Nobody said real estate investing was an easy business. Aside from the hard numbers and financial side, commercial and residential real estate investing requires dedication and perseverance from investors and a certain ability to thrive under pressure. For many, these pressures prove too great of obstacles to find success as real estate investors. Invest Florida Show aims to provide its listeners of all investment levels with the tools and resources necessary to make actionable investment decisions. In addition to providing educational resources to our listeners, we also want to inspire would-be investors to make the first big step and invest!
This episode our guest is all about inspiration. Mark Nathwani is a real estate investing specialist and international entrepreneur. Mark has assisted in the growth and development of many businesses and currently serves as CEO of RAMS Real Estate Holdings, a U.S./U.K. based firm focusing on foreclosure properties and other sensible Florida real estate markets. Above all else, Mark believes the first step is the biggest one: want to get into real estate investing? Just do it!
Mark’s Tips for Beginning Investors:
SFR properties are relatively stable, secure markets for those looking to begin real estate investing
Florida has many strong SFR markets:
Tampa, St. Petersburg, Jacksonville, Orlando
Tailor strategy to investment type:
Fix-and-flip, wholesales, holds
Invest based on yield as opposed to price and valuation
Yield is generally higher in complicated markets i.e. low-income housing
Choose a market and apply strategies that suit that market, don’t cherry-pick strategies from other real estate markets
Cast a wide net to find deals
Brokers, letters, bandit signs, banks, etc.
Never lose confidence in your deal!
To contact Mark with any potential investment opportunities or to find out more about his real estate investing services, visit his website!
Normally, our episodes focus on making strong, equitable real estate investments but as investors feel the restraints of a tightening lending market, they are looking for alternative financing options. Mortgage notes represent a secure and a stable income market. Buying and selling mortgage papers can yield sizable returns that can supplement an investor’s income-base.
David Campbell is a jack-of-all-trades in real estate investing. He is an experienced real estate investor and developer, he handles property management, and he buys and sells mortgage notes and offers private financing options. David, who made the transition from high school band director to real estate investor in 2001, began buying and selling mortgage papers in 2012 and has manged an increasingly profitable debt portfolio since. This episode, David discusses his multi-transitional career in real estate and how buying mortgage notes can be a great way to invest in real estate.
Market demands alternative financing options
Private lenders + Seller financing
Self-Directed IRAs – about 60% of alt. lending market
Used for non tax-efficient assets like mortgage notes
A significant mortgage/debt portfolio can be stable and lucrative income-base
Happy to make $ on deal by end term?
Deal still profitable w/ out loan payment?
Predatory loan claims risks?
Mortgage notes and Dodd-Frank
Work with Registered Loan Mortgage Originator – creates ‘Qualified Mortgage’ papers
Loan can be guaranteed against inconsistencies with Dodd-Frank regulations
Ensure notes are good before buying
Borrowers – debt-to income ratio 45% or lower; no higher than 6.5% above average prime offer rate; 15 + 30 year terms (9.5% rates)
David’s website www.hasslefreecashflowinvesting.com is loaded with materials and resources for real estate investing, development and financing. Visitors can find out more about David’s enterprises as well as check out his blog for even more information! For other inquiries, David can be reached directly by email: firstname.lastname@example.org
“Inventar”: last episode, we were introduced to this phrase by our guests, Josue Romero and Juan Nunez. The hardships faced in Cuba as young men and as immigrants to Florida instilled in them an invaluable determination to thrive and to make the best out of any situation given – to invent success out of nothing through hard work. This episode, we learn how Juan and Josue applied these principles to Florida real estate as we trace their success stories from their introduction into the real estate industry to where they are today.
Josue was introduced to the financial side of real estate in 2009, at the peak of the financial crisis that crippled Florida’s real estate markets. We learn how he was able to find success as a mortgage broker despite the dire state of real estate financing. Juan, with Josue as his mentor, entered the investment side in 2011 and quickly found success in the single-family residential markets fixing and flipping. Together, Juan and Josue formed a dynamic, cooperative relationship founded on principles of hard work and perseverance and are now leaders in Florida’s single-family markets. Josue is the owner of MyLendingHub.com, a mortgage calculator website and Juan is owner of Zenun Enterprises, a real estate investment firm. This episode, they discuss their approach to lending and investing as well as the current state of Floridaand Hillsborough’s real estate markets.
