtime supporter of Detroit professional sports, also fulfilled his company’s own $200 million promise of private investment in the downtown area when he opened Little Caesars Arena and “District Detroit,” a commercial, entertainment, and residential district with the arena as its “nucleus.” The development required $2.9 million in workforce training and ultimately cost Illitch companies $539 million. The arena alone brought in nearly 2,000 jobs, and District Detroit created more than 20,000 construction and construction-related jobs as well as 3,000 other permanent jobs. More recent analyses put that number closer to 9,000. “Detroit has rebounded to a degree few would have thought possible,” wrote Fortune contributor Matthew Heimer in September 2023. “Thousands of small businesses have helped revitalize neighborhoods. New housing is replacing dilapidated, vacant buildings. Startups are flocking to a rebuilt downtown, and the jobless rate is down to 6.4%,” he continued. In 2018, Google moved into the District from the suburbs; Microsoft offices followed in 2019, and Tesla announced in late 2022 it would bring a “unique new R&D facility” to the Detroit area. Bazzy noted the city’s revitalization is still ongoing; investors in the metro area are almost exclusively focused on fix-and-flip strategies that enable them to sell for top dollar to retail buyers. If an investor wants to own single-family rental (SFR) properties, he continued, they must look to more suburban areas. “So many areas of the city are so hot, we focus on acquiring a couple streets down from the really in-demand sub-divisions where prices have doubled or tripled,” he explained. “More Competition” Than Ever As the Detroit housing market heats up and fewer homeowners elect to sell their properties, competition for available assets in the Detroit area is heating up as well. However, median home prices are still much lower, relatively, than in other cities of comparable size; Detroit-area median home prices hover around $250,000 (vs. nearly $400,000 nationally). Prices are still climbing, and local analysts say it is unlikely that the Detroit market will correct to the same degree as other pandemic-boom markets. High levels of housing demand will keep the value of rental properties high for the foreseeable future, although investors interested in short-term rentals could find themselves in a position where conversion begins to look appealing. According to data from AirDNA and Axios, Detroit hosts are experiencing below-average income despite the state of Michigan’s overall appeal in this space. In fact, Detroit hosts earned about $7,000 in 2022 (the most recent numbers available) compared to a national median of $14,000. Investors should note, however, Detroit’s long-term rental owners face strict compliance requirements, with the city demanding rental property owners obtain a certificate of registration, pass inspection by the city each time a property gets a new resident, and obtain a lead clearance report. All of these requirements feed into a municipal certificate of compliance, which indicates a Detroit property is safe for occupancy. This process is handled by the Buildings, Safety Engineering & Environmental Development (BSEED) Department on a municipal level. Bazzy observed that many rental properties in Detroit were built prior to World War II, making them more susceptible to code and health issues, one of the primary reasons for the development of the BSEED programs. The age of inventory in the city and surrounding areas also means there are

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The Evolution of Real Estate Syndication

