Ep 40 – Don’t Forget About Small Business Loans for Investment Real Estate

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Hoyt PrindleHoyt Prindle of the Florida Business Development Corporation talks about Small Business Administration (SBA) loans for investment real estate. Most real estate investors overlook this type of financing, because, frankly, it has limited use for investment property…BUT, the financing source can be excellent for mini-warehouses, hotels, golf courses, etc…OR, the professional or retail user who decides to have some attached rental space on the current space in which they own and run their business/practice. The terms of an SBA loan can make a deal VERY attractive for investors. Listen to Hoyt tells us what programs work best.  

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EP29 – Gavin Welch: 5 Tips on How to Find Off Market Real Estate Deals

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Finding Off Market Deals

For those new to investment real estate markets, pulling the trigger on a new potential property can be difficult. It is important to strategize and form a plan for your investments. A thorough plan will provide you with the confidence and knowledge to execute an investment property acquisition. Discovering untapped or overlooked real estate markets can also provide opportunity for investments.

 

Gavin Welch is real estate agent based out of Lakeland, FL. He has years of experience  in finding investment properties as well as managing several of his own. Gavin discusses five helpful tips for scouting these off-market properties and how you can build a successful investment base in these properties.

Gavin can be reached at:

Phone: 863-670-0303

In addition to his own podcast The Real Estate Loop, you can also follow him on Twitter and Facebook.

 

  1. Obtain evictions list from County Clerk
    1. Cross-reference names with Property Appraisers
    2. Notify landlord/owner of property interest with hand-written note in mail

 

  1. Scout absentee owners
    1. Absentee owner lists may be purchased or compiled manually
    2. Often property is inherited or owner holds little interest

 

  1. Build a strong referral base
      1. Word-of-mouth can be strongest marketing tool
      2. Networking, social circles, and family can all be sources of referral

     

  2. Seek abandoned or neglected properties
    1. Burned-out or mold-ridden properties may offer high returns
    2. Ask public service workers (garbagemen, mail person) or neighbors for information on properties

 

  1. Pull code violations from city code enforcement
    1. Owner may be eager to sell to cut losses or unable to continue costs of maintenance
    2. Code Enforcement Dept. may offer leniency with some violations if issues addressed

Book recommendation – Landlording on Auto-Pilot

Advice – Don’t get emotionally attached to the property you are buying or holding.

Learn what Gavin tells us about finding off market deals!

EP28 – Joryn Jenkins: Learn How to Manage Your Real Estate Risk in Divorce

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Joryn Jenkins talks divorceDivorce has a rightfully earned reputation for being an extremely stressful time for two individuals. The dissolution of a relationship can cost both parties involved an enormous amount of strain on an emotional and financial level. What many don’t realize is that professional and commercial investment partnerships can also be affected by divorce. There is a tendency during a dissolution of a relationship to sleight the opposite party or best them in some way. This is an emotional response to the break-up of a partnership and it inevitably leads to years of litigation and divorce proceedings, posing an extraordinary risk to the security of each party’s investments. Real estate represents a major factor that may be at risk in a divorce. It is a complicated issue due to real estate usually holding a high value on paper, but being a tangible asset, it is difficult to liquidate and Equitable Distribution may not make it entirely equal for each party. This can be avoided by exploring an exciting new approach: collaborative divorce.

Joryn Jenkins is a family law attorney with over 35 years of experience as a trial attorney. However, she stepped away from her background in litigation and pioneered the concept of collaborative divorce. As an alternative to conventional divorce proceedings, a collaborative divorce allows both parties to avoid trial and the costs associated with it by removing the courtroom atmosphere and strains of litigation. Open communication between the two parties is emphasized to “produce solutions that meet each parties’ needs” (Joryn Jenkins).

