Need Advice! New Investor Friendly Agent - Foreign Cash Investors

[Erman A.]

Hi Everyone,

I really need your advices and ideas. I am a brand new agent and my background is cash flow e-commerce sales(which means high volume with max %1 profit sales;) 

I passed my test and got my license and  I am starting my Real Estate career and I really would love to learn everything about real estate investing. I currently don't extra money to invest for that reason, I focus to sell investment rental properties to investors and thru this I will learn and make money than I will start investing myself.

I will be dealing with a lot of Foreign CASH buyers that overseas and they will be investing in Miami. I would like to know what will be the best investment type for Cash investors.

Bought my single family 2 years ago:

For : $375K paid 

Down : $75K 

Spent : $60K renovation with everything A to Z

Total invested is $135,000

I didn't bought this house for investment purpose, I just bought it for the amazing location and the price for this location. If I want to rent this house , I can ask $3,200 a month which my mortgage is $2,300 a month, this gives me $ 1,100.

My water + Grass +Trash etc expenses $200 a month which makes $2,400 a year. Which makes it net $10,800 = %8 Cash on Cash.

I currently owe $300K to my mortgage and if I list my house I can ask easly $550,000 so after everything I spent which is - $135,000

I can have $115,000 extra cash in my pocket. Which in 2 years $115,000 profit, it's not bad?

The reason I explained is, Even i didn't think about to have this kind of appreciation, I think it worked with single-family housing so after this I start finding single-family off-market/FSBO deals and I started to talk with the sellers and started to analyzing these kind of deals.

As Most of the Miami Foreign investors - They all want to go to Condo investment which makes zero sense. They try to invest in Pre Construction thinking the value will go up. I analyzed many condo resale and pre constructions and none of them makes sense. The condos are average %2 to %4 return here in Miami and I don't think the value will go up.

For me the Pre Constructions are like a brand new car, the day you buy the day you start losing money. The resales are non sense as long as you buy %20 Off market value because you have to sell the similar amount with your neighbors.

I can only sell what I'd buy , I have to believe it to sell it so in this case I only believe in Single Family houses in Miami which is average of 

%8 Cash on Cash Return + Huge appreciation

my investors are Cash investors and their goal is Buy and Hold = Buy -Renovate - Rent  and sell in 2-5 years for appreciation and repeat the process.

Me as an agent , I will need to find the deals + Put my team together for Renovation and legal stuff + Rent out and Sell at the end of process and Find another one to buy etc.

I don't want to be like a regular agent, I want my buyers to make top money so they can invest more and refer me more. My buyers usually have a min of net cash worths to invest $5M and up but they need to see the opportunity so they can buy few a year.

My question: 

As I am very new on this ,what would you recommend me?

Is it a good idea to focus only investors ?

Does it make sense for Cash buyers with over $300,000 to $850,000 to invest in single family and some triplex and fortplexes(in miami triplex and forthplex are not so well priced, it doesn't make so much sense due to empty condo price decline)

I will truly appreciate any advice and recommendation you guys can give me on this..

Thank you so much,

Best Regards,

Erman

[Michael Lee]

Hello and welcome to this site Erman!  There are only a few things for buying Single Financial homes because they are so risky.  The more of the units you have at each location, the vacancy will not hurt so much.  I would be looking for Apartment Complexes.  Needing any experience to do that is a myth.  Immediate positive cash flow is importing and a value-add place at a commercial loan location (more than 4 units) will add more value to it and not on a house because of the way cap-rates works versus comparables.  So are amenities, public transportation, and the local schools on any rental property. 

The location is important with any rentals as well as the first impression to any prospect.  It's parking and access is too.  Good luck to you!