Category Archives: market report

Ep. 75 Garrett Kenny: Irish Builder Talks Foreign Investment in Florida & Hot Orlando Real Estate Sub-Markets

Posted on by
Reply

Don’t miss a single show!

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

Gary_editedIn 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

Orlando

  • 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

Garrett recently published a book, Buying and Owning Property in Central Florida available on Author House and Amazon

 

Ep. 73 Colin Murphy – This Investor Manages a Large Florida SFR Portfolio from Madrid, Spain!

Posted on by
Reply

Don’t miss a single show!

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

Colin Headshot Jan2013 croppedFlorida has long been known as a great real estate market for foreign investors. Commercial and residential markets both represent favorable investment markets for foreign capital. While investing in real estate outside of a county or state may seem a daunting task, this week we talk with an investor who grew and a successful SFR portfolio out of another country!

Colin Murphy is Director and Co-founder of Torcana, Ltd. an investment firm specializing in single-family properties in Florida. With over ten years’ experience behind him, Colin has grown Torcana into a leading name in Florida SFR markets and he was able to do it all based out of Madrid, Spain. This episode, Colin shares with us some tips for building a successful foreign real estate investment portfolio.

5 Must-Haves for Foreign Investors:

  1. Standard Contracts
    1. Avoid unnecessary and overly complex contracts
    2. Standard Realtor’s Assn. contracts offer foreign investors easy-to-understand terms
  2. Title Companies
    1. Foreign investors new to U.S. and FL markets may be unfamiliar with title companies
    2. Title companies ensure a clean title transfer in a real estate transaction. They run a property’s title against any outstanding liens and unpaid fees.
  3. Closing Costs
    1. Closing costs on U.S. and FL real estate is comparatively less than that of markets outside of the U.S.
    2. Despite the relatively low closing costs, foreign investors still need to be aware of what they are paying for
  4. Post-Closing
    1. Follow-up is needed after purchasing a property
    2. Find the right insurance coverage for your investment as well as establishing a property management plan
  5. Taxes
    1. All U.S. real estate is subject to taxes and returns must be filed on them
    2. County tax collector searches can be an easy way for foreign investors to keep track of their portfolios’ taxes

For a more comprehensive approach for foreign investors, check out Colin’s list of 20 things to know for real estate investing:

20 Things to know

Screen Shot 2016-02-17 at 22.30.51

Colin also suggests Rich Dad Poor Dad, by Robert Kiyosaki and Millionaire Real Estate Investor, by Gary Keller, Dave Jenks and Jay Papasan for beginning investors

For more information from on Torcana‘s services or for investing opportunities, contact Colin: Torcana’s website, LinkedIn, or Bigger Pockets

 

Ep. 72 Santosh Govindaraju – Florida Developer Applies Wall Street Lessons to the Tampa Market

Posted on by
Reply

Don’t miss a single show!

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

5xa5OmeFor the average Florida real estate investor, Wall Street banking and investing practices may seem worlds away. However, one investor and developer in the state has managed to successfully fuse his expertise in Wall Street investing with the Florida real estate market.

Santosh Govindaraju is a Florida developer with an interesting history. Prior to finding success in Florida real estate markets, Santosh was immersed in the world of high-strategy investment banking on Wall Street. After moving to Florida, Santosh applied his investment banking expertise to Florida real estate with a focus on the Tampa market. Santosh and his firm, Convergent Capital Partners, have been providing equity and debt investment options in a variety of Florida commercial real estate for over 17 years. This episode, he discusses his transition to real estate investing and what’s next for the Tampa market.

  • Wall Street Lessons
    • “Reversion to the Mean” – markets and prices fluctuate, but they will always indicate a trend, or mean
    • Relative-value trading – With two similar asset classes, sell asset class sitting above the mean and buy the asset class sitting below the mean
  • Convergent Capital Partners
    • Santosh paired his understanding of financial side of investing with partner’s physical knowledge of real estate
    • Saw relatively stable markets in FL during late 1990s
    • Opportunistic commercial investing: all commercial asset classes except industrial; looking for properties with mixed-use potential
    • Private Equity Platform Fund-Operation: base of 10 investors; deal offered first to fund as whole, then to individual memebers
  • Tampa Market
    • Strong recent investment/development growth
    • Institutional capital competing for projects
    • New vision for Downtown Tampa
    • Harbor Island Project: “The Point” – Convergent Capital developing 115k sqf. property in Tampa harbor

For more information about Convergent Capital’s current projects or to contact Santosh, visit their website

Ep. 70 Livingston Hessam: You Will Want to Hear What Is Happening With Mortgages!

