All Forum Posts by: Ray Hage

Great finds and nice to have multiple homes on the same street! You might want to speak with the owner of the house next door and let them know you'd like to buy it. Maybe if they would even finance you. 

Quote from @Gregory Breton:

I'm looking to get started with my first multifamily rental property. I'm particularly interested in the Ford Lauderdale/ South Florida area. Miami if possible. I've done some research, it would be great to hear from those who have experience in the area. These are a few things I'm curious about?

What Neighborhoods are ideal for investments?

How much should I expect to invest in a triplex or quadplex?

Are their any financing options for first time investors in Florida?

Any tips on finding good property management? 

Any advice or if you can recommend, point me in the right direction would be greatly appreciated.

Thank You, 

Greg
 

Hi Greg. Speaking as both an investor and realtor based in FtL, these small MF are very difficult to get into at the moment due to excessively high pricing leading to negative cashflow if you plan to finance them. If you'd like, I could take a look to see what is in north Broward and Palm Beach counties, this would be your best shot to find a profitable small MF at the moment.

Quote from @Mike Klarman:

That's sad to hear.  Seems like taking advantage of eager investors with exaggerated marketing claims. 

Coordinating OOS deals is hard.  It's a moving target.  I went through 8+ GCs in one market.  In and around the Philly market, which is my home town, my contractor comes from a referral from a friend who worked with this GC.  The difference is night and day between using someone you find online or in a search vs a personal referral.  Night and Day.

Eager newbie investors will get taken often, unfortunately.  I agree with you on the personal referrals. It is usually much better. OOS would work if you have a solid contact in that area though but yea dealing with strangers is going to end up in hassles unless you get insanely lucky!

Quote from @Clare Cui:

Wow all these insights are so powerful ,and ultimately I decided to go with my gut and Im glad I did. I don't think it's worth it to me in the long run from past mistakes and I'm going to stick to my standards. Thank you everyone! 

 It is better to have an empty unit than a terrible tenant. Stick to your standards and gut feelings every time

Looking forward to another great event @George Munoz!

Whether for a lender or wholesaler, I would avoid it. So many things can go wrong in a RE transaction that you don't want to risk it unless it's very small like $500.

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