All Forum Posts by: Drew C Grossman

@Matt Sora - I am sure title costs differ a little state to state but this is what I am seeing in FL. Title Settlement costs for financed transactions (buy side) are between $450-500. Additionally I have seen various other title related fees tacked on such as lenders coverage premiums, owners coverage premium, lender policy fee, title endorsement fees, environmental fee than can be between an extra $350-$1,200 from when I looked at the closing statements. Cash transactions are much more lien,  paid $150 total in title costs, paid $18.50 to record deed and seller paid owners title insurance policy.

Ive worked with great companies and I have also worked with companies/people who made the process much harder than it should have been. Most title companies have to follow similar procedures/protocols and I think what makes a great title company is the people that work for it. You wont really know for certain until you do transactions with them but look for the company that is on their A game and then build a relationship with these individuals.

Just shot you a pm.

Best of luck!

This was a spot on assessment and the dynamic has only stayed consistent since when you wrote this. It shocks me, by looking at the villages kn these forums that’s there isn’t more engagement. I asked a question lash year and didn’t get a response, it appears the village doesn’t have as many eyes on it. The development has been expanding south of the turnpike is one of the biggest operations I have ever witnessed…along with the other industrial parks going up. Part of why I invest in the surrounding areas.

Ocala/Central FL has some of the most options to find higher cashflow new construction single family or mutli family compared to other places in the state where 300k wont even get you a run down single family with poor rents. The ratio between new construction prices vs rental rates in Central Florida is healthy in the targeted areas (Marion Oaks, Villages, Silver Springs Shores, Belleview) and the goal would be to find a 1% rule deal i.e buy a Duplex for 300k and have it rent for at least $3,000 a month.

It really depends on where in 32210…is it the quad listed by Southern Impression Homes?  

Hello @Christian Leon - pretty much everyone above nailed down the differences between 32209 vs 32225. Two different markets..therefore two completely different strategies/goals. What made you choose these markets in Jacksonville…do you have a competitive advantage or why here?  What is your goal for this multi family project? Do you have a specific business plan in place? What is your expected or goal for return? Most of the multi family in the 32209 areas are going to be very old and run down and not worth price with D/C tenants…not investable IMO. Have you considered building in a more C/B area in Jacksonville/St Augustine area. It won’t be cheap but building to rent is the way to go if you are going to keep as rentals. A lot of this obviously depends on what you want the financials of the properties to look like.  We are doing build to rent multi family out in Central Florida. 

Hi @Daniel Pierson - I live and mostly operate/ invest in the Florida markets for a number of reasons….the most simple answer is I know these markets best. My investment focus is in Ocala /Central Florida and have built a bunch of single family, self storage and currently working on small multi family developments, duplex(s) ect..

Although I’ve never been to California, some of my main partners both on the capital and sales side are from the Bay Area. and I have learned so much from working with them and seeing first hand how they have progressed with out of state investing. 

I’m on the flip side of the conversation because I am the boots on the ground guy for my team where I formulates a strategy and plan, put deals and together with everything in place, and then execute on that plan along with putting together the process and management in place that the property requires. There’s always an element of local knowledge and presence needed ….and though automation certainly helps, you can never remove the physical aspect completely from PM. 

I think the success of the out of state venture is highly dependent on your partnership and trust with your “boots on the ground” individual. Once you find the market that attracts you the most, you will have a few options to invest in that market…the first easiest way to find a professional crowd funded opportunity that will likely require you to be an an accredited investor but will allow you to get exposure with smaller risk however smaller returns. This investment is still contingent on you finding a good operator with a strong track record. Even at the professional level there are a lot of phonies out there and you need to find a syndicator/operator you can confidently stand behind.

The next option would be to find your “boots on the ground” someone in the market you want to invest. They need to be highly specialized in a certain strategy, sub market or niche and then see what value each of you can bring to each other and search for a partnership that way. In my case, I had deals, experience and a significant BUT finite amount of capital however some individual have the opposite problems and are looking for strong deals. 

Best of luck in your search, and I hope this helps!

@Elisha Trumbull - I have a Florida residential lease that I use and have tweaked over the years to suit our needs. I am happy to share, feel free to PM me. I am not an attorney and you should default to a FL RE attorney for any specific questions on these topics. A repuable Property Management company will also be able to provide you with a draft lease if you are looking to go that route vs self managing. 

 I cannot stress enough the importance of placing good tenants in your property which is critical for your success. If you do a good job at this part, the management can be night vs day. The goal is to have good tenants and never have to use the language of the lease to enforce anything negative.  

Correctly qualifying tenants upfront with income verification, background check and credit check, along with setting detailed expectations and structuring your lease with a minimum of first month rent, last month rent, and security deposit are a few things that will align your interests.

You also want to be forward thinking on your process to handle routine items with your tenants. For example, what are the expectations and what happens if a pipe gets clogged and your tenants are now calling you? If you don’t already have a process this could be a headache. For us, we set expectations upfront verbally and in the lease that the tenant is responsible for any and all maintenance and repair necessary for the premise up to $150. Additionally anything over $150 caused by the tenants negligence will also be their responsibility. Set expectations!!!!! Will save you a ton of time and wish I did this early on. 

It may be worth considering signing a year lease with the tenants you have in mind assuming everything else checks out. This will give you more flexibility and give you more options. If the tenant wants to stay longer after the first year, I give them two options #1 - I have built in the lease that the tenants can go month to month after year 1 (with a rent step up) with a minimum notice of 60 days to terminate the agreement. This will give you plenty of time to turnover the property if needed.  #2 - I give them the option to  resign another year lease (at slightly better rent vs what month to month what would be but still stepping up from original lease). Both these options can be executed by a simple addendum adding on to their existing lease they signed year 1.

Best of luck and I hope this helps!