All Forum Posts by: Robert L.

Hi Alex Brandimore,  I sent you a DM.  Looking forward to speaking.

If an investor wants to diversify, they can invest in new construction as well as other investments like long term holds of multi-units.  For me, I am diversified by investing both in short-term builds and long term rental holds.

For these types of new construction investments, the investment term is more like 12-18 months with yields exceeding 20% annually or about 35% in 18 months.  That is with the investor getting 60% of the equity at sale.  So there is another 40% I take as the builder and I even make the agreements where I take most of the hit if/when something goes over budget.  So the risk to the investor is minimized.  The investor's risk is further minimized by holding the money in escrow as the build takes place.

There are larger investors out there who want to invest $1MM-$4MM in new construction and teardowns, but they find it hard to find a reliable builder they can trust as well as hard to find good teardown investments.  St Petersburg and South Tampa provide those types of investments.  Other areas of Tampa are great as well such as the Riverside Heights area and other areas which don't require as much capital.  In some areas, it is feasible (and happening) to tear down a $550K house and build back a $2MM house, or buy a $300K tear down and build back at $1.2MM.

A lot has to do with an investors comfort level, understanding and their "cup of tea".

 I understand your view; However, there is always "bigger".  After all, I started with $125K in-fill builds.  Now I focus on $1.2MM to $6MM in-fill builds and tear downs.  

Doing a 5500sqft $6MM build after buying a $1.2MM tear down, is still "larger".

For me, "thinking larger" just means doing 3 of these a year rather than 1.

At that point, I don't feel a need to think larger.  I'll be too busy traveling and living large.

But I hear you.

It seems many investors are overlooking the South Tampa market for tear downs.  Maybe this is because they don't understand new construction or know a builder to work with.

If you have any questions, just let me know.  I have been a Florida state licensed Builder for 20 years and specialize in fortified icf construction.  I have also done extensive research into what other builders and investors are paying for tear downs in the South Tampa and West Tampa areas.  The margins are impressive and opportunities abound.

I am also interested in networking with high net worth individuals who are interested in joint venturing on new builds.

Would love to hear your feedback or questions.

I am a Developer in Tampa and St Pete.

I suggest learning about construction "Quality". Learn the trades.

The best educators about the "building" process can be the building inspectors. Know when your inspections are and walk with the inspector.  Learn what is right and what is wrong.

And builders can get away with a lot of short cuts in Texas from what I have seen online.

Also, get with other investors in your area who are doing builds.  What for them on social media and at local investor associations and meetups.

Buy some fancy cards, some stylish clothes and a membership to some golf courses (or similar places) so you can rub elbows.  That is about as far as $10K will get you.  The rest is old school joint venturing.

There are some great opportunities to invest in tear downs in the St Pete and South Tampa areas.

I'm a licensed builder with 20 years experience in new construction and 30 years experience as a real estate investor.  I specialize in fortified icf construction which is great for areas like St Pete and Tampa which are in a high risk area for hurricanes. 

Being new to the Tampa and St Pete areas, I have researched over 200 of the latest in-fill builds and tear down rebuilds.  

Currently, I have multiple deals on my radar and I am watching those opportunities get picked up by other investors and builders.

The best deals I see are larger ones requiring around $3.5MM in capital.  For example, a tear down home can be purchased for around $1.2MM.  A 5500 sqft home would cost about $2.5MM to build at $450 sqft.  The after-build-value would be around $5.8MM.  The margin would be about $2MM.  There are other smaller deals as well to buy a tear down for $300K to $500K and build back at an after-build-value of about $1.2MM and change to $2.5MM.

It would be great to discuss these opportunities if you are looking to invest and need a licensed builder to work with who is experienced and has the research done on the St Pete and Tampa markets.

I'm wondering what most investors in Florida are using for sales agreements.

Are investors typically using a copyrighted Realtor contract?

Hi All,

Like many people needing to do a 1031, I am skeptical and concerned about scams.  

How should I choose a true Qualified Intermediary and know I am getting someone good at a reasonable price and know I wont get scammed?

Because my transaction is fairly simple, could I just do the papers myself and simply have the title/escrow companies transfer the funds from one office to another?

Or maybe I could use a QI to do my paperwork, but never send the money to the QI.  Instead, just have one title company send the sales proceeds to the other title company for the purchase?

The details about my 1031 are fairly simple... I have a vacant lot I am about to put under contract to sell in St Augustine Fl. I also have identified a vacant lot in Tampa Fl to purchase and negotiated verbally that is about to put in writing under contract. Both properties are selling/purchasing for $65K.

Thank you in advance for any help.

 Very good to know.  "Securities" is a new area for me so I appreciate the insight.