Tag Archives: Florida

Ep. 132 Steven Rinaldi: What You Need to Know About Investing in Real Estate Securities

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If you’ve got a real estate investment that’s managed through a third-party property management company, did you know it’s considered a security? When your investment is classified as a security, there’s different rules to how it is managed.

real estate securitiesOur guest this week, Steven Rinaldi, is a real estate attorney based out of Bethesda Maryland. He is a leading figure in real estate and security law, having previously served as general counsel for the American Association of Bankers. He specializes in venture capital, private placement, angel investment and crowdfunding. He’s drafted memoranda for real estate investor with deal-types including private loans for rehabbers and loans for apartment investors.

This episode, he’ll be sharing what you need to know about real estate securities and the rules for managing properties as securities.

Find out what you need to know about real estate securities!

  •  Federal looks at 4 factors of an investment to determine it as a security:
    • Investment of money
    • Common enterprise
    • Expectation of profit
    • Element of control
  • Your expectation of a profit is based on the work of someone else
  • Your real estate investment is a security if you do not have control over day-to-day operations of it
  • Different sets of laws apply to real estate securities

Investor resources

Want to find out more about what it means to invest in real estate securities or curious about real estate syndication? You can contact Steven Rinaldi through email at stevendrinaldi@msn.com or by phone at (204) 481-2708. You can also check out what kind of syndication deals he’s been involved in! Click here to view.

Tampa Bay investors: want even more Invest Florida access?

Join our Monthly Cashflow Meetup! Every month we’ll be covering a different real estate topic with an expert panel of guests in front of a live audience! Check out our meetup page for more info.

 

Ep. 128 David Farmer: Get a Lead on the Next Hot Real Estate Market!

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Think you know the next hot real estate market?

Then you know a good real estate investment depends on more than just the property. It could have all the right physical features, but if it’s in an under-performing market, then the property will never produce a strong ROI. There are socioeconomic factors that affect an investment’s value. These factors can include: population growth, market supply, and municipal planning.

You can track these factors before making an investment decision using forecast models. You can track pertinent market data as it relates to an investment value. Real estate investors and developers use forecast models to determine what markets to focus on. They can also be used to track up-and-coming markets, so you can get a lead on the next hot real estate market!

get a lead on the next hot real estate marketThere’s few more qualified to talk about forecast modeling than David Farmer. A recognized civil engineer, and city planner, Dave has been in the real estate industry for more than 20 years. He has extensive development experience and is the former Chairman of SW Florida District Council for the Urban Land Institute.

He now lends his extensive real estate expertise to Metro Forecast Modeling (MFM), a population forecasting and modeling firm in Lee County. As CEO of MFM, Dave brings his understanding of growth drivers to forecast analysis.

Find out how you can use forecast models to get a lead on the next hot real estate market!

  • Population growth dictates housing demand which determines what development is needed
  • 2 types of forecast models:
    • Aggregated -  wide-scale analysis of an entire metro area
    • Dis-aggregated - Analyses based on designated zones within a metro area. Lee County is divided into 1400 traffic analysis zones.

Florida Market Forecasts

  • Lehigh Acres:
    • 1-2% vacancy rates, high housing demand
    • Need for commercial development
    • Poor planning makes aggregate development projects difficult
  • Downtown Sarasota:
    • Can accommodate higher density than currently using
    • Multifamily and commercial developments replacing existing small structures
  • Jacksonville:
    • Pent-up housing demand
    • 3000 additional units needed now
    • 1600 more needed by 2020
  • Orlando (City):
    • High housing demand
    • 8000 units needed over next 3 years

Contacts

  • You can contact Dave directly at dave@metroforecasting.com
  • You can find out more about MFM’s services by emailing info@metroforecasting.com

 

 

Ep. 127 Scott Maurer & Dave Shaw: There Are Many Ways to Invest in Real Estate With an IRA!

