SWFL REIA: 2018

Thursday 27 December 2018

Investing in Real Estate Rentals

Investing in Real Estate Rentals: You Can Gain Wealth.

If you’re looking to amass a fortune during your lifetime, real estate investing is a smart option. By investing in real estate rentals, you and your loved ones can enjoy the peace of mind knowing that you’re investing in something tangible and within your control. Unlike stocks and bonds, where some CEO is making decisions using your investment dollars, real estate rentals investing gives you the power of its success or failure. To get started, here are some things you should know about investing in real estate rentals.

Investing in Real Estate Rentals: How to Determine a Good Rental Property

In order to ensure maximum occupancy rates and cash flow, it’s important to know how to determine a good rental property. There are several things to consider whenever you’re deciding where to buy a property for your rental profile.

1. Local Amenities

Prospective tenants look for local amenities, so you should look for the same in your rental properties. Amenities such as nearby parks and playgrounds, local coffee shops and grocery stores are positive signs. If there is a neighborhood watch program, street lamps or a nearby police station, these amenities can be highlighted when you advertise the property for rent.

2. Good Schools

If you’re hoping to attract families for your rental, try to buy in areas with good school ratings. And, as you may know, families with children tend to rent long-term instead of moving around frequently.

3. Opportunity For Cash Flow

If you’re hoping to generate some cash flow from your rental in addition to the appreciation value, you should factor that in when you decide whether or not to buy a rental property. Factor in any monthly costs you’ll incur, such as property management fees or utilities. Even if you only generate a few hundred dollars in positive cash flow, that can make it worth it to invest in that rental property.

Investing in Real Estate Rentals: Investment Strategy

One of the most popular rental property investment strategies is the BRRR method. BRRR stands for buy, renovate, rent, refinance. It’s popular because it works. The best thing is, you can use this method on any rental property, even if it’s a C or D class property. With the BRRR method, you improve a distressed property by rehabbing it. You then rent it out at market rates. Since the property is now worth considerably more than what you paid for it, you can then have it refinanced and pocket the difference. With the extra cash, you can make a down payment on a second property, use the BRRR method on that property, and so on. This rental property investment strategy is a great way to get in on the real estate market from the ground floor and work your way up to owning multi-family real estate properties some day.

Investing in Real Estate Rentals: Tax Deductions on Real Estate Rentals

Once you own your first real estate rental property, you’ll be able to benefit from many tax deductions you’re entitled to. For example, you can deduct property management fees, property repair expenses, advertising fees, and any software you have to subscribe to in order to efficiently run your real estate investment operation. These deductions help to offset the profits you make from your real estate rentals, as well as other income you receive from other sources. There are lots of tax deductions to know about, so the smart thing is to hire a tax professional who is experienced with real estate investing. This will ensure that your deductions comply with all the tax regulations. It will also help make sure that you get to take advantage of every single deduction you’re allowed to take.

Investing in real estate rentals is a great way to set you and your family up for financial success. Real estate has always been a sound investment, but when you educate yourself and use smart real estate strategies, you stand to make larger gains. The best piece of advice for real estate rentals investments is to surround yourself with a trusted team that can help educate you and support your goals

SWFL REIA is dedicated to helping members make profitable and well-thought-out residential investment choices via our content-rich meeting and collaboration with like-minded investors.

The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.

Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.

To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.

Click here for information about our nighttime general meeting.

One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.

The post Investing in Real Estate Rentals appeared first on SWFL Real Estate Investing.

source https://swflreia.com/2018/12/27/investing-in-real-estate-rentals/

Friday 21 December 2018

Multi Family vs Single Family Investment

Multi Family vs Single Family Investment: Which Is the Right Real Estate Investment for You?

Real estate investment is a reliable way of diversifying your investment portfolio. The right residential real estate investment option depends on your long-term financial objectives and the time you’re willing to dedicate to managing and maintaining the property.

However, once you’ve decided to invest in real estate, you’ll need to make some tough decisions. One primal question is, multi family Vs Single Family investment, which will work best for you? Multi family and single family investments are appealing to real estate investors based on investing preferences and personal finances. Here is a detailed look at the differences in the two investment options – Multi Family Vs Single Family Investment – to help you make an informed investment decision.

Multi Family vs Single Family Investment: Multi Family Investment

The multi family investment option presents you a more reliable source of income. It’s generally assumed that multi family homes are more beneficial than single family homes. For example, while multi family units will rarely become completely unoccupied, owners of single family homes can go for months without generating any income when their units are vacant. Moreover, the multi family homes tend to be cheaper than the single family units, and thus fill up faster.

As a first-time investor in real estate, you can purchase a multi family home and save money by living in one of your units. Living on your property will also help you reduce the extra costs associated with management and maintenance of the property.

You can own multiple multi family units with fewer mortgage loans compared to single family properties. For example, an investor who has purchased five single family properties will be required to obtain five separate mortgages. He/she will also be required to make five monthly payments, five insurance payments, and five quarterly property tax payments.

The process of applying and paying for five separate mortgage loans is not only time-consuming but also frustrating. On the other hand, if you invest in a five-unit apartment building, you’ll only deal with one mortgage loan, one property insurance, and one property tax.

Multi Family vs Single Family Investment: Single Family Investment

One of the biggest advantages of investing in single family homes is the potential to purchase a property below the fair market value. The strategy means that profits can be made and lost when the properties are being sold. As an investor, you gain equity in the percentage below market value from day one.

For example, if the worth of a single family home is $100,000, but you purchase it for 80% of the market value, you gain 20% percent equity as soon as you make the purchase. Meaning, you will pay $80,000 and gain a $20,000 equity stake in the single family home.

In addition, multi family homes are less available in many areas. Hence, they are sold above their current market value. The multi family home sales prices tend to remain above the current market value due to the prospect that future improvements or remodeling projects will lead to higher rents.

High-end single family homes occupied by qualified tenants have a lower turnover compared to multi family homes. The cost of managing a residential real estate property is based on the tenant population along with management logistics.

Therefore, in such elegant single family homes, renters who view their living conditions as permanent will have a sense of pride in maintaining where they live themselves. As a result, the investor will incur lesser maintenance costs and repairs. Single family tenants normally don’t outgrow their living spaces quickly enough because they enjoy additional bedrooms, basement, and a backyard.

Multi Family vs Single Family Investment: The Bottom Line?

There are differences in multi family vs single family investment in residential properties in the SWFL area. SWFL REIA is dedicated to helping members make profitable and well-thought-out residential investment choices via our content-rich meeting and collaboration with like-minded investors.

Members benefit from exceptional networking and educational investment materials so they can either invest in multi family or single family properties. Those who seek to build a balanced investment portfolio can also combine multi family and single family investment approaches.
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.

Click here for information about our nighttime general meeting.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.

The post Multi Family vs Single Family Investment appeared first on SWFL Real Estate Investing.

source https://swflreia.com/2018/12/21/multi-family-vs-single-family-investment/

Thursday 6 December 2018

November 2018 Foreclosure report for Lee County

Where does the November 2018 Foreclosure report for Lee County come from?

We download from public records and trend with Microsoft Excel. We have been doing this since 2007. This report has value because it is a leading indicator of bank-owned homes coming to market.

Compiled and analyzed by Jeff Tumbarello.

November 2018 Foreclosure report for Lee County: Trends at a glance.

Lis Pendens:

November 2018: 102 Mortgage related Lis Pendens
October 2018: 91 Mortgage related Lis Pendens
November 2017: 33 Mortgage related Lis Pendens

Certificates of Title:

November 2018: 41 Certificates of Title were conveyed.
October 2018: 68 Certificates of Title were conveyed.
September 2017: 51 Certificates of Title were conveyed.

November 2018 Foreclosure report for Lee County: Top Ten Filers for Lis Pendens.

BANK OF NEW YORK MELLON	9	8.82%
WELLS FARGO BANK N A	6	5.88%
FREEDOM MORTGAGE CORPORATION	5	4.90%
LAKEVIEW LOAN SERVICING LLC	5	4.90%
NATIONSTAR MORTGAGE LLC MR COOPER	5	4.90%
BANK OF AMERICA N A	4	3.92%
PENNYMAC LOAN SERVICES LLC	4	3.92%
REGIONS BANK AMSOUTH BANK	3	2.94%
FEDERAL NATIONAL MORTGAGE ASSOCIATION	2	1.96%
DITECH FINANCIAL LLC	2	1.96%

November 2018 Foreclosure report for Lee County: Charts.

This chart shows the total amount of deeds transferred via a certificate of title.

This chart shows the total amount of the deeds transferred via a certificate of title since 2015.

This chart shows the current and the last trend for Lis Pendens filings in Lee County Florida.

This chart shows the Lis Pendens filings for Lee County Florida since 2015.

This Chart shows the Lis Pendens filings for 2018.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.

Click here for information about our nighttime general meeting.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.

Subject: November 2018 Foreclosure report for Lee County

The post November 2018 Foreclosure report for Lee County appeared first on SWFL Real Estate Investing.

source https://swflreia.com/2018/12/06/november-2018-foreclosure-report-for-lee-county/

Tuesday 27 November 2018

The future of the SWFL housing market 2019

The future of the SWFL housing market 2019 was presented at the November 2018 SWFL REIA general meeting.

The future of the SWFL housing market 2019 disclosure:

In 2009, I presented a Whitepaper on Lee County Florida from 2009 I have been revisiting this paper recently.
This presentation is my research done for me and shared with you.
This is meant to be a 10,000 sq ft view of the market.
Data came from everywhere… but mainly
- Census Bureau.
- Federal Reserve.
- MLS export.

3 ways to react to change.

Watch it happen.
Complain about it.
Capitalize on it.

Everyone and each generation share common lifecycle characteristics.

Eat Meals.
Make babies.
Live in Real Estate.

Each generation has its own traits and modalities but in the end, we all do the same things.

Where are we now?

Currently, we (SWFL) are a balanced and growing market.
Everyone wants to compare this market to 2005/2006 but currently, we do not share the same metric traits of that market.
Traditionally we have been a retiree based market. Timing the birth rate of people turning 62 timed the last cycle almost perfectly.

The future of the SWFL housing market 2019: How did we get here?

2001 thru 2003 we experienced a growth cycle in SWFL. In 2004 thru 2005 this transformed into a speculative mania.
An economic bubble or asset bubble is trading in an asset at a price or price range that strongly exceeds the asset’s intrinsic value.
For example, a 330k North Cape Coral home that rented for $1,600 a month.

The future of the SWFL housing market 2019: Difference in demand.

Check out the growth 2005 thru 2005, by percentages it is astounding.

The sharp jump from 2014 forward shows growth but the percentages are not in line with a mania.

The market bottomed in August of 2008. Prices have risen since then.
Of recent the average price is flat and the median price is still rising.

The future of the SWFL housing market 2019: Potential negative disruptive factors.

Change in Demographic Demand.
Easy leverage causes a speculative mania to form.
Random external events (black swans).

The future of the SWFL housing market 2019: Are foreclosures an issue?

What does this spike 2016 mean?

Lending was loosened.
The amount of the defaults is at a pace that the market can absorb.

There have just not been enough mortgages since 2008 to drive another wave as we seen before. Below is the last cycle.

The future of the SWFL housing market 2019: Demographic Trends

Every generation is traveling across a level of time.
Millennials are on the cusp of surpassing Baby Boomers as the nation’s largest living adult generation. Millennial’s, whom we define as ages 20 to 35 in 2016.
Millennials are expected to overtake the Boomers in population in 2019 as their numbers swell to 73 million and Boomer’s decline to 72 million.
Generation X (ages 36 to 51 in 2016) is projected to pass the Boomers in population by 2028.
The Millennial generation continues to grow as young immigrants expand its ranks.
Note the Millennial and Gen Z generation are always grouped together but they are very different. Think 18 years old versus 30 years old.
From 1965 to 1999 there were 140 million babies born.
You also cannot ignore the impact of immigration and foreign investment.
One percent of the U.S. baby boomer population controls about one-third of that generation’s assets and the richest 10 percent of the population own more than two-thirds
While the Millennial have had a later start in the life cycle, the boomers are also retiring much later. They are balancing each other out.

The future of the SWFL housing market 2019: Some perspective on 55 and up assets.

While they will not buying into the market in growing numbers, they will be still participating in our local economy.
There will be the internal retiree migration.
- Many start in a house or condo that is not age restricted.
- They then transition to an age-restricted community.

The future of the SWFL housing market 2019: The local economy.

It is basically two things happening at once:

The Boomers will spend less money.
The millennials will spend more money.

The future of the SWFL housing market 2019: The millennials are making more money.

That generation has experienced the most wage growth of recent. They all do not live in the basement as social media would have you believe. They are also heading up more households.

They are also migrating in large numbers. SWFL is one of the destinations.

The future of the SWFL housing market 2019: The Macro Picture

A rising tide lifts all boats The aphorism “a rising tide lifts all boats” is associated with the idea that improvements in the general economy will benefit all participants in that economy, and that economic policy, particularly government economic policy, should, therefore, focus on the general macroeconomic environment first and foremost.

First, let us start with the money supply.

M0 = Real Currency. In private and Bank Hands
M1 Real Currency Plus Demand Deposits ( real money) and Travelers Checks

In response to the 2008 financial crisis, the money supply was expanded to stabilize the economy. Here is the long view.

Here is the 10-year view.

Here is the 5-year view.

Here is the one year view.

Notice how the expansion be ratios is slowing down. Traditional this causes a pullback in the economy. There is not much traditional about the economy anymore.

The future of the SWFL housing market 2019: Macro debt levels.

Commercial and Industrial Loans, All Commercial Banks

Total Consumer Credit Owned and Securitized, Outstanding

Charge-Off Rate on Credit Card Loans, All Commercial Banks. How are the consumers performing with this debt?

How about Student loan debt? This will impact the ability of the Millenials to buy and how much they can buy.

How about 1 to 4 family residential debt levels? This shows how under or over-leveraged this is in relation to the economy.

The only debt level that has not blown thru the peaks of the last cycle is this asset class. This could change as the cycle goes further. Dodd-Frank is impeding this.

The future of the SWFL housing market 2019: Changes in the Real Estate Industry.

There are no information gatekeepers anymore.
The transition from a low to moderate interest rate environment will have challenges.
Technology disruption…
AI (artificial intelligence) being able to determine the difference between intent and interest is going to be the key to profitability.

The future of the SWFL housing market 2019: Some thoughts on Commercial Real Estate.

Retail will need to change. Call it the Amazon effect.
Also, the sharing economy (Uber) will change this space.

The following slides were from an SME from the Federal Reserve at the CIP Group that meets in the morning. If you are into commercial, it is a great group. Click here for more information.

Office Space will be impacted by the changing economy.

As interest rates rise many of the low cap rate investments will feel some pain.

Notes: Commercial is in a period of change. Industrial seems to be the most stable.

The future of the SWFL housing market 2019: Other trends of note.

80 percent of the worlds internet traffic will be video by 2019.
With a $205 billion Internet, ad spend compared to a TV ad spend of $192 billion, global Internet advertising spends exceeded TV advertising spend for the very first time in 2017.
Over 52 percent of the traffic in 2019 is expected to Social Media.

The future of the SWFL housing market 2019: things to watch.

Can and how do we transition from a retiree driven community to one more balanced?
Will we overbuild?
Will we over lever?
How will the 55 plus communities fare with lesser demand?

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.

Click here for information about our nighttime general meeting.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.

Subject: The future of the SWFL housing market 2019

The post The future of the SWFL housing market 2019 appeared first on SWFL Real Estate Investing.

source https://swflreia.com/2018/11/27/the-future-of-the-swfl-housing-market-2019/

Friday 16 November 2018

Investor Financing with Rick Altemeyer of Residential Home Funding

Investor Financing with Rick Altemeyer of Residential Home Funding Interview.

Rick has been serving the mortgage needs of Southwest Florida for over 20 years. Rick is happily married to Kim, and they have two children. Rick enjoys boating, golf, and tennis when the weather permits. Rick is a graduate of Indiana University with majors in Accounting and Marketing. Sigma Nu was his Fraternity, and also played college football and track.

Need to get in touch with Rick? CLICK HERE

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.

Click here for information about our nighttime general meeting.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.

Subject: Investor Financing with Rick Altemeyer of Residential Home Funding

The post Investor Financing with Rick Altemeyer of Residential Home Funding appeared first on SWFL Real Estate Investing.

source https://swflreia.com/2018/11/16/investor-financing-with-rick-altemeyer-of-residential-home-funding/

Wednesday 14 November 2018

Mario Datillo on Mobile Home Park Investing

Mr. Mario Dattilo was born in Minnesota and currently resides in Florida. He has over 10 years of real estate investment experience. Mario has led the formation of strategic partnerships to acquire single-family homes with local municipalities and non-profits to create both profitable and a positive impact on housing communities. He was previously a managing partner of a real estate brokerage and currently holds a real estate license in the state of Florida.

Mario Datillo has co-managed REACQ’s residential, multifamily, and commercial real estate portfolios since inception. His current role as Vice President includes acquisitions, investor relations, and asset management.

Have a deal you want to send to Mario Datillo? Get his email address here.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.

Click here for information about our nighttime general meeting.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.

Subject: Interview with Mario Datillo

The post Mario Datillo on Mobile Home Park Investing appeared first on SWFL Real Estate Investing.

source https://swflreia.com/2018/11/14/mario-datillo-on-mobile-home-park-investing/

Monday 12 November 2018

Market Metrics for Lee County Residential October 2018

Quick update on Market Metrics for Lee County Residential October 2018.

There is a lot of interesting things going on, you have two different demographics trends at play. We will discuss them at the SWFL REIA General Meeting

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.

Click here for information about our nighttime general meeting.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.

Subject: Lee County Residential October 2018

The post Market Metrics for Lee County Residential October 2018 appeared first on SWFL Real Estate Investing.

source https://swflreia.com/2018/11/12/lee-county-residential-october-2018/

Friday 9 November 2018

Stu Silver on Mobile Home Park Investing

Stu Silver is one of the most well known and successful investors in the SWFL. Stu Silver recently was part of a panel about Mobile Home Park investing at the SWFL REIA General Meeting.

Interested in his books? Click here.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.

Click here for information about our nighttime general meeting.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.

Subject: Interview with Stu Silver

The post Stu Silver on Mobile Home Park Investing appeared first on SWFL Real Estate Investing.

source https://swflreia.com/2018/11/09/interview-with-stu-silver/