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
Whether investing in a multifamily property with value-add intentions or simply as a stable addition to your portfolio, it is important to consider the building structure and the costs associated with structure maintenance.
Jillian Bandes, of Bandes Construction Company knows just what to look for in building structure when valuating a potential multifamily investment. This episode, Jillian shares six hot topics for investors to consider about building structure when buying multifamily properties.
Costly repair and improvement item
Determine property’s inside and outside amperage
Enlist licensed electrician for any repairs or improvements
Unwise to cut costs on roofing materials and construction
Find dependable roofing companies, use quality materials
Roofing Warranties: 1-2 yr Workmanship Warranty; 10-20 yr Manufacturer Warranty
Air-conditioning represents a huge aspect to determine in Florida properties
Requires secure maintenance schedule
Replacement costs can be substantial
Doors & Windows
Many things to take into account with doors and windows
Observe building jurisdiction’s code requirements
Buying replacements in bulk may be more cost-effective than as-needed replacements
Interior trends fluctuate. Stay current with trends that tenants want
Value-add investors may want to put more into interior costs up front for greater tenant appeal and longevity: energy star appliances, natural stone counter-tops, removing partitions, adjusting ceiling heights
Frame vs. Masonry
Wood frame structures usually require much more extensive evaluations than masonry structures: water-proofing report, site level, landscaping, water table, drainage, etc.
Repairs and rehabs can be costly on frame structures
Masonry offers more stability and investment assurance
For more information from Jillian about important items to consider about building structure she can be contacted through Twitter @jillybee or by visiting Bandes Construction Company’swebsite.
Brad Hubbard is an expert in all things related to flood insurance coverage and requirements. As founder of National Flood Experts, Brad has been saving investors thousands of dollars in expenditures by eliminating annual flood insurance costs. Brad discusses what he looks for in a property to determine its status in relation to FEMA’s national flood-zone map. He also discusses what investors and property owners can do to reduce flood insurance costs on properties not eligible for exemption. This is a great method for investors to eliminate a long-standing line-item on a property’s financial portfolio and increase the property’s long-term investment value.
Individual properties may be built outside of federal flood-zone parameters
Compare construction of building with FEMA flood-guidelines
Due Diligence on property
Elevation Certification – verifies building’s base flood-line in a 100-year period.
Other info on elevation and structure of building
To contact Brad with questions regarding flood insurance or for an eligibility inspection, call the National Flood Experts at: 1-800-561-0396 or email: firstname.lastname@example.org
Jay Smith, CEO of A Snoop Inspections, is a veteran in his field of property inspection. Jay possesses over 30 years in property inspection experience as well as hands-on knowledge of building construction. Jay has an invaluable insight into the key concepts of inspecting properties.
Property inspections can cause even the most seasoned real estate investor to shudder. Not only do inspections have the potential to turn up devastating issues for investors close to finalizing a deal, under-qualified inspectors may cost an investor thousands of dollars in corrective aggravation. Recent changes to insurance policies and coverage in Florida have led to increased concern over property inspections and their impact on real estate investment. Commercial investors need to be especially careful as there are many more aspects to commercial property inspection as opposed to residential. This episode will cover six hot spots or areas of focus for any investor to cover when inspecting properties.
Out-dated wiring methods may preclude properties from meeting current insurance requirements
Aluminum wiring dating mid 1960s-1970s a prevalent issue; Cloth wiring; Knob-and-tube wiring
No safety outlets by water areas source of concern
Major area of concern when inspecting properties. Damage can be detrimental to property and repairs costly.
Look for flat roofs or areas where water pools
Leaks cause major damage
A/C units on roofs – water damage from condensation, impede accessible roof maintenance. New FL building codes require roof-units be on raised platforms
Changes to FL insurance coverage a important concern for new buyers
Standards for coverage have changed over recent years
Require more detailed inspections, won’t insure certain construction methods/materials
Insurance coeerage under previous owner will not extend to new buyer
Costly and potentially dangerous inspection issue
Look for long, horizontal cracks in and around structure
$2000 geo-technical survey
Serious issue in FL
Difficult to asses severity or extent of infestation
Especially an issue in vacant or untended properties
Inspector Due Diligence
In FL especially, determine certifications of inspectors prior to selecting
FL requires Home Inspector license only
International Association of Home Inspectors – largest H.I. association in U.S.
For specific issues, contact specialists (i.e. mold inspector, master electrician, professional roofer)
To contact Jay for information on inspecting properties or to inquire about his own property inspection services, visit his website: www.a-snoop.com or call (813) 345-2600