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You probably know that an IRA is a great way to save for the future. You may even be making contributions to one set up through your work. But did you also know that an IRA can serve as a great investment vehicle? Investors use IRAs to hold a variety of assets, but many don’t know that you can invest in real estate with an IRA too. A self-directed IRA provides a lot of flexibility for real estate investing.

This episode is a special one for Invest Florida. We’ll be covering the many ways to invest in real estate with an IRA in front of our first-ever LIVE audience! Scott Maurer, of Advanta IRA, and investor, Dave Shaw join us for a special panel discussion on investing in real estate using a self-directed IRA.

self-directed IRA real estate investingScott Maurer joined Advanta out of college. He has since become the Director of Business Development and regularly educates investors on the many advantages to investing through self-directed IRAs.

 

 

invest in real estate with an IRADave Shaw is a real estate appraiser-turned investor who uses his self-direct IRA as a lending vehicle.

What You Need to Know to Invest in Real Estate With an IRA

  • You can transfer funds IRA-to-IRA tax-free
  • Funds can be transferred as-needed
  • In Florida, IRAs are only protected against personal creditors, not real estate liabilities

Setting Up A Self-Directed IRA

  • Advanta Costs:
    • $50 account-opening fee
    • One-time $95 investment fee (per investment)
    • $295 annual account management fee (includes payments and expenses)

Lending Through a Self-Directed IRA

  • You cannot lend to yourself or immediate family through your IRA
  • Flexible lending terms – you can write your own agreements
  • Returns:
    • 12-15% on 6 month fix-and-flip
    • 10% on 3 year lends

Contacts

  • To learn more about how you can invest in real estate with an IRA, call Advanta at (800) 425-0653 or visit their website. You can also check out educational videos and webinars from Scott on Advanta’s YouTube page.
  • Dave is always looking for single and multifamily deals (4 units and less). You can reach him by email at daveshaw98@gmail.com

Ep. 126 Mark Holmes: What Multifamily Investors Need to Know About the Rental Boom

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multifamily investorsThe national housing market is undergoing a major shift and multifamily investors are taking notice. Through economic and generational factors, the housing market is seeing a lessening demand for single family home purchases. Instead of buying a home, young professionals are opting to rent.

Mark Holmes may know this growing trend better than anyone. As a certified property appraiser with Value Tech Realty, Mark travels the United States appraising multifamily properties. As an appraiser, he understands this rental boom from a valuation perspective. As an active single family investor and passive multifamily investor, he understands what it means from an investor’s standpoint.

This episode, Mark gives us a recap of the the national multifamily market as well as the Florida multifamily market. We discuss the recent rental boom and what it means for multifamily investors.

National Multifamily Overview

  • 63% home ownership, down from 69% (2004)
  • 37% renters: 15 million shift
  • Financial recession brought on behavioral shift
  • Job growth jump-started multifamily development

Florida Multifamily Overview

  • Landlord friendly
  • 3% job growth
  • Statewide rent growth: 4%
  • I-4 Corridor rent growth: 6%

Florida Multifamily Markets

  • Tampa
    • 4000 MF units online, last 12 mo.
    • 65% absorption rate
    • 3.7% rent growth
    • Class A: 4.5% cap rates; Class B: 6%
  • Orlando
    • 5,500 MF units online, last 12 mo.
    • 57% absorption
    • 4.8% rent growth
  • Melbourne
    • 8% rent growth in last 12 mo.
  • Miami/SFL
    • 3,500 units online last 12 mo., 3,300 coming
    • Nearly 100% absorption
    • 3.3% rent growth
    • 4.45% cap rates
    • 49% of income goes to rent

What It Means for Multifamily Investors

  • Capital looking to invest in multifamily is out there
  • Class A property growth concessions trickling down to B + Cs
  • Most buyer interest is in multifamily
  • Interest rate increases mean cap rate increases
  • Major market cap rates seeing downward trend

Contact Mark

Looking for property appraisals? Contact Value Tech Realty through their website. For single family and multifamily investors looking to work with Mark on a deal, contact him through email at mark1holmes1@gmail.com.

