Using AI in our Property Valuations
For the last year or so, The Matsis Team has been using AI prompts to help with every property valuation, commercial and residential. We are consistently amazed by the increasing (by the day) ability to pull data from overlooked sources not used in most other agents' comparative market analyses.Our latest prompt helped us price a mixed-use commercial listing by analyzing 10+ very similar Queens properties that have sold in the last 18 months but also took into account micro-market trends like:- Nearby business and residential permit applications pulled from NYC open data- Residential vacancy rates/rent trends within a 5-block radius based on StreetEasy data- Neighborhood sentiment changes based on Reddit posts- Mass transit schedules and disruptions pulled from the MTAEvery town, neighborhood and block has its own story. The market analysis being used to price any property should take this into account. Engineering these prompts is becoming one of the most important skills you should be looking for in your agent's arsenal.
Prime Investment Opportunity: Corner Property in Astoria’s Opportunity Zone
Astoria, NY, known for its vibrant community and prime location, is presenting a golden opportunity for savvy investors with the listing at 42-20 34th Ave. Priced at $1,850,000, this corner property stands out in a highly desirable Opportunity Zone, right in the heart of a major redevelopment area. This strategic location promises not only immediate benefits but also significant long-term growth potential. The property features two large, whole-floor residential units that are currently without leases. This scenario offers an incredible chance for investors to capitalize on the market dynamics, with the potential for over a 100% increase in rent. Presently, these units are paying 50% below market rates but can be rented as-is for $3,000 each or fully renovated for $3,500 each. This flexibility provides multiple avenues to maximize returns based on your investment strategy. A key highlight of this property is its impeccable maintenance status. The building is violation-free and fully up to code, ensuring a hassle-free ownership experience. Recent upgrades include a new roof, skylight/hutch/coping completed in 2023, and all utilities (including gas heat) being less than eight years old. These updates not only enhance the property's value but also reduce future maintenance costs. Additionally, the ground-floor store comes with a lease in place until 2033. The current rent is $3,300 in 2025 with incremental increases until the end of the lease term. This long-term commercial tenant provides a stable income stream and adds another layer of financial security to this investment. In summary, 42-20 34th Ave offers an exceptional investment opportunity in one of Astoria’s most promising areas. With its prime location in an Opportunity Zone, potential for significant rent increases, and solid maintenance history, this property is poised to deliver substantial returns. Whether you’re looking to expand your portfolio or make a strategic entry into the Astoria market, this listing deserves serious consideration. Don’t miss out on securing a cornerstone asset in one of New York City’s most dynamic neighborhoods!
A More Liquid Future for Real Estate Through Tokenization
Blockchain technology, originally conceived for cryptocurrencies like Bitcoin, has evolved from a purely digital concept to a disruptor of real-world assets with the promise of a more accessible, democratized, and liquid investment ecosystem for an asset class that has been everything but – real estate. This innovative approach, known as real estate tokenization, is transforming the way astute, income-producing property owners are leveraging their assets in unprecedented ways. In the heart of the world's most dynamic real estate market, New York City property owners have already been putting this groundbreaking approach to portfolio expansion and access to capital to work. By embracing blockchain technology, they are turning their buildings into their own personal bank – unleashing equity and profit sharing at a moment’s notice. Understanding Real Estate Tokenization Real estate tokenization converts property ownership into digital tokens on a blockchain platform, essentially creating fractional shares of commercial properties. These digital tokens represent verifiable ownership stakes in the underlying real estate asset, whether it's an office building, multifamily complex, or retail center. A blockchain ledger of everything about a property also means its income and value can be instantly verified – and capitalized on. Why Tokenization Outperforms Traditional Financing In today's commercial real estate landscape, property owners typically turn to conventional bank financing options like cash-out refinancing, commercial equity lines of credit (HELOCs), or mezzanine debt. However, tokenization offers distinct advantages that make it a superior choice: Superior Financial Terms Often lower cost of capital compared to mezzanine debt or preferred equity No fixed monthly payment obligations - distributions can be tied to property performance Flexible structuring options not available with traditional bank products No risk of forced sale or foreclosure during market downturns Enhanced Control and Flexibility Sidestep lengthy bank approval processes and endless documentation requirements Retain full operational control unlike with joint venture partners Choose exactly how much equity to tokenize - from 1% to 100% Structure payouts and rights according to your business strategy Maintain the ability to buy back tokens over time Strategic Benefits for Property Owners Portfolio Expansion Without Complete Divestment Property owners can now access capital locked in their existing properties without selling them outright. By tokenizing a portion of their property's equity, owners can: Raise capital for new property acquisitions Invest in property improvements or expansions Diversify into different real estate sectors or markets Fund business operations or other investment opportunities Enhanced Liquidity Options Tokenization creates unprecedented liquidity in what has traditionally been an illiquid asset class. Property owners can: Convert a percentage of their equity into liquid assets Use tokens as collateral for