Category Archives: Marketing & Finding Deals

Ep. 120 Pete Kuc: Investing for Cashflow and Jacksonville Market Recap

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investing for cashflowThere are many strategies investors can apply in real estate investing. Some offer big risks and bigger returns, some offer a stable, long term earnings. While it may not be the flashiest investment strategy, investing for cashflow can provide long term stability and act as a cushion in the event of any unforeseen market downturns.

Pete Kuc, Co-Founder of May Real Estate Group, got a crash course in the big risks of speculative investing and learned the power of passive income and investing for cashflow the hard way.

Following the 2008 market crash, Pete was forced to reassess his approach to real estate, but what he has since learned about investing for cashflow has paid off. He has grown this strategy into a thriving turn-key investment company serving northeast Florida.

This episode, Pete talks about cashflow investing and gives us a recap of the Jacksonville and northeast Florida markets.

Investing for Cashflow

  • Buy-and-hold strategy
  • Fix-up, rent property, build equity
  • Not based on speculative appreciation

NE Florida Markets

  • Jacksonville, St. Augustine, Palm Coast
  • Jacksonville: strong natural growth, prices lower than other Florida markets, good rental returns; Orange Park neighborhood

Finding Deals

  • Direct homeowner marketing
    • Mailers
  • Finding off-market deals
  • Wholesalers
  • National Community Stabilizing Trust
    • Fed Program offering off-market deals at discount
    • For non-profits, but community investors may be vetted for program
  • Real Estate Investor Associations (REIAs)

Investor Advice

  • Consistence and persistence is key to success
  • Keep letting people know you are a player in the game

Contact

To find out about the turn-key investment services offered by the May Group, visit www.kigjax.com. To find out more about investing for cashflow or to learn more about what is happening in the Jacksonville real estate market, message Pete directly on Facebook.

 

Ep. 117 Augie Byllott: A Focused Acquisition Strategy Can Earn Higher Investment Returns

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focused acquisition strategy can earn higher returnsBeginning real estate investors often get caught up in the appeal of high returns. However, the focus on high investment returns can come at the expense of a sustainable exit strategy.

A focused acquisition strategy can mean the difference between a profitable investment and a failed one. It is important to consider a seller’s circumstances when making a potential investment deal. By tailoring a deal to fit individual circumstances you have a higher tendency to close. By structuring multiple deals, you can easily see what acquisition strategy works best for your investment goals.

Augie Byllott is someone who knows the importance of acquisition strategy. The founder of Creating Wealth U.S.A. is a seasoned single family investor. With over 500 deals under his belt without the use of bank loans, Augie has become an expert on tailoring his acquisition strategy to fit specific deals. He now share his advice and experience through books and mentor programs.

Earning Exit Returns Through Acquisition Strategy

  • SCOPE strategy: 5-part investment methodology using creative financing
    • Seller-financing – Careful of toxic deals from sellers. Don’t get stuck with short balloon terms.
    • Cash – Be careful of accounting for cash flow expenses when putting cash down.
    • Options – Control property with option to buy, or sell option. Pricing depends on specific deal. Couple options with lease to earn more cash flow
    • Private money – $7 trillion in private capital from retirement funds
    • Existing financing – Take over payments on existing mortgages (assigned mortgages). Though these are less frequent, properties can be put in land trusts and then sell beneficial interest on trust.

Investor Advice and Resources

Contact

Visit www.creatingwealthusa.com for more info onthe SCOPE acquisition strategy and other services. You can also email Augie directly at augie@creatingwealthusa.com.

Ep. 114 Kurt Westfield: Apartment Investor Tough Lessons Lead to New Strategy

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multifamily investing and finding a strategy as an apartment investorAs real estate investors, sometimes what we think is a good investment strategy does not turn out quite as expected. While a single family investor may be able to stick to a strategy and adopt minimal changes, this is not usually the case for the apartment investor.

Your investment strategy should suit the deal you are making. It may become necessary to change your strategy in order to make a deal work.

While this may mean an extra headache in the short-term, a change in strategy could mean the difference between a successful investment and a failure.

Just ask Apartment Investor Kurt Westfiled

Kurt Westfield is the founder of WC Companies, an umbrella brand for his multi-service real estate investment firms.Listeners will remember Kurt’s last episode with us when he discussed his transition from single family investor to apartment investor.

This episode, we catch up with Kurt following his transition to apartment investor. He discusses how he found out early on in his career the importance of finding a winning strategy.

