Things are happening in the Miami real estate market… Well things are always happening in the Miami real estate market, but BIG things are happening right now. Miami has long been the focal point for real estate investors due to the density and scale of development and the investment opportunity for a variety of asset classes. Real estate investors all over Florida have looked towards the Miami real estate market as a forecast for current and future conditions throughout the state.
Tom Blazejack, of Blazejack & Company knows all of the ins and outs of the Miami real estate market. In addition to nearly 40 years’ experience as a real estate appraiser and analyst, Tom is also a native of Miami. Tom’s extensive appraisal knowledge of commercial and residential properties and intimate knowledge of the Miami real estate market make his consultation highly sought after by investors. This episode, Tom gives us an overview of the Miami real estate market, including development highlights and what investors should expect.
Miami Real Estate Market
2011 purchase of Miami Herald building for $236 million marks return of market
Foreign investment and cash-heavy market
Foreign investors seeking stable properties to invest cash
New deposit requirements for investors and developers insures accountability
Lenders alleviating construction loan costs for developers
Projects moving quicker
Land price increases
Miami seeing $200-300/sqf on new commercial developments but even as high as $3000 in some prime locations
Residential continues to increase… up to $3/sqf in best projects
Development spreading into surrounding Miami
Little Havana, Wynwood, Coral Gables all seeing new projects
Real estate development in Florida is currently in great demand. With real estate investors turning towards ground-up real estate development as an increasingly more viable means of investing, new projects are springing up state-wide. However, with increased pressure on real estate development and a construction workforce stretched thin, it is important to keep in mind key points if looking into real estate development as an investment goal.
Jonathan Moore, AIA is president and founder of InVision Advisors. His firm offers owner’s representation and project consulting services for owners and investors, architects and contractors during real estate development. As owner’s representatives, InVision Advisors takes a comprehensive approach to real estate development deals handling day-to-day and overall project oversight. As an experienced architect, Jonathan brings a unique insight to his knowledge of the real estate development industry. This episode, Jonathan discusses hot points for investors to know about real estate development.
7 Real Estate Development Hot Points
Markets state-wide are saturated with work
Sub-contractors control velocity of development
Artificial inflation caused by over estimation of construction costs
Problems frequently arise due to lack of communication
Loss of face-to-face time and on-site meetings contribute to communication breakdown
Real estate investors know that Florida’s real estate markets are tightening up. As the demand begins to outweigh supply, real estate investors are having to become much more diligent in their property searches. This is especially true for out of state real estate investors looking for Florida properties. Out of state real estate investors must not only know their desired market, but also how to acquire and execute deals from a remote location. How can out of state real estate investors keep track of the Florida markets?
This episode, we speak with Eric Black. Eric is an investor based out of California who has owned properties in several different states, including Florida (Brevard County). Eric’s position is a unique one in that real estate investing is currently ancillary to his full-time job in the technology industry. With the ultimate goal of a transition towards full-time real estate investing, Eric has adopted an interesting perspective on real estate investing that may be helpful for other out of state real estate investors. This episode, Eric discusses how he handles a full-time job along with being an out of state real estate investor and shares tips for others.
Tips for Out of State Real Estate Investors Looking for Properties
Adopt Marketing and Search Strategies
Build local network to market your investment goals and aid in property search (realtors, contractors, developers, investors, financiers, etc.)
Know Your Market
Best to visit your desired market area with a knowledgeable local contact
Statistics and data research
Google Maps/Google Earth
Have Effective Property Management
Property management benchmarks: vacancy turnarounds, communication with owner
Helpful Tools for Investors
Find a mentor or follow someone who has found success in your desired market
Real estate investors always keep an eye on Florida real estate markets. Not only does the state serve as a national indicator of market trends, but Florida also represents a major real estate market in itself. Despite ups and downs, Florida has remained an appealing market for investors. Investors must stay on top of changing market trends and know what the hot Florida markets are as well as the ones that aren’t.
Listeners may recognize Daren Blomquist from his previous appearance on the show. Daren is senior Vice President of RealtyTrac, a nationwide real estate data analysis firm, providing real estate professionals in-depth and up-to-date information and research on a variety of markets. This episode Daren discusses the changing face of Florida real estate as he covers some hot Florida markets emerging as well as ones that are winding down.
Florida market in strong recovery, but not at previous peak
52 consecutive months of year-over-year increases in home appreciation
12% in appreciation since April
Successful transition from cash-buyers to FHA financing
26% increase in FHA financing
11% decrease in cash purchases
Foreclosures still lead, but in decline
11 month decrease in foreclosures
10% increase in flips statewide
Deltona, Daytona Beach, Ormond – 49% y-o-y
Tampa – 11%
Jacksonville – hot flipping market and highest gross returns on flips
Home appreciations on the rise
Cape Coral and Punta Gorda lead state, though seeing decrease in flips
Affordability remains market concern
Home appreciations are outpacing wage growth
Affordability index of 100 or above is normal; below 100 is less affordable
Cape Coral – 100
Punta Gorda – 100
Naples – 102
Institutional buyers in decline, but still active
Investors and listeners can find out more about current, local affordability index data by visiting www.realtytrac.com/news
For those who want to learn more about the hot Florida markets and the premium service packages offered by RealtyTrac, visit their website and subscribe! Listeners to the Invest Florida Show are eligible for a discount on subscription. To find out more about this offer, contact email@example.com or call 888-408-4396.
Florida was hit hard following the real estate crash in the mid 2000s. As the market began to return, real estate investors saw the foreclosure market as a well-spring of opportunity and many took advantage of the asset class. However, as real estate markets have rebounded, foreclosure markets have begun to dry up. Investors have found it increasingly difficult to find successful strategies for bidding on foreclosures.
Our guest this show has been buying and selling foreclosure properties since the late 1990s. Focusing solely on Broward and Palm Beach counties, Eric Nathanson has developed successful strategies for bidding on foreclosures and has earned a leading reputation in South Florida’s foreclosure real estate markets. Eric is co-founder of Bidologist.com, a third-party turnkey investment company offering investors bidding on foreclosures a single source for investment solutions. This episode, Eric discusses the current trend in South Florida’s foreclosure markets as well as strategies for investors bidding on foreclosures.
Broward and Palm Beach Foreclosure Markets
Majority of real estate markets returning to pre-crash point
Large foreign investment/flight capital base
China, Brazil, Venezuela, Russia
FC supply thinning
Investors no longer able to cherry-pick from select areas
Must cast wider net to suit investment goals
Easier for investors to gather info on properties
Bidding pool expanded internationally
Bank has option to hide bid, making bidding more selective
Likelihood of future foreclosure markets slim
Financing regulations much stricter
Possible market for investors who can afford to purchase condos with rental restrictions and wait them out
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