Ep. 146 Jenna Diermann & Lucas LeBlanc: Two Real Estate Investors’ Journey from Vacation Rentals to Multifamily

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Sometimes, embarking on the journey to becoming a real estate investor isn’t just a mental one – it can be a physical one too! It takes focus and vision to realize your real estate investing goals and that can mean stepping out of your comfort zone. That’s what our two guests this episode are doing and it’s paying off.

Lucas LeBlanc and Jenna Diermann began on their investment path when they started looking at ways to ensure financial freedom. With a goal to build a passive income portfolio consisting of both short and long term rental properties, Jenna and Lucas found that their home state of California didn’t afford them the opportunity to fully realize their real estate goals, so they landed on the Florida market, relocating to Tampa.

Jenna and Lucas have started DreamStone Homes with hopes to build a portfolio of vacation and multifamily rentals throughout the Tampa Bay area.

What makes these two so interesting is their drive and creativity. Since moving to Tampa earlier this year, the two have already started work on a single family renovation and are currently under contract for a mulltifamily property. By finding a unique niche, they have been able to focus their investment goals to actionable results. Jenna is a well-known DIY designer and decorator who’s work has been featured on several home and living platforms. By applying her special brand to their properties, they are able to find investments that work for them.

Listen to their investment journey!

Contact Lucas and Jenna:

Ep. 145 Rod Khleif: Putting Your Multifamily Investing Goals into Perspective!

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multifamily investing

Photo: Gregory Radford

The new year is a time for new resolutions. For real estate investors, that means setting investment goals. Like many New Year’s resolutions though, sometimes it can be hard to put investment goals into practice. If you’re a single family investor looking to make the transition to multifamily investing, the leap can seem like a big one. However, setting practical investment goals can help you organize and plan your strategy as you make the transition.

That’s why we’re so excited to have this week’s guest back on the show! In this special live event, Rod Khleif joins us for an inspirational multifamily investing discussion and Q&A session.

For a talk on putting your multifamily investing goals into perspective, we wouldn’t want anyone other than Rod. His wealth of experience as a multifamily investor and his enthusiasm for sharing that experience makes for an inspirational and motivational event; perfect for putting your investment goals into perspective.

This episode Rod discusses his real estate journey and how, by forming practical investment goals, he was able to focus his multifamily investing strategy.

About Rod

Investor, author and real estate investing mentor, Rod Khleif, believes in the power of actionable investment goals. Setting goals for himself not only inspired him to become a successful real estate investor, they also empowered him to forge his path with a focused strategy. Since then, he has devoted much of his time to helping others realize their investment dreams.

For more from Rod, visit:

 

Ep. 144 Joseph Gozlan: Scaling Your Multifamily Investments Through Secondary Markets

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multifamily investmentsMultifamily investing is often the next step for real estate investors – typically those with single-family experience – looking to scale their investing and increase earnings through investment real estate. However, current market levels in major MSAs throughout the country are causing many multifamily investors to wonder how to continue adopting sustainable growth strategies.

While many multifamily markets may be reaching dizzying heights, you shouldn’t let that deter you. For the investor willing to put in the work, opportunity awaits. A little creativity and diligence can go a long way if you are looking to scale your multifamily investments. Just ask our guest this week.

Joseph Gozlan moved from Israel to Texas in 2007, quickly realizing the single-family investment potential available at that time. From there, he asked himself how to continue scale his real estate operations, finding multifamily investments to be the desirable vehicle.

Founding Eureka Business Group, Joseph has continued to scale and his multifamily investments, applying creative strategies in secondary and tertiary markets to find sustainable growth.

Scaling Your Multifamily Investments Through Secondary Markets

  • Why Multifamily?
    • Major MSAs nearing top of market
    • Huge generational shift from buying to renting
      • Baby-boomers
      • Millenials
  • Looking at Secondary Markets
    • Who are the major employers?
    • What are the major economic drivers? What are the risks?
    • What is the historical performance of the market?
  • Finding the Right Property
    • Focus on sustained returns
      • A-class multifamily may be hot, but B+C properties can fare better in market downturns
    • Think locally
      • Boots-on-the-ground market knowledge is key
      • Work with boutique brokerage firms
      • Build a trusted team on the ground
    • Off-market properties
      • Form local relationships in your desired market

Contact Joseph

Joseph is always looking to form relationships with brokers, property owners and sellers. If you’ve got a multifamily deal or have a question for Joseph, you can reach him be following the link below:

 

Ep. 143 Kris Chana: Multifamily Investing with a Twist – The Untapped Potential of Assisted Living Facilities

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assisted living facilitiesWhat do you think of when you hear the term “assisted living facility”? Most of you are probably picturing nursing homes, with orderlies and nurses and fully-equipped medical wards… probably something that most real estate investors would consider too much to take on.

