All Forum Posts by: Lucas Machado

Welcome @Nancy Castro! You've come to the right place!

Welcome @Joseph Goldstein! Are you a wholesaler? I'm a wholesaler/rehabber/hard money lender. Let's connect!

@Jose Gonzalez I 100% agree with @Account Closed. Don't speculate - save the speculation for the stock market. If the numbers don't make sense right now, don't do the deal. 

That said, I don't think you need to wait X years or for the "bubble to burst". There's various reasons why the prices are climbing, but I don't think it has anything to do with a bubble. There aren't a bunch of bad loans being created which are doomed to fail in the next few years...It's just a matter of supply and demand, and I don't see any massive changes in supply that would make a big impact.

The deals are there, they are just hard to come by. The good deals fly off the shelf in a matter of a couple days, the great deals even less. My parter, my assistant, and I spend 120+ hours a week doing various things to chase good deals. Just have be diligent, patient, and move fast when an opportunity does arise. 

Don't be discouraged, and good luck!

@Brett Ahern definitely don't overlook the Sunshine State! Florida got hit pretty hard in the housing crisis, so there has been a ton of foreclosures, and still many more on the way. Not only does this mean cheaper prices, but also tons more people looking to rent. I can't speak to Orlando, but South Florida (Miami-Dade, Fort Lauderdale, Palm Beach) is a great market for rentals...I've heard Jacksonville is amazing as well, but don't have any personal experience there. 

Good luck in your investing!

@Allende Hernandez - Landlording isn't my thing, but if I were, I would prefer to do it locally, especially if my local market is good for that kind of thing. South Florida is a great rental market - with so many foreclosures in the past few years, and so many more on the way, lots of people are/will be looking to rent. With regards to your questions:

Quality of the neighborhood: This should impact your desired cap rate. 10% cap is good if it's in a "nice" area. For a property in a rougher neighborhood like Liberty City though, 10% is too low....15% is more like it. Then there's the other end of the spectrum, like rentals in Miami Beach - you'd be hard pressed to find something at even an 8% cap - 6% seems more common around there.

"What is a good cap rate" is different for everyone though. Some people just don't want to deal with the headache that comes with renting in Liberty City, even if they got an 18% cap....

Amount of available rentals in the area: It depends...Those available rentals could just be overpriced. I don't spend a ton of time looking at rental availability/comps, but I can use property sales as an example. Just because an area has a ton of available properties just like mine, doesn't mean mine can't sell quickly...Maybe those other properties are just way overpriced, and if I price mine appropriately it will fly off the shelf.

Welcome @Howard Weiss! South Florida is a great rental market. Tons of foreclosures in the past few years, and many still on the way means there are lots of folks looking to rent. 

Welcome @Paul Ferraro! As @Gregory Emmer said, the South Florida market is on fire right now...Nice thing about Palm Beach County is there's probably a bit less competition than BC and MDC, yet it's still red hot!

@Brian Coons - Thought about it some more...Maybe you're referring to buying "exclusive leads" from someone? I'm not a fan of these because: 1) I have no way to ensure they are indeed exclusive - there's a lot of shady people down here. 2) Even if they only sell those leads to you, they aren't really "exclusive" to you - like I said, lots of people are mailing them. 3) They are quite expensive. Mailing might be expensive as well, but long term I think it's more worthwhile...Like I said, not all of those leads may be motivated today, but many hang on to your mailer and save it for when they are. If you're looking for a short term solution, maybe it's worth it, but I suggest you learn to fish for yourself as well to solve the problem long term.

@Brian Coons - Maybe I'm misunderstanding you, but: "how you you all locate your private lists of inventory" and "wondered who in South Florida may have those available properties or vacant housing lists?" and "I have tens of thousands of addresses and phone numbers and names on this list I got from one of top private sellers here in My county" Seem to be in conflict with each other...What makes a list seller "private"? If you're looking for a list to buy, it's not going to be your "private list" - a ton of people will have bought them before you, and will buy them after you. The only way to get your own "private list" is to build it yourself using various methods, including mailers. However, even then, it's unlikely you are the only person to have that lead in your list - every lead who calls from my mailers mentions they've received at least half a dozen others.

99% of the leads who you mail, and 99% of the ones who call you may not be deals right now, but that doesn't mean they won't turn into deals some day in the future. In a market as hot as South Florida there is no easy/fast way to get deals - the deals are the gold nuggets that take a lot of persistent digging to uncover.

Welcome @Jorge San Juan! What did you end up doing with the properties? Fix and flip? Fix and rent? 

What types of investors are you looking for? I could maybe help you find and/or fund your next rehab...I'm a wholesaler, rehabber, and hard money lender. Feel free to reach out if there's any way I can help!

Best of luck in your investing!