Posted on by
Reply

Don’t miss a single show!

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

Livingston-Hessam_jpgThe coming year is looking to be an eventful period for mortgages and financial lending in real estate. Debt markets are poised to undergo significant changes over the following years amidst regulatory changes and geo-political headwinds. Investors, both seasoned and novice, should be aware of the changes and the effects they could have on current and future mortgages.

Livingston Hessam, Vice President of financial solutions firm Walker & Dunlop and financing expert, discusses these changes in the debt markets and what investors need to know about their impacts on mortgages and other debt-equity options.

  • 2016 Mortgage Bankers Association Conference
    • Annual conference gauges financing market for coming year
    • Mixed outlook for 2016
    • Multi-family holds strongest appetite for lenders
  • Debt Categories
    1. Agency Debt – Fannie Mae / Freddie Mac
      1. Conventional rates, senior housing, student housing, manufactured housing
      2. High-leverage, non-recourse, cap limits
      3. Reached 2015 cap before end of year
      4. Introducing smaller deal offerings ($1-5 million) – lower upfront closing costs, for typically novice borrowers, not included in annual cap limit, do not require same level of eligibility requirements
      5. Only can acquired through authorized servicers/lenders
    2. CMBS Markets (Commercial Mortgage-Backed Securities) – Loans sold by banks into secondary markets
      1. Amid current CMBS 10 year maturity loans wave
      2. Several regulations coming into effect causing uncertainty: Risk Retention (Dec. 2016) – Req. CMBS issuers to hold 5% of loan to securitize deal
      3. Investors and lenders advised to close deals in first half of year
    3. Life-Insurance Company Loans
      1. Typical deal – sub-70% leverage, non-recourse, strong exp. sponsor, well stabilized market
      2. Positive lending outlook for 2016
    4. Conventional Lending (Banks)
      1. Regulatory changes: Dodd-Frank Act
    5. Alt. Lending
      1. Walker & Dunlop offers bridge-lending packages
      2. Good for investors with assets not ready for perm. agency lending
      3. Up to 80% of cost for pre-stabilized deal or value-add deal, up to 36 months, help re-sell or re-finance
      4. For multi-family, student housing, manufactured housing, independent & assisted living, and skilled nursing

Livingston kindly provided us with a detailed, corporate overview package for Walker & Dunlop, further describing the financial solutions they offer as well as contact information.

Corporate Overview 2.22.16

 

 

Ep. 68 Kevin Walsh, CPA: Proper Structure of Your Property Business Can Save Taxes, Plus New FIRPTA Rules for Foreign Investors

Posted on by
Reply

Don’t miss a single show!

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

MIts tax time again. Although filing taxes can be a tedious and frustrating time for many Americans, real estate investors fall into particularly complex categories. Knowing the structure of your property business can save time and money when it comes time to file.

Kevin Walsh, CPA is an expert on all things real estate when it comes to tax structures and filing. A founding member of Atrox Partners accounting services, Kevin has over 15 years experience specializing in real estate, providing consultant services for investment and brokerage firms. This episode, Kevin discusses the importance of structuring your property business to maximize your tax returns. Kevin also discusses big changes coming to foreign investing in U.S. real estate.

Real Estate Filing Structures:

  1. Business of Real Estate
    1. Realtors; Brokers; Industry Servicers
    2. Most favorable tax structure
  2. Investor
    1. Applicable to small and large-scale investors
    2. Subject to loss-limitations ($3000 max)
    3. Capital Gains/Losses advantages and disadvantages
  3. Dealer
    1. Fix-and-Flip deals; high frequency of deals
    2. Gains taxed as ordinary gains; not offered Capital Gains/Losses filing structure
  • Tax Tips for Investors
    • Knowledge is Power – Planning for your taxes is imperative. It is best to consult an expert to ensure the proper tax structure
    • Documentation – Filers need to verify they are filing within the appropriate structure; provide proof of your property business
    • Preparation – Prepare for taxes early…know your filing structure…certain filing limitations begin at close of each tax year

Foreign Investing:

  • Protecting Americans for Taxes Act, 2015 (PAFT)
    • Revisions to previous FIRPTA, outlining terms and stipulations for foreign real estate investors
    • 2 Provisions: 10% sur-tax on foreign investors abolished; 5% allotment for foreign investors now increased to 10%
    • Poised to bring influx of foreign capital into U.S. markets

Contact Kevin:

info@atroxpartners.com

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

Posted on by
2

Don’t miss a single show!