However, assisted living facilities and senior care complexes tend to get a bad rap, especially considering the incredible investment potential they hold. Instead of thinking about assisted living facilities as old-folks’ homes or nursing homes, investors should look at these facilities as what they really are: multifamily investment opportunities.

Kris Chana is a an assisted living facility investor who brings a unique look at how multifamily investing strategies can be applied to this often over-looked asset class. Kris, along with his wife, Chelsea Chana, are the owners and operators of Chelsea Place Senior Care in Charlotte County, FL, Kris understands the potential for returns on senior care facilities. In addition to a full-time assisted living facility, Kris and Chelsea also own and operate a senior daycare facility. They are pioneers in applying traditional, multifamily investing concepts to senior living and this episode, Kris will be sharing their story along with tips on how investors can get involved in this unique and largely untapped asset class.

Find out about the untapped investment potential for Assisted Living Facilities!

  • Not just an asset class for institutional investors
    • Roughly 70% of ALFs are individually owned and operated
  • Not nursing homes
    • Does not require major medical component
    • ALFs are largely private-pay
    • More hospitality-driven than medically-driven
  • Multifamily… with additional services
  • Large demand for assisted living facilities through incoming baby-boomer generation

Strong ALF Markets in Florida

  • Sarasota County

Contact Kris

By email: kris@chelseaplaceliving.com

Phone: (941) 883-6600

Web: https://chelseaplacecare.com/

 

Ep. 137 Ken Rosen: These Buying Strategies Can Help You Choose the Right Investment Property

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There’s no doubt we’re seeing a tightening market. In Florida, especially in the Tampa Bay market, we’re seeing demand outpacing construction; leading to higher prices in asset classes across the board. For investors, this means choosing the right investment property for your portfolio may take a little more work. That’s not to say a great investment isn’t waiting out there for you, it may just require a little creativity.

real estate buying strategiesKen Rosen knows a thing or two about creativity. As one of the leading innovators of South Florida real estate investing, Ken was a pioneer of condo conversions, reinvigorating the area’s multifamily market. Mr. Rosen has continued to be a driving force in South Florida real estate, working with a variety of asset classes before focusing mainly on office investing.

With over 30 years of investing experience and insight and over $500 million in transactions, Ken has earned a respected reputation among investors. He remains an active investor, mentor and educator as well as a best-selling author.

This episode, Ken provides his insight into where the market is at, where it’s heading, and how the right buying strategies can help you make the right investment.


“One good real estate investment is worth a lifetime of labor”


Buying Strategies for Smart Investments

  • Properties with long-term owners of high return opportunities
    • Under-market rates
    • Room to increase rents
  • Account for inflation when writing multi-year leases
    • Office, Flex, Industrial
  • Look for “B” buildings in “A” locations

Investment Properties to Watch

  • Self-storage
  • Multifamily

Resources

Check out Ken’s best-selling book, “Investing in Income Properties: The BIG SIX Formula for Achieving Wealth in Real Estate” for even more insight into Ken’s buying strategies.

For questions or investment opportunities, call Ken directly at (305) 469-6708 or email krosen@kendar.com

 

 

 

Ep. 134 Jason Ellison and Josh Diggs: Solving Tenant Issues – Commercial Evictions to Residential Fair Housing

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The relationship between a landlord and a tenant is unique, to say the least. Whether you invest in residential or commercial real estate, you must maintain a balanced relationship with your tenants.

If you do own tenant-occupied properties, you know that maintaining a balanced relationship is easier said than done at times. When dealing with tenants, there are defined rules and regulations for what you can and cannot do as a landlord; However when it comes to peoples’ homes or businesses, disagreements over a lease can quickly become a tricky situation. ¬†Solving tenant issues can be one of the most important things a landlord can do to retain tenants and stay out of legal hot water.

This live discussion and recording is about solving these common tenant issues. We discussed the landlord/tenant relationship, as well as covering common pitfalls relating to things like evictions and fair housing. One our guests deals in commercial real estate litigation. The other is an owner of multi-family properties.

They are as follows:

commercial lease disputesJason Ellison is an attorney and founding partner of Ellison | Lazenby Law Firm. Jason is a real estate attorney and specializes in contract preparation and dispute resolution. He is highly experienced in landlord/tenant disputes, including evictions.

 

 

dealing with tenantsJosh Diggs is a veteran investor and co-founder/owner of Palm Companies. He is well versed in tenant/landlord relationships and will provide on-the-ground insight into property management issues.Through their property management arm, Palm Communities, Josh has on-the-ground experience managing multifamily properties and dealing with tenants.

 

Check out “Ep. 134: Dealing with Tenants – From Evictions to Fair Housing”!

Join our Tampa Cashflow Meetup!