Focused on Single-Family Markets
Majority fix-and-flip deals
Emerging in development and construction
Hot Hillsborough SFR Markets
Town ‘n’ Country
Appreciations not really a problem for next couple years, but investor pool diminishing
Lending markets moving from FHA to conventional institutions (Fannie Mae, Freddie Mac)
3% down for qualified investors and lower premiums than FHA
Tips for Investors
Focus on single market and expand only after well-established
Large portfolios are difficult to manage alone
Have a team; network with agents and brokers
Due diligence is key
Stay in budget
For lending inquiries or solutions, contact Josue by phone – (813) 802-6970 or visit www.mylendinghub.com
For any investment inquiries or potential investment opportunities, contact Juan by phone – (813) 766-2959
Cuba. The island nation of roughly 11 million situated 90 miles south of Florida has, for decades, cast a large shadow over its continental neighbor. The U.S., especially Florida, has had a profound and diverse history with Cuba. Cubans and Cuban-Americans have played a nominal role in shaping Florida’s commercial landscape as well as cultural backdrop, with Tampa and Miami representing two major pockets of Cuban heritage and influence. This episode may be a bit of a departure from our typical shows, but as bilateral relations between the two countries progress, both Cuba and U.S. industries anticipate a major developmental boom that has real estate investors watching closely. This special episode will be represented in two parts with our guests sharing both some personal stories of their immigration into the U.S. as well as their involvement in Florida’s real estate markets.
Josue Romero is a mortgage broker serving as owner of My Lending Hub, a mortgage brokerage service company based in Tampa, Florida. Juan Nunez is a real estate investor in Tampa and currently owns and operates Zenun Enterprises, an investment firm focusing mainly on single-family markets. In 1999, Josue and Juan both arrived in Florida with their families seeking asylum. At the time, Cuba was in dire straits. Though the boys were young at the time, their families knew all too well the devastating effect of the ‘Special Period’ on Cuban welfare. When their families reached Tampa, they set about cementing the American dream as a reality with little more than resilience and hard-work. Despite its status as a Communist country since 1959, the Cuban disposition has always been innately capitalistic. Through their stories, Josue and Juan will introduce us to the concept of Inventar – the wholly Cuban approach to making something from nothing. We will learn how this unique ability and ingenuity lead to such a fluid and fruitful transition into mastering Florida real estate markets.
Investors want to know that their properties are insured against any unforeseen damages. The last thing a real estate investor wants to do in the event of an emergency is argue with their insurance company over an insurance claim. Insurance companies are a business and all businesses look towards minimizing costs. If damages occur, most insurance companies will attempt to mitigate costs on an insurance claim in order to avoid costly expenses, but this can hurt investors trying to recoup loss of income on a property.
Ray Altieri III is Vice President of Business Development for Altieri Transco American Claims Corporation. Together with his company, Ray strives to ensure that insurance policyholders receive proper payment in the event of an insurance claim. As public adjusters, Altieri Transco represents insurance policyholders throughout a claim to guarantee that they receive proper recompense from insurance companies. This episode Ray discusses how investors can avoid getting burned when making an insurance claim on an investment property.
When to Get a Public Claims Adjuster?
A.S.A.P – A Public adjuster should be brought in on a claim as soon as possible to build an accurate cost for coverage from the ground-up. Adjusters for insurance companies will attempt to minimize costs for coverage
How Are Public Adjusters Compensated?
