Marc Rutzen

Marc Rutzen is the CEO and CoFounder of Enodo, an automated underwriting platform for multifamily real estate.

Marc Rutzen Marc Rutzen Forbes Councils

The real estate industry isn’t exactly known for being receptive to new technology. Many in the industry view technology as unnecessary, as countless people have built real estate empires and made untold millions from hammering the phones. Today, though, it’s getting harder and harder to compete in real estate without technology. In particular, there are three distinct advantages of technology that should have real estate professionals more open to adopting new developments.


Technology can help you conduct more business.

Whatever your role within the real estate industry, everyone can agree that you need to do more deals to make more money. If you’re an investor, you need to underwrite and bid on more investment opportunities. If you’re a broker, you need to convince more people to list their properties. If you’re an appraiser, you need to complete more appraisals — and so on.

My firm has found that the average real estate analyst takes several hours to initially underwrite a property and understand its surrounding market. This means looking at nearby properties and identifying rent comps, analyzing rent growth and demographic trends in the market, quantifying any value-add potential (whether through physical or operational improvements) and distilling everything into a concise summary to discuss with management.

People have limits, though. Just as you’d hire more people to increase volume, technology can be “hired” to improve deal flow. While CRM systems have had better adoption in the market helping real estate professionals track customer conversations, analytical tools have yet to really be adopted. Many analytical tools can be employed to help your analysts leverage data more effectively — reducing those hours of analysis time to only a few minutes in some instances. Other tools can help you dynamically visualize the results of your analysis and achieve insights more quickly.



By Brian Pedersen, March 15, 2018 at 9:50 AM
1788/Riverside Business Center LLC bought Riverside Business Center, a 423,900-square-foot building at 1139 Lehigh Ave. in Whitehall Township, from Whitehall Riverside LP for $11.6 million.

(Contributed) 1788/Riverside Business Center LLC bought Riverside Business Center, a 423,900-square-foot building at 1139 Lehigh Ave. in Whitehall Township, from Whitehall Riverside LP for $11.6 million.

A Maryland-based real estate investment company bought a light industrial property in Whitehall Township for $11.65 million with the intention to make upgrades and improvements to the site.

1788/Riverside Business Center LLC, an affiliate of 1788 Holdings LLC, said it bought Riverside Business Center, a 423,900-square-foot building at 1139 Lehigh Ave., from Whitehall Riverside LP. The transaction closed last month.

The building has 11 tenants and is 87 percent leased.

In 2006, Whitehall Riverside LP converted the property from a single-user manufacturing facility into a multi-tenant warehouse and light manufacturing facility. Changes included installing 31 dock doors, 23 drive-in doors, modernized heating, ventilation, air conditioning, lighting and plumbing systems, according to a news release.

Additionally, the owner added new bathrooms to tenant suites, made over the exterior brick and concrete and rehabilitated significant portions of the roof.

The building has about 25,000 square feet of office space available for lease once the new owner completes certain building upgrades.

The new owner plans to create long-term value for the property with a strategy that includes a capital investment program to improve the functionality and aesthetics of the property, overhauling its branding and marketing and improving the property’s profile within the community.

“Riverside Business Center presented us with the unique opportunity to acquire a high-quality Class “B” industrial property that is substantially leased with in-place rents significantly below market,” said Larry Goodwin, principal of 1788 Holdings, in a statement.

The company’s ability to buy the property at slightly more than $27 per square foot, a price that is 30 percent less than the property’s replacement cost, also attracted it to invest in the site.  Click HERE to read more



Posted by: Bob Wiley | March 13, 2018

Commercial Broker’s Open House

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Posted by: Bob Wiley | February 22, 2018

What is a 1031 Exchange?

Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. IRC Section 1031 (a)(1) states:

“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”

To understand the powerful protection a 1031 exchange offers, consider the following example:

  • Assume an investor has $400,000 in gain and also $400,000 in net proceeds after closing. Assuming an investor with a $400,000 capital gain and incurs a tax liability of approximately $140,000 in combined taxes (depreciation recapture, federal capital gain tax, state capital gain tax, and net investment income tax) when the property is sold. Only $260,000 in net equity remains to reinvest in another property.
  • Assuming a 25% down payment and taking on new financing for the purchase with a 75% loan-to-value ratio, the investor would only be able to purchase a $1,040,000 replacement property.
  • If the same investor chose to exchange, however, he or she would be able to reinvest the entire gross equity of $400,000 in the purchase of $1,600,000 replacement property, assuming the same down payment and loan-to-value ratios.