Apartment Investor: Finding a New Strategy

The Deal

  • 14 unit apartment building
  • In foreclosure
  • Expedited due diligence (7 days)
  • Intended to be 12 month, light fix-and-flip with capital expenses at $80-100k

The Issues

  • Tenants trashed complex
  • Property had suffered from neglect

Changing Strategy

  • Evicted all current tenants
  • Rehabbed entire property, inside and out
  • Structured leasing as condo-apartment type w/ one model unit completed while construction was ongoing
  • Created brand identity
  • Started community engagement activities

The Results

  • 3 1/2 year project, cap expenses at $400k
  • Property raised market rent 60% in area
  • Identified potential of revitalizing fringe market properties
  • Focused on developing branded communities rather than street addresses

Kurt is still an active apartment investor, looking for multifamily deals in Tampa and Jacksonville up to 50 units. To contact Kurt with a potential deal, email him at kurt@wccompanies.com.

For any other questions or to find out more about services offered by WC Companies, visit their website.

Ep. 113 Elysia Stobbe: Diversifying Risk with Geography and Asset Class

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investor mortgages, diversifying riskNo Risk, No Reward

No matter the size or experience of the investor, this is a widely-held belief. However, it is not simply about risk, but rather smart risks.

Diversifying risk is a key strategy for real estate investors looking to expand their bottom line.

Increasing the Bottom Line

We are pleased to welcome back to the show, Elysia Stobbe, NMLS# 146751. Listeners will remember Elysia from Episode 108, in which she discussed updates to SFR investor mortgages.

In addition to being a branch manager with NFM Lending, Elysia is a successful investor with over 30 property deals under her belt, doing deals in and around Jacksonville, FL. She is also a published author. Her best selling book, How to Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye helps single family investors in obtaining secure, prime mortgages.

This episode of Landlord Tales, Elysia discusses her transition to multifamily investing and diversifying risk with geography and asset class. Through expanding focus into the multifamily asset class and remaining open-mined about market areas, Elysia learned that diversifying risk is a great way to increase returns.

Diversifying Risk

  • Multifamily offers greater cashflow potential than single family while minimizing tenant turnover risk
  • Multifamily cap rates typically 2-4% higher than single family
  • Remain open-minded about potential market areas
  • Distressed properties can be made rentable

Finding Deals

  • Networking with wholesalers is great way to find distressed multifamily properties
    • Craigslist; Bandit signs – WeBuyUglyHouses, iBuyHomes
  • Realtors
  • Property Managers
  • Real Estate Investment Associations (REIAs)

Resources & Links

To catch up on past shows, visit our archives page!

 

 

Ep. 111 Todd Hutcheson: Getting Into Real Estate with Limited Cash

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getting into real estate with limited cashWould-be investors always want to know ways of getting into real estate with limited cash. Regular people interested in real estate investing may be put off by the idea that real estate investing relies on huge cash reserves or access to capital. They may wonder how they are able to become an investor on a limited budget.

Enter Todd Hutcheson

A native Floridian, Todd has been an active investor in Florida real estate since 2001. His firm, ibuyhomes.com, is a nationally ranked wholesaling platform connecting buyers and sellers close on deals all over central Florida. Todd lends his wealth of experience to several investor resources, like real estate investors associations (REIAs). He is a current board member and president-elect of the Central Florida REIA.

He is helping people discover that getting into real estate with limited cash is doable through strategic marketing, networking and continuing education.

Getting Into Real Estate with Limited Cash

Wholesaling Done Different

  • Marketing-based strategy
  • Find motivated seller, put houses under contract, assign contract to investor
  • Get paid on assignment
  • Close in 8-10 from signed contract
  • 100% cash-buyers

Investor Advantage

  • Wholesaling helps investors find unlisted properties
  • Some investors don’t have marketing prowess and need help finding deals

Minimizing Risks with Wholesaling

  • Reliable tool of cash-buyers to lessen risks
  • Investors with proven track record of deals more likely to close

Marketing & Finding Deals

  • 60% of leads through ibuyhomes.com
  • 30% of leads from new investors
  • 10% of leads from selective direct-mailings

Central Florida Recap

  • Hot market
  • Lower-middle class neighborhoods seeing high price indexes
    • Pine Hills & Deltona
    • $120-130k for SFRs, $850-1050 for rents
  • Buy-and-hold investors may see tightening, wholesalers not affected as much
  • Out-of-state and foreign investors wanting to buy
  • I-4 corridor is key barometer for state markets

Other FL Markets

  • Cape Coral
  • Gainesville – strong multifamily development rise

Resources and Tips

Contact

Want to know more about getting into real estate with limited cash? Email Todd: todd@ibuyhomes.com

Visit www.ibuyhomes.com or call (407) 617-4289 for any other questions

Central Florida investors, visit CFRI‘s website for events and news.