DIY Real Estate Marketing: The Power of Podcasting

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real estate marketing

invest florida show podcast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We started the Invest Florida Show podcast with the goal in mind to create a living archive of actionable, Florida-centric real estate investing information. Not only have we been able to realize our vision, but Invest Florida has grown to become an effective real estate marketing vehicle – not only for our own lead-generation, but for our guests’ businesses as well.

Podcasting has been growing in popularity over recent years and more and more professionals are realizing the potential of a podcast to extend their reach and network.

When Florida Realtor Magazine asked us to contribute to their cover story on the power of podcasts in building a professional brand, we were honored to take part.

Check out the article!

 

Ep. 125 Gregory Radford – 5 Tips for Earning Hassle-Free Cashflow Out of Your Single Family Rental

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single family rental investingSingle family investors know that keeping up with rental properties and tenants can be a hassle. In addition to dealing with property management, investors must also manage tenants. While a single family rental is a great way for many to earn cashflow, it can be tough to stay organized.

Our guest this week, Gregory Radford knows a thing or two about organization. A decorated military veteran, Greg became a de facto single family rental investor while still serving in the Army. After renting out his home he had purchased using his V.A. loan, he had his Eureka moment. He saw the investment potential of the V.A. loan and leveraged that into becoming a successful single family investor.

Combining the organizational skills and discipline he learned in the Army with his loquacious attitude, Greg created a strategy for earning hassle-free cashflow through single family rental investments. Starting Radford Homes with his wife, Greg is an active single family rental investor in Polk County.

V.A. Loans

  • Federal loan program for military vets to put money down on a home
  • V.A. loans can be reused as many times as the loan limit allows
    • Homes must be inhabited for 12 months
    • Loan limits vary by state/county
    • Polk County: $424k

5 Tips for Hassle-Free Cashflow

  • Niche Marketing
    • Strategic, intentional marketing
  • Custom Rental Applications
    • Send pre-scripted correspondence to potential tenants with explicit application instructions.
    • Tenants who fail to follow instructions are disregarded
  • Tenant Screening
    • Active listening
    • Asking ope-ended questions during tenant interviews
    • Find out about prior residences
    • Check social media
  • Open House for Rentals
    • Controlled open houses
    • Open houses 2x/mo. cuts down on scheduling showings and creates urgency among potential tenants
  • Cash-Free Payments
    • Requiring proof of bank account assures tenant’s financial credibility
    • All payments sent through electronic funds transfer or cashier’s check

Investor Resources

  • Gary Keller – “Hold”
    • single family rental investing
  • Gary Raulston – “Real Estate Principals: A Value Approach”
  • Bureau of Labor Statistics – monthly reports

Contact Greg

  • On social media @Radford Homes
  • By phone: (863)410-0877
  • Greg is currently looking to expand into multifamily investing in Polk County

Ep. 124 Todd Hutcheson: Landlord Tales – Keep Control of Your Closing When Assigning Contracts

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getting into real estate with limited cash; assigning contractsReal estate investing is a big draw for many due to its strong ROI potential as well as its flexibility in investment strategy. There are a lot of ways to make money in real estate without keeping your finger on the main pulse of the deal. This is most evident when it comes to wholesaling and assigning contracts. Buying and reselling interest in a property allows for increased earning potential. It also allows for expedited turnarounds on deals.

Assigning contracts allows investors to sell interest in the property title without being responsible for following the deal all the way through. Essentially, investors can buy and sell properties without ever having to lay hands on the property itself. While this definitely has it’s perks, it is not without risks.

