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 Listening vs Talking

When people do business, they are usually always talking and selling. Frankie Herrera, however, takes the opposite approach. Frankie’s strategy is to get in front of the investors and listen in order to understand the problem and then provide a solution that’s mutually beneficial.

KEY TAKEAWAYS FROM THE Q&A:

[13:55] Does Frankie have a specific formula to determine if the property is a good investment?

Frankie does not have a specific formula but instead looks at the big picture. Ultimately, it just has to make sense. Frankie likes to physically be there to see the property and the surrounding area to get a gut feeling as well as to see what the comps are saying.

[18:05] How does Frankie find the people he can help?

In 2014 he bought into a franchise called HomeVestors.  For advertising, they do mass mail marketing, TV spots, billboards, and pay-per-click — all on a very large schedule. There are 34 local franchises, and they pool their money together to be the “100 pound gorilla” in the room.

[24:05] How does Frankie acquire capital?

Frankie maintains very clean and understandable books/financials so that banks can look and easily see it’s a good investment. This really helps to get good size lines of credit. They leverage those lines of credit as well as their own money from their property management company.

[30:30] How is the market right now?

It’s hard to read the market so they do a lot of testing. They buy a lot of property and throw it out there wholesale to see how the investors are doing.

[33:20] Any advice for Newbies?

Pay attention and listen to absolutely everything that’s out there. Try to stay in a relatively safe place. Don’t feel like you have to shoot for a home run on your first one. Start hitting singles. Singles turn into doubles and triples, and then your home runs will come. Focus on one thing at a time. Be careful of the amount you will improve a property. You will not be living there, so don’t get wrapped up in too many improvements. Don’t over-improve the property.

The post Ep. 174 Frankie Herrera: Real Estate Success through Listening and Solving Problems appeared first on Real Estate Investing in Florida.

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Managing Your Real Estate Asset

Regardless of your preferred property class, the way in which it is managed can make or break an investment. Competent property management can mean the difference between a successful investment and a financial albatross. Many first-time investors make the mistake of discounting the need for adept property management and find themselves in hot water.

From maintenance to tenant issues, there is a lot that goes into managing a real estate asset. If you plan on self-managing your property, you need to understand these aspects. Even if you hire a property manager, you need to understand fees and cost breakdowns.

Fortunately, the tech boom has enabled investors to more fully understand the administrative and operational functions of owning and managing a real estate asset. Now, you can connect with professionals that have the experience and know-how to guide you and empower you in understanding the property management process.

Property Management Meets Accessibility

For many investors, self-managing a property has meant a lot of trial-and-error; getting into what looks like a sweet deal only to find out it’s a lemon or worse… a total disaster.

But now, emerging technologies in the property management industry are allowing investors more access to the tools and resources needed for understanding the nuances of the field. Now you can get consolidated access to professional services and data so you don’t have to piece together you don’t have to learn how to manage a property the hard way.

About our Guest

David Diaz is the Co-Founder and Head of Operations for Great Jones, a tech-based property management platform. Having bought, renovated, leased and managed over 10,000 homes for REITs, individual investors and his own portfolio, David is a foremost expert in single family property management.

The post Ep 159 David Diaz: How Technology is Changing the Property Management Game appeared first on Real Estate Investing in Florida.

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Starting a single-family rental portfolio can be a great introduction into the world of real estate investing – but that doesn’t mean it’s easy. There is a big difference between buying a single-family property as a fix-and-flip and one purchased as a rental. There is a lot to keep track of when you invest in a single-family property for cashflow; from finding a good deal to finding and managing tenants.

Often, as you’re starting your single-family rental portfolio, you will be managing those first few properties yourself. Many first-time investors are not a natural fit as landlords and it requires thinking about your investment portfolio as a business – and running it as such.

Our guest this week, Augie Byllott, learned the hard way how to manage his single-family rental portfolio.

