Ep. 121 Frank Hearne & Beverly Birkitt: Using Mitigation Banks for Wetland Development and Investment

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mitigation banksFlorida has a high density of rivers, lakes, swamps and marshes that are generally protected from development.  This has led many investors to wonder how much land is actually available for development. What many investors may not be familiar with is the concept of mitigation banks. Mitigation banks allow for the development of wetland areas that ordinarily would not be usable for real estate development.

Florida environmental lawSo what exactly is a mitigation bank? How does it function and how can they serve investors and developers? Our guests this week are two experts in the field of environmental law and the designation and use of mitigation banks.

Listeners should remember Frank Hearne. Frank is a shareholder for Mechanik, Nuccio, Hearne & Wester, P.A. He was also one of Invest Florida’s first guests! His firm is one of the state leaders in environmental and land law. Beverly Birkitt, of Birkitt Environmental Services, Inc., has over 35 yrs. experience in the environmental field, with a focus on wetland litigation and litigation banking.

This episode, Frank and Beverly cover the ins-and-outs of using mitigation banks for wetland development and investment.

Mitigation Banks

  • Spec wetland approved for future mitigation
  • Allows for more usable property for development
  • Exchange wetland set for development with wetlands that will be improved upon to compensate
  • Must be in the same hydrological zone as wetland to be developed (water basin)
  • State sets basin boundaries

Developing Mitigation Banks

  • Wetland landowners can develop mitigation banks
  • 100-10,000 acres usually
  • Market demand in wetland area is critical
  • Polk County strong mitigation bank market
  • Mitigation banks must improve, not just preserve wetlands
  • Mitigation bank credits based on evaluation of improvement, not land size

Hot Mitigation Bank Markets

  • Tampa Bay Basin
    • In need of freshwater wetlands
  • Coastal areas
  • Orlando/I-4 corridor
  • Former agricultural lands

Risks for Mitigation Banks

  • Feasibility
    • land, permitting, construction, management
  • ROI tough to predict

Contact

  • If you have land that you believe is eligible for a mitigation bank, let Beverly know! Beverly can be contacted through her website: www.birkitt.com or by calling      (813) 259-1085
  • For mitigation bank questions and for more info on other types of mitigation banks, contact Frank by email at frank@floridalandlaw.com or call (813) 909-7400.

Investor/Developer Resources

 

 

 

 

 

Ep. 120 Pete Kuc: Investing for Cashflow and Jacksonville Market Recap

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investing for cashflowThere are many strategies investors can apply in real estate investing. Some offer big risks and bigger returns, some offer a stable, long term earnings. While it may not be the flashiest investment strategy, investing for cashflow can provide long term stability and act as a cushion in the event of any unforeseen market downturns.

Pete Kuc, Co-Founder of May Real Estate Group, got a crash course in the big risks of speculative investing and learned the power of passive income and investing for cashflow the hard way.

Following the 2008 market crash, Pete was forced to reassess his approach to real estate, but what he has since learned about investing for cashflow has paid off. He has grown this strategy into a thriving turn-key investment company serving northeast Florida.

This episode, Pete talks about cashflow investing and gives us a recap of the Jacksonville and northeast Florida markets.

Investing for Cashflow

  • Buy-and-hold strategy
  • Fix-up, rent property, build equity
  • Not based on speculative appreciation

NE Florida Markets

  • Jacksonville, St. Augustine, Palm Coast
  • Jacksonville: strong natural growth, prices lower than other Florida markets, good rental returns; Orange Park neighborhood

Finding Deals

  • Direct homeowner marketing
    • Mailers
  • Finding off-market deals
  • Wholesalers
  • National Community Stabilizing Trust
    • Fed Program offering off-market deals at discount
    • For non-profits, but community investors may be vetted for program
  • Real Estate Investor Associations (REIAs)

Investor Advice

  • Consistence and persistence is key to success
  • Keep letting people know you are a player in the game

Contact

To find out about the turn-key investment services offered by the May Group, visit www.kigjax.com. To find out more about investing for cashflow or to learn more about what is happening in the Jacksonville real estate market, message Pete directly on Facebook.

 

Ep. 118 Rod Khleif: Leveraging Investment Goals into Real Estate Cashflow

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earn real estate cashflow with investment goalsMotivation: it’s something every one needs. Whether it’s a financial drive or a spiritual one, everyone needs something that keeps them focused and real estate investors are no different.

Setting investment goals is something that every investor does. But sometimes as investors, we find ourselves setting unrealistic investment goals or goals that may reap immediate rewards but lack long-term gain. Sometimes it can seem overwhelming trying to set manageable, realistic investment goals that can actually be leveraged into cashflow.

