Listeners of the show will remember Jillian Bandes who, in episode 74, discussed what real estate investors should consider about building structure when looking at commercial multifamily investing. The project manager for Bandes Construction covered 6 hot topics on building structure and maintenance that investors should be aware of with commercial multifamily properties.
In this episode, we discuss Jillian’s first investment property….a single family home with an ajacent rental apartment. She discusses razing the property, dealing with the local code and building officials and her plans on whether to rent the units or live in one and rent the remainder. The property was purchased through a foreclosure and we cover the online methods now employed by Pinellas County. Not only is this project about a potential home and investment, but Jillian is passionate about blazing the trail for urban renewal and redevelopment in St Petersburg’s core and her unit is in the heart of a rapidly changing area.
Residential property permitting and zoning regulations differ from commercial properties
Choose property in an area you are familiar with
Walk surrounding neighborhood
If investment property, define target rental market
If foreclosure property, know state of title (liens)
What is the property zoned for? Is property up to code? Accessory buildings permitted?
Work with local and municipal officials
St. Petersburg, Florida
Undergoing immense urban growth period
Investors need accessibility to invest in properties with potential for redevelopment/renewal
South St. Pete offers development opportunity and reasonable prices w/ proximity to cultural amenities
Jillian extends a big thank you to Carlyn Neuman of Tampa’s 360 Realty for helping to navigate online foreclosure bidding as well as to Katrina Trump of Bank of Tampa, for assisting with securing financing.
Florida was hit hard following the real estate crash in the mid 2000s. As the market began to return, real estate investors saw the foreclosure market as a well-spring of opportunity and many took advantage of the asset class. However, as real estate markets have rebounded, foreclosure markets have begun to dry up. Investors have found it increasingly difficult to find successful strategies for bidding on foreclosures.
Our guest this show has been buying and selling foreclosure properties since the late 1990s. Focusing solely on Broward and Palm Beach counties, Eric Nathanson has developed successful strategies for bidding on foreclosures and has earned a leading reputation in South Florida’s foreclosure real estate markets. Eric is co-founder of Bidologist.com, a third-party turnkey investment company offering investors bidding on foreclosures a single source for investment solutions. This episode, Eric discusses the current trend in South Florida’s foreclosure markets as well as strategies for investors bidding on foreclosures.
Broward and Palm Beach Foreclosure Markets
Majority of real estate markets returning to pre-crash point
Large foreign investment/flight capital base
China, Brazil, Venezuela, Russia
FC supply thinning
Investors no longer able to cherry-pick from select areas
Must cast wider net to suit investment goals
Easier for investors to gather info on properties
Bidding pool expanded internationally
Bank has option to hide bid, making bidding more selective
Likelihood of future foreclosure markets slim
Financing regulations much stricter
Possible market for investors who can afford to purchase condos with rental restrictions and wait them out
Potential investors looking to get into the Florida real estate market are often held back by the fear that they don’t have the capability, time or resources to make the right investment decisions. There are a million reasons to say, “I can’t do it because…”
Our guest this week is Barney Killinger of Pro Auctions Services. Barney is a foreclosure auction expert, purchasing properties at foreclosure auctions for investors. His company, servicing mainly Central Florida, provides investors with a consolidated portfolio of foreclosure auction markets available for bid in several counties.
Barney is a great guest not only for his enormous well-spring of knowledge and experience in the Central Florida auction market but for his inspirational story. In 2010, Barney was involved in a head-on collision and suffered a severely fractured neck. While bed-ridden and amidst surgeries Barney continued to pursue his dream of achieving success in foreclosure auction markets and managed to organize and execute successful bids on 40 properties in a 45 day period from his hospital bed. Barney is living proof that you absolutely can succeed as an investor with perseverance and dedication.
Florida foreclosure market still going strong
Courts still holding and processing foreclosure cases
Large amounts of “reserve stock” properties
Most likely to reach its peak mid-2018
High Risk/High Reward
Risks can be minimized with right knowledge and resources
Returns on foreclosure auction investments
65-75% average for investors
12-15% average per month on remodel/rehab properties
3-6% average per month on wholesale flips
FL Open Bid system
Investors have access to bank/lender’s selling prices prior to sale
FL 10-day Title Redemption Law
10 days allotted post-sale for owner/borrower to pay liens or for bank/lender to vacate foreclosure sale
If sale vacated by bank, make direct offer to bank on vacated property
Pro Auctions Services
Servicing mainly Central Florida auction market: Polk, Orange, Osceola, Seminole and Volusia County
Proxy Drivers – view and photograph property for buyer at auction
Proxy Bidders – buyers who represent investor at auction
Tips for Success
Always SEE the property before placing bid
Run title search
Who you work with and how you educate yourself is very important in real estate investments
For more information on Barney’s company and the services they offer, visit his site here
Contact the Pro Auctions team by email at firstname.lastname@example.org