The Impact of Modern-Day Crowdfunding Platforms By Allen Shayanfekr Real estate syndication has undergone a significant evolution over the last 10 years, with modern-day crowdfunding platforms revolutionizing the way both debt and equity deals are syndicated. This article explores the historical context of real estate syndication, tracing its evolution to the present day and examining the pivotal role played by platforms such as Sharestates and others. Through an analysis of the mechanisms, benefits, and challenges of crowdfunding in real estate syndication, this article elucidates the transformative impact of these platforms on the industry. Real estate syndication, the pooling of resources from multiple investors to acquire or develop properties, has long been a cornerstone of real estate investment. Traditionally, syndication involved a select group of high-net-worth individuals or institutional investors. However, the advent of modern-day crowdfunding platforms has democratized access to real estate investment opportunities, allowing individuals to participate in syndicated deals with relatively low barriers to entry. Real estate syndication traces its roots back to the early 20th century when wealthy investors formed partnerships to finance large-scale projects. These syndicates enabled investors to pool their capital and share both the risks and rewards of real estate investments. Over time, syndication evolved, with the introduction of real estate investment trusts (REITs) in the 1960s providing investors with a new avenue to access real estate assets. However, traditional syndication remained largely exclusive, limiting participation to accredited investors and institutional players. The emergence of crowdfunding platforms in the early 2000s marked a paradigm shift in real estate syndication. Platforms such as Sharestates, Fundrise, and Yieldstreet leveraged technology and regulatory changes to open up real estate investment opportunities to a broader investor base. By leveraging the internet and social media, these platforms allowed individual investors to contribute smaller amounts of capital to syndicated deals, democratizing access to real estate investments. Crowdfunding platforms facilitate real estate syndication through various mechanisms, including equity crowdfunding and debt crowdfunding. Equity crowdfunding involves investors contributing capital in exchange for ownership stakes in real estate assets, while debt crowdfunding allows investors to provide financing for real estate projects in exchange for fixed returns. These platforms provide investors with access to a diverse range of investment opportunities, spanning different property types and geographic locations. These platforms offer several benefits to both investors and real estate sponsors. For investors, these platforms provide access to previously inaccessible real estate deals, diversification across multiple properties and geographies, and transparency through detailed project information and performance metrics (as compared to more traditional blind pooled vehicles where specific asset addresses and information may not have been available). Real estate sponsors benefit from access to a larger pool of capital, streamlined fundraising processes, and enhanced market exposure through online platforms. Despite the numerous benefits, crowdfunding in real estate syndication is not without challenges and risks. Regulatory compliance, due diligence, and investor protection are paramount concerns for both investors and platform operators, especially in recent years where many platforms have ceased to operate, and some platforms have received fines from the SEC for improper marketing. Additionally, the lack of liquidity in crowdfunding investments and the potential for project-specific risks underscore the importance of thorough research and risk assessment. The future of real estate syndication is intrinsically linked to the continued evolution of crowdfunding platforms. As technology advances and regulatory frameworks evolve, crowdfunding platforms are likely to become even more sophisticated, offering investors greater access, transparency, and liquidity. However, continued vigilance is essential to mitigate risks and ensure the long-term sustainability of the industry. Today, various platforms offer different benefits and niches. For instance, some platforms have chosen to focus on: »          a single position within the real estate capital stack (Debt or Equity); or »          a single asset class within real estate (Residential, Multi-Family, or Commercial) »          a particular geography In other instances, some platforms have opted to exclude certain types of deals, such as: »          ground up construction »          judicial foreclosure states »          first time developers/borrowers/operators Despite the many differences between these various platforms, the successful platforms that are still in operation today each seem to serve a specific need or differentiate themselves with a particular competitive advantage. For Sharestates, we believe one of our competitive advantages to be optionality. Our goal is to give investors access to a wide variety of deals which vary by asset class, development phase, geography, size, exit strategy, and more — all while simultaneously giving investors the tools they need to properly assess their investment decisions. In conclusion, the evolution of real estate syndication and the advent of crowdfunding platforms have democratized access to real estate investments, transforming the industry landscape. While challenges and risks persist, the benefits of crowdfunding in real estate syndication are undeniable, offering investors unprecedented opportunities for diversification and growth. As the industry continues to evolve, crowdfunding platforms are poised to play an increasingly integral role in shaping the future of real estate investment. SIDEBAR National Private Lenders Association and National Private Lenders Conference The National Private Lenders Association (NPLA) plays a crucial role in unifying, representing, and advancing the interests of private lenders and associated professionals within the nonbank real estate financing sector. The NPLA creates an environment for professional development, networking, and legislative advocacy. Through its various initiatives, the NPLA ensures its members are well-equipped with the knowledge, connections, and resources needed in today’s marketplace. Bi-Weekly Conference Calls: A Gateway to Growth One of the cornerstone benefits of NPLA membership is the access to bi-weekly conference calls. The meetings are dynamic forums for sharing valuable information, insights, and trends relevant to the private lending industry. Members can engage directly with peers, thought leaders, and experts. These interactions serve as a catalyst for innovation, allowing members to discuss challenges, explore solutions, and uncover new business opportunities. The bi-weekly calls are a testament to the NPLA’s commitment to building a tightly knit community where diverse perspectives and experiences are considered essential for collective growth and success. NPLA Conference June 23-25, 2024 The Hard Rock Hotel &

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The Home Depot’s Path to Pro Program

