Ep. 96 Jillian Bandes: Making a Complex First Invest in Small Multifamily

Posted on August 29, 2016 by admin

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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
Property location
- Choose property in an area you are familiar with
- Walk surrounding neighborhood
If investment property, define target rental market
Due-diligence
- 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.

Ep. 95 Bijan Gorji: Making Money with Residential Condos

Posted on August 22, 2016 by admin

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Who is this man and why is he smiling?

This man is Bijan Gorji, a real estate investor based in Sarasota, FL. Bijan is a special kind of investor though. Bijan invests solely in one asset class–one often overlooked by other real estate investors–residential condos.

Bijan believes that residential condos as an investment asset class have been an unfairly neglected market for too long. Where others see problems, Bijan sees potential… and it is paying off well for him. Since moving to Sarasota from California in 2012, Bijan and his wife have acquired a portfolio of over 35 residential condos with plans to continue investing in more residential condos. This episode, Bijan will discuss why he settled on residential condos as his chosen asset class and why it should appeal to investors from a financial standpoint along with providing a brief overview of Sarasota’s real estate investment market.

Pros of Investing in Residential Condos
- Easy property-management compared with single-family
  - Low upkeep costs
  - Ability to self manage properties
- Tenant profile allows fluid leasing
  - 1-2 bedroom units to working professionals or grad students; no families
  - Tenant turnaround quicker
- Buy-and-hold investment w/ monthly cashflow
- Hands-on investing allows oversight over all facets of investment
Investing Tips
- Check HOA regulations for condo before investing
- Find properties within driving distance if self-managing
- Finding tenants is biggest issue with residential condos: list on Craigslist, Zillow, Hotpads, etc.
Sarasota Market
- Huge amounts of construction (Multi-family and Single-family)
- Rents steadily increasing across all sub-markets
Inspiration
- Residential condos offered stable investment asset class
- Rich Dad, Poor Dad – Robert Kiyosaki

If you think you have an investment deal or if you have more questions about how to make money investing in residential condos, contact Bijan directly by email at bgorji@gorjillc.com

Ep. 94 Shawn Yesner: 10 Important Items You Will Want to Know About Commercial Deals and Contracts

Posted on August 15, 2016 by admin

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Commercial real estate investing is not the same thing as residential real estate investing. Just because both property types have four walls and a roof does not mean they have the same investment strategy. Commercial deals and contracts are subject to different regulations than residential properties. Residential real estate investors looking to invest in commercial real estate should be aware of the different facets of commercial deals and contracts.

Shawn Yesner, of Yesner Law Firm of Tampa, specializes in real estate law. After getting his start in real estate law representing lenders, Shawn began his own law firm in 2004 representing homeowners. Shawn has since expanded his firm to encompass all aspects of real estate law, representing property owners in a variety of legal processes. Shawn discusses some important points for investors to consider when completing commercial deals and contracts.

Contracts
- Residential real estate uses one contract template – FARBAR (FL Assos. of Realtors + FL Bar Assos.)
- Attorneys specialized in commercial real estate should draft commercial contracts
- Only clauses that meet buyer/seller agreement should be introduced
Tenant Leases
- Make sure tenants are current on lease payments
- Track lease deposits
- Keep leasing contracts in same format
Tax-Deferred Opportunities (1031 Exchange)
- Strict timelines and regulations to be aware of
- Seek assistance from CPA or certified agent
- Be able to prove constructive receipt of funds; don’t get stuck with tax liability
“As Is” Contracts
- Seller should always disclose state of property
- in FL, Johnson v Davis sets “as is” precedence: Seller must disclose anything material to purchase of property and/or anything that might not be found after a reasonable inspection
Assignments
- Buyers may choose to assign ownership of property to LLC or other business name
- Contracts should hold original buyers liable
Buy/Sell Authority
- FL recently changed LLC laws
- Sellers should be aware of who holds legal authority to make buying or selling descisions
- Title companies can do bulk of research on this
Incomplete Agreements
- A detailed contract should outline purchase agreements
- Sellers should not leave any gray areas to argue incomplete agreements
Zoning
- Make sure you know your property’s zoning authorizations
- Zoning can be changed, but make sure your property can accommodate changes
Environmental Issues
- May pose big concern for environmental properties
- Owners may be responsible for environmental factors that occurred prior to purchase
- Buyers should complete phase I assessments of properties for any red flags during due diligence process

To contact Shawn for any real estate law needs, visit his website!