In an effort to bring you even more talk on Florida’s real estate industry Invest Florida Show has started a monthly event series. Every month we host a different speaker at our downtown Tampa meeting rooms to discuss a different feature of the state’s dynamic real estate market.

You can meet the Invest Florida hosts, get exclusive expert insight and even network with other real estate investors. To find out event information or to join our Meetup, click here.

 

 

Ep. 131 Rod Khleif: Landlord Tales – How Multifamily Investing Can Consolidate Your Bottom Line

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earn real estate cashflow with investment goals, multifamily investingInvestor, author and real estate investing mentor, Rod Khleif has done it all.

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.

Rod’s taste for real estate investing lies mostly in multifamily investing.

With single family properties, you can run the risk of spreading yourself too thin. It can become difficult to manage a large portfolio of single family properties. You have the potential to earn greater returns while managing fewer physical properties.

Rod also found that, following the market crash of 2008, his multifamily properties fared much better than his single family homes.

In this edition of Landlord Tales, Rod talks how multifamily investing allows you to consolidate your bottom line. He also shares his outlook on the real estate market cycle.

Consolidating Your Bottom Line Through Multifamily Investing

  • Easier Property Management
    • Stockpile spare/replacement parts for property maintenance
  • Stronger Buy-and-Hold Strategy
    • Duplexes/Four-plexes considered residential real estate, eligible for residential financing
    • Income producing
  • Commercial Multifamily Has Value-add Potential
    • You can exponentially increase your ROI through value-add features in your commercial multifamily investments.

Market Outlook

“What goes up must come down”

In his market outlook, Rod shares some uncertainty over the future of the real estate market. He cautions investors to be wary of those claiming that a crash isn’t going to happen.

  • Flippers: be careful entering into high-dollar flips
  • Multifamily investing: Avoid 5-year balloons

Whatever your market; single family or multifamily investing; focus on cash flow investments. Investing for value can leave you with little options in a downturn.

Investor Resources

To learn more about how multifamily investing can consolidate your bottom line and increase your cash flow check out Rod’s podcast Lifetime Cash flow Through Real Estate Investing, a real estate investing talk show with a focus on multifamily.

Rod is offering Invest Florida Show listeners exclusive access to his new book How to Create Lifetime Cash flow Through Multifamily Properties. To get your free copy:

Check out Rod’s past episode, in which he discusses the importance of implementing practical real estate goals into your investment strategy.

 

Ep. 127 Scott Maurer & Dave Shaw: There Are Many Ways to Invest in Real Estate With an IRA!

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You probably know that an IRA is a great way to save for the future. You may even be making contributions to one set up through your work. But did you also know that an IRA can serve as a great investment vehicle? Investors use IRAs to hold a variety of assets, but many don’t know that you can invest in real estate with an IRA too. A self-directed IRA provides a lot of flexibility for real estate investing.

This episode is a special one for Invest Florida. We’ll be covering the many ways to invest in real estate with an IRA in front of our first-ever LIVE audience! Scott Maurer, of Advanta IRA, and investor, Dave Shaw join us for a special panel discussion on investing in real estate using a self-directed IRA.

self-directed IRA real estate investingScott Maurer joined Advanta out of college. He has since become the Director of Business Development and regularly educates investors on the many advantages to investing through self-directed IRAs.

 

 

invest in real estate with an IRADave Shaw is a real estate appraiser-turned investor who uses his self-direct IRA as a lending vehicle.

What You Need to Know to Invest in Real Estate With an IRA

  • You can transfer funds IRA-to-IRA tax-free
  • Funds can be transferred as-needed
  • In Florida, IRAs are only protected against personal creditors, not real estate liabilities

Setting Up A Self-Directed IRA

  • Advanta Costs:
    • $50 account-opening fee
    • One-time $95 investment fee (per investment)
    • $295 annual account management fee (includes payments and expenses)

Lending Through a Self-Directed IRA

  • You cannot lend to yourself or immediate family through your IRA
  • Flexible lending terms – you can write your own agreements
  • Returns:
    • 12-15% on 6 month fix-and-flip
    • 10% on 3 year lends

Contacts

  • To learn more about how you can invest in real estate with an IRA, call Advanta at (800) 425-0653 or visit their website. You can also check out educational videos and webinars from Scott on Advanta’s YouTube page.
  • Dave is always looking for single and multifamily deals (4 units and less). You can reach him by email at daveshaw98@gmail.com

Ep. 126 Mark Holmes: What Multifamily Investors Need to Know About the Rental Boom

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multifamily investorsThe national housing market is undergoing a major shift and multifamily investors are taking notice. Through economic and generational factors, the housing market is seeing a lessening demand for single family home purchases. Instead of buying a home, young professionals are opting to rent.