Augie and his wife became landlords by default. After getting married and buying a house together, they turned their respective homes into rental properties, never intending management of their rental investment to be their main focus. However, they quickly realized that single-family rentals don’t just manage themselves and that (surprise, surprise) tenants don’t always have the landlord’s best interests at heart.

Managing a single-family rental portfolio

Augie and his wife quickly learned that to successfully manage their single-family properties, they needed to think about their investments like a business – and manage them as such.

About Augie Bylott

Augie is a seasoned single-family investor and the founder of Creating Wealth U.S.A.

With over 500 deals under his belt without the use of bank loans, Augie has become an expert on tailoring his acquisition strategy to fit specific deals. He now share his advice and experience through books and mentor programs.

Contact Augie at (863) 255-5858

The post Ep. 147 Augie Byllott: Landlord Tales – Lessons Learned from a Self-Managed Single-Family Rental Portfolio appeared first on Real Estate Investing in Florida.

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Investor, author and real estate investing mentor, Rod Khleif has done it all.

Rod was introduced to real estate investing early on. He managed to find success fairly quickly and, by 2006, had acquired thousands of properties across the U.S., including 800 in Florida.

Rod’s taste for real estate investing lies mostly in multifamily investing.

With single family properties, you can run the risk of spreading yourself too thin. It can become difficult to manage a large portfolio of single family properties. You have the potential to earn greater returns while managing fewer physical properties.

Rod also found that, following the market crash of 2008, his multifamily properties fared much better than his single family homes.

In this edition of Landlord Tales, Rod talks how multifamily investing allows you to consolidate your bottom line. He also shares his outlook on the real estate market cycle.

Consolidating Your Bottom Line Through Multifamily Investing

• Easier Property Management
  • Stockpile spare/replacement parts for property maintenance
• Stronger Buy-and-Hold Strategy
  • Duplexes/Four-plexes considered residential real estate, eligible for residential financing
  • Income producing
• Commercial Multifamily Has Value-add Potential
  • You can exponentially increase your ROI through value-add features in your commercial multifamily investments.

Market Outlook

“What goes up must come down”

In his market outlook, Rod shares some uncertainty over the future of the real estate market. He cautions investors to be wary of those claiming that a crash isn’t going to happen.

• Flippers: be careful entering into high-dollar flips
• Multifamily investing: Avoid 5-year balloons

Whatever your market; single family or multifamily investing; focus on cash flow investments. Investing for value can leave you with little options in a downturn.

Investor Resources

To learn more about how multifamily investing can consolidate your bottom line and increase your cash flow check out Rod’s podcast Lifetime Cash flow Through Real Estate Investing, a real estate investing talk show with a focus on multifamily.

Rod is offering Invest Florida Show listeners exclusive access to his new book How to Create Lifetime Cash flow Through Multifamily Properties. To get your free copy:

• Text “ROD” to 41411
• Digital download at rodkhleif.com

Check out Rod’s past episode, in which he discusses the importance of implementing practical real estate goals into your investment strategy.

The post Ep. 131 Rod Khleif: Landlord Tales – How Multifamily Investing Can Consolidate Your Bottom Line appeared first on Real Estate Investing in Florida.

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Florida is a huge market for vacation rental property investors. Florida is a leader in the tourism industry and vacation rentals are rapidly becoming a major economic power.

The rise of shared lodging options has led to a surge of interest in vacation rental properties from investors.

Despite increased economic impact, the vacation rental industry remains a complex and sometimes hostile landscape for investors to navigate. Regulations on vacation rentals vary widely on a state, municipal and association-based level.

Denis Hanks, Senior Director of the Florida Vacation Rental Managers Association (FVRMA), knows just how complex this landscape can be. For over 21 years, FVRMA has been a legislative voice for the vacation rental market industry, in addition to providing property management solutions. Denis brings 20 years experience in state and municipal government to FVRMA’s oversight and efforts.

This episode, Denis discusses some things investors should know for the vacation rental industry in 2017.