 

Ep. 110 Andrew Cohan: Investing in Vacation Properties through Branded Hotels

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investing in vacation propertiesFlorida, the dream destination. A vacationer’s paradise; the land of perennial sun and fun.

Florida has long been a favorite of vacationers. It has also been a favorite of those investing in vacation properties. Investing in vacation properties is a major market for Florida real estate investors.

We have discussed investing in vacation properties before. In ep. 39, we discussed investing in vacation properties using Airbnb, with Greg Bugay. This episode, however, focuses on the hotel market in Florida.

 

Who better to discuss that than Andrew Cohan?

Andrew Cohan is Managing Director for Horwath HTL, serving mainly Florida and the Caribbean. He is an expert on health and wellness resort properties and lends his expertise to determining optimum market demand for these types of properties.

This episode, Andrew discusses investing in vacation properties through branded hotels.

Miami Hotel Market

Investing in Vacation Properties through Branded Hotels

  • REITs
  • Condo-hotel units

Investing in Condo-hotel Units

  • Not a conventional, cap rate-type of investment
  • Unit investors typically earn about 40 percent back on investment
  • Owner, manager and developer of resort may be 3 separate entities
    • Investors need to know that circumstances may change over the investment’s life-time

Condo-hotel Draw for Developers

  • Quick exit, high return opportunity
  • Don’t have to worry about property management
    • Brand managers or non-brand managers

If you are looking to find out more about investing in vacation properties through branded hotels, you have more questions about acquiring a condo-hotel unit or you are a developer looking to transition to hotel/hospitality, you can contact Andrew directly by phone or email:

(305) 606-2898

acohan@horwathhtl.com

Ep. 107 Reed Goossens: Advancing Your Career With a Mentor

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advancing your career with a mentorAdvancing your career as a real estate investor takes time… and learning from experience. As many investors have figured out, mentors provide key resources that could you, as an investor, in advancing your career. By tapping into a mentor’s experience and knowledge, you can take that next vital step in advancing your career.

Listeners will remember Reed Goossens from ep. 103 when he talked syndication on multifamily deals.

This episode, Reed talks to us about what pushed him to setting his sights on greater investment goals and how finding a mentor inspired him to take on larger deals and ultimately advance his career. His company, RSN Property Group, has been successfully investing in commercial multifamily since 2011. His mentor has also since become his business partner.

Advancing Your Career With a Mentor

  • Mentors provide guidance and access to experienced resources
  • Reed was fortunate to find Joe Fairless as his mentor. Joe has been on the show before and he offers educational resources, including a podcast, to investors of all levels of experience

Finding a Mentor

  • Network in niche markets
  • Find an experienced, hands-on investor willing to provide mentorship
  • Don’t fall prey to “gurus” make sure prospective mentors have a proven investment track record

Talk to Reed

As not only a new investor, but also new to the country, Reed knew how fortunate he was to have the guidance of a mentor while he established his career in real estate investing. Currently, Reed hosts Investing in the U.S. – An Aussie’s Guide to U.S. Real Estate, a podcast focused on providing foreign investors with necessary advice and knowledge to make it in U.S. real estate investing.

Check out the podcast by going to RSN Property Group’s website or any major streaming platform

 

 

 

 

 

Ep. 106 Larry Goins: Finding Ways to Make Money in a Rapidly Rising Market

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ways to make money in a rising marketReal estate investors have heard the news, they’ve seen the figures: by all accounts, real estate markets are tightening up.

In all the major asset classes, investors are reporting rapidly rising markets, which translates to increased competition for deals. Some investors are starting to wonder how far until they hit the ceiling and would-be investors are wondering how to make money in real estate if opportunity isn’t knocking.

Larry Goins stopped waiting for opportunity to come knocking a long time ago.

As a 30-year veteran of real estate investing, Larry has tried his hand at just about every asset class. Over the years, he has learned that opportunity may not always present itself, but it is always there waiting.

Larry has become a master of finding ways to make money in real estate through his many years of investing experience and he is helping others find the same.

Based out of South Carolina, Larry currently wholesales, buy-and-holds properties and offers seller financing in 12 different states, including Florida. In addition to his active investing lifestyle, Larry provides a remarkable resource for investors to learn the ins-and-outs of real estate investing. Through numerous books, seminars and his radio show, Larry gives investors the tools they need so that they can make money in a rapidly rising market.

