Ep. 69 George Levey: One Investor’s Story on His First Retail Center Purchase

Posted on February 22, 2016 by admin

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Commercial real estate investing is a big decision for many investors to make. For many, the potential benefits of commercial real estate are overshadowed by the increased risk. Ordinarily investors work up to commercial real estate from residential investing or they merely avoid commercial altogether.

George Levey represents an exception to the common approach to commercial real estate investing. In 2012, George made a tremendous leap purchasing a bank-managed retail center as his first foray into commercial real estate investing. Bringing with him little more than a keen business-sense and ambition, George dove head-first into the world of commercial real estate investing. This episode, George discusses his purchase of the now thriving retail center and the various ups-and-downs of a first-time commercial real estate investor.

Why Retail Center?
- As a businessman, George wanted to invest in a relatively stable market where he would have control over his funds
- Recognized benefits of commercial real estate investing
Do’s and Dont’s for First-Time Investors
- Support your customer: the same philosophy in business applies to commercial real estate; tenants are your customers, treat them with respect
- Align yourself with like-minded business partners (investors, associates, contractors, brokers/agents)
- When purchasing a new property be wary of existing tenants; it is difficult to remove bad tenants
- Good tenants drive business
- Have specific investing goals; know what you are looking for before you invest
- Due diligence is critical
- Evaluate investment risks
- BE PATIENT

Ep. 55 – Brian Bandell: Update on the South Florida Real Estate Market

Posted on November 16, 2015 by admin

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South Florida has always been in a class apart from the rest of the state in terms of real estate development. The South Florida real estate market has lead the state in real estate investment and growth. Despite it’s ups and downs the South Florida real estate market has historically been a market indicator in terms of development and investment activity. South Florida’s unique positioning and heavy influence of foreign investment makes this market an interesting and dynamic one.

Brian Bandell is a senior journalist with the South Florida Business Journal covering real estate, transportation and logistics. For over a decade, Brian has served the South Florida business community. With an expert ear for news, Brian gives us a brief, but detailed overview of the South Florida real estate market and what is in store for future developments in the area.

$7.5 billion in construction starts in Miami and South Florida
- Condominium/Multi-family
- Retail
Developers/Developments
- Related Group – several condo, residential, multi-family apartments in Miami/Ft. Lauderdale; retail/mixed-use projects in Downtown Miami
- Swire Properties – mixed-use project, Downtown Miami (Brickell City Centre); residential developments, Downtown Miami (Brickell Key One, Courts Brickell Key)
South Florida economy driven by tourism and foreign investment
- Heavily dependent on international markets
- Strengthening of USD may adversely affect South Florida investments
Miami moving towards transit city
- Metrorail connects major points in Miami
- Metromover connects Downtown Miami
- Trirail connects Miami to West Palm Beac
- All Aboard Florida rail project will connect Miami to Orlando
Issues
- Commuting is still difficult in South Florida for those who don’t live near transit stations or commute by car
- Development in South Florida does not represent demographics
  1. Developments are for high-end/luxury spaces
  2. Middle-income bracket job growth not suited to high-end developments
- Rapid rent increases
  1. Multi-family rent increases: 8.8% in Miami-Dade, 7.1% in Broward and 5.8% in Palm Beach
  2. Weekly wage increase: 2%

To find out more about Brian’s work with the South Florida Business Journal visit their website

In addition to his journalistic successes, Brian is also a published author of fiction! Look for his books on Amazon

Ep. 51 Joe Fairless: Transitioning From Single-Family to Multi-Family with Creative Equity

Posted on October 19, 2015 by admin

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Joe Fairless bought his first single-family investment properties in his home state of Texas after leaving a successful, but unrewarding career in advertising. After finding that multi-family investing offered greater returns and less inventory, he began making the transition to multi-family investing.

His first deal was managed through unconventional measures. Lacking the standing as a seasoned multi-family investor, Joe incorporated non-traditional, creative equity solutions for obtaining capital for his first 168-unit apartment complex in Cincinnati, Ohio. Now founder of Fairless Investments, Joe controls millions of dollars in multi-family investment properties. Joe shares his experience in multi-family investing and provides tips for securing capital through creative equity methods.

Challenges for Single-Family Investors
- Lack of credibility in multi-family markets
- Traditional lending and private financing may be difficult to attain
Network Personal Contacts
- This is a good practice for single-family investors to find financing by networking personal relationships for interest in multi-family investing
Strategic Networking
- Network and affiliate with organizations that may not be lenders but have cash flow or may have eye towards investing
  - i.e. philanthropic organizations, community foundations, business groups
Establish Investment Base First
- This does not mean a blind-fund or requirement of prior monetary investment
- Form verbal contract with investors based on shared financial goals
- Pursue investment opportunities that suit shared criteria
Structuring Deal With Investors
- Preferred returns – investors get cash from deal before yourself
- Acquisition fees
- Performance hurdles
- Post-sale incentives
Tips
- Make yourself attractive to lenders and investors
- Know the market, know the deal
- Investing is starting a small business; structure so that you may sell that business. Don’t get tied down to an investment