All Forum Posts by: Fernando Figueroa

I have had previous experience rehabbing and building large additions to historic homes. I would not do it again from an investment perspective, as it is a very lengthy process having to deal with the historic department in your city and fighting in public hearings to get your plans approved and your permits going. If you are going to live in it - maybe - but it's just too much work when you can buy a property that is not designated historic. I will add though, that there is always a massive tax incentive in most municipalities when rehabbing or redeveloping historic properties. You can search for "ad-valorem tax exemption historic property" in your city and you should be able to find the information. In my case, they offered to extend the current tax rate for a period of 10 years, meaning if the historic property I was redeveloping paid $12k/year in taxes prior to me renovating and building the addition, they would keep the same rate for the next 10 years. This is crucial if you are adding square footage - and in my case I was adding a lot. If the property appraiser were to tax this property with the new square footage I would have been billed about $45k/yr in taxes instead of $12k so doing the numbers that's about $330k in savings over a 10 year period. Historic properties can be very beautiful and interesting projects, but I think they are more appealing for someone who is going to use them as their own residence to take advantage of the tax benefits or someone who is doing RE as a hobby and is not in a hurry to capitalize their gains.

Congrats! I remember the old days when I did my first deal - I was so excited! 

Hi Artem. In my personal opinion, most of the areas you are mentioning in Florida are going to be way out of your disclosed budget. I would look into the mid-west as it is one of the best areas to invest in properties that are in the $70k-$100k ratio. The ROI is much, much higher and it's just a more versatile market than say Florida for example. If you are looking to invest and live off cash flow, then definitively OH, TN, MI are all great areas. I would just steer away from Florida as the prices are very high and I don't really see much value unless you are going multi-family but then again you are looking at spending big bucks. I have been investing heavily in Ohio so if you are looking let me know and I can show you what we have done over there. You can see my company's info in my profile and I am always willing to help. Thank you!

Be very careful if you haven't done this before, going and finding a property that needs work is a very risky business. Even as an experienced investor and builder myself, I have been in situations where I have lost money in some deals due to unforeseen damage/expenses. It's not worth the risk when you can buy a turnkey property that can give you income from day 1.

Most Real Estate investors who are out of state looking for deals in different markets like in the mid-west for example will always find people (including realtors) don't believe you are buying 5 houses in one shot, because those markets don't see the amount of wealth other markets like CA, FL, NY are used to. I have found this to be an interesting topic when calling realtors and agents in those smaller markets. They always tell me they thought I was lying when I said I had $200k to invest...It's just a different perspective. I would highly recommend when you find a market with good deals, go and make the trip to meet your agent in person. It just changes the whole dynamic. 

Dear investors,

I have a project in Coral Gables, FL in prime AAA location.  I'm looking for capital to finish the construction and then sell the property as my exit strategy.

The total investment would be around $370,000.00 and great returns. I am open to JV with someone who will be interested in participating in taking decisions or a silent partner.

The duration of the construction should not exceed 5 months.

All permits are approved and work has already started.

The scope of work is extensive, currently being carried out by a GC.

If you are interested in learning more about this, please contact me.

Sincerely

Fernando