Mark Holmes may know this growing trend better than anyone. As a certified property appraiser with Value Tech Realty, Mark travels the United States appraising multifamily properties. As an appraiser, he understands this rental boom from a valuation perspective. As an active single family investor and passive multifamily investor, he understands what it means from an investor’s standpoint.

This episode, Mark gives us a recap of the the national multifamily market as well as the Florida multifamily market. We discuss the recent rental boom and what it means for multifamily investors.

National Multifamily Overview

  • 63% home ownership, down from 69% (2004)
  • 37% renters: 15 million shift
  • Financial recession brought on behavioral shift
  • Job growth jump-started multifamily development

Florida Multifamily Overview

  • Landlord friendly
  • 3% job growth
  • Statewide rent growth: 4%
  • I-4 Corridor rent growth: 6%

Florida Multifamily Markets

  • Tampa
    • 4000 MF units online, last 12 mo.
    • 65% absorption rate
    • 3.7% rent growth
    • Class A: 4.5% cap rates; Class B: 6%
  • Orlando
    • 5,500 MF units online, last 12 mo.
    • 57% absorption
    • 4.8% rent growth
  • Melbourne
    • 8% rent growth in last 12 mo.
  • Miami/SFL
    • 3,500 units online last 12 mo., 3,300 coming
    • Nearly 100% absorption
    • 3.3% rent growth
    • 4.45% cap rates
    • 49% of income goes to rent

What It Means for Multifamily Investors

  • Capital looking to invest in multifamily is out there
  • Class A property growth concessions trickling down to B + Cs
  • Most buyer interest is in multifamily
  • Interest rate increases mean cap rate increases
  • Major market cap rates seeing downward trend

Contact Mark

Looking for property appraisals? Contact Value Tech Realty through their website. For single family and multifamily investors looking to work with Mark on a deal, contact him through email at mark1holmes1@gmail.com.

Ep. 122 Livingston Hessam: What You Need to Know About the State of Mortgage Banking and Real Estate Lending

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mortgage banking and real estate lendingIt’s a new year and change is in the air. With financial regulation changes sure to come and the recently announced Federal interest rate increases, it’s no wonder mortgage banking and real estate lending is hot on investors’ minds.

This episode, we have Livingston Hessam, who just returned from this year’s Mortgage Bankers Association Commercial Real Estate Finance and Multifamily Housing Convention & Expo.

Listeners will remember Livingston from episode 70, in which he gave us a recap on multifamily mortgage banking and real estate lending from the 2016 conference. Livingston is Vice President of Walker & Dunlop‘s Tampa office. Livingston brings over 12 years of experience in real estate lending and finance solutions to Walker & Dunlop, which just celebrated it’s 80th anniversary.

Livingston offers up a recap of the 2017 CREF/Multifamily MBA Conference and discusses key themes from the past year and the current state of mortgage banking and real estate lending.

What’s In Store for Mortgage Banking and Lending

Agency Annual Caps

  • Fannie Mae & Freddie Mac each allocated $36.5 billion for 2017 (same as 2016)
  • Certain loans and portions of loans are excluded from the cap (i.e. affordable and green/energy efficient)
  • Fannie Mae & Freddie Mac multifamily production totaled over $110 billion in 2016.
  • Fannie up 30%, Freddie up 20% from 2015
  • Expected to capture 40% of total multifamily volume for 2017 ($50-55 billion each)

Commercial Mortgage-Backed Securities (CMBS Loans)

  • Risk-retention regulations put in place in 2016, narrowing amount of CMBS lenders
  • Post-election stability, but more selective lending market
  • CMBS lenders ramping up bridge-lending

10-year Spreads

  • Life-insurance (50% leverage and under): 125-135 range
  • CMBS (75% leverage): 250-280 range
  • Agency (80% leverage): Low 200s range
  • Federal interest rate sees .25% increase
  • Expected to increase to 2.75-3% by end of year

Hot Topics

  • Trump Administration
    • Tax reforms
    • Dodd-Frank roll-backs
  • Retail lending
    • Publix most active retail buyer in FL
    • Grocery chains are buying out plazas after lease terms or taking right of first refusal on new lease terms
    • Reduced supply of grocery-anchored retail
    • Strong retail appetite for real estate lenders

Investor Resources

  • In addition to his V.P. role at Walker & Dunlop, Livingston is President of the Society of Real Estate Professionals (SOREP). Formerly the Tampa chapter of University of Florida’s Bergstrom Council, SOREP hosts networking events and seminars to professionals and gives back to Florida universities. SOREP focuses on all aspects of the real estate industry and is open to all. Click here for more info.
  • Walker & Dunlop offers comprehensive real estate financial solutions for all income-producing properties. For more info, visit Walker & Dunlop website.
  • To contact Livingston directly, click here.