various financing solutions Access capital more quickly than through traditional financing Maintain flexibility in managing their portfolio Benefits for Token Holders Multiple Revenue Streams Token holders can benefit from various income opportunities: Regular rental income distributions Property value appreciation Interest payments if structured as a debt instrument Potential secondary market trading opportunities Investment Flexibility The tokenization structure offers investors: Fractional ownership in premium commercial properties Lower barriers to entry compared to traditional real estate investment Portfolio diversification opportunities Transparent ownership records through blockchain technology Traditional Financing vs. Tokenization: A Real-World Example Consider a $50 million office building in Manhattan with a $25 million mortgage. A property owner seeking to access equity traditionally might: Refinance: Pull out $5-10 million but increase debt service payments and risk Commercial HELOC: Access $5 million but face variable rates and bank covenants Mezzanine Loan: Obtain $10 million but pay 12-15% interest and risk losing the property With tokenization, the same owner could: Tokenize 30% of equity for $15 million without increasing debt service Share profits rather than pay fixed interest Keep the option to buy back tokens in the future NYC Success Stories: Tokenization in Action St. Regis Residences One of Manhattan's most prestigious addresses embraced tokenization to unlock over $30 million in equity while maintaining its luxury brand and operational excellence. Token holders now receive quarterly distributions from hotel operations and participate in the property's remarkable appreciation. Brooklyn Creative Hub A visionary property owner transformed a former warehouse in Williamsburg into a thriving creative complex. Through tokenization, they raised $15 million for renovations without traditional financing, offering token holders both rental income and a stake in Brooklyn's booming commercial real estate market. Manhattan Office Portfolio A family office managing multiple Class A office buildings in Midtown Manhattan used tokenization to access $100 million in equity across its portfolio. This capital enabled the office to acquire additional properties during market dips, dramatically expanding its footprint while maintaining control of its core assets. Implementation and Regulatory Considerations The process of tokenizing real estate requires not only technical considerations – think of coding your token onto the blockchain as something akin to building an app on a server – but also careful attention to legal and regulatory requirements. Tokenized property owners need to: Ensure compliance with securities regulations Implement smart contracts for automated distributions Create clear governance structures for token holders Predictably (and thankfully), a multitude of services and platforms have sprung up to assist with this process end-to-end. Understanding the Risks: Protecting Property Owners and Token Holders While tokenization offers exciting opportunities, it's crucial to understand potential risks and have proper safeguards in place that are coded into the smart contracts that are created. Property Owner Risk Scenarios Reduced income, mismanagement, or market downturns could trigger token holder rights or forced remedies specified in smart contracts Being under the purview of the SEC, securities regulations might require costly compliance measures that stack on top of local property regulations Token Holder Risk Scenarios Token holder rights might be subordinate to traditional lenders Property performance, depreciation, loss of income at the property, or foreclosure could impact token holder claims and hurt the value of the token itself, even erasing all of its value Professional Guidance Traditional industries like real estate do not usually play well with emerging technologies and are deeply set in their ways. Keep this in mind when curating a team of property management, tax, and legal professionals to make sure that they are familiar with tokenization and this rapidly evolving landscape. Regular tax planning, regulatory reviews, and detail-oriented property management and documentation becomes more important than ever with tokenized property. In essence, many of the tax and regulatory treatments of tokenized property mirror any other investment or income producing property. But with the increased options tokenization introduces for the movement of equity, debt, ownership, many nuances exist. The Future is Tokenized The marriage of blockchain and real estate seemed awkward to even discuss a short decade ago. But, real estate is turning out to be one of the most exciting applications of the promise blockchain brought about when it was first conceived in 2009. It opens up the possibility of instantly accessing equity for time-sensitive growth opportunities, bringing truth in ownership and leasing with smart contracts, and even trading property tokens on secondary markets as easily as stocks while enjoying the stability of tried and true real estate backing every token. We're standing at the threshold of a real estate revolution. As the tokenization market matures, we are seeing more welcoming regulatory frameworks empowering rapid adoption (including a blockchain-friendly Trump administration) and integration with the emergence of AI for even more exciting applications we haven’t even considered yet. It all couldn’t have come at a better time. Property values have disproportionately risen out of reach for many first-time investors to be able to purchase outright, and the empowerment to participate in income-producing, wealth-building real estate investments through tokenization can be life-changing. For property owners who have spent years or decades building their portfolios and equity, tokenization offers something unprecedented: the ability to tap into their property's value on demand and without surrendering operational control. Your next step? Connect with forward-thinking professionals who understand both the technical and strategic aspects of real estate tokenization. Your property portfolio isn't just a collection of assets – it's a launching pad for exponential growth in the tokenized future of real estate.
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