  • 50% marriages end in divorce
  • Spouse can be greatest investment risk; Equitable Distribution entitles spouse to roughly 1/2 of property and assets
  • Conventional divorce can be costly and time consuming, taking between 1-3yrs and costing up to $100k in fees for each spouse
  • Collaborative divorce proceedings take roughly 6 months and costs each party appx. $15k in fees
  • Collaborative divorce can serve as a safety net for investments and financial future in the event of a dissolution of partnership
  • Collaborative divorce aims to preserve the assets of each party and to mitigate costs of divorce

You can reach Joryn at http://openpalmlaw.com/

 

EP27 – Kevin Bupp: Making Money with Mobile Home Parks

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Mobile Home Investing

It might not be the first asset class people consider when they start to invest in real estate, but there certainly are opportunities. Warren Buffett doesn’t involve Berkshire Hathaway in to businesses without great potential for return. Over 12 million live in mobile homes and post WWII manufactured housing has been the go-to solution for affordable housing. Potential for higher returns, increased tax incentives through deprecation and limited competition from new mobile home park developments are just some of the reasons this asset class should not be overlooked.

Our guest, Kevin Bupp, like many investors, got his start in single family homes, but soon realized that single family home investing did not offer the economies of scale to allow him to reach his lifestyle and financial goals. He saw an opportunity in mobile home parks, which tend to sell at higher CAP rates than apartments. Here are some highlights of our discussion with Kevin:

• Owning the land and not the trailer is the preferred form of ownership, as there is less management involved with the land.
• Management of a park is not that much different than running an apartment building
• Buyer competition is less intense at the moment than apartments, but the inventory is much lower as well
• City utilities is a big plus, as opposed to the park maintaining its own treatment plant or septic. If buying parks with septic, make sure the size is large enough so that you don’t lose a lot(s) if you have to upgrade the septic or rework it to bring it up to current code.
• Targets a 15% cash on cash return
• While based in Florida, he likes the Carolinas, Georgia, and the Midwest when seeking opportunities

Kevin also has his own podcast, Real Estate Investing for Cash Flow, where he covers many topics in commercial property, mobile home park and multifamily investing.

How to reach Kevin:

http://www.kevinbupp.com/

Real Estate Investing for Cash Flow – Podcast

EP26 Joel Block – How Will the New Crowd Funding Rules Affect Raising Capital?

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251ab4eJoel Block, CPA of Bullseye Capital and founder of the National Association of Syndicators joins the Invest Florida Show for the 2nd of 2 part series. Big changes have occurred in crowd funding. In the last week of March 2015, the SEC announced the new set of crowd funding rules implementing Title IV of the JOBS Act. These changes affect Regulation A small public offerings, and are referred to as “Reg A+” Joel is with us to tell us what this means.  It might be a good idea for listeners to check out the first episode on general syndication issues from our first discussion with Joel if you are new to syndication  —->  Click Here!

 

Points:

  • In April 2012, Congress passed the JOBS act which was designed to allow small businesses easier access to capital
  • The Securities and Exchange Commission (SEC) released some new rules the last week of March 2015
  •  Crowd funding is an offering of securities in a company.  The company buys the real estate.
  • Changes in exemptions from individual State registrations

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EP25 {Podcast} What Should Canadians Know When Buying Real Estate in Florida?

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Florida continues to be a hotspot with Canadians. They are the largest foreign buyers of Florida housing. More than 500,000 Canadians currently own real estate in Florida. It is hard to name a town or city south of the I-4 corridor that doesn’t have a healthy population of Canadians…. Sarasota….Bradenton….Venice….Orlando…Kissimmee….Miami….Ft. Lauderdale….Palm Beach….Cape Coral….Ft. Myers….Tampa…..St. Petersburg….Naples….Marco Island to name a few.

While most of the Canadian buyers favor vacation or retirement homes on the coastal areas, Florida continues to offer a growth story for investors across commercial and residential asset classes.  Florida recently passed New York as the 3rd most populous state in US.  The opening of the Panama Canal is predicted to grow the economy in Florida ports.  And, most recently, the US government has taken action to ease the restrictions place on Cuba.  Removing the more than 50 year  embargo would have dramatic effects on both the Tampa and Miami economies, as well as their respective real estate markets.

Nick Podetz, of TD Bank and Jason Ansel of the law firm Altro Levy, join the Invest Florida team to discuss issues for Canadians to consider when buying US property.

Subjects covered are:

Canadians applying for a Mortgage – Canadian Mortgages on US property and US Mortgages on US property

Estate Planning Issues

Filing US taxes and tax planning to mitigate total tax paid

What are the liability issues?

Geographic areas and asset classes in which to consider investing

Should you hold title to US property in your children’s name?

