All Forum Posts by: Andrew Davis

@Thomas Dunleavy - @Tyler Gibson is spot on, lots of new multi-family development going on in Central Florida. We are well over 20,000 units in the last 18 months, and demand continues to outpace supply.

https://www.bizjournals.com/orlando/news/2019/04/02/orlando-has-1-7b-in-proposed-apartment-projects.html

The issue is most of these end up being luxury apartments because cost of land + construction doesn't support affordable housing rates, but most disney and theme park employees are at or near minimum wage and can't afford $2,000+ monthly rents.

Small multi-family can be a great investment but is notoriously limited in Central FL. 

Hey @Silvia Ochoa - @Jay Hinrichs is spot on as usual. You can have him assign the contract to you, pretty simple.

Hate to point out the obvious, but a fixer upper at $155k with an ARV of $200k doesn't sound like a great deal. Would suggest you use one of the calculators:

https://www.biggerpockets.com/real-estate-investment-calculator

To make sure you can actually make some money:)

Good luck!

@Jordan Charles - what @Tim Herman said.

FHA is a great solution for an owner occupied property, but won't work if you intend to use it as an investment from day 1.

If coming up with 20% is a lot, consider: partnerships, house hacking in NY, sub-leasing/air bnb...

@Brandon Turner wrote an entire book on ways to acquire real estate with little or no money down, and I'd say at least 1/3 of the podcasts have actionable advice about how to do the same.

https://www.biggerpockets.com/store/no-money-down-ultimate

@Patrick Britton “competence is overrated”... said no one, ever. And while yes, competence does help when you’re working with experienced investors with capital that are actually serious about investing, it will also help in literally in every single area of life. I guess if the question was, “How do I become a mediocre realtor?”, then actually being good at it could be dismissed as bad advice.

@Kerry Baird - that is a great list!

I'd add Space Coast Credit Union to that list - I just locked down a HELOC on an Orlando investment property with them, and it has a first position mortgage on it.

Hey @Jack Glazer, a future welcome to Florida.

I know Gonzalo Corzo is really active in that market - he has a meetup and generates a lot of off market deals. He's not super active on here but would be a great starting point: 

www.investrla.com/

HI @Tomiyo Williams - are you looking to wholesale? @Martin Vehlow is correct, they'll get a commission on any on market deals you do together.

A few other incentives:

- refer them business: in my marketing for off market deals I interact with a lot of folks who want to sell, but not at a discount that makes sense for me as an investment. Sending those leads to your realtor friend would be very beneficial to them.

- pay them a % of every off market deal you close

- share your plan with them and ask what would motivate them to work with you.

Hope that's helpful!

@Kelly McLaughlin - competence goes a LONG way, especially in working with investors. Making sure you understand basic things like expense ratios, cash flow, property class, etc...

@Abel Curiel, @Russell Brazil and @Account Closed all give great advice. 

Investors can be great to work with, and also challenging. Pick a niche that you're interested in and become an expert.

I've been working with investors as an agent for years, so feel free to reach out if I can be of assistance.

@David Coatney and @Alyssa Dyer - Central Florida is a great market, I've lived and invested here for the last 6 years and have been pleasantly surprised by the growth.

Alyssa- it's such an attractive market for investors because we are grossly under-supplied on rentals and affordable housing, our unemployment rate is less than 3%, we have a well educated work force and the economy is no longer just based on tourism. You can see these fundamentals reflected in the crazy rent growth we've seen over the last 5 years.

Developers are putting in thousands of new units, but because ground up construction is so expensive, they all end up as "luxury" rentals which many folks are priced out of.

Regarding foreclosures - as a % of overall sales we are at a historical low, but who knows when that will turn around. There are certainly still opportunities in the market.

Cap Rates are certainly compressed - I've seen multi-family listings in the 4's and 5's, but that's reflective of the primary market that Orlando has become and the long term economic and occupancy outlook.

Hope that's helpful!

Hey @David Taylor - we had 100% equity, but you can do a cash out refi even if you don't. 

You can cash out refi 70% (or higher with some lenders) of the $130k. $80k would go to the lender who holds the 1st position, and whatever is left after costs/fees would go to you.