Ep 87 Tom Blazejack: Miami Real Estate Market Overview

Posted on June 27, 2016 by admin

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Things are happening in the Miami real estate market… Well things are always happening in the Miami real estate market, but BIG things are happening right now. Miami has long been the focal point for real estate investors due to the density and scale of development and the investment opportunity for a variety of asset classes. Real estate investors all over Florida have looked towards the Miami real estate market as a forecast for current and future conditions throughout the state.

Tom Blazejack, of Blazejack & Company knows all of the ins and outs of the Miami real estate market. In addition to nearly 40 years’ experience as a real estate appraiser and analyst, Tom is also a native of Miami. Tom’s extensive appraisal knowledge of commercial and residential properties and intimate knowledge of the Miami real estate market make his consultation highly sought after by investors. This episode, Tom gives us an overview of the Miami real estate market, including development highlights and what investors should expect.

Miami Real Estate Market

2011 purchase of Miami Herald building for $236 million marks return of market
Foreign investment and cash-heavy market
- Foreign investors seeking stable properties to invest cash
Development spikes
- New deposit requirements for investors and developers insures accountability
- Lenders alleviating construction loan costs for developers
- Projects moving quicker
Land price increases
- Miami seeing $200-300/sqf on new commercial developments but even as high as $3000 in some prime locations
- Residential continues to increase… up to $3/sqf in best projects
Emerging Markets
- Development spreading into surrounding Miami
  - Little Havana, Wynwood, Coral Gables all seeing new projects
Major Projects
- Brickell City Center – Swire Group
  - $250/$300 sqf for 9 acres in downtown Miami
  - 2 levels underground parking; 2 luxury 400-unit condos; 2 office buildings (1300 sqf); Hotel w/ corporate and extended stay (East Hotel); Retail facilty (500k sqf)
  - Projected cost overview of $1.05 billion
  - Details, visit http://www.miamidda.com/
- Public/Infrastructre Projects
  - Huge infrastructure projects initiated during recession
  - Kept in budget due to counter-cyclical investment
  - 2 big projects
    - SR 826 and SR 836 Interchange
    - Port of Miami Tunnel
- High-speed Rail
  - Brightline (previously, All Aboard Florida)
  - Connecting South Florida and Orlando
  - MiamiCentral project in downtown Miami
    - Transit center; retail/mix-use
  - For more info on rail project, check out Invest Florida Show Ep. 52 with V.P. of Business Development for the project, John Guitar

To contact Tom with for an appraisal consultation or for further analysis of the Miami real estate market visit his website. He can also be emailed at tom@blazejack.com

Ep. 86 Jonathan Moore: You Will Want to Know These Real Estate Development Hot Points!

Posted on June 20, 2016 by admin

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Real estate development in Florida is currently in great demand. With real estate investors turning towards ground-up real estate development as an increasingly more viable means of investing, new projects are springing up state-wide. However, with increased pressure on real estate development and a construction workforce stretched thin, it is important to keep in mind key points if looking into real estate development as an investment goal.

Jonathan Moore, AIA is president and founder of InVision Advisors. His firm offers owner’s representation and project consulting services for owners and investors, architects and contractors during real estate development. As owner’s representatives, InVision Advisors takes a comprehensive approach to real estate development deals handling day-to-day and overall project oversight. As an experienced architect, Jonathan brings a unique insight to his knowledge of the real estate development industry. This episode, Jonathan discusses hot points for investors to know about real estate development.

7 Real Estate Development Hot Points

Sub-contractors
- Markets state-wide are saturated with work
- Sub-contractors control velocity of development
- Artificial inflation caused by over estimation of construction costs
Communication
- Problems frequently arise due to lack of communication
- Loss of face-to-face time and on-site meetings contribute to communication breakdown
Land Quality
- Site selection becoming limited
- In-fill projects arising
- Investors should reconsider passed over sites
- Buying Real Estate with Environmental Issues Ep. 3 – Frank Hearne
  - Revisiting worked over properties and sites
Construction Quality
- Large loss of construction force from mid-2000s recession
- Current construction force stretched thin over spike in development
Unrealistic Project Expectations
- Make sure all involved parties are in agreement over project deadlines
Scheduling
- Scheduling oversights complicate and potentially ruin deals
Mitigating risks
- All real estate development deals have inherent risks
- Hold parties accountable for actions
- Thoroughly research deal
- Partner or work with experienced real estate development investors

To contact Jonathan about the services offered by InVision Advisors or to discuss more about real estate development, visit www.invisionadvisors.com or call 813-784-3146

Ep. 85 Eric Black: Tips for Out of State Real Estate Investors

Posted on June 13, 2016 by admin

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Real estate investors know that Florida’s real estate markets are tightening up. As the demand begins to outweigh supply, real estate investors are having to become much more diligent in their property searches. This is especially true for out of state real estate investors looking for Florida properties. Out of state real estate investors must not only know their desired market, but also how to acquire and execute deals from a remote location. How can out of state real estate investors keep track of the Florida markets?

