Author Archives: Tim

Ep. 201 Eamon Anderson: Alternative Security Deposit Solution for Commercial Businesses

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

Alternative Security Deposit Solution for Commercial Businesses

Today we talk with Eamon Anderson, director of strategy and underwriting at TheGuarantors agency, about an alternative security deposit solution for commercial businesses that helps both the landlord and the tenant. Their solution is basically an insurance version of the commercial security deposit that protects the tenant and landlord for the term of the lease from potential loss of rent payments.

From a landlord’s perspective, it’s as good if not better than the incumbent’s solutions to cover the risk of missed rent or high upfront tenant improvement (TI) cost. They’re getting a surety bond that works just like a letter of credit and it’s backed by investment grade credit, payable on-demand. And from any of the landlord’s lender’s perspective, it works just like a letter of credit.

From a tenant’s perspective it’s a lot cheaper option because it’s unsecured. All tenants have to do is pay an annual insurance premium, typically an average of 5% of the security deposit per year, and they never have to put up the full amount of the deposit in cash. The tenant can then reinvest the money they’re not giving to the landlord.

Key Discussion Points
[01:04] Opening remarks by Eric Odum and Steven Silverman
[04:44] About our guest: Eamon Anderson
[05:42] Tell us about this insurance version of the commercial security deposit solution that you offer
[10:19] How does your solution protect the tenant/landlord for the term of the lease in terms of not missing rent payments?
[16:21] Is this insurance obligation written into the lease like any other tenant obligations?
[17:15] What does the balance sheet / credit analysis need to look like on the tenant side to work with you?
[22:34] Do you find that people understand and like this solution?
[27:25] Closing remarks by Eric and Steven

 

About our Host

 Eamon AndersonEamon Anderson is director of strategy and underwriting for the Securiti team of TheGuarantors agency. He graduated from Hamilton college in Clinton New York.  After college, he worked at Morgan Stanley for 5 years providing customized credit facilities to the bank’s high net worth and private equity clients. His experience with a wide array of lending products and clients types at Morgan Stanley gave him the experience to create underwrite and structure surety bonds for the Guarantors commercial clients. 

 

 

Ep. 200 Owen LaFave: The CARES Act Paycheck Protection Program

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

The CARES Act Paycheck Protection Program (and how it can help small businesses)

Congress just recently passed the Federal Coronavirus Relief Bill referred to as the CARES Act. The centerpiece of the CARES Act is the $350 billion Paycheck Protection Program (PPP) which is designed to help small businesses such as real estate investors / agents, landlords, business operators, etc.. continue to make payroll at their staff’s current pay rate as well as cover key expenses by offering low interest rate loans with forgiveness potential.

Today we talk with Owen LaFave, Pinellas County market president for the Bank of Tampa, about the CARES Act PPP loans including who is eligible, what loan amounts are possible, and whether the loans are forgivable. Just remember that the PPP loans will be distributed on a first-come, first-serve bases, so you should get with your banker as soon as possible since the stimulus funds are limited and will eventually run out.

Here are some helpful documents related to this podcast discussion:
Key Discussion Points
[01:01] Opening remarks by Eric Odum
[04:00] About our guest: Owen LaFave
[08:35] Discussion about Payrol Protection Program (PPP) / CARES Act ($2T stimulus package)
[11:08] Discussion about role of SBA / Banks for PPP loans
[15:34] Will the PPP loan funds be forgiven?
[17:11] Who is eligible to receive PPP loan funds?
[18:35] What criteria determines the loan amount a business can get?
[20:10] Closing remarks by Owen LaFave
[22:24] Eric’s Closing Remarks

*******

Added April 6, 2020

 New SBA Guidelines….

About our Host

owen_lafave_website Owen LaFave is the Pinellas County market president for the Bank of Tampa. Owen is a well known presence and leader in our market for over 20 years. He has been intricately involved in handling and mobilizing the bank’s reaction to the federal CARES Act, and he also is overseeing and involving himself in bank operations and credit monitoring as we navigate this COVID pandemic crisis.

 

website:   https://www.bankoftampa.com

 

Ep. 199 Eric Odum: Covid-19 Impact on Commercial Real Estate Landlords and Tenants

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

Covid-19 Impact on Commercial Real Estate Landlords and Tenants

With the arrival of the Covid-19 pandemic, the last several weeks have taken an unfortunate turn, and this has affected the commercial real estate world as well. For commercial landlords and investors, there are some very real issue you are facing as more and more tenants start facing financial hardships due to their businesses being closed.

