All Forum Posts by: Stephen David Smith Jr.

This particular property is being used as a STR with ownership usage blended. I have a condo I represented on Lido Key that has a similar approach by a New York investor I work with but is in a much more premium area on the beach. The Beach condo during the seasonal events/boat races rents for $25k-$30k a month.

Good Morning @Nathan Broekhuizen,

Those are great areas that I thoroughly enjoy working and investing in. Let me know when we can connect and discuss your goals in greater detail ie. cash on cash, cap rate, appetite for renovations, and any others you may have.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,100,000
Cash invested: $1,100,000

Contributors:
Stephen David Smith Jr.

Located “West of the Trail” in the coveted Oyster Bay area, this beautiful 4-bedroom family home, has 3 full baths and 2 bonus rooms. Just minutes from the world-renowned Siesta Key Beach, lively Siesta Key Village, the stately, but relaxed Field Club, Southside Village, downtown Sarasota, a plethora of dining options and so much more.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,100,000
Cash invested: $1,100,000

Contributors:
Stephen David Smith Jr.

Located “West of the Trail” in the coveted Oyster Bay area, this move-in ready, beautiful 4-bedroom family home, has 3 full baths and 2 bonus rooms. The smaller 10’ x 15’ retreat is located off the master bedroom, perfect to utilize as a boutique gym, nursery, or office. The larger 17’ x 24’ ft bonus room is perfect for sleepovers, a large gym or even as a small business office! Kenilworth Estates, located just off of the tree canopied street of Camino Real, is home to a multitude of young and old families in which it is common to greet neighbors by name and have coordinated shaved ice truck street “parties”. The home’s open floor plan is inviting and exudes comfortable modern elegance. The updated, spacious and well-appointed Chef’s kitchen includes 42” steel gloss thermoform upper cabinets, under cabinet lighting, soft close, dove tailed drawers, spice drawer and cookware pullouts, stainless steel double ovens, 36” KitchenAid induction cooktop, wine fridge and large quartz island perfect for entertaining or as a landing area for after school homework! One bedroom, currently used as a study, and guest bath are located downstairs, with the luxurious master retreat, two additional bedrooms and bonus rooms located on the second floor. The 25’ x 12’ loft on the second floor, adjacent to the balcony, is currently set up as a reading area, but would also be a great space to relax and sit back as you listen to your favorite music genre or test your competitiveness in your personal game room! Attend the neighborhood A-rated schools near-by or it is just a short drive to the national and state highly ranked Pine View School for the Gifted. Outdoor living includes a southern exposure, screened-in pool area with covered lanai, heated salt-water pool/spa, and is fully fenced in with mature landscaping for added privacy. The 3-car garage is perfect for added storage. Staycation ALL year long as you are just minutes from the world-renowned Siesta Key Beach, lively Siesta Key Village, the stately, but relaxed Field Club, Southside Village, downtown Sarasota, a plethora of dining options and so much more! Make your dream a reality and call this residence your home…

@Matt Devincenzo,

The leases are month to month per his post, so there should be flexibility. It seems the seller is just hedging against potential losses if all contract contingencies are not met before this closes.

@Ryan Fisher

You typically want buyer approval for any changes of leases during the contract period included in the contract terms. If there is a large concern due to tenant placement not being of the quality you would like I would have a Real Estate attorney review the terms of the month-to-month lease to see what landlord rights are vs tenant and if you need new leases moving forward, as well as obtain a new estoppel from the new tenant placement if that moves forward.

In regards to concern for the tenant on raising rents to market or vacancy and new placement, it may be beneficial to be transparent/advise to them as to the direction of the property and have the seller notify them of the new owner and their intended direction to ensure the tenant is still ok to move forward (I would wait to do this after all contract contingencies are met and closing is moving forward). Having a tenant that will stay is better than a possible emotional situation just in my opinion. None of this takes into account eviction moratoriums etc. we have in our current environment.

My opinion is people with experience aren't going to take the liability in the JV to have someone less experienced and qualified working with them. JV's should be structured as a win win, my question would be what does the less seasoned investor bring to the table. On the topic of new investors JVing, go for it however I see this as a massively risky approach and would never advise anyone to do it.

What most forget about JV's due to their focus on raising capital, flexibility, or broadening your investment horizon is that it is a partnership and if you think Real Estate investing my be stressful at times throw a few inexperienced partners in along with money they are looking at and having to work together as well as manage emotions and you have a perfect storm.

The point I am trying to make is the successful JV's I see are comprised of experienced investors who have opened their financials to each other, as well as background checks or any other verification of finances and more importantly character to have a comfort level with one another. Very few if any do their due diligence prior to a JV since they are so focused on due diligence for the property. In the end if the JV fails it all fails.

Insurance Basics

The key challenge with homeowners insurance and trusts comes from the nature of insurance. When you purchase a homeowners policy, you might think you are insuring your home, but you aren't. You are insuring yourself (or whoever owns the policy) against something bad happening to the home or at the home. When you throw a trust into the mix, you end up muddying the picture of who is insured and who isn't.

Whether or not your insurance agent will write an insurance policy with your trust named, it might not be a good idea for you. If your trust is the only entity on your policy, you get no protection. For instance, if a guest comes to the house, you make dinner, and you give them food poisoning, you would technically have no liability coverage. The trust would, but you're the one that made the dinner, so you would have no coverage. On the other hand, the insurer might also not want to extend personal liability coverage to the trust, which could end up being a broad grant of protection.

Writing your trust as the insured party could also interfere with your personal property's coverage. If your trust owns the house, but you own your TV and furniture, those personal property items could end up without coverage if the house burns down. If you want, though, you may be able to write the policy in your own name and have your trust be an "additional insured." This can keep your coverage intact and protect your trust's interests.

Your homeowners insurance isn't the only thing impacted by a trust. It can also cause issues with the title insurance that protects your ownership rights in the property, as well as potentially make it hard for anyone to get title insurance in the future. The examiners who look over properties before issuing title policies may want to see your trust agreement to ensure there aren't any issues that could cloud the title, and this can defeat the trust's ability to protect your privacy. These issues can be handled through the creation of a special nominee partnership, though, although you may want to get an attorney's advice and help.

Hoping all of this was helpful, I went broad to hopefully cover some other topics that may not of came up quite yet.

Good Afternoon,

For taxes go to the county or city property appraiser website and you will have an answer quickly on the tax bill. Insurance I always have my go to local Insurance Agent who advises and quotes my needs, as well as look at savings vs risk. I hope this is helpful, feel free to ask any questions you may have.

Good Afternoon,

My go to attorney is licensed in Real Estate Law and Corporate and Business Law in Florida and New York, he is also a Florida Real Estate Broker who runs his own title company and brokerage. Let me know if this sounds like a fit and I can get contact info to you.