Ep. 43 Steve Berges: Tips on Selecting A Property Manager

Posted on August 24, 2015 by admin

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Single-family investors looking to transition to multi-family investing? It is important to remember that multi-family investing has different rules and procedures than single-family. It is crucial to have an understanding of the dynamics of multi-family markets. While a working knowledge of multi-family markets is vital, even seasoned investors cannot oversee all aspects of property management.

Steve Berges, author of Complete Guide to Buying and
Selling Apartment Buildings has some tips on transitioning into multi-family markets and, most importantly, on selecting an effective and responsive property manager for your asset. With over $100,000,000 in multi-family transactions under his belt, Steve has the experience and know-how to achieve success in multi-family investing.

Value-Play/Value-Add System
- Property undervalued for certain reasons relative to current market
- Low-risk investment
- In/out investment, not long term
Multi-Family is More Economical Than Single-Family
- Multi-family flips still generate occupancy cash-flows
  - 70-80% occupancy compared with the usual 0% of single-family flips
  - Multi-family property should be breaking even, with proper research
- Lower frequency of transactions per year than single-family
Multi-Family Markets are Competitive
- Recognizing competitive market is important
- Understanding the dynamics asset values and what drives the value is key
3rd Party Property Managers
- 50+ units should use property managers
- more cost-effective to “manage managers” than to assume all responsibilities
- On-site managers are especially important
Be a Strategic Manager/Owner
- Use good judgment selecting property managers
  - Some may seem professional but may be ineffective
- Develop close working relationship w/ property managers, but do not over-manage
- Look for property management firms that specialize in multi-family assets
- Be patient, do not rush investments

A devoted family man, Steve works with only a small group of partners a year, but he welcomes any investors to contact him with questions, to share interests or even propose investment opportunities!

You can visit his website at www.steveberges.com for even more information and updates!

Check out related content and past shows on our website!

Ep 39 Greg Bugay – Things You Should Know About Growing a Vacation Rental Business

Posted on July 27, 2015 by admin

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The vacation rental market is a fresh and exciting trend in investment real estate that is appealing to investors of varying degrees of experience. Vacation rental markets represent a fun and diverse rental market as well as offering consistent returns on investments.

This week, Greg Bugay stops buy to discuss his experiences as an entrepreneurial vacation rental investor in South Florida and provides us with key tips for growing a successful vacation rental business. As a self-proclaimed “serial entrepreneur”, Greg has made a livelihood of endeavoring into new markets. Prior to finding success in the South Florida vacation rental market, Greg worked as an IT specialist and consultant. Greg and his wife were introduced to the vacation rental market after a period of renting 1/2 of their primary duplex residence to long-term tenants. Since mid-2014 Greg and his wife have acquired two more vacation rental properties and have found considerable success in the vacation rental business. The vacation rental market is a fun and accessible market for almost any investor who shares the same enthusiasm and dedication as Greg!

Accessible and Affordable Market
- Airbnb – Greg’s preferred method, a popular and low-cost vacation rental site (property listers charged 3% fee)
- VRBO – an alternative and long-standing vacation rental site
High opportunities for returns
- Greg enjoys 100% return on expenses per month
High Renter Rate
- Vacancy rates as low as 8% annually
Greg’s Tips
- Live on property or have property manager for vacation rental
- Check with any Co-ops, HOAs, Condo Associations etc. for short-term rental policies
- Be careful who you rent to *no locals looking for party house*
Upcoming Vacation Rental Markets?
- Cuba maybe priming to become an explosive new vacation rental market
- Airbnb currently currently listing properties in Cuba

To contact Greg for more information or to find out about his vacation rentals available contact him by email, at: gregbugay@comcast.net

If you are considering using Airbnb for the first time for a vacation, ask Greg about a special discount coupon!

E36 – Jason Hartman – Building and Diversifying Your Real Estate Portfolio

Posted on July 6, 2015 by admin

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A common difficulty for real estate investors is making the jump into diversification: diversifying one’s investments can lead to larger returns and can provide supplemental support or income if one market fails, but it may prove intimidating to manage investments in several different market types. Investors are usually more comfortable investing in a single market rather than risk a loss in unknown markets.

For Jason Hartman, its all about diversification. Jason has been involved in the brokerage of several thousand real estate transactions and owned investment properties in 11 states and 17 cities. In his long career, Jason has championed diversification of investment markets and his company, Platinum Properties Investor Network assists investors with acquiring income properties in diverse markets. Jason joins us on the podcast to discuss his strategies for building and diversifying your real estate portfolio.

Diversify – Investors should be involved in about 3-5 different real estate markets
Be a Direct Investor – Starting investors should experience full control and ownership of property
Educate Yourself
- Learn Your Markets
- Podcasts, blogs, info products, and home study provide inexpensive and valuable Information
3 Market Types
1. Linear
2. Cyclical
3. Hybrid
FL is Good Hybrid Market
- Good appreciation potential
- Decent cashflow
- Good diversification opportunity
All Real Estate is Local
- No single “housing market”
- About 400 local markets in U.S.
Top U.S. Markets
- Memphis, TN – stable rental market
- Little Rock, AR – landlord-friendly state
- Indianapolis – strong industry, commercial growth
- Atlanta, Birmingham, Kansas City also good markets
“Don’t Wait to Buy Real Estate…Buy Real Estate and Wait”

To find out more about Jason’s company or for more resources on building and diversifying your real estate portfolio, visit: jasonhartman.com

Contact Jason on Twitter at: @JasonHartmanROI

Also, tune in to Jason’s podcast for great advice and information on diversify your investments as well as increasing your financial literacy.

