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 email@example.com or the senior client adviser, firstname.lastname@example.org
Successful real estate investing requires knowing the terrain. Investors need to play the field and work hard to find the right deals. Florida real estate markets are garnering a lot of interest from investors and asset classes across the board are becoming more competitive. An investor starting out in single family can become full-time institutional real estate investor with strategic planning and a strong capital base.
Greg Williams, Co-founder and Principle at Cardinal Point Management of Tampa is a true testament to this fact. Greg was introduced to real estate investing out of college. After 4 years of experience building in a variety of asset classes as part of investment firms, Greg set his sights on becoming an institutional real estate investor in the Florida real estate market, focusing on. Though he started small, Greg aspired for larger more diverse deals. Bringing a competitive spirit and strategic approach, Greg maneuvered Florida’s real state industry and has become a success story as a leading institutional real estate investor.
Cardinal Point Management
Drawn to Tampa’s diverse commercial opportunity
Began small, raising capital through family and friends
Full-service development, management and brokerage investment firm
1st Institutional Lender Deal
Retail center, S. Tampa, 22k sqf, 95% occupancy
Purchased at $255/sqf on non-recourse loan through mortgage broker (Jermey Pino); 8.25-8.5% cap rate; $5.3 million total
Sold in March, 2016 for $10.6 million w/ 5.5% cap rate
Focus on geography
Knowledge of structuring deals in variety of asset classes
Eye on upcoming or forgotten markets
Outperformed by other asset classes in FL
Discount on replacement cost
Cash-flow during hold period
Path to grow NOI (Net Operating Income)
Focus on day-to-day
Build relationships, be transparent
Greg attributes his success as an institutional real estate investor to adopting his father’s hands-on business approach and his self determination and team-building background from competitive sports
Greg can be contacted with inquiries on deals, opportunities or advice on transitioning to a becoming an institutional real estate investor by visiting the Cardinal Point Management website
Real estate investors in Florida know that the market has seen a steadily increasing return to normalcy since it bottomed out in 2010. Asset classes of all types have been undergoing a resurgence as the market continues to correct itself. With investing outpacing development though, investors are seeing access to viable properties tightening up. Investors need to become more creative when finding deals and stay ahead of new trends arising.
David Beshears, head appraiser and owner of Beshears & Associates, has been appraising properties in Florida for over 20 years and he is very knowledgeable about the self storage market. John Miller, senior appraiser and realtor for Beshears & Associates, specializes in multifamily asset classes, having completed over 200 multifamily appraisals since 2008. This episode, David and John discuss where Florida markets are at, particularly in the multifamily and self storage market.
4% vacancy in Tampa area markets
Uptick in rental rates across sub-markets
High occupancy rates causing higher appreciation in Class B and C properties
Class A properties new builds at $2/sqf (Central Tampa Sub-market: Hyde Park, Westshore, Downtown Tampa, Davis Islands)
3300 units entitled to construction; 2200 scheduled for 2016 completion
Class A super properties arising in suburban markets (Riverview)
Luxury trend in new developments (zero-entry pools, state-of-the-art amenities)
No new builds for Class B and C properties
Cap Rates (Tampa): Class A: 4.5-5.25%; Class B: 5.25-5.75%; Class C: 6.5-9%
Value-add opportunities still available with focus on interior of units
Traditionally lag behind multifamily cap rates by 150-200 basis points
Self storage market similar to multifamily market
Subject to overbuilding in 3rd tier markets
12% of market owned by institutional investors
Value-add opportunity for private investors
Upgrade security and lighting
Cap rates: Class A: 5-7%; Class B: 7-9%; Class C: 9% and up
Major markets in need of new development
Opportunity for developers if they can find land
2-3 acres at $5-8/sqf is ideal
Beshears & Associates offers a newsletter providing an overview on a variety of asset classes in Florida, including the multifamily and self storage market. To check out their newsletter and to find out about the other services they offer, visit their website at www.beshears.net
Cuba. The island nation of roughly 11 million situated 90 miles south of Florida has, for decades, cast a large shadow over its continental neighbor. The U.S., especially Florida, has had a profound and diverse history with Cuba. Cubans and Cuban-Americans have played a nominal role in shaping Florida’s commercial landscape as well as cultural backdrop, with Tampa and Miami representing two major pockets of Cuban heritage and influence. This episode may be a bit of a departure from our typical shows, but as bilateral relations between the two countries progress, both Cuba and U.S. industries anticipate a major developmental boom that has real estate investors watching closely. This special episode will be represented in two parts with our guests sharing both some personal stories of their immigration into the U.S. as well as their involvement in Florida’s real estate markets.