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

774cdb_ef326029dd18403e9c811822ec200c54Those 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 by
Reply

Don’t miss a single show!

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

justin-ford-bio-picFlorida 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 by
Reply

Don’t miss a single show!

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

3a2b8b6One 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. 61 Jean Francois Roy: Staying Flexible is the Key for Residential Developers

Posted on by
Reply

Don’t miss a single show!

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

Jean-Francois-Roy-687x1030Real estate markets are entering a new phase. Nationally, investment markets are evolving to suit new demands from consumers. Here in Florida, theses changes are causing ripples of concern for investors and residential developers. What does the generational shift mean for the future of residential real estate and what can investors and and residential developers due to anticipate and adapt to these changes?

Jean Francois Roy, Founder and President of Ocean Land Investments shares with us his story and discusses the importance of flexibility as a residential developer and investor to find success in the market. Beginning his foray into residential real estate in his native Quebec, Canada, Jean Francois focused on developing high-end retirement living spaces. Following the American economic recession in the early 1990s, Jean Francois moved his venture to Florida, focusing on Ft. Lauderdale markets. Jean Francois quickly realized that flexibility and understanding the demands of the market was imperative for the success of any residential developer or investor. Ocean Land Investments continues to be a leading residential real estate firm due to Jean Francois’ drive and flexibility.

  • Staying Flexible
    • Residential Developers: Purchase land during market/economic slumps
    • Markets with high populations reduce vacancy risks
    • Adapt to market demands
      • In Ft. Lauderdale, high retirement-age demographic good for multi-family residential (apartments, condos)
    • Recognize consumer trends
      • “Going green” – buyers and tenants willing to pay premiums for environmentally-geared projects/renovations
      • Shift towards “conservative” structures from “extravagance” of 2000s
    • Be amenable to joint ventures and refurbishment projects as opposed to new developments
    • Be wary of overambitious or amateur developers straining the market

To contact Jean Francois Roy or to find out more about investment, leasing, or purchasing options with Ocean Land Investments, call the office at (954) 558-3187 or visit their website

Ep. 60 – Mark Fleming: What Does the Fed Rate Hike Mean to Real Estate Investors

Posted on by
Reply

Don’t miss a single show!

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

about-markWinter is coming… And so are national interest rate increases.

The Federal Reserve has recently announced a new national interest rate hike, the first since 2006. Real estate investors are very anxious about the announced rate hike. Many investors are wary that the rate hike may be instituted prematurely in an economy that is not capable of facilitating the effects on real estate markets.

Mark Fleming, Ph. D. serves as the Chief Economist for First American Financial Corporation. With over 20 years’ experience in mortgage and property information, Mark analyzes and forecasts national mortgage and real estate markets. This episode, Mark lends his expertise to our discussion on the new rate hike‘s effect on current real estate markets at a national level, and tells us why investors shouldn’t be so worried.

  • Federal Reserve Rate Hikes
    • First rate hike in 9 yrs
      • 2006 – +5% increase
      • 2007 -’08 to Present – 0%
      • End of Year (2015) – .25% increase
      • 2016 – +1% increase
    • Instituted to correlate with expected income/wage growth
    • Long-term, fixed-rate loans not affected
    • Good for housing markets
      • House-price appreciation seeing “asset inflation”, especially in Florida
      • 5-6% nationally, higher in FL markets (South Florida)
      • Out-pacing current wage growth, causing increase in housing rates
      • Rate hike should slow appreciation growth rate
  • 2016 and Beyond
    • Rate hike est. 5% increase
    • House-appreciation (Nationally) projected to slow to 3-4%
    • Income growth est. 3-4% increase
    • Commercial real estate to benefit from economic growth
    • Multi-family to benefit from strong millennial rental market

Interested in contacting First American Financial or want to learn more from Mark on the new rate hike and other economic info? Check out the company website and visit the Economic Center