As the above example demonstrates, tax-deferred exchanges allow investors to defer capital gain taxes as well as facilitate significant portfolio growth and increased return on investment. In order to access the full potential of these benefits, it is crucial to have a comprehensive knowledge of the exchange process and the Section 1031 code. For instance, an accurate understanding of the key term like-kind – often mistakenly thought to mean the same exact types of property – can reveal possibilities that might have been dismissed or overlooked. Asset Preservation, Inc. (API) is your resource to obtain accurate and thorough information about the entire exchange process.

Click HERE to view video



Posted by: Bob Wiley | February 12, 2018

Spotlight on Property


1521 Old Schuylkill Rd.

An Investors delight! A retail and corporate complex fully occupied with a long-term lease in place. Lessee owns one of the top sporting goods companies. Approx. 9000 SF three-level renovated barn with retail space and offices in a commercial zone. From the outside, walk-up to the retail space on the 2nd level. Stone walls in the entry, vaulted clgs. and exposed beams throughout. The floor plan is primarily open and also includes a kitchenette & a utility room. The retail space continues to the third level with more open space overlooking the lower level. Addt’l income possible with a 2 BR apt, w/ a 2 car gar. Completing this complex is two additional one-sty buildings (2,214 SF & 2,663 SF) currently being used as offices. All this sits on approx. 1.5 AC with plenty of parking for 30-40 cars, in close proximity to 2 addt’l properties for sale for a great investment, & a short drive to one of the fastest growing towns in the county.  $595,000

Posted by: Bob Wiley | December 19, 2017

How to Purchase Commercial Real Estate

bkt-buyingrealestate_4370If you’re thinking about purchasing office space, this guide will help you evaluate the pros and cons of leasing vs. buying, assemble a real estate search team, choose a location, and make the purchase.
Posted by: Bob Wiley | December 8, 2017

Office Tenants Today Value and Expect Quality Connectivity

Internet connectivity is second only to location in importance to tenants when seeking office space.

Patricia Kirk | Dec 04, 2017

A survey of 150 U.S. office leasing decision makers conducted by Radius Global Market Research for WiredScore found that a building’s Internet connectivity is second only to location in importance to tenants when seeking office space.

A global company with offices in New York and Europe, WiredScore is the founder of an internationally recognized program for rating building digital connectivity technology.  The survey, The Value of Connectivity, which was conducted online from Aug. 2  – 4, 2017 in New York City, Los Angeles, Chicago, Philadelphia, Dallas/

Fort Worth, San Francisco, Washington, Houston, Boston and Atlanta, found that 80 percent of tenants experience connectivity issues at one time or another. And more than half (77 percent) of them say poor connectivity affects their bottom line.

Additionally, 77 percent of tenants say they would sign a longer lease if a building has superior technology or sign a lease more quickly if assured the building’s connectivity meets their business requirements.

Other findings include that respondents have a preference for a “Wired Certified” building (79 percent) and are willing to pay more per sq. ft. for superior connectivity infrastructure (84 percent).

Brokers in the field had similar observations about tenants’ preferences.

“San Francisco is highly evolved (in regard to connectivity) and can meet all tenant needs,” says Jason Burch, Cushman and Wakefield managing director in downtown San Francisco. Burch points out that all modern office buildings in downtown are wired with high-speed fiber that can deliver 1 gigabite up and down and have four or five of the biggest, strongest Internet carriers in place. Additionally, Webpass—now a Google Fiber company—provides premium connectivity to tenants South of Market, where old warehouses have been repositioned for tech and other creative users.

Burch adds that the most common concern is when tenants have contracts with certain carriers, so they need a building that provides access to their specific Internet provider.

“I think Wired Certification is an important criteria for any company but with the exception of a few, most believe it’s (Internet connectivity) like electricity, that every major building in a particular market has access to high-speed fiber—with redundancy—and the existing tenant base wouldn’t be there unless that was the case,” says Tony Morales, and international director with JLL based in downtown Los Angeles.

