Tag Archives: real estate investing

Ep. 94 Shawn Yesner: 10 Important Items You Will Want to Know About Commercial Deals and Contracts

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commercial real estate deals and contractsCommercial real estate investing is not the same thing as residential real estate investing. Just because both property types have four walls and a roof does not mean they have the same investment strategy. Commercial deals and contracts are subject to different regulations than residential properties. Residential real estate investors looking to invest in commercial real estate should be aware of the different facets of commercial deals and contracts.

Shawn Yesner, of Yesner Law Firm of Tampa, specializes in real estate law. After getting his start in real estate law representing lenders, Shawn began his own law firm in 2004 representing homeowners. Shawn has since expanded his firm to encompass all aspects of real estate law, representing property owners in a variety of legal processes. Shawn discusses some important points for investors to consider when completing commercial deals and contracts.

  • Contracts
    • Residential real estate uses one contract template – FARBAR (FL Assos. of Realtors + FL Bar Assos.)
    • Attorneys specialized in commercial real estate should draft commercial contracts
    • Only clauses that meet buyer/seller agreement should be introduced
  • Tenant Leases
    • Make sure tenants are current on lease payments
    • Track lease deposits
    • Keep leasing contracts in same format
  • Tax-Deferred Opportunities (1031 Exchange) 
    • Strict timelines and regulations to be aware of
    • Seek assistance from CPA or certified agent
    • Be able to prove constructive receipt of funds; don’t get stuck with tax liability
  • “As Is” Contracts
    • Seller should always disclose state of property
    • in FL, Johnson v Davis sets “as is” precedence: Seller must disclose anything material to purchase of property and/or anything that might not be found after a reasonable inspection
  • Assignments
    • Buyers may choose to assign ownership of property to LLC or other business name
    • Contracts should hold original buyers liable
  • Buy/Sell Authority
    • FL recently changed LLC laws
    • Sellers should be aware of who holds legal authority to make buying or selling descisions
    • Title companies can do bulk of research on this
  • Incomplete Agreements
    • A detailed contract should outline purchase agreements
    • Sellers should not leave any gray areas to argue incomplete agreements
  • Zoning
    • Make sure you know your property’s zoning authorizations
    • Zoning can be changed, but make sure your property can accommodate changes
  • Environmental Issues
    • May pose big concern for environmental properties
    • Owners may be responsible for environmental factors that occurred prior to purchase
    • Buyers should complete phase I assessments of properties for any red flags during due diligence process

To contact Shawn for any real estate law needs, visit his website!

Shawn also hosts a podcast covering many legal topics in real estate investing and ownership. Check out Yesner Law Podcast on iTunes, Stitcher or your favorite major podcast platform!

Ep. 93: Using Social Media and Other Creative Methods to Market Your Apartment Complex

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using social media and creative methods of marketing your apartment complex marketing your apartment complex creativelyA sense of home can be a hard thing to find in an apartment. Real estate investors holding apartment complexes or other multifamily dwellings may find marketing their properties as desirable living spaces to prove difficult in media over-saturated with ineffective advertising and marketing strategies. The rise of social media has changed the face of marketing, with web-based marketing now offering a variety of platforms to deliver your property to potential residents. Some apartment complex investors and property managers are embracing these new platforms and initiating innovative and effective marketing campaigns directed at tenants looking for something more than just another apartment.

Melissa Meredith and Ana Maria Palermo have both grasped this shift and are using social media and other creative methods of marketing to produce appealing, effective marketing solutions for their clients. Melissa Meredith, of Marketing with Mel, works and lives in Tampa’s Channelside District. Melissa applies her innovative “360 approach” to create niche marketing strategies to grow her clients’ business. Ana Maria Palermo, property manager of Channelside’s SkyHouse luxury apartment complex, has built a strong community foundation for the residents by using social media and other creative methods to market to new tenants. This episode, find out how using social media and other creative methods of marketing your apartment complex or other investment property can improve your sales or lease rates.

