This man is Bijan Gorji, a real estate investor based in Sarasota, FL. Bijan is a special kind of investor though. Bijan invests solely in one asset class–one often overlooked by other real estate investors–residential condos.
Bijan believes that residential condos as an investment asset class have been an unfairly neglected market for too long. Where others see problems, Bijan sees potential… and it is paying off well for him. Since moving to Sarasota from California in 2012, Bijan and his wife have acquired a portfolio of over 35 residential condos with plans to continue investing in more residential condos. This episode, Bijan will discuss why he settled on residential condos as his chosen asset class and why it should appeal to investors from a financial standpoint along with providing a brief overview of Sarasota’s real estate investment market.
Pros of Investing in Residential Condos
Easy property-management compared with single-family
Low upkeep costs
Ability to self manage properties
Tenant profile allows fluid leasing
1-2 bedroom units to working professionals or grad students; no families
Tenant turnaround quicker
Buy-and-hold investment w/ monthly cashflow
Hands-on investing allows oversight over all facets of investment
Check HOA regulations for condo before investing
Find properties within driving distance if self-managing
Finding tenants is biggest issue with residential condos: list on Craigslist, Zillow, Hotpads, etc.
Huge amounts of construction (Multi-family and Single-family)
Rents steadily increasing across all sub-markets
Residential condos offered stable investment asset class
Florida has its fair share of mobile homes. Whether providing seasonal residences or year-round affordable housing, mobile homes have become an ever-present property class in the Florida real estate market. Though they have been a historically neglected asset class, investing in mobile homes can provide strong, consistent returns. As markets in other asset classes become more competitive, mobile homes may be a rising hot market for investors.
John Fedro is one investor who discovered the opportunity in mobile home investing early on. After entering full-time real estate investing in 2002, John purchased his first mobile home in a park in Florida. He quickly saw the potential investing in mobile homes and after his first year had acquired 14 properties. In a virtually untapped market, John was able to develop an investment strategy exclusively for mobile homes that ensured strong returns. He has since expanded his portfolio to Texas and is actively sourcing deals in other states.
Mobile Home Investment Types
Private land mobile homes – longer to close, traditional sale of real estate;
Mobile homes in parks – categorized as personal property in most states, not subject to title issues/other typical
Mobile Home Parks
Little to no conventional lending; mainly cash deals
Dodd-Frank regulations do apply to mobile homes w/ financing
Mortgage loan originators can assist with compliance
Costs + Fees
Purchase for >$10k
Sell for <$25k on payments
Buyer repays minimum $300/month on property
Mobile homes in parks, buyer pays lot fees, utilities, possibly insurance
Buyers will usually do refurbs/improvements
Mobile homes in parks: Craigslist, driving through parks, talking w/ park managers
Mobile homes on private land: networking, direct-mailings, bandit signs, seller lists
Hot Florida Markets
Miami, Jacksonville, Tampa, Gainesville
Rural areas, small towns
Do multiple deals
Effective marketing strategies
At least 60 mile radius for investment market
Seek knowledgeable investor
Check out John’s website for even more information on successful investment strategies for mobile homes. John has free videos and a podcast where he covers tips for investing in mobile homes. Contact John directly by email at email@example.com
One of the downsides for real estate investorsbuying single family homes has always been the large amount of time and financial investment it takes to certify an asset. Buyers most conduct thorough due diligence to verify a property’s physical condition, legal standing and yield potential. Buying single family homes can be a stable financial option, but it requires a lot of personal commitment that some investors just can’t afford.
Roofstock may provide investors with a solution to this problem. This episode, RoofstockCEO Gary Beasley stops by to talk about the new platform that is changing the way investors are buying single family homes. By removing the stress and mess of the due diligence process, Roofstock can greatly decrease transaction fees and increase market fluidity by providing investors with a certified, reliable and transparent marketplace for buying single family rental homes. They are also proving that buying leased single family homes can be a greater asset than vacant singe family properties.
Launched in FL – Tampa, Orlando, Cape Coral, Jacksonville, Miami
Also Atlanta and California
Grow to 10+ markets in U.S.
3rd party valuation report, title report, property inspection, rent surveys, financial calculator est. returns based on several rental situations, vets tenants and property managers
Buyer freed from operational component of investing
Buyers able to rely on surety of data
Cheaper, More Effective than MLS
Roofstock – 2.5% transaction fee from sellers; .5% marketplace fee from buyers : MLS – 6% transaction fee
Standardized marketplace of available, leased single family homes
Investment fund opportunity
Recent launch of 100-property fund
Provides readily available market for investors in need of exchange property
To find out more about the great services Roofstock offers investors buying single family homes, check out their website! You can also contact Gary directly at firstname.lastname@example.org or the senior client adviser, email@example.com
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
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 firstname.lastname@example.org 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: email@example.com