“While I have never had a tenant make it an issue, I assume some tenants make it an issue,” Morales says, noting that connectivity infrastructure is more of an unknown in new developments, but in certain locations or buildings already occupied, the quality of fiber infrastructure is a known or assumed to have sufficient speed.

“Tenants are looking for connectivity and will pay a premium for quality service,” says David Cochran, a Colliers International executive vice president in Dallas and the company’s local building technology expert. “They always want to know which Internet providers are in a building they are considering, and if a top-rate provider is not there, it can deter a potential tenant.”

He notes that office buildings in the city and nearby suburban markets are wired for high-speed fiber, with only a millisecond of difference between the speed of connectivity in buildings. But many tenants are unwilling to pay a premium for that miniscule increase, Cochran adds, pointing out that heavy users like engineers and accounting firms, which send terabyte-size files daily, are the most concerned about the speed and capacity of connectivity infrastructure.

“Reliability is most important (across the board),” he says. “Tenants look for carriers that are nationally known and will be able to quickly resolve any issues if connectivity is lost. We are fortunate in Dallas to be home to AT&T’s headquarters and have a strong presence from Verizon, both of which provide top-rated service.”

While urban and suburban markest are typically wired for fiber internet, tertiary markets may not be as fortunate, with unknown or poorly-rated providers that are detrimental to leasing space in these areas. Cochran notes, however, that large corporations like Toyota will build offices wherever it suits their needs and use an in-house team to provide the highest quality internet connectivity for their buildings.

“Technology is changing rapidly to where connectivity will become a standard reliable feature and no longer an issue,” Cochran says, noting that AT&T and Verizon are quickly building a 5G network to move everyone to a wireless only environment. “Networks are moving away from cell towers toward a DAS system, Cochran concludes, explaining that DAS will enable users to send terabyte-size files with their smartphones.

Grant Schoneman, a senior vice president for JLL in San Diego who specializes in the life science/biotech sector, says, “Given the nature of their work, most biotech companies produce a large amount of data that is either stored on local servers or in the cloud.”  Therefore, when seeking space life science and biotech companies seek out buildings with fiber or other strong Internet connectivity platforms.


Click HERE to read more.

Source:  National Real Estate Investor

Posted by: Bob Wiley | November 16, 2017

Spotlight on Listing…

Park Ave

67 Park Ave, Wind Gap

Highly visible 3,298 SF Commercial/Retail Building Available on corner lot in Wind Gap with plenty of parking. The 1st flr consists of an open showroom area, office, private restroom, and rear workshop. The 2nd flr offers additional rental income with a 1 BR, 1 BA apartment with private entrance. The property is currently being used as a vacuum cleaner store. This successful store has been in business for 30 + years and is included in the sale of the building. Many financing options available including lease and lease to purchase. Contact the listing agent to schedule and appointment to explore the possibilities.

Available for Sale or Lease

$445,000 or $12.75/SF

Posted by: Bob Wiley | November 6, 2017

3 Easy Ways to Grow Your Real Estate Investment Portfolio

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When you decide to take a step into the real estate world, don’t remain a toddler; go in all the way. Think of venturing into corporate rentals, Airbnb rentals, rental properties or investing in shares with Real Estate Investment Trusts. Other than building long term wealth, you will benefit from the miscellaneous benefits.

It starts from buying your first property and learning how to grow it. You then expand and buy more properties creating a web of investments. Money is king in investing but it is not impossible to start with one and build a catalogue of portfolios from there. Other than being your own boss, earning passive income, and appreciation potential you will improve your financial competence. Here is how:


1. Get prepared

This is a war that you don’t want to go into without weapons. The result will be losses; both financial and psychological. You will need to come up with an objective. This will guide your path of investment and how you want your portfolio to look like. The goal will motivate you every step of the way.

Then do the math. There is magic in numbers. In real estate, cash flow and expenses tables make sense. You need to examine the amount of money coming in from your current properties and how much you spend. You will then know how much you have left to invest and grow your portfolio. That is what you will work with.

