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. 105 Kurt Westfield: A Journey from Single Family to Multifamily Investing

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multifamily investingMost real estate investors starting out will try their hand at single family investing first. Single family properties are familiar, small-scale and generally easy to tackle for first-time investors.

However, many investors will find they have a limited ceiling for growth with single family properties. Juggling dozens of single family properties while actively marketing for new investments no longer becomes practical. Apart from wholesaling, flipping and other similar single family markets, the next logical step for many investors is to make the move to multifamily investing.

Multifamily investing may be intimidating to some, but while it is a different ball-game than single family, the two do share a few commonalities and the overall benefit of multifamily investing outweighs the risk.

Just ask Kurt Westfield.

Kurt moved to Florida from New York and, in 2008, co-founded an investment partnership, WC Equity Group. They then entered into Tampa’s single family investment market.

After doing 102 single family deals in his first two years, Kurt new it was time to make a change if he wanted to scale his investment growth.

Kurt turned to multifamily investing and has since expanded to also offer lending, management and syndication services under his umbrella firm, WC Companies. In addition to Tampa, WC Equity Group also has properties in Jacksonville, FL and Cleveland, OH.

Check out Kurt’s story going from single family to multifamily investing and what he learned along the way!

Tools for Multifamily Investing

  • Market Timing
    • Understand where market could go, not where it is.
  • Fringe Markets
    • Areas on edge of of hot market’s outward growth, i.e. markets around South Tampa
    • Similar tenant quality to class-a markets, better price points
    • Gentrification/community redevelopment occurring
    • Value-add opportunity
  • Network
    • Working relationships with brokers
    • Like-minded investor base
    • Reliable team of contractors/sub-contractors
  • Responsiveness
    • Be prompt and responsive for potential investment deals. Assure potential investors of trust-worthiness.
  • Mentors/Inspiration

Kurt is always interested in working with bright, like-minded investors and brokers to expand his network in multifamily investing.

To contact Kurt with potential deals or to find out about the services his companies offer, visit www.wccompanies.com, click on any company tab and find the contact section.

Check out their Facebook Page!

 

 

Ep. 104 Landlord Tales – Tax Credits on Green or Sustainable Property Endeavors

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cost segregation; tax creditsTax Credits

They sound nice, but real estate investors may think that they are not so easy to come by. Those investors who do happen upon them find usually find themselves bogged down by the IRS’ strict stipulations surrounding them.

Tax credits are, in fact, tools set in place to help investors grow their portfolios and while they may seem complex, they are accessible to any investor willing to do a little extra leg work.

While nobody should be expected to know the entire IRS tax code, real estate investors should be aware of some very helpful tax credits that can be applied to their assets.

Michele Pasquale, of Meridian Financial Solutions spoke with us previously about increasing your bottom line through cost segregation.

This week she discusses some more tax credits that real estate investors can apply to green or sustainable property endeavors.

179D

  • Instated in 2005 Energy Policy Act and renewed annually
  • Potentially set to expire end of 2016
  • Tax deduction for energy efficient additions to commercial buildings +30,000 s/f
  • 3 common components
    • Building envelope
    • HVAC
    • Lighting
  • $0.30-$1.80/SF in tax credits
  • Calculated on energy efficiency of entire building set to ASHRAE requirements

45(l)

  • Residential tax credit for developers of energy efficient buildings
  • Potentially set to expire end of 2016
  • dollar-per-dollar deduction
  • $2000/unit or dwelling
  • Qualifying factors
    • Apartments, Condos, Town homes
    • New construction or rehab up to 4yrs
    • 3 stories tall or less

Disposition

  • Tax credit for removal and retiring of building fixtures or components
  • Book value of components can be written off as business deduction
  • Components can not be purchased within same year as tax year filing with deduction and must be no longer in service

Have more questions on these or other possible tax credits? Call Meridian Financial Solutions for a free quote at 561-252-7282

 

 

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-PilotMike 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.

Ep. 99 Phillip Smith and Jason Schaller: What You Need to Know About Multifamily Design and Amenities

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Apartment investing is undergoing a profound transformation in regards to multifamily design and amenities. The age of the shoe-box apartment is over. Changing climates in construction, social trends, economic growth and consumer demand have forced apartment investors and developers to re-examine what apartments could and should provide tenants. Apartment investors, whether they are refurbishing existing buildings or developing new complexes, are taking a drastically different approach to multifamily design and amenity provisions. This episode, we are fortunate to have two guests lending their insight and experience to the changing perceptions of what tenants want out of an apartment space.

multifamily design and amenitiesPhillip Smith is CEO of Framework Group, LLC, a multifamily development and construction group based out of Tampa, FL. Phillip oversees acquisition, design and development of multifamily communities. Currently, Framework Group has projects under construction in Tampa, Orlando and Sarasota, with projects under contract in Jacksonville. Framework Group’s goal is to provide multifamily communities with location and amenities that highlight and promote the urban lifestyle. By pushing the envelope of what makes a sensible investment to what meets with consumer demands, Framework Group has become a major figure in and development, offering full-service, high end apartments in Tampa and along the I-4 Corridor.

multifamily design and amenitiesJason Schaller is Managing Director of Property Management for McKinley. McKinley owns and operates a $4.6 billion real estate portfolio, 35,398 apt. units and 21 million SF of shopping centers and office centers around the country. The Michigan-based firm has a special interest in Florida’s I-4 Corridor with much of their Florida portfolio focused on it. Jason currently oversees Mckinley’s line of boutique apartment projects in Tampa, Mckinley | Hyde Park. Jason brings over 20 years of design and construction experience to multifamily design, refurbishing older and historic buildings and adapting them to suit the growing urban lifestyle.