  • Building Community
    • Engage residents and tenants in interactive community-driven events
      • Pool party, art classes, residents’ night, yoga, cooking classes, etc.
      • Provide events free-of-charge to attendees as future investment for new business
      • Push through social media
  • Social Media
    • Post original, independent content through various platforms
      • Facebook; Twitter; LinkedIn; Instagram, Pinterest, etc.
      • Relatable content should stand out, should appeal to yourself as a consumer, capture essence of product/business
      • Take advantage of ‘viral media’
  • Blogging
    • Post original, engaging content
    • Find common ground with readers, appeal to readers’ sensibilities
  • Comfort and Convenience
    • “Live, Work, Play” concept
      • Provide services/amenities to tenants that makes your property a comfortable, convenient home
      • car/bike-sharing programs (Zipcar); onsite retail spaces; cafés/bars; proximity to local attractions

To find out more about SkyHouse luxury apartments: @skyhousechannelside or #skyhousemyhouse

To find out more about the services offered by Marketing with Mel: https://marketingwmel.com/ or @marketingwmel

Ep. 92 John Fedro: Using Mobile Homes to Get Started Investing in Florida Real Estate

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mobile home investingFlorida has its fair share of mobile homes. Whether providing seasonal residences or  year-round affordable housing, mobile homes have become an ever-present property class in the Florida real estate market. Though they have been a historically neglected asset class, investing in mobile homes can provide strong, consistent returns. As markets in other asset classes become more competitive, mobile homes may be a rising hot market for investors.

John Fedro is one investor who discovered the opportunity in mobile home investing early on. After entering full-time real estate investing in 2002, John purchased his first mobile home in a park in Florida. He quickly saw the potential investing in mobile homes and after his first year had acquired 14 properties. In a virtually untapped market, John was able to develop an investment strategy exclusively for mobile homes that ensured strong returns. He has since expanded his portfolio to Texas and is actively sourcing deals in other states.

  • Mobile Home Investment Types
    • Private land mobile homes – longer to close, traditional sale of real estate;
    • Mobile homes in parks – categorized as personal property in most states, not subject to title issues/other typical
    • Mobile Home Parks
  • Financing
    • Little to no conventional lending; mainly cash deals
    • Seller financing
    • Dodd-Frank regulations do apply to mobile homes w/ financing
      • Mortgage loan originators can assist with compliance
  •  Costs + Fees
    • Purchase for >$10k
    • Sell for <$25k on payments
    • Buyer repays minimum $300/month on property
    • Mobile homes in parks, buyer pays lot fees, utilities, possibly insurance
  • Move-in ready
    • Buyers will usually do refurbs/improvements
  • Marketing
    • Mobile homes in parks: Craigslist, driving through parks, talking w/ park managers
    • Mobile homes on private land: networking, direct-mailings, bandit signs, seller lists
  • Hot Florida Markets
    • Miami, Jacksonville, Tampa, Gainesville
    • Rural areas, small towns
    • Panhandle
  • Investment Tips
    • Do multiple deals
    • Effective marketing strategies
    • At least 60 mile radius for investment market
    • Seek knowledgeable investor

Check out John’s website for even more information on successful investment strategies for mobile homes. John has free videos and a podcast where he covers tips for investing in mobile homes. Contact John directly by email at support@mobilehomeinvesting.net

Ep. 90 Gary Beasley, CEO: Buying Single Family Homes with a Cash Flow Through Roofstock

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Buying Single Family Homes Through RoofstockOne of the downsides for real estate investors buying single family homes has always been the large amount of time and financial investment it takes to certify an asset. Buyers most conduct thorough due diligence to verify a property’s physical condition, legal standing and yield potential. Buying single family homes can be a stable financial option, but it requires a lot of personal commitment that some investors just can’t afford.

Roofstock may provide investors with a solution to this problem. This episode, Roofstock CEO Gary Beasley stops by to talk about the new platform that is changing the way investors are buying single family homes. By removing the stress and mess of the due diligence process, Roofstock can greatly decrease transaction fees and increase market fluidity by providing investors with a certified, reliable and transparent marketplace for buying single family rental homes. They are also proving that buying leased single family homes can be a greater asset than vacant singe family properties.