Ensure that your current investment has reached its maximum potential. You could add a new structure to that space, or renovate and increase the prices. Tap into any present potential first and get the most out of it before stepping out. If you are used to running properties on your own and lack management skills, this is the time to educate yourself or hire a manager. A big portfolio is not for amateurs.

2. Diversify

Going past property number one will need you to fight fear and plan wisely. If you wait for your savings to afford you the next property you would have to wait for life. So, you can raise money by borrowing against your current property or selling it at a higher price. You can then use this amount as deposit to your next property. Debt is good if you can pay on time and when used to increase positive cash flow.

You will need to focus on a strategy and spread out your investments. Try new locations, different kinds of properties and buy shares. This will cushion you when one sector is not doing well and will help you maintain a constant cash flow despite the market changes.

You could also increase your sources of income by applying for interest only loans. These ones will lower your expenses and increase your disposable income. If increasing rent is not possible, your accountant can help you get these loans so you don’t miss an opportunity to grow.

3. Learn

The market is always changing. The only way to remain relevant is to be educated at all times. You will need to read books, magazines, blogs, watch financial news and talk to as many experts as possible.

To spot opportunities in the market you will have to keep surveying to see what is going on. Monitor the changes in mortgage rates, house prices, tenants’ behavior, neighborhood changes and even the political temperature. Real estate market responds to all this factors in the factor and information will help you to grow your portfolio in a smart way.

Bottom Line

Whether you already own a house or planning to venture in to the real estate market, don’t settle for rental income from one property. Growing your portfolio will service you for the long term. Not to mention the fruits of constant capital gains. Every one to two years you will increase your asset base. You have the key.




Posted by: Bob Wiley | October 18, 2017

About 40% of US Land Is at Risk for Sinkholes

The U.S. Geological Survey estimates that 35 to 40% of all the land in the U.S. is susceptible to sinkholes. While giant sinkholes often make news, smaller sinkholes are also exceptionally costly to homeowners. In 2009, the average sinkhole claim cost Florida insurance companies over $86,000 for cracked driveways, walls, and foundations. In that year, insurance companies paid out over $97 million.

People invest significant resources in their homes and vehicles. Mortgage companies require homeowners to protect their assets with suitable home insurance policies, but most do not require the inclusion of sinkhole insurance. Sinkholes have the potential to destroy homes and property, but because they are relatively rare, most people never consider; how real that threat could be for their family. Sinkholes are unpredictable, but you can protect your property with a sinkhole insurance policy.

Sinkholes in America

  • Most sinkholes in America occur in Florida
  • Pennsylvania has the second-highest rate of sinkholes
  • The ability to purchase sinkhole insurance is guaranteed in FL and PA
  • The largest sinkhole in the U.S. is the Texas Devil’s Sinkhole in Rocksprings, TX; it has a 50-foot wide opening and drops 350 feet into the ground

What Is a Sinkhole?

Sinkholes are catastrophic phenomena that occur all over the world. They are natural depressions or holes that form in the earth’s crust. Sinkholes can result from both natural and man-made causes.

The occurance of sinkholes can be a dramatic event that swallows up cars, roadways and even homes. Sinkholes can also cause merely minor depressions in the earth’s surface, barely visible but highly destructive. Some sinkholes happen gradually over time while others are sudden and disastrous. A ground-shift of as little as a couple inches can be enough to severely damage the structure of a home or building, rendering it unsafe for habitation.

What Causes Sinkholes?

Sinkholes can have a variety of underlying causes. Some are natural and some are man-made.

  • Natural causes: Sinkholes can be caused by the after-effects of earthquakes, erosions in the earth’s surface or the presence of excess groundwater. Although excessive rains and flooding can sometimes cause these disasters, there is evidence that extreme droughts can have the same effect. Natural sinkholes usually show early signs of erosion.
  • Man-made causes: Sinkholes can sometimes be precipitated by man-made forces that weaken underlying layers in the earth’s crust. Some common causes include excessive drilling, mining, construction and even lots of heavy traffic.  Some suspect that hydraulic fracture mining (“fracking”) may have this effect as well. Mine subsidence in abandoned coal mines over which development has occurred can also cause these catastrophes.

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