Ep. 65 Jerome Abecassis: Foreign Investor Makes Headway in the Florida Real Estate Market

Posted on January 25, 2016 by admin

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Those who know the Florida real estate market know the influence of foreign investors. Foreign capital, especially in South Florida, has fueled real estate development in the state. Despite its slight recline with the growing strength of the US dollar, foreign investing remains a big part of the Florida real estate market.

Jerome Abecassis, a native of Paris, France now residing in Florida has made a name for himself and his company TIJ Group, LLC investing foreign capital in the Florida real estate market. Moving here in 2003, Jerome began investing in South Florida real estate and quickly established TIJ as a leader in foreign investing in the Florida real estate market. TIJ now owns and manages 200 units in South Florida and owns 160 units in the Detroit, MI area. This episode, Jerome shares his unique approach to investing and gives an outlook on the Florida real estate market.

Florida Real Estate Market
- Foreign investing returning post-financial crisis
- American markets seeing higher returns on investments than foreign markets
- Market growing
- South American investing strong in South Florida market
TIJ Properties and Investing Strategy
- Distressed/Mismanaged properties
  - Code violations; in need of repairs
  - Handle repairs and assume property management responsibilities
  - “Detroit is Miami 10 years ago”
- Cash-on-Cash Deals
  - Investor chooses stake
  - TIJ partners in investment
  - No traditional financing used
  - Network of brokers scout properties
  - Word-of-mouth investor base
Tips
- Be wary of deals that seem too good to be true; no such thing as the perfect deal
- Stay where you are comfortable; don’t over-diversify your investment portfolio
- Always inspect property before buying; know the area and tenants

Want to know more from Jerome/TIJ Group?

Contact Jerome by

email: libertymiami@hotmail.com

or phone: 786-277-4163

Ep. 64 – Justin Ford: Florida Investor Knows How to Work the Vacation Market and Remain Flexible

Posted on January 18, 2016 by admin

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Florida investors are familiar with the vacation real estate market; Florida is a strong, tourist-driven economy and seasonal and vacation real estate represents a large investment sector. Florida investors know that the vacation market has always offered prime investment opportunity. Despite it’s potential for success, the vacation market is a challenging and fast-paced market and many beginning investors often get caught in financial quagmires of bad investments.

Justin Ford, President of Pax Properties LLC, understands the “Florida market“. With over a decade worth of experience investing in Florida’s seasonal and vacation market, Justin has mastered real estate investing. Pax Properties currently owns and manages 30 properties (500 units) along Florida’s east coast, from Ft. Lauderdale to Jacksonville. Pax Properties has thrived due to Justin’s flexibility and ability to adapt to changes in the market. This episode, Justin shares with us his approach to marketing and investing in the Florida and shares tips and advice for beginning investors.

Florida is a strong vacation rental market
- Hotels, condos, single-family/multi-family long-term and short-term seasonal rentals
Transient Apartment Licensing
- Required license for operating vacation rental properties
- Applies to hotels, apartments, single-family vacation rental, B’n’Bs, Airbnb, VRBO rentals
- Dept. of Business and Professional Regulations
C.A.P.A. – Fundamentals of Real Estate
- Cash-flow; Amortization; Positive-leverage; Appreciation
- Investors can control all but Appreciation
- Structuring deals around C.A.P. ensures more positive returns for investors than relying on Appreciation
Tips
- Choose tenants carefully; good tenants can be difference between a good investment decision and a financial headache
- Take advantage of Amortizing-loan finance options
- Always be marketing and networking
  - Conventions, cold-calls, mailers

Justin also offers a course for investors that covers the fundamentals of investing. C.A.P. Strategy: Bubble-Proof Real Estate Investing for Lifelong Cashflow provides investors with in-depth insight into Justin’s investing philosophy. For more information, visit the website!

You can also check out Pax Properties’ asset portfolios here:www.paxproperties.com and www.beachpads.net

Justin can also be reached directly by email at justin@pax-properties.com

Ep. 63 Amir Korangy: NY & South Florida Real Estate Investors Will Want to Know the Real Deal!

Posted on January 11, 2016 by admin

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One of the hardest things for new investors is finding a current and accurate source of real estate information; a place to find up-to-date and informative data on market trends and conditions. Even for seasoned real estate investors, it is difficult to stay on top of market research.Thankfully for real estate investors in New York and South Florida, Amir Korangy has solved this problem.

A real estate investor himself, Amir Korangy began The Real Deal magazine in 2003. At first focusing only on New York real estate markets, The Real Deal has long since established itself as an authority on South Florida’s real estate markets as well. By providing current, informative and actionable real estate data on a variety of asset classes in both New York and South Florida real estate climates, The Real Deal has become a go-to source for real estate investors. This episode, Amir shares The Real Deal’s mission as well as his personal investing process and he gives tips to new real estate investors.

The Real Deal
- New York and South Florida real estate news publication
- Est. 2003 – Amir Korangy, Founder
- Up-to-date market reports on variety of asset classes
- Updates monthly with some specific day-to-day developments
Investing tips
- Know your neighborhood or the area where you are looking to invest in
- Familiarize yourself with the market; movements and trends
- Due diligence is imperative
- For beginning investors, buy within means
- Don’t overthink a good investment – no such thing as the “perfect deal”

To find out about all of the The Real Deal’s services, visit their website www.therealdeal.com/miami (South Florida); www.therealdeal.com (New York)

Questions for Amir? He can be contacted through social media on LinkedIn and Twitter (@mrkorangy)

Ep. 62 – 1031 Exchange – This Provision in the Tax Code Might Help You Acquire More Investment Property…..Faster

Posted on January 4, 2016 by admin

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Many potential home buyers enter the housing market looking for something they can call “home”. Many look for a property based on personal aesthetics. However, these may not be the best indicators of a good investment property. Buying the ‘dream home’ may require a stringent, long-term financial requirement of the homeowner; one that may limit those who aspire to build an investment property portfolio. By purchasing a property for a primary residence not as long-term commitment but as a strategic investment decision, homeowners can take advantage of a provision in the IRS Tax Code that may enable them to acquire more investment property.

26 U.S. Code § 121 – Exclusion of gain from sale of principal residence
- Sale of property exempt from gains tax if property was held as principal residence for a minimum of 2 out of 5 years of ownership
- Single taxpayers entitled up to $250k exemption
- Joint filing taxpayers entitled up to $500k exemption
- Mandatory, 2-year residency need not be contiguous
- Applicable to one sale every two years, no limit on how often this may be done by homeowner
Things to Know
- Look for properties that are good investment decisions
  - Sect. 121 only applies to exemption from Capital Gains Tax, meaning only a property that is being sold for higher than original purchasing price
- Sect. 121 may not be good for those looking to have children.
- Money saved in exclusion from gains tax may be used to acquire new properties
Exceptions
- Check with tax adviser or C.P.A. for eligibility; you may still be eligible for partial exemption
- Sect. 1031 Exchange – enables investors to sell a property with capital gains and receive a deferral on gains tax if purchasing a new one
  - If property was acquired as a replacement property and converted to a primary residence, investor must live in property for 5 yrs before qualifying under Sect. 121
- Sect. 121 cannot exclude Depreciation Recapture Tax (25%)