Florida Vacation Rental Industry

• $31 billion/year economic impact
• Captures nearly 50% of tourist dollars
• Comprised of condos, single family homes and luxury home resorts
• Central FL
  • 4,000 new developments dedicated to vacation rentals
  • 25% of U.S. vacation rental market

3 Things to Know for 2017

• Frequency and Duration
  • FL Statute 509 – preemption protects property owner rights; State cannot prohibit frequency and duration for vacation rentals
  • Regulations can change from municipality to municipality
  • Investors need to do due diligence on local zoning/compliance regulations
  • Be aware of condo/homeowner association regulations
• Metro Miami/Broward
  • Top 2 international buyer markets in FL
  • Most hostile regulations
  • $20,000 violation charges in Miami; $1,000 per dy fines in Ft. Lauderdale
• State Regulations
  • Pressure from local officials to remove Statute 509 Preemption

Resources

FVRMA provides a voice for vacation property investors in the state. Members have access to educational resources in addition to legislative lobbying. To find out more about the services offered by FRVMA, visit their website www.fvrma.org or call 407-201-0120

To contact Denis regarding what you can do to learn more about being a vacation rental investor, email him at denis@fvrma.org.

Check out Episode 39 Greg Bugay – Things You Should Know About Growing a Vacation Rental Business in our show archives!

The post Ep. 115 Denis Hanks: 3 Things Vacation Rental Owners Must Know for 2017 appeared first on Real Estate Investing in Florida.

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As real estate investors, sometimes what we think is a good investment strategy does not turn out quite as expected. While a single family investor may be able to stick to a strategy and adopt minimal changes, this is not usually the case for the apartment investor.

Your investment strategy should suit the deal you are making. It may become necessary to change your strategy in order to make a deal work.

While this may mean an extra headache in the short-term, a change in strategy could mean the difference between a successful investment and a failure.

Just ask Apartment Investor Kurt Westfiled

Kurt Westfield is the founder of WC Companies, an umbrella brand for his multi-service real estate investment firms.Listeners will remember Kurt’s last episode with us when he discussed his transition from single family investor to apartment investor.

This episode, we catch up with Kurt following his transition to apartment investor. He discusses how he found out early on in his career the importance of finding a winning strategy.

Apartment Investor: Finding a New Strategy

The Deal

• 14 unit apartment building
• In foreclosure
• Expedited due diligence (7 days)
• Intended to be 12 month, light fix-and-flip with capital expenses at $80-100k

The Issues

• Tenants trashed complex
• Property had suffered from neglect

Changing Strategy

• Evicted all current tenants
• Rehabbed entire property, inside and out
• Structured leasing as condo-apartment type w/ one model unit completed while construction was ongoing
• Created brand identity
• Started community engagement activities

The Results

• 3 1/2 year project, cap expenses at $400k
• Property raised market rent 60% in area
• Identified potential of revitalizing fringe market properties
• Focused on developing branded communities rather than street addresses

Kurt is still an active apartment investor, looking for multifamily deals in Tampa and Jacksonville up to 50 units. To contact Kurt with a potential deal, email him at kurt@wccompanies.com.

For any other questions or to find out more about services offered by WC Companies, visit their website.

The post Ep. 114 Kurt Westfield: Apartment Investor Tough Lessons Lead to New Strategy appeared first on Real Estate Investing in Florida.

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Florida, the dream destination. A vacationer’s paradise; the land of perennial sun and fun.

Florida has long been a favorite of vacationers. It has also been a favorite of those investing in vacation properties. Investing in vacation properties is a major market for Florida real estate investors.

We have discussed investing in vacation properties before. In ep. 39, we discussed investing in vacation properties using Airbnb, with Greg Bugay. This episode, however, focuses on the hotel market in Florida.

Who better to discuss that than Andrew Cohan?

Andrew Cohan is Managing Director for Horwath HTL, serving mainly Florida and the Caribbean. He is an expert on health and wellness resort properties and lends his expertise to determining optimum market demand for these types of properties.