Shawn also hosts a podcast covering many legal topics in real estate investing and ownership. Check out Yesner Law Podcast on iTunes, Stitcher or your favorite major podcast platform!

Ep. 93: Using Social Media and Other Creative Methods to Market Your Apartment Complex

Posted on August 8, 2016 by admin

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A sense of home can be a hard thing to find in an apartment. Real estate investors holding apartment complexes or other multifamily dwellings may find marketing their properties as desirable living spaces to prove difficult in media over-saturated with ineffective advertising and marketing strategies. The rise of social media has changed the face of marketing, with web-based marketing now offering a variety of platforms to deliver your property to potential residents. Some apartment complex investors and property managers are embracing these new platforms and initiating innovative and effective marketing campaigns directed at tenants looking for something more than just another apartment.

Melissa Meredith and Ana Maria Palermo have both grasped this shift and are using social media and other creative methods of marketing to produce appealing, effective marketing solutions for their clients. Melissa Meredith, of Marketing with Mel, works and lives in Tampa’s Channelside District. Melissa applies her innovative “360 approach” to create niche marketing strategies to grow her clients’ business. Ana Maria Palermo, property manager of Channelside’s SkyHouse luxury apartment complex, has built a strong community foundation for the residents by using social media and other creative methods to market to new tenants. This episode, find out how using social media and other creative methods of marketing your apartment complex or other investment property can improve your sales or lease rates.

Building Community
- Engage residents and tenants in interactive community-driven events
  - Pool party, art classes, residents’ night, yoga, cooking classes, etc.
  - Provide events free-of-charge to attendees as future investment for new business
  - Push through social media
Social Media
- Post original, independent content through various platforms
  - Facebook; Twitter; LinkedIn; Instagram, Pinterest, etc.
  - Relatable content should stand out, should appeal to yourself as a consumer, capture essence of product/business
  - Take advantage of ‘viral media’
Blogging
- Post original, engaging content
- Find common ground with readers, appeal to readers’ sensibilities
Comfort and Convenience
- “Live, Work, Play” concept
  - Provide services/amenities to tenants that makes your property a comfortable, convenient home
  - car/bike-sharing programs (Zipcar); onsite retail spaces; cafés/bars; proximity to local attractions

To find out more about SkyHouse luxury apartments: @skyhousechannelside or #skyhousemyhouse

To find out more about the services offered by Marketing with Mel: https://marketingwmel.com/ or @marketingwmel

Ep. 92 John Fedro: Using Mobile Homes to Get Started Investing in Florida Real Estate

Posted on August 2, 2016 by admin

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Florida has its fair share of mobile homes. Whether providing seasonal residences or year-round affordable housing, mobile homes have become an ever-present property class in the Florida real estate market. Though they have been a historically neglected asset class, investing in mobile homes can provide strong, consistent returns. As markets in other asset classes become more competitive, mobile homes may be a rising hot market for investors.

John Fedro is one investor who discovered the opportunity in mobile home investing early on. After entering full-time real estate investing in 2002, John purchased his first mobile home in a park in Florida. He quickly saw the potential investing in mobile homes and after his first year had acquired 14 properties. In a virtually untapped market, John was able to develop an investment strategy exclusively for mobile homes that ensured strong returns. He has since expanded his portfolio to Texas and is actively sourcing deals in other states.

Mobile Home Investment Types
- Private land mobile homes – longer to close, traditional sale of real estate;
- Mobile homes in parks – categorized as personal property in most states, not subject to title issues/other typical
- Mobile Home Parks
Financing
- Little to no conventional lending; mainly cash deals
- Seller financing
- Dodd-Frank regulations do apply to mobile homes w/ financing
  - Mortgage loan originators can assist with compliance
Costs + Fees
- Purchase for >$10k
- Sell for <$25k on payments
- Buyer repays minimum $300/month on property
- Mobile homes in parks, buyer pays lot fees, utilities, possibly insurance
Move-in ready
- Buyers will usually do refurbs/improvements
Marketing
- Mobile homes in parks: Craigslist, driving through parks, talking w/ park managers
- Mobile homes on private land: networking, direct-mailings, bandit signs, seller lists
Hot Florida Markets
- Miami, Jacksonville, Tampa, Gainesville
- Rural areas, small towns
- Panhandle
Investment Tips
- Do multiple deals
- Effective marketing strategies
- At least 60 mile radius for investment market
- Seek knowledgeable investor

Check out John’s website for even more information on successful investment strategies for mobile homes. John has free videos and a podcast where he covers tips for investing in mobile homes. Contact John directly by email at support@mobilehomeinvesting.net