President-elect of the Central Florida Real Estate Investors Association, Todd Hutcheson, joins us today to discuss his experience starting out in wholesaling and assigning contracts. Listeners will remember Todd from episode 111, in which he discussed how investors can get into real estate with limited cash. Todd is an investing mentor. He is the founder of IBuyHomes and an active wholesaler in Central Florida. As he shares in this episode of Landlord Tales, assigning contacts can quickly become a snowball effect and your control over a closing can disappear before you know it.

What to Know About Assigning Contracts

  • Understand contract assignment process before selling interest
  • Write your control over closing into the contract
  • Contract assignments do not show up under public records
    • A final sale price listed in public records will not record contract assignments
  • Make sure to notify title companies of contract assignments when recording a title claim, otherwise it will not be insured

Contact Todd

Ep. 123 Chris Nebenzahl & Doug Ressler: Tracking Investment Market Data Made Easy!

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Tracking Investment Market Data

tracking investment market dataFinding a real estate market that fits your investment goals seems to be getting tougher and tougher. With markets tightening up across the state, investors are starting to feel it. Now, more than ever, investors need to be tracking investment market data – looking for trends and analyzing data to find viable markets.

Investors may be familiar with Yardi for property management services, but did you investment market dataknow they also offer comprehensive market research and data software? This system allows real estate investors to track investment market data on a national level, or zero-in on specific markets and sub-markets.

This episode, we welcome from Yardi Matrix: Senior analyst and editorial contributor, Chris Nebenzahl, and research and data analyst, Doug Ressler. They discuss what investors need to know about tracking investment market data. They also offer up an update on Florida’s commercial and multifamily markets.

Florida Multifamily Overview

  • Rent growth and development strong overall
  • Focus on A + Super A properties
    • Urban living
    • Amenity-rich
    • Attracts millennials
  • Increasing demand for B + C properties, but limited supply
    • B + C properties seeing value-add opportunity
    • Sub-market level

Florida Multifamily Market Highlights

  • Miami and Orlando: 9000 expected multifamily developments for completion, 2017
  • Tampa: 7200 expected multifamily developments for completion, 2017
  • Development expected to crest after 2017
  • Rapid rent growth may pose affordability issues in Miami/SFL

Florida Commercial (Industrial/Self-Storage) Market Overview

  • Strong self-storage appetite
    • New focus on urban core
    • Close proximity to multifamily developments
  • Small cap rate compression
  • Renewed interest in mixed-use developments
  • Hotel occupancy slowing, but Orlando and Miami still strong

Tracking Investment Market Data with Yardi Matrix

Investor Resources and Contact

  • For more information on Yardi Matrix services and subscriptions, visit their website or contact Doug directly by phone at (480) 663-1149 ext. 2419 or email at doug.ressler@yardi.com

 

 

 

Ep. 122 Livingston Hessam: What You Need to Know About the State of Mortgage Banking and Real Estate Lending

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mortgage banking and real estate lendingIt’s a new year and change is in the air. With financial regulation changes sure to come and the recently announced Federal interest rate increases, it’s no wonder mortgage banking and real estate lending is hot on investors’ minds.

This episode, we have Livingston Hessam, who just returned from this year’s Mortgage Bankers Association Commercial Real Estate Finance and Multifamily Housing Convention & Expo.

Listeners will remember Livingston from episode 70, in which he gave us a recap on multifamily mortgage banking and real estate lending from the 2016 conference. Livingston is Vice President of Walker & Dunlop‘s Tampa office. Livingston brings over 12 years of experience in real estate lending and finance solutions to Walker & Dunlop, which just celebrated it’s 80th anniversary.

Livingston offers up a recap of the 2017 CREF/Multifamily MBA Conference and discusses key themes from the past year and the current state of mortgage banking and real estate lending.