This episode, Andrew discusses investing in vacation properties through branded hotels.

Miami Hotel Market

• Stronger presence of foreign capital than other FL metro areas
• International hotel brands coming to Miami
  • Edition
  • East
  • Fasano
• Miami’s Leap to Global Gateway Status – Andrew Cohan
  • Hotel transaction values have risen nearly 300 percent since early-2000s

Investing in Vacation Properties through Branded Hotels

• REITs
• Condo-hotel units

Investing in Condo-hotel Units

• Not a conventional, cap rate-type of investment
• Unit investors typically earn about 40 percent back on investment
• Owner, manager and developer of resort may be 3 separate entities
  • Investors need to know that circumstances may change over the investment’s life-time

Condo-hotel Draw for Developers

• Quick exit, high return opportunity
• Don’t have to worry about property management
  • Brand managers or non-brand managers

If you are looking to find out more about investing in vacation properties through branded hotels, you have more questions about acquiring a condo-hotel unit or you are a developer looking to transition to hotel/hospitality, you can contact Andrew directly by phone or email:

(305) 606-2898

acohan@horwathhtl.com

The post Ep. 110 Andrew Cohan: Investing in Vacation Properties through Branded Hotels appeared first on Real Estate Investing in Florida.

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Most real estate investors starting out will try their hand at single family investing first. Single family properties are familiar, small-scale and generally easy to tackle for first-time investors.

However, many investors will find they have a limited ceiling for growth with single family properties. Juggling dozens of single family properties while actively marketing for new investments no longer becomes practical. Apart from wholesaling, flipping and other similar single family markets, the next logical step for many investors is to make the move to multifamily investing.

Multifamily investing may be intimidating to some, but while it is a different ball-game than single family, the two do share a few commonalities and the overall benefit of multifamily investing outweighs the risk.

Just ask Kurt Westfield.

Kurt moved to Florida from New York and, in 2008, co-founded an investment partnership, WC Equity Group. They then entered into Tampa’s single family investment market.

After doing 102 single family deals in his first two years, Kurt new it was time to make a change if he wanted to scale his investment growth.

Kurt turned to multifamily investing and has since expanded to also offer lending, management and syndication services under his umbrella firm, WC Companies. In addition to Tampa, WC Equity Group also has properties in Jacksonville, FL and Cleveland, OH.

Check out Kurt’s story going from single family to multifamily investing and what he learned along the way!

Tools for Multifamily Investing

• Market Timing
  • Understand where market could go, not where it is.
• Fringe Markets
  • Areas on edge of of hot market’s outward growth, i.e. markets around South Tampa
  • Similar tenant quality to class-a markets, better price points
  • Gentrification/community redevelopment occurring
  • Value-add opportunity
• Network
  • Working relationships with brokers
  • Like-minded investor base
  • Reliable team of contractors/sub-contractors
• Responsiveness
  • Be prompt and responsive for potential investment deals. Assure potential investors of trust-worthiness.
• Mentors/Inspiration
  • Tim Ferriss
  • Rich Dad Poor Dad – Robert Kiyosaki

Kurt is always interested in working with bright, like-minded investors and brokers to expand his network in multifamily investing.

To contact Kurt with potential deals or to find out about the services his companies offer, visit www.wccompanies.com, click on any company tab and find the contact section.

Check out their Facebook Page!

The post Ep. 105 Kurt Westfield: A Journey from Single Family to Multifamily Investing appeared first on Real Estate Investing in Florida.

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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.

• 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

• 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.

The post Ep. 101 Dan Pepper: Increasing the Value of Your Property by Paying Attention to Financial Details appeared first on Real Estate Investing in Florida.

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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.

The post Ep. 100 Gavin Welch: Improve Your Quality of Life by Shortening the Time You Spend on Your Investment Properties appeared first on Real Estate Investing in Florida.