CHELSEA Lara Shuqom Lara Shuqom | Investor’s Guide · 2017-08-10 · Lara Shuqom exemplifies a new breed of global real estate professional. As a hybrid real estate broker and consultant,

Lara Shuqom exemplifies a new breed of global real estate professional. As a hybrid real estate broker and consultant, Lara specializes in representing investors in strategically diversifying their real estate investment portfolios, across all major asset classes, in the metro-Boston market and the United States. By partnering with Compass, the country’s most innovative, technology-forward real estate brokerage, Lara offers her clients an exemplary full-service approach by utilizing Compass’ network of exceptional agents in the most affluent US markets nationwide. In addition, Compass’ New Development team, with $2.5 Billion USD of projects in the pipeline, and the ever-growing national and international presence, equips Lara and her clients with a wealth of resources and an unparalleled platform of support. Born in Riyadh, Saudi Arabia, Lara was raised in Atlanta and educated in Boston, and remains globally connected with an extensive

family throughout Europe and the Middle East. Lara’s global perspective, combined with her skills in the art of communication and negotiation, enables her to act as a liaison for her international clients as they navigate the US real estate market. Traveling to the MENA region frequently, her passion for real estate coupled with her skills and deep knowledge of investment principles facilitated an opportunity to assist individual and institutional investors in the execution of acquisition strategies in the metro-Boston market, as well as nationally.

Prior to joining Compass, Lara was with Cushman & Wakefield on the Capital Markets Investment Sales team, the #1 Investment Sales team for Cushman & Wakefield worldwide, as well as the Equity, Debt, and Structured Finance group. More recently, Lara was the Founder and CEO of Catalyst Consulting of Boston, a full-service communications firm offering an integrated blend of marketing and

consulting services, specializing in representing top producing real estate companies and professionals throughout Massachusetts.

Lara resides in Boston and Doha, Qatar. She is an active member of CREW, Commercial Women in Real Estate, the region’s leading professional organization promoting the advancement of women within the real estate industry, and the Simmons College Alumni Club of Boston. Lara holds a dual Bachelor’s Degree in Political Science and Art History from Simmons College in Boston.

Lara Shuqom International Real Estate Consultant & Realtor 126 Newbury Street, Boston, MA 02116 [email protected]

Lara Shuqom | Investor’s GuideNavigating investment opportunities

throughout Greater Boston

DORCHESTER

CHELSEA

SOUTH END

BAY VILLAGE

BACK BAY

BEACON HILL

CHARLESTOWN

CAMBRIDGE

SOMERVILLE

MIDTOWN

SEAPORT

SOUTH BOSTON

BROOKLINE

WEST ENDNORTH END/ WATERFRONT

EAST BOSTON

BACK BAY/BEACON HILL $1,141

CHARLESTOWN $670

DOWNTOWN BOSTON* $1,112

EAST BOSTON $459

NORTH END/WATERFRONT $909

SEAPORT DISTRICT $770

SOUTH BOSTON $674

SOUTH END/BAY VILLAGE $992

WEST END $693

BROOKLINE $668

CAMBRIDGE $773 NEWTON $401

SOMERVILLE $557

2017 Q2 Condo Median Price per Square Foot by Neighborhood

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By the Numbers

Gross Scheduled Income (GSI)GSI is the annual rental income a property would generate if 100% of all space were rented and all rents collected. If vacant units do exist at the time of your real estate analysis then include them at their reasonable market rent.

Gross Operating Income (GOI)GOI is gross scheduled income less vacancy and credit loss plus income derived from other sources such as coin-operated laundry facilities. Consider GOI as the amount of rental income the real estate investor actually collects to service the rental property.

Operating ExpensesOperating expenses include those costs associated with keeping a property operational and in service. These include property taxes, insurance, utilities, and routine maintenance. They do not include payments made for mortgages, capital expenditures or income taxes.

Net Operating Income (NOI)NOI is a property’s income after being reduced by vacancy and credit loss and all operating expenses. NOI is one of the most important calculations to any real estate investment because it represents the income stream that subsequently determines the property’s market value – that is, the price a real estate investor is willing to pay for that income stream.

Cash Flow Before Tax (CFBT)CFBT is the number of dollars a property generates in a given year after all expenses but in turn still subject to the real estate investor’s income tax liability.

Gross Rent Multiplier (GRM)GRM is a simple method used by analysts to determine a rental income property’s market value based upon its gross scheduled income. You would first calculate the GRM using the market value at which other properties sold, and then apply that GRM to determine the market value for your own property.

Cap RateThis popular return expresses the ratio between a rental property’s value and its net operating income. The cap rate formula commonly serves two useful real estate investing purposes: To calculate a property’s cap rate, or by transposing the formula, to calculate a property’s reasonable estimate of value.