Investor, author and real estate investing mentor, Rod Khleif, believes in the power of actionable investment goals. By setting goals for himself that not only inspired him to become a successful real estate investor, they also empowered him to forge his path.

Rod was introduced to real estate investing early on. He managed to find success fairly quickly and, by 2006, had acquired thousands of properties across the U.S., including 800 in Florida.

Following the market crash however, Rod lost everything. Instead of accepting defeat, Rod took that as a learning opportunity. He realized that, while his investment goals had been earning him income, they did not lay the foundation for a successful, long-term cashflow strategy. Rod re-tooled his approach and, by aligning his investment strategy with philanthropic efforts, was able to form actionable, empowering investment goals.

The Key to Setting Investment Goals

  • Daily routine/morning ritual
  • Find personal drive in life, incorporate purpose into daily routine
  • Keep family, personal and business life evenly balanced
  • Write down goals
  • Spiritual, not just financial fulfillment

Resources

  • Tony Robbins – motivational speaker; psychology of success and self-empowerment
  • Lifetime Cashflow through Real Estate Investing podcast
  • How to Create Cash Flow Through Multi Family Properties
    • Text “Rod” to 41411 (free copy of book)
    • Website

For any other questions about setting investment goals to earn real estate cash flow, or to find out more about Rod’s mentor programs and investor education, check out his website!

 

Ep. 117 Augie Byllott: A Focused Acquisition Strategy Can Earn Higher Investment Returns

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focused acquisition strategy can earn higher returnsBeginning real estate investors often get caught up in the appeal of high returns. However, the focus on high investment returns can come at the expense of a sustainable exit strategy.

A focused acquisition strategy can mean the difference between a profitable investment and a failed one. It is important to consider a seller’s circumstances when making a potential investment deal. By tailoring a deal to fit individual circumstances you have a higher tendency to close. By structuring multiple deals, you can easily see what acquisition strategy works best for your investment goals.

Augie Byllott is someone who knows the importance of acquisition strategy. The founder of Creating Wealth U.S.A. is a seasoned single family investor. With over 500 deals under his belt without the use of bank loans, Augie has become an expert on tailoring his acquisition strategy to fit specific deals. He now share his advice and experience through books and mentor programs.

Earning Exit Returns Through Acquisition Strategy

  • SCOPE strategy: 5-part investment methodology using creative financing
    • Seller-financing – Careful of toxic deals from sellers. Don’t get stuck with short balloon terms.
    • Cash – Be careful of accounting for cash flow expenses when putting cash down.
    • Options – Control property with option to buy, or sell option. Pricing depends on specific deal. Couple options with lease to earn more cash flow
    • Private money – $7 trillion in private capital from retirement funds
    • Existing financing – Take over payments on existing mortgages (assigned mortgages). Though these are less frequent, properties can be put in land trusts and then sell beneficial interest on trust.

Investor Advice and Resources

Contact

Visit www.creatingwealthusa.com for more info onthe SCOPE acquisition strategy and other services. You can also email Augie directly at augie@creatingwealthusa.com.

Ep. 116 Larry Goins: Cashflow without Tenants or Rehabs

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making money in a rising market. earning cashlfow without tenants or rehabsAll investors have heard horror stories from single and multi-family investing: bad tenants, rehabs gone wrong. Often these stories result in investors paying much more in out-of-pocket capital than was accounted for. This remains a major contributing factor preventing would-be investors from making the leap. Though there are successful strategies one can adopt to deal with bad tenants or to facilitate successful rehabs, many investors are still wary of residential asset classes.

However, there are ways to earn cashflow without having traditional tenants or making unneeded rehabs to the property.

Larry Goins is one investor that does not rely on having traditional tenants or doing property rehabs.

Listeners may remember Larry from Episode 106 where he discussed finding creative ways to make money in rising markets. Larry is a 30 year investor and investment mentor. He is an author, speaker and educator sharing his wealth of investment experience with beginner investors. This episode, Larry discusses his strategy of offering lease options instead of traditional tenant leasing.

Earning Cashflow through Lease Options

  • Homeowners in Training
    • Prospective tenants are given lease with option to own
    • Tenants have stated intent to purchase property
    • Tenants put up non-refundable down-payment stating consideration to purcahse
  • Lease Agreements
    • For Dodd-Frank compliance, tenant’s down-payment only goes to closing costs; no rent credits can be given during lease agreement
    • Make sure tenant is responsible for minor repairs and maintenance for “x” amount per occurance
  • Resources

For more information about lease options and earning cashflow without tenants or rehabs, contact Larry directly through his website.

For webinars, trainings, reports and other information, visit www.larrygoins.com

Visit the Invest Florida Show website for even more episodes and to check out our archives!

