Looking to invest in a New Development in Miami.
Investor · Astoria, NY · Member since 2016 · 46 posts · 21 votes
Looking to invest in a New Development in Miami.
Most Popular Reply
Investor · Member since 2022 · 1k+ posts · 754 votes
3yI don’t think I would ever invest in a metro market.
16 Replies
- Real Estate Agent · Miami · Member since 2023 · 20 posts · 10 votes3y
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
- Investor · Astoria, NY · Member since 2016 · 46 posts · 21 votes3y
Quote from @Joshua Townsley:
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
If at the very least it pays for itself, I see upside equity potential and/ or resale value there.... and a place to stay in Miami.
- Investor · Member since 2022 · 1k+ posts · 754 votes3y
I don’t think I would ever invest in a metro market.
- Investor · Astoria, NY · Member since 2016 · 46 posts · 21 votes3y
Quote from @Brooklyn McCarty:
I don’t think I would ever invest in a metro market.
This would be my first!
- Real Estate Agent · Miami · Member since 2023 · 20 posts · 10 votes3y
Quote from @Thomas Tsitouridis:
Quote from @Joshua Townsley:
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
If at the very least it pays for itself, I see upside equity potential and/ or resale value there.... and a place to stay in Miami.
Also very fair points. By the time they finish building it anyways the property values will have likely doubled at the rate we are going down here... and a new vacation home is never a bad thing lol
- 3yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Nope. You might as well just buy into an REIT.
It sounds like you have very little control over most things. Also, their PDF download links are broken so I can't read anything about it.
- Realtor · Miami, FL · Member since 2019 · 46 posts · 22 votes3y
Quote from @Thomas Tsitouridis:
This project features 1 of the 3 buildings with one being ONLY for AirBnb purposes. Supposedly first of it's kind in the Miami market that is centrally managed & has a partnership with AirBnB for super host status from what they say.
Looks like a great project. Wondering if anyone has invested in a new development like that as I've only had experience with existing structure purchases, BRRRR and STR of SFR.
Here is the project:
Looking to purchase a unit for $670,000
Sleeps 4 with approx. 614SF and one of the few units with outdoor terrace and cooking area
From developer:
PAYMENT STRUCTURE
10% @ contract signing
10% in 6 months from contracts
10% @ Groundbreaking - Summer 2024
10% @ anniversary of Groundbreaking
60% @ closing 2/3 Q 2027
Let me know your thoughts here!
From what I've found, Miami as a whole averages approx. 80% occupancy @$300/ night
Appreciate any help here...... as I'm typically one to do the leg work. This is more of a, sit back, we'll do it for you approach.
P.S. My broker bought 2units 2 years ago and has $400k in equity already (approx. 300-400k per unit then)
Hi @Thomas Tsitouridis I think you are referring to West 11th, e11even residences is sold out.
Let me know if you have any questions I have a client under reservation right now.
West 11th is the building partnered with Airbnb. They launched sales 2 weeks ago and are already at 45% contracts.
Send me a message if you have any questions, I can be your local boots on the ground.
- Realtor · Miami, FL · Member since 2019 · 46 posts · 22 votes3yIf you are an investor and you buy a Miami condo, you normally have two options: sell it upon delivery and never use it, or rent it long term and never get to use it yourself. With short-term rentals, you can rent it and get to use it yourself, and somebody else is paying for your property.
Quote from @Joshua Townsley:
Quote from @Thomas Tsitouridis:
Quote from @Joshua Townsley:
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
If at the very least it pays for itself, I see upside equity potential and/ or resale value there.... and a place to stay in Miami.
Also very fair points. By the time they finish building it anyways the property values will have likely doubled at the rate we are going down here... and a new vacation home is never a bad thing lol
- Investor · Astoria, NY · Member since 2016 · 46 posts · 21 votes3y
Quote from @Michael Baum:
Nope. You might as well just buy into an REIT.
It sounds like you have very little control over most things. Also, their PDF download links are broken so I can't read anything about it.
That's what I don't like. Not having control, which is why I am hesitant.
- Investor · Astoria, NY · Member since 2016 · 46 posts · 21 votes3y
Quote from @Joe Biscaha:
If you are an investor and you buy a Miami condo, you normally have two options: sell it upon delivery and never use it, or rent it long term and never get to use it yourself. With short-term rentals, you can rent it and get to use it yourself, and somebody else is paying for your property.Quote from @Joshua Townsley:
Quote from @Thomas Tsitouridis:
Quote from @Joshua Townsley:
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
If at the very least it pays for itself, I see upside equity potential and/ or resale value there.... and a place to stay in Miami.
Also very fair points. By the time they finish building it anyways the property values will have likely doubled at the rate we are going down here... and a new vacation home is never a bad thing lol
Makes sense, just like my other STR's.
- 3yMalgorzata SadowskaPro MemberReal Estate Agent · Miami, FL · Member since 2017 · 506 posts · 205 votes
Would make sense if you can set it up properly - use efficient & effective management and make it more interesting / exciting / instagram-able then the competition. "Be different" and your investment will do well (even if the competition doesn't). Happy to share additional ideas - lots to consider!
- 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Thomas Tsitouridis:
This project features 1 of the 3 buildings with one being ONLY for AirBnb purposes. Supposedly first of it's kind in the Miami market that is centrally managed & has a partnership with AirBnB for super host status from what they say.
Looks like a great project. Wondering if anyone has invested in a new development like that as I've only had experience with existing structure purchases, BRRRR and STR of SFR.