Ways to Make Money in Real Estate

  • Seller Financing under Dodd Frank
    • Dodd Frank affects seller financing for consumers only – read Larry’s report here (past Invest Florida Episode on Dodd-Frank Seller Financing)
    • Residential Mortgage Loan Officers specialized in seller financing should review loan applications – view Larry’s RMLO Directory
  • Marketing & Finding Deals
    • HUD houses - HUDHomestore.com
    • Secondary markets
    • Craigslist
    • Direct-mailing
    • Agent/Broker networking
  • Resources & Links

To find out more about working with Larry on future deals or for other investment questions, visit larrygoins.com or call his office at (877) LARRYGO (527-7946)

Ep. 103 Reed Goossens: Talking Syndication of Multifamily Projects

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syndication of multifamily projectsLet’s face it, every real estate investor just starting out dreams of landing the huge deals. The question remains though: how to make it to the institutional level?

The answer comes with syndication. Syndication expands the opportunity to make larger deals by leveraging capital from a group of investors.

For singlefamily and small, residential multifamily, the first syndication deal can seem like a large step. There are a lot of moving pieces to keep track of in a syndicated deal that may seem complex to investors used to self-financing.

Reed Goossens knows the power in syndication.

A native Australian, Reed moved to the U.S. after educating himself in real estate investing. As a foreign investor, Reed saw the potential for earning cash-flow in U.S. real estate markets and set about acquiring properties.

Initially investing in small duplexes in tertiary markets outside of New York City, Reed had been using his own capital to finance deals.

He realized the need to scale his real estate investment goals and set about transitioning from residential multifamily to commercial multifamily through syndication.

Reed founded RSN Property Group and has been investing in commercial multifamily properties through syndication since 2011.

In addition to expanding his asset portfolio and investor base, Reed also hosts a podcast to educate foreign investors in the U.S. real estate market

Syndicating Investment Deals

  • SEC has strict rules for syndication under Regulation D
    • Rule 506 (b)  – allows for unlimited accredited investors (earn +$200k/yr. or personal worth of +$1 million); up to 35 unaccredited investors (earn under $200k/yr.)
  • Surround yourself with credible investors; find a mentor
  • Have pitch deck to educate potential investors on deal specifics
  • Private Placement Memorandum (PPM) – after sourcing investors, a PPM is needed
    • Drafted by syndication attorney
    • Outlines how deal is being syndicated under a regulation (e.g. Rule 506)
    • Tailored to individual investments
  • Syndication Contracts
    • Typically, 30 days for due diligence; 45 for larger properties
    • 15 days for financing and 15 days for closing
  • Preferred Returns
    • Limited investors get “x” percent of 1st earnings, decided in contract
    • Future returns split between limited partners and general partners (syndicators)

Resources

Reed and RSN Property Group are always on the lookout for value-add investment deals. If you think you have a potential deal, contact Reed at reed@rsnpropertygroup.com.

Reed also hosts a podcast that educates foreign investors on U.S. investment real estate markets- Investing in the U.S.: An Aussie’s Guide to U.S. Real Estate

Like many beginner investors, Reed learned about creating financial independence and the power of passive cash-flow through Robert Kiyosaki’s Rich Dad Poor Dad.

Ep. 100 Gavin Welch: Improve Your Quality of Life by Shortening the Time You Spend on Your Investment Properties

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Full-time real estate investors know more than anyone that there are only so many hours in the day. Finding time to actively land new investments can be hard when its necessary to manage other investment properties. Maximizing time is one of the most valuable tools a real estate investor can have. Shortening the time you spend on your investment properties can greatly improve your quality of life as a real estate investor.

investment propertiesGavin Welch, an entrepreneurial real estate investor, knows just how precious his time is. With seven properties in his portfolio and work commencing on an apartment development, Gavin has a lot on his plate. With a goal in place of acquiring 25 investment properties, Gavin simply cannot afford to spend time on everyday property management concerns for each of his properties. He has implemented a method that allows him to attend to his current investment properties while providing himself enough flexibility to focus on his investment goals.

Limiting Time Spent on Investment Properties

  • Landlording on Auto-Pilot – Mike Butler
  • Google Voice
    • provides automated information for tenants and clients to call in for property info and maintenance requests
  • Limited property showings
    • Schedule property showings and open houses for set days and times cuts down on time spent visiting investment properties
  • Auto pay system for tenants
    • Tenants pay automatically when monthly bill is due. Landlords and property owners don’t need to spend time tracking down payments
  • Passive Marketing
    • Bandit signs circulate property availability
    • Youtube videos provide property details and photos
  • Property Uniformity
    • Using the same materials and paints on all properties greatly reduces time on maintenance and up-keep

Gavin is currently in the market for viable single family investment properties in the Lakeland, FL area. Suitable fix-and-flips or rental property offers may contact Gavin through his website by going to the Contact Us page. Listeners should also check out Gavin’s own podcast, The Real Estate Loop for more investing advice.