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Ep. 140 Courtney Barnard: Top 3 Legislative Issues Affecting Multifamily Investors for 2018
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While investors prefer real estate over other assets and securities due to its relative stability, it’s not without fluctuations of its own. Real estate is affected by a number of external forces, from the economy to local, state and federal legislation. What sets fluctuations in real estate apart from other investment classes is it’s general predictability; hardly anything happens out of nowhere in real estate. Most factors affecting real estate can be accurately tracked and anticipated. Investors who can keep ahead of these changes are able to mitigate much more risk in their investment.
Legislation is one of the most important factors affecting real estate investors. It affects everyone down to the local level and is able to affect every facet of real estate investing from financing to construction. With so much to keep track of, staying on top of current legislation may seem intimidating, but there are tools and resources available to assist you. For Florida multifamily investors, that’s our guest for this week!
Courtney Barnard is a returning guest to the show and we’re so glad to have her back. Courtney is the Government Affairs Director for the Florida Apartment Association (FAA), the statewide chapter of the National Apartment Association (NAA).
The NAA/FAA serves as the primary advocate for residential multifamily investors and apartment owners. Not only does it represent apartment owners in front of lawmakers, it also provides education and support for investors. As Government Affairs Director, it’s Courtney’s job to track all national and statewide legislation affecting multifamily residential real estate and relay it to investors. Each year, Courtney provides an annual legislative update on key legislation that directly affects the residential multifamily industry.
Find out the Top 3 Legislative Issues affecting multifamily investors in 2018!
Ep. 126 Mark Holmes: What Multifamily Investors Need to Know About the Rental Boom
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The 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
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.
Ep. 101 Dan Pepper: Increasing the Value of Your Property by Paying Attention to Financial Details
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Time is money. Property managers spend a lot of money on their time and this is true whether they are managing residential, multifamily or commercial properties. Often times, property managers may get caught up in the timing of things, letting their financial records and organization fall by the wayside. Not only does this cause added stress on the property manager, but it can also hurt the value of a property. When it comes time to sell a property or to refinance, proper financial details mean everything in determining how much the property is valued at.
Dan Pepper knows the importance of organizing and recording all the financial details of a property. Through his company, Palm Companies, a combined investment and property management firm, Dan oversees 190 multifamily units with nearly 50 units managed by Palm. With so many factors to keep track of, paying attention to financial details has become imperative in streamlining property management efficiency. This episode, Dan shares what he has learned about managing properties effectively and increasing property value by organizing and tracking financial details.
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Automated Property Management Systems
- streamline record keeping, bill pay and rent collection
- Appfolio – good mid-market, fully-integrated automated system; 80+ units
- Import photos or scans of bills for services and expenses into an easily accessible database
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Capitalizing Expenses vs. Annual Expenses
- Clearly define and categorize expenses that are capital improvements and what are annual expenses
- Buyers can reconcile their investment concerns with detailed records
- Lenders can asses precise values on properties
- If unfamiliar, google search “capitalizing expenses”
Dan and Palm Companies are focused on multifamily properties ranging between 30-150 units in Southwest Florida. They focused primarily on property management ventures currently, but are open to viable multifamily deals. Palm Companies also has an interest in retail investments. Check out their website for more information.
Ep. 100 Gavin Welch: Improve Your Quality of Life by Shortening the Time You Spend on Your Investment Properties
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Full-time real estate investors know more than anyone that there are only so many hours in the day. Finding time to actively land new investments can be hard when its necessary to manage other investment properties. Maximizing time is one of the most valuable tools a real estate investor can have. Shortening the time you spend on your investment properties can greatly improve your quality of life as a real estate investor.
Gavin Welch, an entrepreneurial real estate investor, knows just how precious his time is. With seven properties in his portfolio and work commencing on an apartment development, Gavin has a lot on his plate. With a goal in place of acquiring 25 investment properties, Gavin simply cannot afford to spend time on everyday property management concerns for each of his properties. He has implemented a method that allows him to attend to his current investment properties while providing himself enough flexibility to focus on his investment goals.
Limiting Time Spent on Investment Properties
- Landlording on Auto-Pilot – Mike Butler
- Google Voice
- provides automated information for tenants and clients to call in for property info and maintenance requests
- Limited property showings
- Schedule property showings and open houses for set days and times cuts down on time spent visiting investment properties
- Auto pay system for tenants
- Tenants pay automatically when monthly bill is due. Landlords and property owners don’t need to spend time tracking down payments
- Passive Marketing
- Bandit signs circulate property availability
- Youtube videos provide property details and photos
- Property Uniformity
- Using the same materials and paints on all properties greatly reduces time on maintenance and up-keep
Gavin is currently in the market for viable single family investment properties in the Lakeland, FL area. Suitable fix-and-flips or rental property offers may contact Gavin through his website by going to the Contact Us page. Listeners should also check out Gavin’s own podcast, The Real Estate Loop for more investing advice.