Here is the project:
Looking to purchase a unit for $670,000
Sleeps 4 with approx. 614SF and one of the few units with outdoor terrace and cooking area
From developer:
PAYMENT STRUCTURE
10% @ contract signing
10% in 6 months from contracts
10% @ Groundbreaking - Summer 2024
10% @ anniversary of Groundbreaking
60% @ closing 2/3 Q 2027
Let me know your thoughts here!
From what I've found, Miami as a whole averages approx. 80% occupancy @$300/ night
Appreciate any help here...... as I'm typically one to do the leg work. This is more of a, sit back, we'll do it for you approach.
P.S. My broker bought 2units 2 years ago and has $400k in equity already (approx. 300-400k per unit then)
did you ever purchase this? how is this going
Section 8 Launch52 Reviews - Investor · Astoria, NY · Member since 2016 · 46 posts · 21 votes2y
Quote from @Robert Ellis:
Quote from @Thomas Tsitouridis:
This project features 1 of the 3 buildings with one being ONLY for AirBnb purposes. Supposedly first of it's kind in the Miami market that is centrally managed & has a partnership with AirBnB for super host status from what they say.
Looks like a great project. Wondering if anyone has invested in a new development like that as I've only had experience with existing structure purchases, BRRRR and STR of SFR.
Here is the project:
Looking to purchase a unit for $670,000
Sleeps 4 with approx. 614SF and one of the few units with outdoor terrace and cooking area
From developer:
PAYMENT STRUCTURE
10% @ contract signing
10% in 6 months from contracts
10% @ Groundbreaking - Summer 2024
10% @ anniversary of Groundbreaking
60% @ closing 2/3 Q 2027
Let me know your thoughts here!
From what I've found, Miami as a whole averages approx. 80% occupancy @$300/ night
Appreciate any help here...... as I'm typically one to do the leg work. This is more of a, sit back, we'll do it for you approach.
P.S. My broker bought 2units 2 years ago and has $400k in equity already (approx. 300-400k per unit then)
did you ever purchase this? how is this going
Did not go through with the deal! Thought about it and since I’m in the construction business, I’m looking to take more of a hands on approach. Beautiful project though, but don’t see the numbers making sense in something turnkey for me
- 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Thomas Tsitouridis:
Quote from @Robert Ellis:
Quote from @Thomas Tsitouridis:
This project features 1 of the 3 buildings with one being ONLY for AirBnb purposes. Supposedly first of it's kind in the Miami market that is centrally managed & has a partnership with AirBnB for super host status from what they say.
Looks like a great project. Wondering if anyone has invested in a new development like that as I've only had experience with existing structure purchases, BRRRR and STR of SFR.
Here is the project:
Looking to purchase a unit for $670,000
Sleeps 4 with approx. 614SF and one of the few units with outdoor terrace and cooking area
From developer:
PAYMENT STRUCTURE
10% @ contract signing
10% in 6 months from contracts
10% @ Groundbreaking - Summer 2024
10% @ anniversary of Groundbreaking
60% @ closing 2/3 Q 2027
Let me know your thoughts here!
From what I've found, Miami as a whole averages approx. 80% occupancy @$300/ night
Appreciate any help here...... as I'm typically one to do the leg work. This is more of a, sit back, we'll do it for you approach.
P.S. My broker bought 2units 2 years ago and has $400k in equity already (approx. 300-400k per unit then)
did you ever purchase this? how is this going
Did not go through with the deal! Thought about it and since I’m in the construction business, I’m looking to take more of a hands on approach. Beautiful project though, but don’t see the numbers making sense in something turnkey for me
I'll shoot you a PM we have a similar project we are putting together in Miami and starting to go directly to land owners for equity contributions to development deals to bridge the gap and put this together.
Section 8 Launch52 Reviews - 2yMalgorzata SadowskaPro MemberReal Estate Agent · Miami, FL · Member since 2017 · 506 posts · 205 votes
Quote from @Robert Ellis:
Quote from @Thomas Tsitouridis:
Quote from @Robert Ellis:
Quote from @Thomas Tsitouridis:
This project features 1 of the 3 buildings with one being ONLY for AirBnb purposes. Supposedly first of it's kind in the Miami market that is centrally managed & has a partnership with AirBnB for super host status from what they say.
Looks like a great project. Wondering if anyone has invested in a new development like that as I've only had experience with existing structure purchases, BRRRR and STR of SFR.
Here is the project:
Looking to purchase a unit for $670,000
Sleeps 4 with approx. 614SF and one of the few units with outdoor terrace and cooking area
From developer:
PAYMENT STRUCTURE
10% @ contract signing
10% in 6 months from contracts
10% @ Groundbreaking - Summer 2024
10% @ anniversary of Groundbreaking
60% @ closing 2/3 Q 2027
Let me know your thoughts here!
From what I've found, Miami as a whole averages approx. 80% occupancy @$300/ night
Appreciate any help here...... as I'm typically one to do the leg work. This is more of a, sit back, we'll do it for you approach.
P.S. My broker bought 2units 2 years ago and has $400k in equity already (approx. 300-400k per unit then)
did you ever purchase this? how is this going
Did not go through with the deal! Thought about it and since I’m in the construction business, I’m looking to take more of a hands on approach. Beautiful project though, but don’t see the numbers making sense in something turnkey for me
I'll shoot you a PM we have a similar project we are putting together in Miami and starting to go directly to land owners for equity contributions to development deals to bridge the gap and put this together.
would love info on your project!
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