As a commercial landlord, you need to be prepared to respond when tenants start coming to you with needing financial relief and/or rent reduction. There are programs that can help your tenants (we discuss a few programs on this podcast). You also need to be prepared for the possibly of tenants invoking the “Force Majeure” clause (Act of God clause). Just remember that it will benefit you in the long run if you treat your tenants as human and not just as a lease or cash flow stream.

Key Discussion Points
[00:58] Opening remarks by Eric Odum
[01:56] During this COVID-19 pandemic, landlords should treat people as human and not just as a lease or cash flow stream
[05:12] Programs and ways for tenants to get financial help if they are struggling due to the COVID-19 pandemic
[06:21] As a landlord, how do you respond when a tenant comes to you needing financial relief or rent reduction
[10:00] Be prepared for tenants to invoke the “Force Majeure” clause (Act of God clause)
[11:18] Eviction and Abandonment
[17:44] Eric’s Closing Remarks

 

About our Host

Eric-Odum_pictureEric Odum is the co-host of the Invest Florida Show podcast — actionable real estate investment talk with a focus on Florida.

 


 

Ep. 198 Christy Murdock Edgar: Getting More Leads with Content Marketing

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

Getting More Leads with Content Marketing

On today’s podcast we talk with social media expert Christy Murdock Edgar about the importance of content marketing and how it can help generate more leads for your business. Social media enables people to feel like they know you before they actually make contact, and this makes connecting with you even easier. After all, people do business with people – not companies.

Christy shares some great tips and discusses the importance of a credible, good looking website as well as the benefits of having a blog, podcast, or video that you release regularly. She also shares the three (3) core content pieces you need to help drive traffic to your business.

Key Discussion Points
[08:57] About our guest: Christy Murdock Edgar
[10:31] What are the 3 core content pieces necessary to get more leads?
[12:49] How did you get started in content marketing?
[17:34] How can the average investor / developer get started & be successful with content marketing?
[22:59] How can someone determine which types of content work best for their situation? (i.e. blogs, podcast, video, etc)
[30:35] What are the top 3 things a business website should focus on?
[33:36] How much money should someone budget to build their online presence?
[40:58] What is the best way to capture leads on a business website?
[48:55] How can people contact you?
[49:24] Closing remarks by Eric and Steven

 

About Our Guest

Christy-Murdock-Edgar

Christy Murdock Edgar is a real estate agent and writer who writes for clients all over the world on all aspects of real estate, relocation, investment, and more. As a real estate agent, Christy understands what real estate participants need for their website marketing or blogging. She helps people improve the way they communicate their services to the world. 

Website:  https://www.writingrealestate.com/
Google: Christy Murdock Edgar

 

Ep. 197 Michael Mincberg: Mixed-Use Development

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

Mixed-Use Development

On this week’s podcast we talk with Michael Mincberg about multifamily and mixed-use development. Michael talks us through everything from what he looks for in multifamily investments to his decision-making process for ground-up deals and the regulations and zoning issues around mixed-use.

Michael also tells the story of how how he got started in real estate. He acknowledges that while he is now at the top of his game, it took a lot of hard lessons from tough experiences to get him to where he is today. These experiences helped Michael understand the importance of forming long-term relationships over just “getting the deal.”

Key Discussion Points
[04:35] About our guest: Michael Mincberg
[05:46] How did you get started in real estate?
[10:13] Tell us about your first investment
[11:35] How did you get into multifamily projects?
[20:28] How did you get into multifamily projects?
[30:45] Where in Florida are you doing your deals right now?
[37:14] Tell us about the markets – which ones stand out and which ones make you more hesitant
[48:21] Looking back, what would you do differently?
[51:45] How can people reach you?
[53:14] Closing remarks by Eric and Steven

 

About Our Guest

michael-minceberg

Michael Mincberg is the founder of Sight Real Estate (sightrealestate.com) which is a development firm specializing in urban infill ranging from boutique historic re-purposing to institutional grade mixed-use developments. The focus is on urban development both on re-positioning, value-add assets, and on infill new construction. 

They have a unique approach to real estate investing and develop custom strategies that pair local knowledge and relationships with institutional level execution. 

website:  sightrealestate.com
email: Michael@sightrealestate.com

 

Ep. 196 James A. Schmidt: Foreign Investors (and what they should know)

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

Foreign Investors (and what they should know)

Today we talk with James A. Schmidt, Esq. about foreign investors and the things they should be aware of when investing in the U.S. and Florida. Foreign buyers need to take special precautions to ensure a smooth investment process.