Sandra Adomatis: Energy and Sustainability Initiatives to Increase Your Bottom Line
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Commercial real estate investors and developers know the term: “Green”. In Florida, it seems that “green” is the phantom criteria for real estate: many have heard of it, few have seen it. The term brings to mind vague notions of sustainability and energy efficiency, but what exactly is it? What is the merit in “going green”? As an effort to shift toward sustainability becomes a rising trend in the nation, Florida continues to lag behind as commercial developers and investors grapple with the nebulous nature of sustainability and green construction.
Sandra Adomatis, SRA, and LEED green associate is an appraiser with a focus on green initiatives and sustainability in real estate. Based out of Punta Gorda, Florida, Sandra has over 25 years of experience in real estate appraisal in the state of Florida. Sandra is a green valuation expert for the Appraisal Institute. Through course development, seminars and literature, Sandra has been helping commercial real estate investors integrate sustainability and energy efficiency into their investments.
- 6 Elements of a True Green Building
- Site orientation
- Water efficiency
- Low-flow plumbing, greywater recycling, rain barrels/cisterns, energy star rated washing appliances
- Energy efficiency
- Solar power: Amendment 4 in FL; PV Value; Tax credits, rebates and incentives offered
- Environmentally-friendly materials
- Clean air circulation
- Operations & maintenance
- Adapting Existing Structures
- Lighting
- Heating/cooling
- Insulation
- Energy Modeler/building scientist
- Assess what existing structures can handle for energy and sustainability adaptations
- Calcs-Plus (Florida)
- Green building investment appeal
- Low-interest, flexible financing exclusive to green buildings
- Cost-saving on appliances and utilities
- 2-10% sale premiums vs. traditional structures
- Resources and Info
To find out more about sustainability options or for appraisal services, visit Susan’s website or email her at adomatis@hotmail.com
Ep. 78 Ray Altieri III: Don’t Get Burned When Making an Insurance Claim on an Investment Property!
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Investors want to know that their properties are insured against any unforeseen damages. The last thing a real estate investor wants to do in the event of an emergency is argue with their insurance company over an insurance claim. Insurance companies are a business and all businesses look towards minimizing costs. If damages occur, most insurance companies will attempt to mitigate costs on an insurance claim in order to avoid costly expenses, but this can hurt investors trying to recoup loss of income on a property.
Ray Altieri III is Vice President of Business Development for Altieri Transco American Claims Corporation. Together with his company, Ray strives to ensure that insurance policyholders receive proper payment in the event of an insurance claim. As public adjusters, Altieri Transco represents insurance policyholders throughout a claim to guarantee that they receive proper recompense from insurance companies. This episode Ray discusses how investors can avoid getting burned when making an insurance claim on an investment property.
- When to Get a Public Claims Adjuster?
- A.S.A.P – A Public adjuster should be brought in on a claim as soon as possible to build an accurate cost for coverage from the ground-up. Adjusters for insurance companies will attempt to minimize costs for coverage
- How Are Public Adjusters Compensated?
- Typically, public insurance claim adjusters receive a percentage of the overall settlement, usually 10%
- Tips for Investors
- Insurance Applications – Investors should be aware of the information entered into insurance applications. Incorrect or missing information may result in a voided insurance claim
- Emergency Services – Costs for emergency services on an insurance claim are not paid by insurance companies, they are paid by the policyholders. Investors should understand these costs and how they affect coverage on a claim
For more insurance claim information or to find out more about Ray’s services visit Altieri Transco’s website at www.altieritransco.com or you can reach Ray by phone:
Personal: 813-695-8718
Office: 813-247-8757
Ep. 65 Jerome Abecassis: Foreign Investor Makes Headway in the Florida Real Estate Market
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Those 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
- Distressed/Mismanaged properties
- 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
E35 Michael Quarles – Some Tips on How to Market and Find Winning Investment Properties
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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
- Yellow Letters – formatted to appear as handwritten notes
- Small/Large-Text Postcards
- Professional Letter
- Greeting Cards – sent in line with corresponding holidays
- Zip Letter – formatted to appear as government checks
- Variety of mailings available
- 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!”