This episode, we speak with Eric Black. Eric is an investor based out of California who has owned properties in several different states, including Florida (Brevard County). Eric’s position is a unique one in that real estate investing is currently ancillary to his full-time job in the technology industry. With the ultimate goal of a transition towards full-time real estate investing, Eric has adopted an interesting perspective on real estate investing that may be helpful for other out of state real estate investors. This episode, Eric discusses how he handles a full-time job along with being an out of state real estate investor and shares tips for others.

Tips for Out of State Real Estate Investors Looking for Properties

Adopt Marketing and Search Strategies
- Build local network to market your investment goals and aid in property search (realtors, contractors, developers, investors, financiers, etc.)
- Direct mailings
Know Your Market
- Best to visit your desired market area with a knowledgeable local contact
- Statistics and data research
- Google Maps/Google Earth
Have Effective Property Management
- Property management benchmarks: vacancy turnarounds, communication with owner
Helpful Tools for Investors
- Find a mentor or follow someone who has found success in your desired market
- Rich Dad Poor Dad, by: Robert Kiyosaki

Also discussed in this podcast are past episodes that could be relevant to out of State investors:

https://investfloridashow.com/ep-84-daren-blomquist-florida-markets-hot/

https://investfloridashow.com/ep-83-eric-nathanson-winning-strategies-bidding-foreclosures-broward-palm-beach/

For any out of state real estate investors who would like to contact Eric to discuss more about his investing strategies and goals, email him at: emblack@gmail.com

** Special thanks to Nicole Valentin for making a guest referral to our show. Check her out at http://www.nvadvertising.com/.

Ep. 84 Daren Blomquist: Which Florida Markets are Hot? Which are not?

Posted on June 7, 2016 by admin

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Real estate investors always keep an eye on Florida real estate markets. Not only does the state serve as a national indicator of market trends, but Florida also represents a major real estate market in itself. Despite ups and downs, Florida has remained an appealing market for investors. Investors must stay on top of changing market trends and know what the hot Florida markets are as well as the ones that aren’t.

Listeners may recognize Daren Blomquist from his previous appearance on the show. Daren is senior Vice President of RealtyTrac, a nationwide real estate data analysis firm, providing real estate professionals in-depth and up-to-date information and research on a variety of markets. This episode Daren discusses the changing face of Florida real estate as he covers some hot Florida markets emerging as well as ones that are winding down.

Florida market in strong recovery, but not at previous peak
- 52 consecutive months of year-over-year increases in home appreciation
- 12% in appreciation since April
- Successful transition from cash-buyers to FHA financing
  - 26% increase in FHA financing
  - 11% decrease in cash purchases
Foreclosures still lead, but in decline
- 11 month decrease in foreclosures
- 10% increase in flips statewide
  1. Deltona, Daytona Beach, Ormond – 49% y-o-y
  2. Tampa – 11%
- Jacksonville – hot flipping market and highest gross returns on flips
Home appreciations on the rise
- Cape Coral and Punta Gorda lead state, though seeing decrease in flips
Affordability remains market concern
- Home appreciations are outpacing wage growth
- Affordability index of 100 or above is normal; below 100 is less affordable
  - Cape Coral – 100
  - Punta Gorda – 100
  - Naples – 102
Institutional buyers in decline, but still active
1. Jacksonville
2. Pensacola
3. Tampa
4. Ocala
5. Lakeland

Investors and listeners can find out more about current, local affordability index data by visiting www.realtytrac.com/news

For those who want to learn more about the hot Florida markets and the premium service packages offered by RealtyTrac, visit their website and subscribe! Listeners to the Invest Florida Show are eligible for a discount on subscription. To find out more about this offer, contact marketing@realtytrac.com or call 888-408-4396.