Typically, public insurance claim adjusters receive a percentage of the overall settlement, usually 10%
Tips for Investors
Insurance Applications – Investors should be aware of the information entered into insurance applications. Incorrect or missing information may result in a voided insurance claim
Emergency Services – Costs for emergency services on an insurance claim are not paid by insurance companies, they are paid by the policyholders. Investors should understand these costs and how they affect coverage on a claim
Title insurance may seem like a trivial issue for real estate investors who have already invested time and money into a deal, but title issues can pose a bigger problem than most investors expect. Purchasing an improper or fraudulently titled property can cause an investor a hefty financial burden.
Joellyn Robles, of Hillsborough Title, has been working in the title insurance field for 12 years. Currently, she serves as business development officer, representing eight brand-name independent title companies in Florida. This episode Joellyn discusses five hot points in title insurance that may represent major cost-risks for investors.
2 Title Insurance Policy-types in Florida
Owner’s Title Policy – covers owner of property; ensures clear and marketable title to property
Loan Policy – Financial lender on property is protected; insures lenders against future title issues or liens
5 Hot Title Insurance Points:
Auction Purchases – many single-family investors are turning to foreclosure markets and bid without proper due diligence. Some properties have several liens or second-mortgage foreclosures. Investors should purchase Ownership and Encumbrance Reports, establishing proper owners and any liens on properties. These range between $150 for single-family and about $250-$300 for commercial/multi-family.
Naked Mortgage Satisfactions – Investors should be aware of recently satisfied mortgages with no evidence that pay-off proceeds came from a re-financed loan. Some property owners with outstanding liens issue fraudulent mortgage satisfactions.
Trusts – Some properties are placed under names of trusts, not individual trustees. In Florida, trusts are not legally authorized to own real estate. Sorting out proper ownership is lengthy and costly. Investors should consult with local Florida property-law attorneys.
Power of Attorneys -Investors should be aware of improperly or fraudulently drafted Power of Attorney documents. Some may indicate incorrect or illegal ownership titles.
Corporations – Many individuals maintain property titles under LLCs to protect against liability, but it can sometimes prove difficult to determine who exactly holds title rights when it is time to sell. Title agents review operating agreements and articles of incorporation to establish proper ownership.
Extra Hot Point!
Municipalities have been cracking down on code-enforcements. Investors should be aware of code liens on properties.
Hillsborough Title offers investors a helpful app to calculate closing costs with proper title insurance secured on deal. Download it on iTunes!
For any title insurance questions or concerns, Joellyn can be contacted by cell: 813-732-7585
Family offices are becoming a burgeoning industry in terms of real estate investment and financing. Wealthy families are increasingly looking towards commercial real estate as a stable, generating market to channel and secure funds. Florida real estate markets are poised to receive family office investments and financing, but there is one problem: how can an investor find family offices?
Richard Wilson is founder and CEO of Miami Family Office, a $500 million AUM single family office. Through his company, Wilson Holding Company, Richard also oversees and advises on several other family office business enterprises including Billionaire Family Office and the membership-driven Family Office Club. Through his companies, Richard owns, manages, markets and facilitates family offices. This episode Richard discusses how commercial real estate investors can access family offices as a source for deals and financing.
Network and market towards family offices
Networking through social media
Narrow search: source for certain deal-types
Compile list of family offices in your area, find out what propoerty-types they are investing in
Family offices look for credible, practical deals as investments
Most family offices like to invest locally
Good cap rates: properties earning 15-17% IRR
Family offices looking for investors
Put out property mandate alerts for certain desired investments
Will reach out directly to investors
If you think you have an actionable family office investment deal, contact Richard at email@example.com
In a recent episode, we spoke with an investor who managed a Florida real estate portfolio from outside the country. This week’s episode features an investor who runs a foreign investment firm out of his home-base in Davenport, Florida.
Garrett Kenny started building his investment portfolio in Florida after being introduced to Orlando’s vacation markets in 1996. Since then, he has built his investment firm, Feltrim, into an international name for foreign investment in Florida real estate, handling all aspects of the investment process. This episode, Garrett discusses foreign investment in Florida and hot real estate sub-markets in Orlando.