Building the Next Generation of Skilled Trades Professionals By Jenna Arca As the skilled trades population becomes increasingly diverse, ensuring accessibility to trades training and resources is critical to bridging the labor gap between the number of skilled trade workers and the unprecedented demand for trade jobs. As an example, 94% of The Home Depot’s Pro customers struggle to find skilled workers. Across the U.S., the need for highly skilled tradespeople remains strong: »          There are more than 400,000+ skilled labor job openings. »          More than 61,000 hires are needed in construction per month to keep up with growth and the loss of workers. »          40% of construction workers are expected to retire by the year 2031. »          There will be over 3.9 million jobs available for home improvement related trades within the next decade. »          <3% of high schoolers considered a career in the trades.  The Demand for Skilled Tradespeople The U.S. faces a significant labor shortage in skilled trades professionals. This shortage directly impacts The Home Depot’s professional customers, which in turn impacts our customers’ ability to source home improvement services. Through the Path to Pro program, we want to help introduce those interested in skilled trades professions to our Pro customers. According to the Home Builders Institute, the demand for skilled tradespeople in the U.S. remains strong, with over 400,000 current skilled labor job openings. There is a need for over 61,000 hires in construction per month to keep up with job growth and to replace exiting workers. And the U.S. Census Bureau predicts over 3.9 million jobs will become available for home improvement–related trades over the next decade alone. Path to Pro Path to Pro launched in 2021 as part of The Home Depot’s larger initiative to help build the next generation of skilled trades professionals and the Path to Pro Network launched nationwide in October 2022 to solve a top pain point of our Pro customers — finding reliable, skilled labor needed to grow their businesses. The Home Depot’s Path to Pro program offers three options to support your trades career journey. PathtoPro.com This site includes a resource library available in English and Spanish, containing educational how-to guides and video content, training opportunities and a variety of information on different career paths. Its goal is to help individuals better understand the career potential in the skilled trades while also helping them navigate the registration process for the Skills Program and Network. Path to Pro Skills Program This program offers free introductory trades training, also available in English and Spanish, for those interested in pursuing or growing a career in the skilled trades. Participants can take advantage of on-demand content that gives them the necessary training to secure entry level positions in the highest demand trades, including electrical, plumbing, HVAC, drywall and painting. Path to Pro Network This jobseeker marketplace was created to connect skilled tradespeople to hiring trades professionals in the construction and home improvement industries. Skilled trades jobseekers can utilize digital and downloadable guides, available in English and Spanish. These guides help them create a profile, upload their resume and add photos of their work to connect with The Home Depot’s Pro customers looking to hire in their local area. Those looking to hire skilled labor should visit HomeDepot.com/Network to learn more. Whether you are entering the skilled trades for the first time, refreshing your talents, or looking to make a career change, Path to Pro has you covered. With thousands of skilled jobs ready for the taking, making the best career choice becomes easy when you have multiple paths to explore — and will continue to do so for many years to come. If you already work in a skilled trade, this also means it is a great time to increase your skills and continue growing your career. The Path to Pro Network The Home Depot is committed to helping address the growing skilled labor shortage in the U.S. and building the next generation of skilled trades professionals. This commitment allows individuals to access Path to Pro’s resource library, introductory trades training, and the Path to Pro Network, a free jobseeker marketplace created to connect skilled tradespeople ages 18 or older to hiring trades professionals in the construction and home improvement industries. All these resources are available to anyone with internet access — without any cost barriers. Unlike many existing career sites and job boards that may charge fees for accessing premium features or building a profile, registering for the Skills Program and creating a profile in the Path to Pro Network is entirely free. Creating a Path to Pro Network profile allows skilled tradespeople to showcase their trades experience and connect with The Home Depot’s Pro customers who are looking to hire in their local area. Jobseekers can apply directly to open roles posted by The Home Depot’s Pro customers and the hiring Pros can reach out to jobseekers directly with job opportunities that match up with their experience. SIDEBAR A Path to Pro Case Study: Brandon Williams Residential contractor Brandon Williams always knew he wanted to get into the trades. “Growing up, I loved building things,” Williams said, which led him to learn about building as a hobby. “I knew some skills for hobby work, but for an actual job, I wasn’t fully trained, and Path to Pro put me in a position where I could get trained.” To prepare for his first job in the trades, Brandon registered for the Path to Pro Skills Program, which now offers free introductory trades training in both English and Spanish. Hands-on experience made all the difference. “I’d been looking for something in this profession for months before I learned about Path to Pro, but most employers wanted someone with experience,” Williams recalled, “and Path to Pro really helped with that.” After he joined the Path to Pro Network, a potential employer contacted him about a job, and his career began. “Every day, there’s something new, and this is the part I love about my

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Securing your Assets from the Ground Up

