Ep. 90 Gary Beasley, CEO: Buying Single Family Homes with a Cash Flow Through Roofstock

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Buying Single Family Homes Through RoofstockOne of the downsides for real estate investors buying 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, Roofstock CEO 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.

Roofstock:

  • Launched in FL – Tampa, Orlando, Cape Coral, Jacksonville, Miami
    • Also Atlanta and California
    • Grow to 10+ markets in U.S.
  • Due Diligence
    • 3rd party valuation report, title report, property inspection, rent surveys, financial calculator est. returns based on several rental situations, vets tenants and property managers
  • Hands-off Investing
    • 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
  • 1031 Exchanges
    • 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 gary@roofstock.com or the senior client adviser, zack@roofstock.com

 

Ep. 74 Jillian Bandes: 6 Hot Topics to Consider About Building Structure When Buying Multifamily

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AAEAAQAAAAAAAATxAAAAJDczYWFhMzZhLWRkOWUtNDAwMi1hNmM2LTYwZmMzNDdkMjk5ZQWhether 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.

  1. Electric
    1. Costly repair and improvement item
    2. Determine property’s inside and outside amperage
    3. Enlist licensed electrician for any repairs or improvements
  2. Roofing
    1. Unwise to cut costs on roofing materials and construction
      1. Find dependable roofing companies, use quality materials
    2. Roofing Warranties: 1-2 yr Workmanship Warranty; 10-20 yr Manufacturer Warranty
  3. HVAC
    1. Air-conditioning represents a huge aspect to determine in Florida properties
    2. Requires secure maintenance schedule
    3. Replacement costs can be substantial
  4. Doors & Windows
    1. Many things to take into account with doors and windows
    2. Observe building jurisdiction’s code requirements
    3. Buying replacements in bulk may be more cost-effective than as-needed replacements
  5. Interior
    1. Interior trends fluctuate. Stay current with trends that tenants want
    2. 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
  6. Frame vs. Masonry
    1. Wood frame structures usually require much more extensive evaluations than masonry structures: water-proofing report, site level, landscaping, water table, drainage, etc.
    2. Repairs and rehabs can be costly on frame structures
    3. 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’s website.

 

Ep. 71 Elise Batsel – 7 Things Landlords Should Know About Commercial Leases

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11058_bioimageWhen transitioning from residential or simply starting your investment portfolio in commercial real estate, it is important to remember one thing: commercial leases are not the same as residential. Commercial leases are subjected to a much higher percentage of risk if not properly structured.

Elise Batsel has made it her business to ensure landlords are protected in any commercial lease issue from the ground up. As counsel with the Tampa firm Phelps Dunbar, LLP, Elise specializes in commercial real estate land-use and zoning. Elise represents developers and institutional lenders in acquisitions, dispositions, financing and transactions as well as all aspects of commercial leases. In this episode, Elise discusses seven hot-topics all landlords and owner/operators should know about commercial leases.

  1. Commercial vs. Residential Leases
    1. Commercial properties have different costs and expenses that can be transferred to tenants: common area maintenance expenses (CAMs)
    2. CAMs may include: utilities, landscaping, management fees and other costs associated with owning and operating commercial properties
  2. CAM and Triple Net Leases
    1. Triple Net Lease – For landlords and tenants who want stability; does not account for unanticipated expenses or for properties without a familiar investment history
    2. CAM lease – Serves as umbrella to protect landlord/owner from future costs and expenses incurred from property management; specifies expenses and tenant liabilities
  3. Tax Implications
    1. Though not frequently addressed in lease, tax implications are a major tenant-landlord discussion that could be beneficial for both parties
    2. Leases can stipulate landlord ownership over tenant-improvements with proper recompense for tenant
  4. Americans With Disabilities Act (ADA)
    1. Commercial real estate considered public accommodations and subject to more ADA compliance regulations
    2. Represents huge liability for landlords not in compliance
  5. Sub-letting and Tenant-Assigned Leases
    1. Landlords can address sub-leasing and assigning terms in commercial leases
    2. Landlords entitled to portion of income from tenant leases
  6. D-I-Y Leases
    1. Do not attempt to draft generic commercial leases if self-managing property
    2. There are many changing facets to follow when drafting commercial leases
    3. If drafting your own lease, have attorney or specialist review
  7. Protection Against Bad Tenants
    1. Always ensure strong deposit from tenant
    2. Small-Claims Court
    3. Write effective demand letter to tenant

For any commercial lease, zoning or land-use issues and questions, Elise can be contacted by phone at 813-472-7564 or through email at elise.batsel@phelps.com

For even more information on commercial leases as well as landlord and tenant relationships, Elise suggests the following articles: Tenant’s Checklist of Silent Lease Issues  and Model Landlord’s Checklist of Silent Lease Issues – S.H. Spencer Compton, Esq. & Joshua Stein, Esq.

 

 

 

EP 31 – More Flood Insurance Changes

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When weighing projected costs for potential and current real estate investments, it is important to consider how to insure your investment as well as costs associated with that. In Florida, flood insurance for your property represents a significant facet to consider. Recently, Florida has undergone major changes in regards to insurance legislation which has had a dramatic effect on flood insurance requirements.

The Biggert-Waters Act, passed in 2012 ushered in major changes to flood insurance requirements and affordability. As a response to a budget deficit, Congress passed this law that took a drastic approach to the standing National Flood Insurance Program (NFIP) parameters, notably, introducing a substantial hike in policy rates to take place within a year. The bill, now amended as the Flood Insurance Affordability Act of 2014, has extended the previous deadline of one year to an incremental increase over four to five years.

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Chris Coleman of Coleman Insurance Agency based in Dunedin,FL discusses provides expert insight on changes that are occurring in flood insurance affordability and how you can manage your real estate investments under these new                 conditions.

 

 

 

Chris can be reached at:

1255 Belcher Road

Dunedin, FL 34698

Phone: 727-239-4971

You can also find him on Facebook at https://www.facebook.com/coleman.insurance.agency.cia/timeline?ref=page_internal

  • Flood Insurance Affordability Act of 2014
    • Changes Implemented Apr. 1, 2015
    • Amended Prior Biggert-Waters Act of 2012
    • Flood-zones Remapped
  • Introduces incremental price-hikes on all new/renew policies over 4-5 yrs.
    • 18% cap on residential
    • 25% cap on commercial
  • Changes to Deductible Limits
    • Limit Increased from $5k to $10k
    • Separate deductibles for building and contents (possible deductible up to $20k)
  • Be informed, know how to save
    • Opting for premium deductible may offer rate discount (up to 30%)
    • “Flood-proofing” property may decrease rates up to 70%