E35 Michael Quarles – Some Tips on How to Market and Find Winning Investment Properties

Posted on June 29, 2015 by admin

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For new investors, marketing to potential investment opportunities is never the easiest part or most enjoyable part of building a strong and successful investment base. Even for seasoned investors, it can be difficult to maintain a steady level of return in increasingly competitive markets. In Florida large, multi-family market areas, including Tampa and Miami have recently seen a decrease in number of closings on property transactions.

As founder the largest direct-mail marketing site in the nation YellowLetters.com, Michael Quarles is an expert in the field of marketing and with over 1000 real estate deals under his belt, he can provide invaluable insight and tips on how to market and find winning investment properties. He shares with us some tried and tested marketing strategies proven to boost number of returns on investments.

Marketing is “oxygen and water” for business
Cast a wide net: Cluster Marketing offers greater returns
- Bandit Signs
- Direct-mailing
- Cold Calling/Cold Greeting
- Billboards
- Car-Wraps
- Radio/TV/Newspaper
Direct-Mailing is an effective marketing strategy
- Variety of mailings available
  1. Yellow Letters – formatted to appear as handwritten notes
  2. Small/Large-Text Postcards
  3. Professional Letter
  4. Greeting Cards – sent in line with corresponding holidays
  5. Zip Letter – formatted to appear as government checks
Market to properties that hold sufficient equity-base
When marketing to commercial investments, use professionally drafted letters or professional ad-copy
Michael’s Tips for Successful Marketing:
- Be Persistent
- Be Consistent
- Know and Employ Predictable Marketing Strategies
- Negotiate Effectively

To find out more about the variety of direct-mail pieces available, visit: YellowLetters.com

Michael also has a blog where he offers advice and mentorship for investors who want to “stop investing passively and start investing massively!”

E34 Wesley Burdette – How He Progressed from Single-Family Flipper in to Multi-Family Development

Posted on June 22, 2015 by admin

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Wesley Burdette has always had a hand in real estate investing, however he began on the lending side in the Washington D.C./metro area. From lending he moved towards single-family residential flipping with his sights set on the Florida real estate markets. After finding success in the single-family markets, Wesley endeavored into real estate development and now has several projects in progress in the Seminole Heights neighborhood of Tampa, notably a 46 unit loft-living complex, The Warehouse as well as four new townhouses.

Wesley joins us to discuss his transition from flipper to developer and covers key tips for investing in the Florida real estate markets along with advice on how to diversify your investments and foray into larger investment markets.

Know Your Market
- Research the areas you are considering investing in
- Understand consumer psyche – what do people want in a home?
- Know your contractors, work closely with them
- Millennial Markets on the rise: Seminole Heights
Budget
- Know what you can afford
- House-flipping is all about initial buy
- Cost structure
  - Adaptive reuse (commercial, multi-family)
  - Infrastructure (basic repairs)

Wesley’s Tips:

Perseverance is key.
Entering into investment real estate can be intimidating, but with determination and the proper know-how you can find success.
Be careful with your investments. Don’t get locked into something uncertain

If you are interested in investing in the Seminole Heights area or just looking for some local urban flavor, check out: The Rooster and the Till or The Refinery

To view pictures of Wesley’s multi-family development project, The Warehouse, click here.

Visit the Page on Facebook

Wesley can also be contacted directly at: wburdett1@yahoo.com

EP29 – Gavin Welch: 5 Tips on How to Find Off Market Real Estate Deals

Posted on May 18, 2015 by admin

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For those new to investment real estate markets, pulling the trigger on a new potential property can be difficult. It is important to strategize and form a plan for your investments. A thorough plan will provide you with the confidence and knowledge to execute an investment property acquisition. Discovering untapped or overlooked real estate markets can also provide opportunity for investments.

Gavin Welch is real estate agent based out of Lakeland, FL. He has years of experience in finding investment properties as well as managing several of his own. Gavin discusses five helpful tips for scouting these off-market properties and how you can build a successful investment base in these properties.

Gavin can be reached at:

Phone: 863-670-0303

In addition to his own podcast The Real Estate Loop, you can also follow him on Twitter and Facebook.

Obtain evictions list from County Clerk
1. Cross-reference names with Property Appraisers
2. Notify landlord/owner of property interest with hand-written note in mail

Scout absentee owners
1. Absentee owner lists may be purchased or compiled manually
2. Often property is inherited or owner holds little interest

Build a strong referral base
Seek abandoned or neglected properties
1. Burned-out or mold-ridden properties may offer high returns
2. Ask public service workers (garbagemen, mail person) or neighbors for information on properties

Pull code violations from city code enforcement
1. Owner may be eager to sell to cut losses or unable to continue costs of maintenance
2. Code Enforcement Dept. may offer leniency with some violations if issues addressed

Book recommendation – Landlording on Auto-Pilot

Advice – Don’t get emotionally attached to the property you are buying or holding.

Learn what Gavin tells us about finding off market deals!