Josue Romero is a mortgage broker serving as owner of My Lending Hub, a mortgage brokerage service company based in Tampa, Florida. Juan Nunez is a real estate investor in Tampa and currently owns and operates Zenun Enterprises, an investment firm focusing mainly on single-family markets. In 1999, Josue and Juan both arrived in Florida with their families seeking asylum. At the time, Cuba was in dire straits. Though the boys were young at the time, their families knew all too well the devastating effect of the ‘Special Period’ on Cuban welfare. When their families reached Tampa, they set about cementing the American dream as a reality with little more than resilience and hard-work. Despite its status as a Communist country since 1959, the Cuban disposition has always been innately capitalistic. Through their stories, Josue and Juan will introduce us to the concept of Inventar – the wholly Cuban approach to making something from nothing. We will learn how this unique ability and ingenuity lead to such a fluid and fruitful transition into mastering Florida real estate markets.
For the average Florida real estate investor, Wall Street banking and investing practices may seem worlds away. However, one investor and developer in the state has managed to successfully fuse his expertise in Wall Street investing with the Florida real estate market.
Santosh Govindaraju is a Florida developer with an interesting history. Prior to finding success in Florida real estate markets, Santosh was immersed in the world of high-strategy investment banking on Wall Street. After moving to Florida, Santosh applied his investment banking expertise to Florida real estate with a focus on the Tampa market. Santosh and his firm, Convergent Capital Partners, have been providing equity and debt investment options in a variety of Florida commercial real estate for over 17 years. This episode, he discusses his transition to real estate investing and what’s next for the Tampa market.
Wall Street Lessons
“Reversion to the Mean” – markets and prices fluctuate, but they will always indicate a trend, or mean
Relative-value trading – With two similar asset classes, sell asset class sitting above the mean and buy the asset class sitting below the mean
Convergent Capital Partners
Santosh paired his understanding of financial side of investing with partner’s physical knowledge of real estate
Saw relatively stable markets in FL during late 1990s
Opportunistic commercial investing: all commercial asset classes except industrial; looking for properties with mixed-use potential
Private Equity Platform Fund-Operation: base of 10 investors; deal offered first to fund as whole, then to individual memebers
Strong recent investment/development growth
Institutional capital competing for projects
New vision for Downtown Tampa
Harbor Island Project: “The Point” – Convergent Capital developing 115k sqf. property in Tampa harbor
Those who know the Florida real estate market know the influence of foreign investors. Foreign capital, especially in South Florida, has fueled real estate development in the state. Despite its slight recline with the growing strength of the US dollar, foreign investing remains a big part of the Florida real estate market.
Jerome Abecassis, a native of Paris, France now residing in Florida has made a name for himself and his company TIJ Group, LLC investing foreign capital in the Florida real estate market. Moving here in 2003, Jerome began investing in South Florida real estate and quickly established TIJ as a leader in foreign investing in the Florida real estate market. TIJ now owns and manages 200 units in South Florida and owns 160 units in the Detroit, MI area. This episode, Jerome shares his unique approach to investing and gives an outlook on the Florida real estate market.
Florida Real Estate Market
Foreign investing returning post-financial crisis
American markets seeing higher returns on investments than foreign markets
South American investing strong in South Florida market