Foreign investors need to learn the market, get good advice, and build a team that consists of:

  • brokers
  • property managers
  • laywers
  • accountants
  • and others who can deal with zoning, property inspection, and possibly engineering

It’s particularly important for the foreign buyer outside the country to have people local to the area that they can trust who can help them execute whatever goals they have on a particular asset that they are purchasing.  

Key Discussion Points
[05:48] About our guest: James A. Schmidt
[11:54] What are some things foreign investors need to aware of when investing in Florida
[14:19] Explanation of FIRPTA (Foreign Investment in Real Property Tax Act)
[18:22] When a foreign investor comes to you, what is the process to ensure everything is properly executed and that the transaction and asset is properly managed?
[22:07] What are the problems you see with the standard Florida Real Estate contracts?
[25:00] Are there any issues that are important to lenders when dealing with foreign investors?
[28:59] Discussion about the FAR/BAR contract (Florida Association of Realtors and the Florida Bar Association)
[35:00] How can people contact you?
[36:15] Closing remarks by Eric and Steven

 

About Our Guest

James-A.-Schmidt-1-1James A. Schmidt is the founder of the Tampa law firm of James A. Schmidt, P.A.  He practices in the area of business, tax, and real estate law. James actively represents a global client group in the Florida and syndication markets. 

James belongs to an international network of professionals, which is a useful platform for his global client base that is interested in investing in the U.S., and more specially Florida. 

 

Ep. 195 James Donnelly: Residential Property Management

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

Residential Property Management

With the cap rate compression environment that we’re in right now, it’s more important than ever for multifamily investors to be creative about how they add value in order to increase rents and get a good return on their investment.

In this week’s podcast, we talk with James Donnelly, Founder and CEO of Castle Group, which focuses on residential property management. James discusses the 3 main strategies he employs to add value to his company’s investments and deliver top level services and amenities to a new generation of every more demanding residents.

The 3 main categories James discusses to add value to an investment is: 

  • Traditional value-add – e.g. painting, putting in a new floor, or adding new amenities
  • Technology – using technology to make you not only more efficient, but also using that as a revenue stream
  • Better management and service

Join us for this podcast as James gives his investment advice and his take on the multifamily market in Florida.

Key Discussion Points
[04:48] About our guest: James Donnelly
[06:28] How did you get started in Residential Property Management?
[11:29] How did you end up in South Florida?
[14:40] Where do you see the multifamily market going?
[18:36] What cap rates are you seeing around Florida?
[23:27] What are some of the other value-add plays that are emerging right now?
[25:33] What common mistakes do you see property managers or others making?
[31:09] How can folks contact you?
[31:53] Summary of where we are, where we’re headed, & what you would tell someone who’s calling about a deal in Southease Florida
[37:42] Closing remarks by Eric and Steven

 

About Our Guest

2018-James-Donnelly-500px

James Donnelly is the Founder and CEO of Castle Group. He has over 30 years of experience serving residential communities in managing residential properties. James is a CPA, general contractor, investor, and prominent speaker in the industry. He is very active in the community and benefactor of numerous philanthropic organizations.

Most recently, James, received the Sun Sentinel’s Excalibur Business Leader of the Year for Broward County as well as the 2019 Terry Stiles South Florida Leadership Award presented by the Greater Fort Lauderdale Chamber of Commerce.  He has also been recognized in the South Florida Business Journal as one of Broward County’s Ultimate CEO’s, was inducted in 2014 into the Hall of Fame at Nova Southeastern University’s H. Wayne Huizenga School of Business and Entrepreneurship and was honored by Palm Beach Atlantic University in 2017 on Free Enterprise Day as a Companion Medalist.

Website:  castlegroup.com
Phone:   800.337.5850

 

Ep. 194 Mac McWhirter: Land Trusts

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

Land Trusts

In this episode we discuss land trusts with Mac McWhirter, executive director of WorldWide Trustee Services LLC. And we explore the many advantages land trusts have to offer. Some of the main advantages are privacy of ownership (anonymity) and the possible avoidance of a probate. A land trust can also help protect against judgments and liens, facilitate estate planning, prevent land partition, and ease real estate title transfer. And Florida is one of the best states to hold title in a land trust!

Mac also discusses some potential disadvantages of land trusts such as the false belief that the trust protects property owners from all liability. The other key thing to realize is that, even though there is anonymity for the property owner, a court can order full disclosure of property owners for certain civil and criminal complaints.