Nick Podetz TorontoNick Podetz, Senior Manager, TD Cross Border Banking

Nick leads Cross Border Banking activities for TD Bank, responsible for overseeing the strategies and activities that help make banking across North America easy for customers investing in the US.

 

Jason Ansel - Toronto AttorneyJason Ansel, Associate at Altro Levy, a Canadian based law firm

Jason and his firm are dedicated to cross border Tax, Estate Planning and Real Estate Legal Services.  He assists clients with the various issues on holding assets in the US for both business and personal use.

 

 

 

EP22 – How to Hold Real Estate in Your IRA

John Galane - Mountain West IRA

John Galane from Mountain West IRA discusses how to hold real estate inside of your retirement accounts. Those looking for cash flow and greater control of their retirement assets might consider self-directed plans.  

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EP19 Larry Feldman: Office Investor Moves BIG in to the Florida Market

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Wells Fargo BuildingIn 2010, Larry Feldman and his investment partners had decided it was time to strike when the iron was hot. Tampa Office vacancies had plummeted, which took office prices with it. Feldman was gun shy of the Tampa region, as he really did not see it is a market worth pursuing.

Finding deals in other markets, however, proved to be challenging, so he decided to take another look at Tampa and MAN, is he glad that he did! The rock bottom prices presented a handful of opportunities that were too good for Feldman to turn away. Since then, he has been one of the biggest deal makers in the area and stands to make millions on bets that the office markets had bottomed out purchasing the Wells Fargo building in Downtown Tampa and Morgan Stanley building in St Petersburg, among others.

Feldman’s strategy has been to focus on the core business sub-markets (densely populated downtown office space cores), buy under-leased real estate at rock bottom prices, invest in building renovations, build relationships with brokers and try to flip. He stands to make millions from his timing of this market.

Feldman and his partners bought the Wells Fargo building, one of the signature office buildings in downtown Tampa for $115 per square foot and invested $15 per square foot in improvements. Replacement costs for the asset could approach as much as three times what they paid for the property.

He credits his strategy for working closely with brokers as a reason for quick turn-arounds on assets with stubbornly high vacancy rates.

Feldman is not your typical hands off institutional asset manager. He is very involved in the property management of his real estate. He subscribes to the old fashioned way of “Management by Walking Around.” On any given day, you can find Feldman in his Downtown Tampa office in the Wells Fargo building, working the phones, walking the property, checking on his tenants and trying to work on creative ways to make sure the brokerage community keeps him on the top of their list when they have a hot prospect.

We think you will enjoy Larry’s approach to deal making.

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EP18 – Where to Begin: A Few Points on How to Start Investing in Real Estate

Homer-Simpson-150x150Investing in real estate can be a terrific method of accumulating wealth. But, where do you start?  What asset class is best for you?To whom or where can you turn to put you on the path to success?

It can be quite intimidating for beginners trying to make decisions on which paths to take when they are getting started.  No one is going to teach you everything that you need to know, but hopefully you can pick up some pointer on the path that best suits you.  In this episode, we discuss some tools you might use to put you on the path to getting started in real estate investment….how to start investing in real estate!  

Points

“It’s difficult to earn consistent revenue in the stock and bond market.  Yields to Maturity on bonds are at historically low rates.  Real estate, with proper underwriting, can produce superior, relative cash yields.”

“Owning real estate does not mean you are buying yourself a full time job.  You can be as involved as you want.  There are plenty of firms and services available to investors that can help investors manage their investments.”

Where to find resources?

Podcasts:

BiggerPockets

Real Estate Radio Guys

Investing for Cash Flow

Books:

Millionaire Real Estate Investor

Rich Dad, Poor Dad

Real Estate Investment Associations (just a few examples, there are hundreds in Florida):

Sarasota

http://sarasotareia.com/

West Florida

http://westfloridareia.com/

Hillsborough – Pinellas

http://www.sreia.com/

Palm Beach

http://palmbeachia.com/

Orlando – Central Florida

http://www.cfri.net/

Metro Dade

https://www.facebook.com/pages/Dade-Real-Estate-Investors-Association/186867381148

Jacksonville

http://jaxreia.org/

For a Personal Consultation on where you should begin, contact 813.498.2186

 

 

 

 

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