Criminal Trespass, Marketing Scams and Other Fraudulent Activities By Suzanne Andresen In last month’s issue of REI INK magazine, we had two terrific articles about technology and what strategies are currently available to protect your assets. The cover story from Swidget focused on the use of their smart home devices that can help ensure that both landlord and tenant experiences can be positively influenced with the use of technology. Also in that issue, Alex Fahsel, the co-founder of Property Shield, discussed asset protection strategies through the implementation of their service which protects real estate companies and professionals from scams, brand impersonations, and illegal occupancy issues. Property Shield sees themselves as a preventative measure to these fraudulent leases as described in this article. We have heard all sorts of statistics about “trespassing” and the amount of money that is lost due to the lack of legal strategies that protect the landlord. There seem to be two types of trespass: civil and criminal. Let’s explore criminal trespass, defined as the intent of an individual to knowingly commit trespass, ignoring signs, and/or creating forceable entry. Criminal Trespass Most states do not prosecute criminal trespass, and some will not even process claims for first offenses. Currently, squatters are protected in all states from forceful removal and many law enforcement agencies will not even respond to this current issue. In discussing the elements of trespass with an industry investor, he shared that they had an average trespass occupancy of 272 days. That is a significant loss of rental income — not to mention the monetary losses due to the interior damage done to the premises during a fraudulent tenancy. At present, Florida and Texas have the most progressive legislation in progress to address trespass, but no state has a bill ready to be passed into law. The question remains: How can landlords protect their assets from fraudulent tenancy? We have been told by many legal authorities that property owners are prohibited from turning off water or electric services to their owned assets while there is a tenant onsite — whether that tenant is there legally or not. I have a hard time processing that perspective or law. If you are the one responsible for payment, it should be your determination and right to control the utilities if the individual in residence has no legal right to be there. Tenants who violate the terms of their legally binding leases by remaining in the property after the end of the term are a separate and distinct issue and have long been protected from loss of utilities, correctly or not, by virtue of their previous legal leasing status. You may not agree with this, but that is the law protecting the tenant. That is very different from the unauthorized and illegal squatting activities landlords are reporting today. A Real-Life Scenario Let us consider the timeframe immediately at the end of a lease when the tenant willingly departs in a timely fashion. You may have a property inspection protocol to ensure that the tenant did not go beyond the basic wear and tear of the asset. You schedule your walk-through, probably before the move out, noting the repairs and touchups required to make the asset presentable for the next occupant. A short vacancy period is the critical element of opportunity for the fraudulent occupancy. As you prepare your assets for public viewing and create self-guided tours complete with keycode access, think about how you could secure the vacant property. Let’s look at Swidget’s portable kit as part of their modular technology offering. At a recent installation in Atlanta, eight kits from Swidget were installed and activated over a 3-day timeframe. These kits consisted of two cameras, a cellular LTE device, and a door with locking mechanisms. At their first install, in about 2 ½ hours following the completion, key code access to the unit through legally intended means quickly turned into a well-choreographed illegal tenancy scam — almost. The fake renters dismantled the electronic lock by removing the batteries, so the door was no longer secure. They then proceeded to preview the property, commenting that “this would be their first bedroom with a closet,” and began discussing what fake name to put on the lease. The entire conversation and visual activities were captured on the two video cameras recording to the cloud from the cellular transmitter. This scheme was thwarted by the end of the afternoon when the owners were notified that the locking mechanism was offline and needed prompt attention. While this trespass in the making was averted early, what other preventative steps could have been be taken? Let’s say we incorporate utility deactivation as part of our tenant-turn protocol. Shutting off the water and electric services makes the property uninhabitable immediately. Furthermore, it is likely legal since there was not a tenant occupying the property, although you should check with legal counsel to be sure this is true in your specific case. You may be thinking that criminals are smart enough to know how to turn the water back on at the street. I am proposing an installation of a smart home water shut off, specifically out of reach and out of sight. Now, let’s add a subpanel to the electric that only powers our cellular transmitter, a few lights and, in the northeast, heat during the winter months. The stove, refrigerator and other necessary appliances will not be operational until the landlord turns them all on again. Since this REI INK issue is focused on Build to Rent, let’s build in a faux beam in the garage or basement that the trespassers would not recognize as the real “brain” of the house — ruining the tenant experience for the trespassers. This goes back to the initial question you asked your departing tenant, “What time do you expect to leave the premises?”  Explain to the departing tenant that this is extremely important to protect their departure and the tenant-turn process. Adding the “brain” can certainly be

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