Then you know a good real estate investment depends on more than just the property. It could have all the right physical features, but if it’s in an under-performing market, then the property will never produce a strong ROI. There are socioeconomic factors that affect an investment’s value. These factors can include: population growth, market supply, and municipal planning.
You can track these factors before making an investment decision using forecast models. You can track pertinent market data as it relates to an investment value. Real estate investors and developers use forecast models to determine what markets to focus on. They can also be used to track up-and-coming markets, so you can get a lead on the next hot real estate market!
There’s few more qualified to talk about forecast modeling than David Farmer. A recognized civil engineer, and city planner, Dave has been in the real estate industry for more than 20 years. He has extensive development experience and is the former Chairman of SW Florida District Council for the Urban Land Institute.
The 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
3% job growth
Statewide rent growth: 4%
I-4 Corridor rent growth: 6%
Florida Multifamily Markets
4000 MF units online, last 12 mo.
65% absorption rate
3.7% rent growth
Class A: 4.5% cap rates; Class B: 6%
5,500 MF units online, last 12 mo.
4.8% rent growth
8% rent growth in last 12 mo.
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
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 email@example.com.
Would-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
Find motivated seller, put houses under contract, assign contract to investor
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!
In a recent episode, we spoke with an investor who managed a Florida real estate portfolio from outside the country. This week’s episode features an investor who runs a foreign investment firm out of his home-base in Davenport, Florida.
Garrett Kenny started building his investment portfolio in Florida after being introduced to Orlando’s vacation markets in 1996. Since then, he has built his investment firm, Feltrim, into an international name for foreign investment in Florida real estate, handling all aspects of the investment process. This episode, Garrett discusses foreign investment in Florida and hot real estate sub-markets in Orlando.
Foreign Investing in Florida
Most foreign investors can expect to average 6% annual ROI
Easy to find financing options, but many do cash deals
Usually require more up-front from investor for financing
4-4.5% interest rates
Some foreign investors use local banks and mortgage brokers
Some financing may be available through institutions in home countries
Brazil and China emerging as dominant foreign investors in Florida markets
Foreign investors expanding portfolios in Florida real estate
62 million visitors to Orlando area in 2014
Diverse investment opportunity
Vacation rentals, commercial and industrial markets
Top 3 vacation rental areas – Championsgate, Davenport, and Kissimmee
Medical + Technology – Lake Nona
Long-term investing in 30 mi. radius of Disney
Other hot sub-markets
Distressed and repossessed homes
“Class A” properties – Windermere, Winter Park
Tips on Foreign Investment
Having a local knowledge of your desired market is key
Find out about the area before investing
Location, Location, Location
Finding the right location for your investment is important
To find out more about Garrett and Feltrim’s services or about investing in Orlando real estate, visit the firm’s website
Florida real estate investors should be familiar with the name McKinley. With over 55 million square feet of commercial and residential real estate in 34 states, McKinley, Inc. is 37th largest real estate investment and management firm in the nation.
Albert Berriz, CEO, Co-owner & Co-Managing Member of McKinley talks with us this week about the firm’s special interest in Florida. The Interstate 4 Corridor, connecting Tampa, Lakeland, Orlando and Daytona Beach is favorite of McKinley for it’s unique position as a major economic engine for Florida. The firm owns and manages 55 multi-family communities along the I-4 corridor. Albert discusses the firm’s attraction to the corridor as a region of of immense population growth.
6.5 million residents (6th largest population concentration by geographic area in U.S.)
1.3 times over growth rate of South Florida
Panama Canal to introduce Port of Tampa to new markets
All Aboard Florida rail project to provide high-speed transit between Orlando and South Florida
Theme Parks in Orlando and Tampa
For any investor seeking to improve their success in the real estate market, Albert believes that a mentor is an invaluable resource for investors. The expertise and understanding of a seasoned investor can provide knowledge and guidance to make actionable investment decisions.
Albert cites Colin Powell as a distinct influence on his development as a leader. Despite his focus in military and politics as opposed to business, Gen. Powell established himself as a true leader in his field and exhibits the qualities of leadership that can be applied to any individual.
Check out Colin Powell’s literature on leadership on Amazon
To find out more about Mckinley’s properties in Florida visit their website
For those who haven’t heard, All Aboard Florida is a high-speed rail project connecting Miami and Orlando via Fort Lauderdale and West Palm Beach. The project is slated for public use in 2017.
The project will have a major impact on transit in South Florida and Central Florida. The rail project will also have a profound effect on real estate development in the state. John Guitar, Senior V.P. of Business Development discusses All Aboard Florida’s interests in stations and transit-oriented real estate development.
4 million sq. ft. rail transit
West Palm Beach
Utilizing privately owned space in F.E.C. “Flagler Corridor”
125 mph (with no grade crossings)
200k sq. ft. real estate development for Downtown Miami Station
Servicing local and commuter traffic
2 Developments planned: 200k sq. ft. & 100k sq. ft.
Accessible locations for commuters
Ft. Lauderdale / West Palm Beach
Several retail and residential plans in works for future development
To contact John with questions regarding All Aboard Florida’sreal estate development and leasing opportunities or to find out more about the project visit the project website www.allaboardflorida.com
Tim Becker, Director of the Bergstrom Center for Real Estate Studies at the University of Florida talks Orlando in the 2nd of 4 part series, covering the major real estate markets in the State of Florida. In anticipation of the Bergstrom Center’s Trends and Strategies conference February 26-27 in Orlando.