 

Ep. 115 Denis Hanks: 3 Things Vacation Rental Owners Must Know for 2017

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vacation rental regulations to know for investorsFlorida is a huge market for vacation rental property investors. Florida is a leader in the tourism industry and vacation rentals are rapidly becoming a major economic power.

The rise of shared lodging options has led to a surge of interest in vacation rental properties from investors.

Despite increased economic impact, the vacation rental industry remains a complex and sometimes hostile landscape for investors to navigate. Regulations on vacation rentals vary widely on a state, municipal and association-based level.

Denis Hanks, Senior Director of the Florida Vacation Rental Managers Association (FVRMA), knows just how complex this landscape can be. For over 21 years, FVRMA has been a legislative voice for the vacation rental market industry, in addition to providing property management solutions. Denis brings 20 years experience in state and municipal government to FVRMA’s oversight and efforts.

This episode, Denis discusses some things investors should know for the vacation rental industry in 2017.

Florida Vacation Rental Industry

  • $31 billion/year economic impact
  • Captures nearly 50% of tourist dollars
  • Comprised of condos, single family homes and luxury home resorts
  • Central FL
    • 4,000 new developments dedicated to vacation rentals
    • 25% of U.S. vacation rental market

3 Things to Know for 2017

  • Frequency and Duration
    • FL Statute 509 – preemption protects property owner rights; State cannot prohibit frequency and duration for vacation rentals
    • Regulations can change from municipality to municipality
    • Investors need to do due diligence on local zoning/compliance regulations
    • Be aware of condo/homeowner association regulations
  • Metro Miami/Broward
    • Top 2 international buyer markets in FL
    • Most hostile regulations
    • $20,000 violation charges in Miami; $1,000 per dy fines in Ft. Lauderdale
  • State Regulations
    • Pressure from local officials to remove Statute 509 Preemption

Resources

FVRMA provides a voice for vacation property investors in the state. Members have access to educational resources in addition to legislative lobbying. To find out more about the services offered by FRVMA, visit their website www.fvrma.org or call 407-201-0120

To contact Denis regarding what you can do to learn more about being a vacation rental investor, email him at denis@fvrma.org.

Check out Episode 39 Greg Bugay – Things You Should Know About Growing a Vacation Rental Business in our show archives!

 

Ep. 113 Elysia Stobbe: Diversifying Risk with Geography and Asset Class

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investor mortgages, diversifying riskNo Risk, No Reward

No matter the size or experience of the investor, this is a widely-held belief. However, it is not simply about risk, but rather smart risks.

Diversifying risk is a key strategy for real estate investors looking to expand their bottom line.

Increasing the Bottom Line

We are pleased to welcome back to the show, Elysia Stobbe, NMLS# 146751. Listeners will remember Elysia from Episode 108, in which she discussed updates to SFR investor mortgages.

In addition to being a branch manager with NFM Lending, Elysia is a successful investor with over 30 property deals under her belt, doing deals in and around Jacksonville, FL. She is also a published author. Her best selling book, How to Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye helps single family investors in obtaining secure, prime mortgages.

This episode of Landlord Tales, Elysia discusses her transition to multifamily investing and diversifying risk with geography and asset class. Through expanding focus into the multifamily asset class and remaining open-mined about market areas, Elysia learned that diversifying risk is a great way to increase returns.

Diversifying Risk

  • Multifamily offers greater cashflow potential than single family while minimizing tenant turnover risk
  • Multifamily cap rates typically 2-4% higher than single family
  • Remain open-minded about potential market areas
  • Distressed properties can be made rentable

Finding Deals

  • Networking with wholesalers is great way to find distressed multifamily properties
    • Craigslist; Bandit signs – WeBuyUglyHouses, iBuyHomes
  • Realtors
  • Property Managers
  • Real Estate Investment Associations (REIAs)

Resources & Links

To catch up on past shows, visit our archives page!

 

 

Ep. 111 Todd Hutcheson: Getting Into Real Estate with Limited Cash

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getting into real estate with limited cashWould-be investors always want to know ways of getting into real estate with limited cash. Regular people interested in real estate investing may be put off by the idea that real estate investing relies on huge cash reserves or access to capital. They may wonder how they are able to become an investor on a limited budget.

Enter Todd Hutcheson

A native Floridian, Todd has been an active investor in Florida real estate since 2001. His firm, ibuyhomes.com, is a nationally ranked wholesaling platform connecting buyers and sellers close on deals all over central Florida. Todd lends his wealth of experience to several investor resources, like real estate investors associations (REIAs). He is a current board member and president-elect of the Central Florida REIA.

He is helping people discover that getting into real estate with limited cash is doable through strategic marketing, networking and continuing education.

