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!
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.
Florida has long been known as a great real estate market for foreign investors. Commercial and residential markets both represent favorable investment markets for foreign capital. While investing in real estate outside of a county or state may seem a daunting task, this week we talk with an investor who grew and a successful SFR portfolio out of another country!
Colin Murphy is Director and Co-founder of Torcana, Ltd. an investment firm specializing in single-family properties in Florida. With over ten years’ experience behind him, Colin has grown Torcana into a leading name in Florida SFR markets and he was able to do it all based out of Madrid, Spain. This episode, Colin shares with us some tips for building a successful foreign real estate investment portfolio.
5 Must-Haves for Foreign Investors:
Avoid unnecessary and overly complex contracts
Standard Realtor’s Assn. contracts offer foreign investors easy-to-understand terms
Foreign investors new to U.S. and FL markets may be unfamiliar with title companies
Title companies ensure a clean title transfer in a real estate transaction. They run a property’s title against any outstanding liens and unpaid fees.
Closing costs on U.S. and FL real estate is comparatively less than that of markets outside of the U.S.
Despite the relatively low closing costs, foreign investors still need to be aware of what they are paying for
Follow-up is needed after purchasing a property
Find the right insurance coverage for your investment as well as establishing a property management plan
All U.S. real estate is subject to taxes and returns must be filed on them
County tax collector searches can be an easy way for foreign investors to keep track of their portfolios’ taxes
For a more comprehensive approach for foreign investors, check out Colin’s list of 20 things to know for real estate investing:
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
When it comes to multifamily investing, the size of the deals is often the most intimidating, but as we know, with bigger risks come bigger rewards.There is always a reason not to do something. The transition to becoming a multifamily investor may seem overwhelming but many investors make the move into multifamily markets and overcome the obstacles to become successful multifamily investors.
Karma Senge is a multifamily investor with quite an interesting story. Like most real estate investors, Karma cut his teeth in investing in the single-family markets. After entering the market in the early 2000s, Karma had soon acquired over 350 properties in his portfolio and was single-handedly managing them all. After a brief departure from real estate investing to recover from the stress of single-family investing, Karma reentered the market with a focus on multifamily investing. Despite his renewed vigor, Karma had to work his way back from the ground up in the multifamily market, eventually acquiring his first investment on a 6-property portfolio. Karma’s story is one of hard work and perseverance. Karma managed to overcome the obstacles ahead of him and establish himself as a successful multifamily investor in Florida and the Southeast U.S.
Seller-financing and creative debt options provide an appealing alternative to institutional debt options
Researching markets and properties is imperative before committting to any deal
Find a Mentor
Someone who is an experienced multifamily investor can serve as an invaluable source of information and guidance
Have a Team
A team of experienced staff or even a partner can help to manage responsibilities and stress
It is important to consider tenants when investing in multifamily. Invest in community-oriented projects and developments.