Key Discussion Points
[07:52] How did you get into land trusts?
[08:51] What problems does a land trust solve?
[10:26] Does a land trust work like an LLC?
[11:49] Can somebody still file a lien against a property owned by a land trust?
[16:23] What are some of the downsides to land trusts?
[17:28] What are the tax consequences of a land trust?
[19:10] If something happens to the land trust owner, how will the property continue to get transacted properly?
[20:22] What are the costs for an investor compared to an LLC?
[21:47] What are the typical land trust fees?
[22:36] What are the typical land trust fees?
[23:45] Is Florida a good state to hold title in a land trust?
[24:43] Does a land trust have to be a single entity beneficiary or can it be a partnership?
[29:01] Closing remarks by Eric and Steven

 

About Our Guest

Mac-McWhirter Mac McWhirter is the executive director of WorldWide Trustee Services LLC based in Tampa, Florida. Mac was previously a real estate investor buying, rehabbing, and then selling real estate. In 2008 he started WorldWide Trustee Services in order to respond to a need for land trust services by investors.

 

Website: https://worldwidetrusteeservices.com/
Phone:  813-690-6678

 

Ep. 193 Derek Waltchack: Opportunities in the Florida Retail Market

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

Florida Retail Market Opportunities

On today’s podcast, we talk with Derek Waltchack about the retail asset class with a focus on strip centers. As Derek shares, there is a lot of misinformation about the retail asset class. Many investors steer clear of retail, especially when retail assets like malls are not doing so well — but malls are not the real “bread and butter”. Despite what you may hear, retail is a very stable asset class, especially when it comes to strip centers in good neighborhoods.

Derek also takes us into the new modern world of blockchain, the record-keeping technology behind bitcoin that is used to store digital information in a public database, and which is starting to be used in real estate transactions.

Key Discussion Points
[06:02] How did you transition from broker to owner?
[10:47] What investments are you looking for in Florida?
[18:44] Why did you choose Florida / I-4 corridor for retail investments?
[25:30] What kind of cap rates are you looking for?
[38:42] Where does your debt financing come from?
[31:01] From an underwriting standpoint, what are a few important things you look for when someone wants to bring you a deal?
[33:43] Tell us about blockchain technology that is starting to be used in real estate
[43:00] How can folks contact you?
[44:43] Closing remarks by Eric and Steven

 

About Our Guest

Derek_Waltchack Derek is a partner at Shannon Waltchack based in Birmingham, Alabama. Derek has extensive experience in commercial real estate. In Birmingham, he spearheaded a $4.5 million renovation that transformed a 100 year old warehouse into a cutting edge business center known as railroad square. He also did the first crowd source development in Birmingham, and that development is known as the Stockyard Birmingham. Currently he is working on projects in central Florida.

Derek is also a subject matter expert on bitcoin, blockchain, and how those technologies are impacting the economy, specifically in general and commercial real estate. 

Website: https://shanwalt.com/
Email: dw@shanwalt.com
Twitter: @dwaltchack

Ep. 192 Daniel Jaramillo: South Florida Market

Posted on by
Reply

Don’t miss a single show!

Get the Invest Florida Show Mobile App! Click here—-> Apple Android

South Florida Market

In this episode, our guest Daniel Jaramillo gives us his take on the South Florida market. The low caps are making finding deals more difficult, but they are out there. And although prices remain about the same, it is taking longer to make deals. Also, the South Florida market is changing, and suddenly it is making sense to do construction again.

Daniel has an interesting perspective since he deals not only with domestic investors, but also with both foreign investors, particularly from South America.  Some of his advice for foreign investors (and domestic investors) is to do your due diligence before spending money on investments, especially if you aren’t familiar with the area. And, don’t make the mistake of thinking you don’t need property management just because you are buying condos and think that is less of a risk. Also, when you’re first starting out, sometimes the best way to get a deal done is to partner with someone.

Key Discussion Points
[05:05] How did you get started in real estate?
[08:16] Overview of the Miami Market
[11:26] For multifamily, what types of cap rates are investors looking for in South Florida
[14:54] What mistakes are investors making with regard to property management?
[18:17] What are some of the data points you look for that convince you this might be a deal to consider further
[23:09] Discussion about syndication and the best way for people to get started with it
[35:55] Are the low cap rates creating opportunities for construction?
[38:21] Opportunity Zones
[42:19] Eric & Steven’s concluding remarks

About Our Guest

Daniel_MaramilloDaniel Jaramillo is the CEO of Strategic Properties based in Miami, Florida. This is a real estate investment and property management company, specializing in multifamily and property management.