All Forum Posts by: Richard Libutti

Hello BP, 

Looking for a bit of insight here as I am looking to bring leasing in house...

My partner and I currently own/operate our portfolio of ~250 MF units, in Miami, FL. I'd love to hear what experiences (good and bad) are out there regarding good structures. 

Majority of the portfolio is Affordable Housing -- Section 8 tenants make up roughly 80% of our portfolio. 

We have unit vacancy that fluctuates, but safe to say 4 units per month is a good baseline that our new (In-house Leasing) agent would get off the bat. 

There is plenty of office support, AppFolio software, I am open to bumps in commission/bonus structure -- portion of rent raises, lock changes, identifying more MF buildings, commissions IF we decide to sell any properties, etc. 

Any details on structure would be greatly appreciated! 

Thanks

Richard

@Sean Pfarr I reached out…let’s connect this week. 

Thank you for the insight! With the weather getting a bit better, interest has been picking up. The market is heating up again as prices are back on the rise. 

Open to some creative approaches (i.e. - seller financing). Going to see what the next 6-8 weeks looks like, just wanted to see if I could offer it here or if anyone had any interesting ideas I hadn't considered. 

Thanks again

Hello all,

Looking for some guidance here as my bandwidth and localized market knowledge are somewhat limited as it relates to S. Maine.

Story:

I am selling a turnkey residential home with a detached indoor grow/garden. The property is in South Maine, roughly 11 acres (residential/commercial), and is zoned to have a business on site.

In short, the house is ideal for an owner/operator or someone looking to cashflow more than is typical with a standard renter due to the current setup. Above average rent returns are commonplace in this niche space.

Questions:

I am here for advice as to best practices to sell a hybrid property/business like this? 

I have a realtor, who has great traction in the local market, but they do not have a track record of selling a business -- which is the best route for me when selling (property/home + business) are more valuable sold together than if I sell the property/home and equipment separately. 

We are listing on the most popular related business sales sites and have seen some action there, but just wondering if reaching out to a business broker may be a worthy route to take? 

Also, could I list here, if so, what sub-forum would be most appropriate? 

Thanks in advance! 

Not too sure on forum rules or setup.

Is this posted in the correct forum? 

Thanks 

Hello, 

I am selling a turnkey residential home with a detached indoor grow/garden. The property is in South Maine, roughly 11 acres, and is zoned to have a business on site. 

In short, the house is ideal for an owner/operator or someone looking to cashflow more than is typical with a standard renter due to the current setup. Above average rent returns are commonplace in this niche space.

Happy to discuss details of the property and/or business to interested parties.  Open to creative deals as well...

Thanks

Hey again, and thanks for all of the feedback thus far. 

I am circling back on my previous post(s) to expand a bit more on the creativity facet, which was the subject of my initial post! 

I think creativity is crucial and I think it has benefits and detriments. Most of them are obvious, more options, more ways to cash flow, etc. (benefits side) -- the market has an obvious demand and it's great to see so many creative approaches. Not only STR, but even creative finance pieces for investors.

I do think the detriments are worthy of mention too...they include higher prices as SF is being is being sold and turned into short term, which digs into an already inventory poor market. A huge jump in rent prices, etc. 

The fundamentals are another area I'd like to dig into -- Am I / are we looking at them the wrong way? New OMs are now showing pro-forma with STR in Miami (albeit mostly by the wholesalers of the world), but the gang over at Marcus and Millichap are verbalizing the same sentiment. I've heard it all now, "returns are non-existent, if you're a full time investor, good luck!" and so on.

The reason for my posts is that I think there is a a big dialogue to be had among the BP community surrounding CREATIVITY as it relates to an investors goals & plans. The institutions and tech are coming for traditional agents, all the way down to SF now...the market is evolving / changing, and what worked in the past, won't necessarily work moving forward. 

Example: I'm mainly a MF owner, but don't dabble in the short term market with my MF. My main focus has been value adds, in C class neighborhoods -- long term tenancy, section 8. I am now competing with Buyers that will operate MF as short term, illegally, which is allowing them to pay more per door. 

Buying deals from brokers and hoping for appreciation and massive rent increases is a slippery slope. I am personally considering  getting back to the basics and starting cold call on MF. The idea is, speaking owner to owner will go a bit further than the typical cold callers muster up in general conversation. I also think getting real offers out to owners is another way to get their attention...but I digress. 

In any event, hope everyone has enjoyed my caffeine fueled babbling. Time to adapt. 

@Matt Pursley you're absolutely correct. I will let the cat out of the bag early...I intended for the subject to be a bit polarizing. The point of my post was to engage people here into an open discussion as to what their creative journey looks like in R.E. 

I am really interested in the dialogue, and will expand more with a follow up post shortly! 

Hey there, 

I will keep things short and simple, but I will introduce myself and pose an open-ended question with some color as I am genuinely interested in feedback. 

My name is Richard, I am an owner/operator of a mostly multifamily portfolio and I am just in the process of handing my portfolio over to a property manager. I am the Director of Business Development for Trelora (modern discount brokerage). I am fairly young (37), still very engaged in R.E., and wanted to know what everyone's thoughts are on new found creativity as is relates to our world? 

To elaborate, only slightly, I mean the explosion of SFR, short term rentals, motel conversions, micro units, iBuyers, prop-tech's involvement with creative solutions to our current landscape, etc. Without giving too much, I am torn between if it's helping or hurting the market, and as I have more time to dedicate to my next steps, I really want to hear others input on the current state of our industry!

To clarify, I am not asking about what the market will look like in the next 1-5 years...

Cheers,

Richard  Libutti
 

Embarking on a MF development deal now, but would like to diversify into industrial myself. I have stayed in my MF lane thus far, as there are limited resources that I am aware of surrounding the space. Tuned in here!