Getting Into Real Estate with Limited Cash

Wholesaling Done Different

  • Marketing-based strategy
  • Find motivated seller, put houses under contract, assign contract to investor
  • Get paid on assignment
  • Close in 8-10 from signed contract
  • 100% cash-buyers

Investor Advantage

  • Wholesaling helps investors find unlisted properties
  • Some investors don’t have marketing prowess and need help finding deals

Minimizing Risks with Wholesaling

  • Reliable tool of cash-buyers to lessen risks
  • Investors with proven track record of deals more likely to close

Marketing & Finding Deals

  • 60% of leads through ibuyhomes.com
  • 30% of leads from new investors
  • 10% of leads from selective direct-mailings

Central Florida Recap

  • Hot market
  • Lower-middle class neighborhoods seeing high price indexes
    • Pine Hills & Deltona
    • $120-130k for SFRs, $850-1050 for rents
  • Buy-and-hold investors may see tightening, wholesalers not affected as much
  • Out-of-state and foreign investors wanting to buy
  • I-4 corridor is key barometer for state markets

Other FL Markets

  • Cape Coral
  • Gainesville – strong multifamily development rise

Resources and Tips

Contact

Want to know more about getting into real estate with limited cash? Email Todd: todd@ibuyhomes.com

Visit www.ibuyhomes.com or call (407) 617-4289 for any other questions

Central Florida investors, visit CFRI‘s website for events and news.

 

Ep. 110 Andrew Cohan: Investing in Vacation Properties through Branded Hotels

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investing in vacation propertiesFlorida, the dream destination. A vacationer’s paradise; the land of perennial sun and fun.

Florida has long been a favorite of vacationers. It has also been a favorite of those investing in vacation properties. Investing in vacation properties is a major market for Florida real estate investors.

We have discussed investing in vacation properties before. In ep. 39, we discussed investing in vacation properties using Airbnb, with Greg Bugay. This episode, however, focuses on the hotel market in Florida.

 

Who better to discuss that than Andrew Cohan?

Andrew Cohan is Managing Director for Horwath HTL, serving mainly Florida and the Caribbean. He is an expert on health and wellness resort properties and lends his expertise to determining optimum market demand for these types of properties.

This episode, Andrew discusses investing in vacation properties through branded hotels.

Miami Hotel Market

Investing in Vacation Properties through Branded Hotels

  • REITs
  • Condo-hotel units

Investing in Condo-hotel Units

  • Not a conventional, cap rate-type of investment
  • Unit investors typically earn about 40 percent back on investment
  • Owner, manager and developer of resort may be 3 separate entities
    • Investors need to know that circumstances may change over the investment’s life-time

Condo-hotel Draw for Developers

  • Quick exit, high return opportunity
  • Don’t have to worry about property management
    • Brand managers or non-brand managers

If you are looking to find out more about investing in vacation properties through branded hotels, you have more questions about acquiring a condo-hotel unit or you are a developer looking to transition to hotel/hospitality, you can contact Andrew directly by phone or email:

(305) 606-2898

acohan@horwathhtl.com

Ep. 109 Dennis Cisterna: A Tool for Rent Research

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rent researchRent research can be tough. Rent research can be a pain

Rent research may not be most’s idea of a good time, but it is necessary for single and small multifamily real estate investors. In order to determine investment value and potential for rental income, comprehensive rent research must be done on a property. Usually, this requires an extensive effort on an investor’s part in due diligence and market research.

Dennis Cisterna may have the answer to many investors’ prayers. In addition to his veteran experience in real estate investing and lending, Dennis serves as Chief Revenue Officer RentRange Data Services and Investability Real Estate, Inc. Each of these services serve as a helpful tool for investors conducting rent research on potential properties.

This episode, Dennis discusses these tools for rent research and lends his expert knowledge to Florida market overviews. Find out why there isn’t a better time to become a real estate investor in Florida!

Tools for Rent Research

  • RentRange
    • Analytical tool help investors understand SFR market points
    • Automated rent estimates on +10,000,000 properties
    • Premier SFR analytics tool
    • Business oriented – geared toward property managers, lenders, banks, etc.
  • Investability
    • Online search and acquisition platform (operates as brokerage firm)
    • Totally free to use
    • Offers 3rd party investment services
    • One-stop-shop for SFR and small multifamily investors

Florida Markets

  • Hot markets: Miami, Ft. Myers/Cape Coral, Tampa/St. Petersburg, Orlando, Jacksonville
  • Strong rental markets statewide
  • Miami: 15% rent increase and 5% vacancy
  • Tampa/St. Pete: 10% rent increase and 8% vacancy

Dennis has been kind enough to draw up a Florida-centric market analysis for our listeners. Check it out here! Invest Florida Show – Florida Market Analysis

Investors can visit RentRange and Investability to find out the full extent of services each platform offers. Each platform has an excellent sales and support staff to assist clients with any questions/concerns.