Amenities

  • Reinforce and promote urban lifestyle
    • bike-share programs
    • Canoe, kayak, bike storage
    • Outdoor kitchens
    • Functioning communal spaces
    • Technological integration
  • Health and Wellness Focus
    • Hot/cold plunge pools and resistance pools vs. traditional pools
    • High-end exercise equipment
    • Classes, training courses: yoga, exercise, massages
  • Pet amenities
    • Green spaces
    • Grooming

Multifamily Design and Development

  • High-end finishing/fixtures
    • Quartz counter-tops
    • Rain-style shower-heads
    • Upgraded moldings
    • Wine glass racks
    • Kitchen storage
    • Stainless steel appliances
  • Individual feel
    • Corridor entrances
    • Lighted unit numbers
  • Space
    • High ceilings
    • Larger rooms
  • Décor
    • Natural finishes
    • Authentic colors and textures

If you are a building owner in the Tampa area and you think it might make a great addition to the McKinley | Hyde Park portfolio, visit the Principal to Principal contact page on their website. To find out more about becoming a resident at a McKinley | Hyde Park project, visit the Apartments page on their website for more information.

Framework Group, LLC provides general contracting services and selective development consulting in addition to project development and construction. To find out more about current and upcoming projects along with services offered, visit their website.

 

Sandra Adomatis: Energy and Sustainability Initiatives to Increase Your Bottom Line

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sustainabilityCommercial real estate investors and developers know the term: “Green”. In Florida, it seems that “green” is the phantom criteria for real estate: many have heard of it, few have seen it. The term brings to mind vague notions of sustainability and energy efficiency, but what exactly is it? What is the merit in “going green”? As an effort to shift toward sustainability becomes a rising trend in the nation, Florida continues to lag behind as commercial developers and investors grapple with the nebulous nature of sustainability and green construction.

Sandra Adomatis, SRA, and LEED green associate is an appraiser with a focus on green initiatives and sustainability in real estate. Based out of Punta Gorda, Florida, Sandra has over 25 years of experience in real estate appraisal in the state of Florida. Sandra is a green valuation expert for the Appraisal Institute. Through course development, seminars and literature, Sandra has been helping commercial real estate investors integrate sustainability and energy efficiency into their investments.

  • 6 Elements of a True Green Building
    • Site orientation
    • Water efficiency
      • Low-flow plumbing, greywater recycling, rain barrels/cisterns, energy star rated washing appliances
    • Energy efficiency
    • Environmentally-friendly materials
    • Clean air circulation
    • Operations & maintenance
  • Adapting Existing Structures
    • Lighting
    • Heating/cooling
    • Insulation
  • Energy Modeler/building scientist
    • Assess what existing structures can handle for energy and sustainability adaptations
    • Calcs-Plus (Florida)
  • Green building investment appeal
    • Low-interest, flexible financing exclusive to green buildings
    • Cost-saving on appliances and utilities
    • 2-10% sale premiums vs. traditional structures
  • Resources and Info

To find out more about sustainability options or for appraisal services, visit Susan’s website or email her at adomatis@hotmail.com

Ep. 96 Jillian Bandes: Making a Complex First Invest in Small Multifamily

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multifamily investListeners of the show will remember Jillian Bandes who, in episode 74, discussed what real estate investors should consider about building structure when looking at commercial multifamily investing. The project manager for Bandes Construction covered 6 hot topics on building structure and maintenance that investors should be aware of with commercial multifamily properties.

In this episode, we discuss Jillian’s first investment property….a single family home with an ajacent rental apartment.  She discusses razing the property, dealing with the local code and building officials and her plans on whether to rent the units or live in one and rent the remainder.  The property was purchased through a foreclosure and we cover the online methods now employed by Pinellas County.  Not only is this project about a potential home and investment, but Jillian is  passionate about blazing the trail for urban renewal and redevelopment in St Petersburg’s core and her unit is in the heart of a rapidly changing area.

  • Residential property permitting and zoning regulations differ from commercial properties
  • Property location
    • Choose property in an area you are familiar with
    • Walk surrounding neighborhood
  • If investment property, define target rental market
  • Due-diligence
    • If foreclosure property, know state of title (liens)
    • What is the property zoned for? Is property up to code? Accessory buildings permitted?
  • Work with local and municipal officials
  • St. Petersburg, Florida
    • Undergoing immense urban growth period
    • Investors need accessibility to invest in properties with potential for redevelopment/renewal
    • South St. Pete offers development opportunity and reasonable prices w/ proximity to cultural amenities

Jillian extends a big thank you to Carlyn Neuman of Tampa’s 360 Realty for helping to navigate online foreclosure bidding as well as to Katrina Trump of Bank of Tampa, for assisting with securing financing.