What’s In Store for Mortgage Banking and Lending

Agency Annual Caps

  • Fannie Mae & Freddie Mac each allocated $36.5 billion for 2017 (same as 2016)
  • Certain loans and portions of loans are excluded from the cap (i.e. affordable and green/energy efficient)
  • Fannie Mae & Freddie Mac multifamily production totaled over $110 billion in 2016.
  • Fannie up 30%, Freddie up 20% from 2015
  • Expected to capture 40% of total multifamily volume for 2017 ($50-55 billion each)

Commercial Mortgage-Backed Securities (CMBS Loans)

  • Risk-retention regulations put in place in 2016, narrowing amount of CMBS lenders
  • Post-election stability, but more selective lending market
  • CMBS lenders ramping up bridge-lending

10-year Spreads

  • Life-insurance (50% leverage and under): 125-135 range
  • CMBS (75% leverage): 250-280 range
  • Agency (80% leverage): Low 200s range
  • Federal interest rate sees .25% increase
  • Expected to increase to 2.75-3% by end of year

Hot Topics

  • Trump Administration
    • Tax reforms
    • Dodd-Frank roll-backs
  • Retail lending
    • Publix most active retail buyer in FL
    • Grocery chains are buying out plazas after lease terms or taking right of first refusal on new lease terms
    • Reduced supply of grocery-anchored retail
    • Strong retail appetite for real estate lenders

Investor Resources

  • In addition to his V.P. role at Walker & Dunlop, Livingston is President of the Society of Real Estate Professionals (SOREP). Formerly the Tampa chapter of University of Florida’s Bergstrom Council, SOREP hosts networking events and seminars to professionals and gives back to Florida universities. SOREP focuses on all aspects of the real estate industry and is open to all. Click here for more info.
  • Walker & Dunlop offers comprehensive real estate financial solutions for all income-producing properties. For more info, visit Walker & Dunlop website.
  • To contact Livingston directly, click here.

 

 

Ep. 121 Frank Hearne & Beverly Birkitt: Using Mitigation Banks for Wetland Development and Investment

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mitigation banksFlorida has a high density of rivers, lakes, swamps and marshes that are generally protected from development.  This has led many investors to wonder how much land is actually available for development. What many investors may not be familiar with is the concept of mitigation banks. Mitigation banks allow for the development of wetland areas that ordinarily would not be usable for real estate development.

Florida environmental lawSo what exactly is a mitigation bank? How does it function and how can they serve investors and developers? Our guests this week are two experts in the field of environmental law and the designation and use of mitigation banks.

Listeners should remember Frank Hearne. Frank is a shareholder for Mechanik, Nuccio, Hearne & Wester, P.A. He was also one of Invest Florida’s first guests! His firm is one of the state leaders in environmental and land law. Beverly Birkitt, of Birkitt Environmental Services, Inc., has over 35 yrs. experience in the environmental field, with a focus on wetland litigation and litigation banking.

This episode, Frank and Beverly cover the ins-and-outs of using mitigation banks for wetland development and investment.

Mitigation Banks

  • Spec wetland approved for future mitigation
  • Allows for more usable property for development
  • Exchange wetland set for development with wetlands that will be improved upon to compensate
  • Must be in the same hydrological zone as wetland to be developed (water basin)
  • State sets basin boundaries

Developing Mitigation Banks

  • Wetland landowners can develop mitigation banks
  • 100-10,000 acres usually
  • Market demand in wetland area is critical
  • Polk County strong mitigation bank market
  • Mitigation banks must improve, not just preserve wetlands
  • Mitigation bank credits based on evaluation of improvement, not land size

Hot Mitigation Bank Markets

  • Tampa Bay Basin
    • In need of freshwater wetlands
  • Coastal areas
  • Orlando/I-4 corridor
  • Former agricultural lands

Risks for Mitigation Banks

  • Feasibility
    • land, permitting, construction, management
  • ROI tough to predict

Contact

  • If you have land that you believe is eligible for a mitigation bank, let Beverly know! Beverly can be contacted through her website: www.birkitt.com or by calling      (813) 259-1085
  • For mitigation bank questions and for more info on other types of mitigation banks, contact Frank by email at frank@floridalandlaw.com or call (813) 909-7400.

Investor/Developer Resources