Cash on Cash Return (CoC)PCoC is the ratio between a property’s cash flow in a given year and the amount of initial capital investment required to make the acquisition (e.g., mortgage down payment and closing costs). Most investors usually look at cash-on-cash as it relates to cash flow before taxes during the first year of ownership.

Large Scale Development A New Age for a Historic Town - I believe we are experiencing the “Manhattanization of Boston” with new luxury mixed-use product changing Boston’s landscape faster than ever before, redefining neighborhoods, and reaching new heights both in stories and price points. With billions of dollars in projects currently under construction and approved for delivery over the next 5 years, investors can count on appreciation in all Boston markets, respectively. One example is the 2016 success story of Millennium Tower (breaking Boston’s record condo sale at $35Million for the Grand Penthouse) and 80% sold out pre-construction both from domestic and foreign buyers, proving the HUB is in fact experiencing the biggest building spree since the industrial age. Multiple investors have made $300K after construction completed on units they reserved before delivery, never stepped foot in, and turned a profit.

As a hybrid residential and commercial Consultant & Realtor, my approach to real estate is through an investment lens. Specializing in identifying potential opportunities to create, grow or diversify your portfolio, I can add value to your search - whether it’s buying your first home, a multi-family investment property, or a mixed-use asset. I am there as a subject-matter expert, advising on the best and most innovative ways to use real estate as a tool to invest in you and your future. With a team of financial planners, accountants, attorneys and other professionals, I can help ensure you are making the best informed decisions throughout the investment planning process.

Why Invest in Boston? Boston real estate is a terrific investment for many real estate investors around the world. The city boasts a high quality of life, high household incomes, and vast opportunities for cultural and entertainment activities. Boston has one of the world’s most highly-developed and integrated economies and is a hub of international business and commerce.

#1state in the country3

Break-Even Ratio (BER)BER is a ratio some lenders calculate to gauge the proportion between the money going out to the money coming so they can estimate how vulnerable a property is to defaulting on its debt if rental income declines. BER reveals the percent of income consumed by the estimated expenses.

Present Value (PV)PV shows what a cash flow or series of cash flows available in the future is worth in today’s dollars. PV is calculated by “discounting” future cash flows back in time using a given “discount rate”.

Internal Rate of Return (IRR)This popular model creates a single discount rate whereby all future cash flows can be discounted until they equal the investor’s initial cash investment. In other words, when a series of all future cash flows is discounted at IRR that present value amount will equal the actual cash investment amount.

Taxable IncomeTaxable income is the amount of revenue produced by a rental on which the owner must pay Federal income tax. Once calculated, that amount is multiplied by the investor’s marginal tax rate (i.e., state and federal combined) to arrive at the owner’s tax liability.

Leverage ReturnA leveraged return is the return calculated on an investment that takes advantage of a mortgage. It is calculated by subtracting the expenses incurred by the property (including the interest payment on the mortgage) from the income produced by the property and dividing that by the initial investment amount.

Return on investment (ROI)Measures the gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company’s profitability or to compare the efficiency of different investments. The return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100

1031 ExchangeA 1031 Exchange is a way of selling property with the possibility of deferring or eliminating income tax by purchasing a property of a like-kind after the sale of their original property within a period of time. This sort of swap is outlined in section 1031 of the Internal Revenue Code. In a 1031 Exchange, the taxpayer who is selling the initial property must be the same taxpayer that buys the new one. This taxpayer may be an individual, a corporation, partnership, trust, or limited liability company, but regardless, it must be the same taxpayer in both transactions.

Small Scale Development With the sustained buyer demand and low inventory in the Greater Boston area, small to mid-size developers are seizing the opportunity to renovate and gentrify all neighborhoods, from Dorchester to East Boston to Medford, where investment upside is huge for investors or end-users who are interested in capitalizing on the relatively “low” entry-level prices into these emerging markets.

Key Terms

#1in countries providing

the best opportunity for capital appreciation

#1in the “Top 10 College

Town For Investors”4

#3city for foreign

real estate investors5

Top 5 U.S. Cities for International Investors1

1. NEW YORK2. LOS ANGELES3. BOSTON4. SEATTLE5. SAN FRANCISCO

Ranking of U.S. Property Type1

1. INDUSTRIAL 2. MULTIFAMILY 3. OFFICE 4. RETAIL 5. HOTEL

2.7#1median breakeven

in years2

most stable and secure country for real

estate investment

United States BostonUnited States

Massachusetts

#1in education3

Massachusetts Massachusetts

#2in healthcare3

Boston Boston

1. Association of Foreign Investors in Real Estate, known as AFIRE - 2017 | 2. Zillow | 3. U.S. News and World Report “Best States” | 4. Survey by Realtors.com 5. Q2017 survey, by members of the Association of Foreign Investors in Real Estate (AFIRE)