All Forum Posts by: Christopher Russell

@Gerald- Sounds like a good idea, I don't really know much about those type of commercial properties, I wouldn't even know how to figure the income approach for a CMA. The actual highway isn't going to move, but they are developing the main road that leads from the highway to downtown. The one mile stretch from I95 to downtown is a large pocket of the original suburbs just outside of the small city. This is where the original city dwellers sprawled to when they preferred to live in a single family just on the outskirts of the city. As the sprawl brought people further West with newly constructed larger homes, the older homes just on the outside of the city were left behind. Historically speaking this is a typical sprawling problem. The biggest gamble in this game is knowing the value of this prime real estate, understanding the cities objectives to convert the blighted area back to what it once was and should become again in the future. Right now you can purchase CBS 3/2 homes just outside of one of the healthiest markets in South Florida, just outside of Downtown Delray and biking distance to the beach for $50k-$90k. Mind you, this is around 5 blocks from where homes are selling for $250k-$400k. My broker is very attracted to areas like, applying for section 8 and waiting it out. The city of Miami has went from ultimate blighted areas to a VERY profitable market. All we need is a crystal ball to make sure we make the right choices, but then where's the fun in it!

@Bill- Sounds intriguing! I would love to learn more about it, based on what you've told me so far I will start reading more! I have always said, the dumbest guy in the room is the one who won't take anyone's advice except for his own; the smartest guy in the room gathers any info he can and applies it the best way he knows how! If you have any informational sources and wouldn't mind sending me a PM it would be much appreciated. One thing I completely agree with you on is that much hard work goes into maintaining the portfolio if you manage it yourself! Hiring a management company is an option, but as youve read in one of today's articles (assuming you read it) they charge around 15% of your Effective Gross Income. I have found the way to make the most money in this business is to do anything you possibly can yourself, presuming it makes sense. Thanks for the knowledge!

Very informational! Sounds like a great way to diversify that's for sure. I guess it's all where your knowledge is and what you feel comfortable with, or what your willing to learn. For myself, I was a Project Manager in construction for 10 years, Real Estate Licensee and have a degree in City Planning; so I have learned property acquisition, build/rehab and lease/sell. If you were a mortgage broker with a degree in finance, I would understand where your knowledge came from and why you play in your playground :)
As far as which one is better, well that all depends on the market conditions people are diving into. In Delray Beach I have seen short sales that were sold for $150K 2 years ago appraise at $400K today. Now that is attributed to many factors, bought bottom barrel low, international investors driving South Florida markets high, income generating properties thriving due to increased rental market, Delray being rated most fun small city in America etc etc.
What do you guys think about buying property tax certificates in good areas? Apparently you can get up to 15% return on your investment, and possibly end up with the deed if you push for foreclosure. Anyone have knowledge of these? I LOVE THIS SITE BTW!!

The loans sounds like a good idea, but what if you need access to that money? If you provide loans with your $100k, you are tied up for the term right? Shoot if that what you want to do, go to a bunch of local "buy here pay here" car lots and ask what type of rates they offer for you being a hard lender on their car deals. Then you collect money monthly and if they default you take the car back! You don't need a license to make far loans, at least in Florida I'm pretty certain you don't. Unless the guys I know are doing it illegally. Good luck!

I agree with Darron, multi family buildings are the way to go if you are savy enough to do your own maintenance and management. Learn how to figure out the Net Operating Income AKA NOI and see how much you'll make at the end of the month after all expenses.

@Gerald- Was that the Cities Master Plan lol. There is actually a million dollar downtown expansion going on right now which is extending the downtown boarders West to I95 and East to A1A. This means that when you exit the highway you will see indications of entering downtown in the form of art work, new storefronts for commercial buildings, new landscaping etc. People don't really take City Planning into consideration with their investments, but don't get it twisted, investment firms do! And I thought my degree in City Planning was worthless since I chose not to work in the government sector! :)

Good point! The setback is 10' I believe, I will look at my survey. Based on the responses, I need to get my attorney involved to cover my ***!

Dang iPhone. What I was trying to say is, the property is built up to the property line, not crossing it. The rules in the state of Florida are 20 years for prescriptive easement if uninterrupted. I have most definitely interrupted the easement, but I just want to be proactive and put something in writing. It's easy to just say lets make the neighbor tear down the addition that was there before you were an owner in the neighborhood, but think about living in that neighborhood after making them do that. This is a small neighborhood on the ocean that is actually considered county not city. The main objective is that I want to just make sure I'm not providing any rights to the neighbor, but at the same time not making her have to tear down the house. I think putting a fence up with a gate to block access is the easiest thing to do; that is basically handling it myself. Then asking the attorney for his advice in regards to recording a document for additional future protection. Thanks for the opinions that helped formulate where to go :)

Thanks guys. The property is actually right on the line,

Good idea. I will put up a gate to block access, although she does not access the property anymore after the police came last year. I am also going to get some advice from my attorney so I don't run into problems later, because I've already established she is insane. Thanks for the opinions, much appreciated.

True story Jon. Last year I called the police and they came and literally pulled their gun out of the holster because she was freaking out running in and out of the house. The police made it clear that she was not allowed on the property. Now a year later and after her apologizing for freaking out, things are calm in the neighborhood. I rent this house out on a seasonal basis to high end clientele and do not want to start a war which will result in causing problems for my seasonal tenants. So I was thinking if I could have my attorney draft a document indicating that my property could not be used as an easement for my neighbor and record it with the county. I emailed my attorney to see if he could draft this for me and if it would work to just record it with the county. Let's see what he says, any thoughts? Thanks for everyone's opinions and advice