Roofstock:

  • Launched in FL – Tampa, Orlando, Cape Coral, Jacksonville, Miami
    • Also Atlanta and California
    • Grow to 10+ markets in U.S.
  • Due Diligence
    • 3rd party valuation report, title report, property inspection, rent surveys, financial calculator est. returns based on several rental situations, vets tenants and property managers
  • Hands-off Investing
    • Buyer freed from operational component of investing
    • Buyers able to rely on surety of data
  • Cheaper, More Effective than MLS
    • Roofstock – 2.5% transaction fee from sellers; .5% marketplace fee from buyers : MLS – 6% transaction fee
    • Standardized marketplace of available, leased single family homes
  • Investment fund opportunity
    • Recent launch of 100-property fund
  • 1031 Exchanges
    • Provides readily available market for investors in need of exchange property

To find out more about the great services Roofstock offers investors buying single family homes, check out their website! You can also contact Gary directly at gary@roofstock.com or the senior client adviser, zack@roofstock.com

 

Ep. 89 Greg Williams: From College Football Player to Institutional Real Estate Investor

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g williamswebSuccessful real estate investing requires knowing the terrain. Investors need to play the field and work hard to find the right deals. Florida real estate markets are garnering a lot of interest from investors and asset classes across the board are becoming more competitive. An investor starting out in single family can become full-time institutional real estate investor with strategic planning and a strong capital base.

Greg Williams, Co-founder and Principle at Cardinal Point Management of Tampa is a true testament to this fact. Greg was introduced to real estate investing out of college. After 4 years of experience building in a variety of asset classes as part of investment firms, Greg set his sights on becoming an institutional real estate investor in the Florida real estate market, focusing on. Though he started small, Greg aspired for larger more diverse deals. Bringing a competitive spirit and strategic approach, Greg maneuvered Florida’s real state industry and has become a success story as a leading institutional real estate investor.

  • Cardinal Point Management
    • Drawn to Tampa’s diverse commercial opportunity
    • Began small, raising capital through family and friends
    • Full-service development, management and brokerage investment firm
  • 1st Institutional Lender Deal
    • Retail center, S. Tampa, 22k sqf, 95% occupancy
    • Purchased at $255/sqf on non-recourse loan through mortgage broker (Jermey Pino); 8.25-8.5% cap rate; $5.3 million total
    • Sold in March, 2016 for $10.6 million w/ 5.5% cap rate
  • Situational Lending
    • Focus on geography
    • Diverse portfolio
    • Knowledge of structuring deals in variety of asset classes
    • Eye on upcoming or forgotten markets
  • Office Market
    • Outperformed by other asset classes in FL
    • Discount on replacement cost
    • Cash-flow during hold period
    • Path to grow NOI (Net Operating Income)
  • Investor Tips
    • Focus on day-to-day
    • Build relationships, be transparent
    • Due Diligence
    • Greg attributes his success as an institutional real estate investor to adopting his father’s hands-on business approach and his self determination and team-building background from competitive sports

Greg can be contacted with inquiries on deals, opportunities or advice on transitioning to a becoming an institutional real estate investor by visiting the Cardinal Point Management website

 

Ep. 88 Beshears & Associates: Update of the Multifamily and Self Storage Market in Florida

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e2bc79_37043315246c4693996f91e865cad488 e2bc79_e3001e806a764241a578a62d31aad77cReal estate investors in Florida know that the market has seen a steadily increasing return to normalcy since it bottomed out in 2010. Asset classes of all types have been undergoing a resurgence as the market continues to correct itself. With investing outpacing development though, investors are seeing access to viable properties tightening up. Investors need to become more creative when finding deals and stay ahead of new trends arising.

David Beshears, head appraiser and owner of Beshears & Associates, has been appraising properties in Florida for over 20 years and he is very knowledgeable about the self storage market. John Miller, senior appraiser and realtor for Beshears & Associates, specializes in multifamily asset classes, having completed over 200 multifamily appraisals since 2008. This episode, David and John discuss where Florida markets are at, particularly in the multifamily and self storage market.

Multifamily

  • 4% vacancy in Tampa area markets
  • Uptick in rental rates across sub-markets
  • High occupancy rates causing higher appreciation in Class B and C properties
  • Class A properties new builds at $2/sqf (Central Tampa Sub-market: Hyde Park, Westshore, Downtown Tampa, Davis Islands)
  • 3300 units entitled to construction; 2200 scheduled for 2016 completion
  • Class A super properties arising in suburban markets (Riverview)
    • Luxury trend in new developments (zero-entry pools, state-of-the-art amenities)
  • No new builds for Class B and C properties
  • Cap Rates (Tampa): Class A: 4.5-5.25%; Class B: 5.25-5.75%; Class C: 6.5-9%
  • Value-add opportunities still available with focus on interior of units