Foreign Investing in Florida
Most foreign investors can expect to average 6% annual ROI
Easy to find financing options, but many do cash deals
Usually require more up-front from investor for financing
4-4.5% interest rates
Some foreign investors use local banks and mortgage brokers
Some financing may be available through institutions in home countries
Brazil and China emerging as dominant foreign investors in Florida markets
Foreign investors expanding portfolios in Florida real estate
62 million visitors to Orlando area in 2014
Diverse investment opportunity
Vacation rentals, commercial and industrial markets
Top 3 vacation rental areas – Championsgate, Davenport, and Kissimmee
Medical + Technology – Lake Nona
Long-term investing in 30 mi. radius of Disney
Other hot sub-markets
Distressed and repossessed homes
“Class A” properties – Windermere, Winter Park
Tips on Foreign Investment
Having a local knowledge of your desired market is key
Find out about the area before investing
Location, Location, Location
Finding the right location for your investment is important
To find out more about Garrett and Feltrim’s services or about investing in Orlando real estate, visit the firm’s website
Whether investing in a multifamily property with value-add intentions or simply as a stable addition to your portfolio, it is important to consider the building structure and the costs associated with structure maintenance.
Jillian Bandes, of Bandes Construction Company knows just what to look for in building structure when valuating a potential multifamily investment. This episode, Jillian shares six hot topics for investors to consider about building structure when buying multifamily properties.
Costly repair and improvement item
Determine property’s inside and outside amperage
Enlist licensed electrician for any repairs or improvements
Unwise to cut costs on roofing materials and construction
Find dependable roofing companies, use quality materials
Roofing Warranties: 1-2 yr Workmanship Warranty; 10-20 yr Manufacturer Warranty
Air-conditioning represents a huge aspect to determine in Florida properties
Requires secure maintenance schedule
Replacement costs can be substantial
Doors & Windows
Many things to take into account with doors and windows
Observe building jurisdiction’s code requirements
Buying replacements in bulk may be more cost-effective than as-needed replacements
Interior trends fluctuate. Stay current with trends that tenants want
Value-add investors may want to put more into interior costs up front for greater tenant appeal and longevity: energy star appliances, natural stone counter-tops, removing partitions, adjusting ceiling heights
Frame vs. Masonry
Wood frame structures usually require much more extensive evaluations than masonry structures: water-proofing report, site level, landscaping, water table, drainage, etc.
Repairs and rehabs can be costly on frame structures
Masonry offers more stability and investment assurance
For more information from Jillian about important items to consider about building structure she can be contacted through Twitter @jillybee or by visiting Bandes Construction Company’swebsite.
Florida has long been known as a great real estate market for foreign investors. Commercial and residential markets both represent favorable investment markets for foreign capital. While investing in real estate outside of a county or state may seem a daunting task, this week we talk with an investor who grew and a successful SFR portfolio out of another country!
Colin Murphy is Director and Co-founder of Torcana, Ltd. an investment firm specializing in single-family properties in Florida. With over ten years’ experience behind him, Colin has grown Torcana into a leading name in Florida SFR markets and he was able to do it all based out of Madrid, Spain. This episode, Colin shares with us some tips for building a successful foreign real estate investment portfolio.
5 Must-Haves for Foreign Investors:
Avoid unnecessary and overly complex contracts
Standard Realtor’s Assn. contracts offer foreign investors easy-to-understand terms
Foreign investors new to U.S. and FL markets may be unfamiliar with title companies
Title companies ensure a clean title transfer in a real estate transaction. They run a property’s title against any outstanding liens and unpaid fees.
Closing costs on U.S. and FL real estate is comparatively less than that of markets outside of the U.S.
Despite the relatively low closing costs, foreign investors still need to be aware of what they are paying for
Follow-up is needed after purchasing a property
Find the right insurance coverage for your investment as well as establishing a property management plan
All U.S. real estate is subject to taxes and returns must be filed on them
County tax collector searches can be an easy way for foreign investors to keep track of their portfolios’ taxes
For a more comprehensive approach for foreign investors, check out Colin’s list of 20 things to know for real estate investing: