All Forum Posts by: Jorge Perez

@Carolina Brembilla land is also inflated and the Miami-Dade building department is a mafia. Yo really do have to a solid network of contractors that are connected in jurisdictions to get projects off the ground, built and permits closed to have a marketable property.

In my opinion, and I love living in Miami, I do not think at the moment it’s a great place to invest. In my specific portfolio I’m selling a commercial property and 1031 Exchanging out of Miami In the next year or so.

I think other parts of Florida like parts of Central Florida like Tampa/Orlando/Gainesville/Jacksonville/Tallahassee look more promising.

@Carolina Brembilla I personally wouldn’t touch houses on the water. I consider those A grade assets and in my opinion that’s where investors get killed if something goes wrong and too much risk for my tolerance.

Also the vacation rentals are extremely overpriced with, for the most part high condo fees that’ destroys cap rates.

My family and I love B/C grade distressed condos in the suburbs. We have been buying, holding and selling those assets for over ten years. Not glamorous at all but in my opinion are the best and highest returning assets in Miami for the last decade.

We can get in an out of a flip in under 90 days with rehabs if any from 3-14 days with zero headaches and zero risk because they are always great cash flowing apartments to begin with.

Now with Argentina’s currency inflation issue we are seeing the next wave of cash buyers that’s gobbling up our flips. We currently have two properties scheduled to close this month and both sold at market price in under a week. Both cash.

Miami is a unique ecosystem as it’s fed by cash from around the world and cash that for the most part needs to be extracted and laundered in American assets so what’s happening here doesn’t make sense on 99% of the deals as foreign investors have no problem overpaying.

In conclusion, I think flips can be done but Miami is absolutely not the best market for it.

@Carolina Brembilla Profitable Flips are coming few and far between. We have seen investors purchase distressed properties at ridiculous prices and as flippers ourselves(50+) over the last decade our profit margins are slimming and risk is increasing due to higher acquisition prices.

Depending on your budget and risk tolerance you can look into:

Distressed B/C grade condos in Tamiami/Kendall area. With cash you can get good deals and quick transaction times. Not huge numbers but you can do volume. No permits and quick handyman rehabs if you have your team in place.

Westchester/West Miami SFR if acquired at the right price but that market is incredibly saturated and you will need GC's and permits pulled for the most part.

Good old Hialeah but you really have to do your due diligence here and know your zip codes.

In Miami, patience truly pays. There are still opportunities. We analyze 500-1000 properties a month. Send about 100-200 verbal offers to close on 1 every month or two.

Hope this helps. Good luck investing.

Would love to exhume the chat and see what fellow investors are thinking in 2020. I have an upcoming 1031 Exchange and looking for opportunities in Florida that is not my current market(Miami). If anybody has any multifamily deals that have solid fundamentals, would like to chat.

@Dave Foster Thank you once again Dave! I think the predicting and worrying about the next recession has caused me more hard than good over the last year. I will connect with my CPA as the first step in my process.

@Steve L. Absolutely. That’s why I opened up this discussion to get some boots on the ground strategy from real life investors before starting this process!

@Steve L. Awesome information Steve. I am early in the process but I do have to sit down with my CPA to craft out the best possible strategy. Thanks for the tips.

@Bob Prisco Thank you for the insight Bob. I do agree that the Midwest is a great market.

@Calvin Ozanick yeah my worries are in fact sometimes overblown. It’s really my fear of stepping up to a larger asset that has me pondering the question at the moment but I’m almost sure I will execute an exchange. Thanks for the reply.

@Bill Brandt will do 100%. We have definitely been leaving money on the table the last couple years. Thanks.