Self Storage

  • Traditionally lag behind multifamily cap rates by 150-200 basis points
  • Self storage market similar to multifamily market
  • Subject to overbuilding in 3rd tier markets
  • 12% of market owned by institutional investors
  • Value-add opportunity for private investors
    • Online/web presence
    • Upgrade security and lighting
  • Cap rates: Class A: 5-7%; Class B: 7-9%; Class C: 9% and up
  • Major markets in need of new development
    • Opportunity for developers if they can find land
    • 2-3 acres at $5-8/sqf is ideal

Beshears & Associates offers a newsletter providing an overview on a variety of asset classes in Florida, including the multifamily and self storage market. To check out their newsletter and to find out about the other services they offer, visit their website at www.beshears.net

Ep 87 Tom Blazejack: Miami Real Estate Market Overview

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business-portraits-009Things are happening in the Miami real estate market… Well things are always happening in the Miami real estate market, but BIG things are happening right now. Miami has long been the focal point for real estate investors due to the density and scale of development and the investment opportunity for a variety of asset classes. Real estate investors all over Florida have looked towards the Miami real estate market as a forecast for current and future conditions throughout the state.

Tom Blazejack, of Blazejack & Company knows all of the ins and outs of the Miami real estate market. In addition to nearly 40 years’ experience as a real estate appraiser and analyst, Tom is also a native of Miami. Tom’s extensive appraisal knowledge of commercial and residential properties and intimate knowledge of the Miami real estate market make his consultation highly sought after by investors. This episode, Tom gives us an overview of the Miami real estate market, including development highlights and what investors should expect.

Miami Real Estate Market

  • 2011 purchase of Miami Herald building for $236 million marks return of market
  • Foreign investment and cash-heavy market
    • Foreign investors seeking stable properties to invest cash
  • Development spikes
    • New deposit requirements for investors and developers insures accountability
    • Lenders alleviating construction loan costs for developers
    • Projects moving quicker
  • Land price increases
    • Miami seeing $200-300/sqf on new commercial developments but even as high as $3000 in some prime locations
    • Residential continues to increase… up to $3/sqf in best projects
  • Emerging Markets
    • Development spreading into surrounding Miami
      • Little Havana, Wynwood, Coral Gables all seeing new projects
  • Major Projects

To contact Tom with for an appraisal consultation or for further analysis of the Miami real estate market visit his website. He can also be emailed at tom@blazejack.com

Ep. 86 Jonathan Moore: You Will Want to Know These Real Estate Development Hot Points!

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Real Estate DevelopmentReal estate development in Florida is currently in great demand. With real estate investors turning towards ground-up real estate development as an increasingly more viable means of investing, new projects are springing up state-wide. However, with increased pressure on real estate development and a construction workforce stretched thin, it is important to keep in mind key points if looking into real estate development as an investment goal.

Jonathan Moore, AIA is president and founder of InVision Advisors. His firm offers owner’s representation and project consulting services for owners and investors, architects and contractors during real estate development. As owner’s representatives, InVision Advisors takes a comprehensive approach to real estate development deals handling day-to-day and overall project oversight. As an experienced architect, Jonathan brings a unique insight to his knowledge of the real estate development industry. This episode, Jonathan discusses hot points for investors to know about real estate development.

 7 Real Estate Development Hot Points

  • Sub-contractors
    • Markets state-wide are saturated with work
    • Sub-contractors control velocity of development
    • Artificial inflation caused by over estimation of construction costs
  • Communication
    • Problems frequently arise due to lack of communication
    • Loss of face-to-face time and on-site meetings contribute to communication breakdown
  • Land Quality
  • Construction Quality
    • Large loss of construction force from mid-2000s recession
    • Current construction force stretched thin over spike in development
  • Unrealistic Project Expectations
    • Make sure all involved parties are in agreement over project deadlines
  • Scheduling
    • Scheduling oversights complicate and potentially ruin deals
  • Mitigating risks
    • All real estate development deals have inherent risks
    • Hold parties accountable for actions
    • Thoroughly research deal
    • Partner or work with experienced real estate development investors

To contact Jonathan about the services offered by InVision Advisors or to discuss more about real estate development, visit www.invisionadvisors.com or call 813-784-3146

Ep. 85 Eric Black: Tips for Out of State Real Estate Investors

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out of state real estate investorsReal estate investors know that Florida’s real estate markets are tightening up. As the demand begins to outweigh supply, real estate investors are having to become much more diligent in their property searches. This is especially true for out of state real estate investors looking for Florida properties. Out of state real estate investors must not only know their desired market, but also how to acquire and execute deals from a remote location. How can out of state real estate investors keep track of the Florida markets?

