All Forum Posts by: Ray Hage

Quote from @Chris Seveney:

@Ray Hage

I agree as I would stay away from condos as between special assessments and increase of fees, what is the risk vs reward.

Many of these buildings are run by people who are not property managers or have development experience and lack the knowledge to properly run the property

Also many don’t realize that on older buildings your initial estimate will be 30-50% less once the work starts, especially on older concrete buildings that are susceptible to deterioration due to the weather in these areas (especially the salt)

I agree with you Chris. Risks are high and rewards are ok at best in FL at this time. The only positive to a condo is its low entry point. I feel especially bad for the older folks who are on a fixed income as they are getting slammed with 6 figure assessments. Any money made will be gone quickly! Google something like "Florida condo assessments" and you'll see a few news stories in the last few months

I would stay away from condos for a while. Inventory continues to increase and people are getting desperate to get out. I would wait a while to get them at a discount but with condos, it always feels like a gamble because of future assessments, fee increases and difficulty getting a tenant approved in a timely manner.

Quote from @Selena Towell:

I am eager to get stated investing in real estate. Would love to purchase my first multifamily then do Flips.  Any advise?

 Hey Selena, I would avoid a "coach" as well. I am an investor and realtor here in South FL and  I can advise you on getting into multifamily property. I would advise against a coach as they're just going to give very general advice vs advice you on a specific property. Not worth shelling out a few thousand dollars for a coach in any market.

Miami Beach is definitely not the place to start! Far too expensive. 

Also, I can not emphasize enough, this is not the time to buy condos anywhere in FL. It is currently in the beginnings of a disaster. 

I would tell you to keep saving money at this point and consider a SFH househack in Fort Lauderdale or WPB as your first one. Maybe even a duplex. For now, keep reading and learning while putting money away. You're not ready yet

Sorry to see this! I generally tell people to stay away from these guru groups and courses as well. It's just best to find local investors and good realtors/PMs for each market that you're looking at. Expensive lesson learned but you will recover

Quote from @Dan N.:

Just needed to blow some steam off in the group.
All 7 of my accepted offers have fallen apart at the inspection phase.

Each time we find an expensive problem in the inspection and the seller is not willing to make concessions.

$3K spent on inspections with no house to my name yet. 

 Damn that is quite a bit! I've lost a couple thousand on inspections as well over the years. Maybe for the next property, offer a bit less in anticipation of a major issue being found. It is tough right now as sellers still think we are in 2022/2023 market. The problem(/blessing?) is that the Fed is expected to lower the rate so that we may see more buyer demand and prices wil hold steady. Stay cool and don't jump into a bad investment!

Quote from @Jessica Heller:

Hi everyone! Wondering what you think is the best way to find tenants in west palm beach? 

Additionally - does anyone have 1/ a good agent 2/ number 3/ handy man all in west palm? thank you!

Hi Jessica. I am an agent in down in Fort Lauderdale but I know WPB pretty well. The best way is doing through an agent but if you really prefer not to use an agent, I would recommend posting on Zillow and FB marketplace (I have had good luck with both). I have a great handyman in Boynton but I am not sure if he is currently available as he broke his toe about a month ago. Do you have a particular need at the moment?

Quote from @Thomas Trotter:

Hello, I am currently in the middle of renovating my first house hack/deal. Looking to meet local investors in the palm beach/martin county area. Does anyone know of any meet ups in this area?

There is one that meets once per month in WPB. It is called Yachtie Real Estate Investors. They also meet here in Fort Lauderdale and it is almost always a good event. I haven't been to the WPB one but FTL has been great so check them out. @Scott Kidd hosts

Maybe for those large MF buildings, concessions and enticements make sense. But I believe for the majority of mom and pop landlords, it's not worth offering a concession. Just have a good house/apartment at a fair market price and you should be able to find a tenant without a ton of effort. 

Here is one potential example of a small concession I might offer. Let's say the 1st is on a Monday. If the unit is empty and the potential tenant seems great, I would let them move in on the 29th or 30th of the previous month since most tenants will prefer to move on the weekend and I won't ask rent for those 1-2 days (of course utilities have to be in their name, etc).

Quote from @Jason Xenakis:

Hello folks. First post. Happy to be here. My wife and I decided to  start out of state rental investing in Columbus Ohio. How can one, who has only rudimentary knowledge in real estate without any boots on ground experience (read a few books), effectively choose a real estate agent? We are both physicians and relatively intelligent humanoids, but without knowing what you don't know, it seems a difficult task. Is it about first impressions? The vibe? What are some red flags? What nuanced questions can I ask? Thanks in advance!

Like some of other posts have said, this is a tough scenario. I am both an investor and realtor so ideally, your best bet is to find someone like me in the Cleveland market. I would strongly suggest you talk to a few realtors who own properties in the market(s) you're trying to get into AND then fly to Cleveland (and whatever markets) to meet them in person. See a few properties with them. There are a few things you can do to see who the honest ones are like check to see how many properties they own, how long they've been a realtor, how many sales they have had over the years, etc.

Another option is to speak with other investors on here in the markets that you're interested in, get some info and see if the realtors are telling you a similar story. Maybe one of them has a great realtor in the markets you are considering. There's no full proof way to do this so you might run into issues.