This episode, we speak with Eric Black. Eric is an investor based out of California who has owned properties in several different states, including Florida (Brevard County). Eric’s position is a unique one in that real estate investing is currently ancillary to his full-time job in the technology industry. With the ultimate goal of a transition towards full-time real estate investing, Eric has adopted an interesting perspective on real estate investing that may be helpful for other out of state real estate investors. This episode, Eric discusses how he handles a full-time job along with being an out of state real estate investor and shares tips for others.

Tips for Out of State Real Estate Investors Looking for Properties

  • Adopt Marketing and Search Strategies
    • Build local network to market your investment goals and aid in property search (realtors, contractors, developers, investors, financiers, etc.)
    • Direct mailings
  • Know Your Market
    • Best to visit your desired market area with a knowledgeable local contact
    • Statistics and data research
    • Google Maps/Google Earth
  • Have Effective Property Management
    • Property management benchmarks: vacancy turnarounds, communication with owner
  • Helpful Tools for Investors
    • Find a mentor or follow someone who has found success in your desired market
    • Rich Dad Poor Dad, by: Robert Kiyosaki

Also discussed in this podcast are past episodes that could be relevant to out of State investors:

https://investfloridashow.com/ep-84-daren-blomquist-florida-markets-hot/

https://investfloridashow.com/ep-83-eric-nathanson-winning-strategies-bidding-foreclosures-broward-palm-beach/

For any out of state real estate investors who would like to contact Eric to discuss more about his investing strategies and goals, email him at: emblack@gmail.com

**  Special thanks to Nicole Valentin for making a guest referral to our show. Check her out at http://www.nvadvertising.com/.

Ep. 83 Eric Nathanson: Winning Strategies for Bidding on Foreclosures in Broward & Palm Beach

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39134_469261331200_3956131_nFlorida was hit hard following the real estate crash in the mid 2000s. As the market began to return, real estate investors saw the foreclosure market as a well-spring of opportunity and many took advantage of the asset class. However, as real estate markets have rebounded, foreclosure markets have begun to dry up. Investors have found it increasingly difficult to find successful strategies for bidding on foreclosures.

Our guest this show has been buying and selling foreclosure properties since the late 1990s. Focusing solely on Broward and Palm Beach counties, Eric Nathanson has developed successful strategies for bidding on foreclosures and has earned a leading reputation in South Florida’s foreclosure real estate markets. Eric is co-founder of Bidologist.com, a third-party turnkey investment company offering investors bidding on foreclosures a single source for investment solutions. This episode, Eric discusses the current trend in South Florida’s foreclosure markets as well as strategies for investors bidding on foreclosures.

  • Broward and Palm Beach Foreclosure Markets
    • Majority of real estate markets returning to pre-crash point
    • Large foreign investment/flight capital base
      • China, Brazil, Venezuela, Russia
    • FC supply thinning
      • Investors no longer able to cherry-pick from select areas
      • Must cast wider net to suit investment goals
      • Online bidding
        • Easier for investors to gather info on properties
        • Bidding pool expanded internationally
        • Bank has option to hide bid, making bidding more selective
      • Likelihood of future foreclosure markets slim
        • Financing regulations much stricter
        • Cash-laden market
    • Possible market for investors who can afford to purchase condos with rental restrictions and wait them out
    • 5% down required for bidding on foreclosures
  • Bidologist.com
    • Turn-key investment solutions for investors bidding on foreclosures
    • Personal relationship with clients
      • Strategies suit individual investor goals
      • Fees based on volume, property value, etc.
    • Handles due diligence
      • Preliminary and full title searches, property inspections

For any further questions regarding strategies for bidding on foreclosures, contact Eric by phone: 954-735-4000 or by email: info@bidologist.com

To find out more about the services offered by Bidologist.com, visit their website!