All Forum Posts by: Alberto M.

If you could start all over again from the beginning, but this time with all the knowledge and experience you have now, what would you do differently this time?

@Steve Burt

Hello Steve,

I have been working in multifamily in Miami-Dade and Broward County for the past 5 years.

I have my license as a real estate associate and a property management company.

I’m also a syndicator and acquire portfolios with a pool of investors.

Let me know if I can be of any help.

@John Erlanger

Hi john. You are right, I used the wrong word to define my analysis process. What I meant by filtering looking at cap rates is my personal first step to see if the portfolio meet my fund’s requirements. We are constantly looking at properties in different sub markets and need to understand if (as you said it) the subject property is trading at market, above or below and figure out if the price is right.

Do you have a specific strategy?

Thanks for the comment

@Steven Wilson

I like that! Great approach

When someone sends me an off-market deal, I find a property on LoopNet or on the MLS, the first metric I look for (kind of my first filter) is the cap rate. If it has a competitive cap (using MY expense ratio and the current market conditions) then we move to the next filter.

In this second filter I estimate the loan terms (based on the market, my experience and the property), and with that we come up with a CoC (or cash-on-cash) and IRR (or Internal rate of return). If these numbers are aligned with what we look for then we move forward to the next filters.

On my third filter, we schedule a touring of the property and perform a physical preliminar analysis of the property (not an inspection) to figure out how much CapEx will be necessary. If it all comes positive, we submit an offer.

Once we have the property under contract we start due diligence (reconcile financials, rent roll analysis, inspections, appraisers, estoppel certificates, etc etc).

If no surprises or negotiated a reduction due to a surprise, we move forward to the closing.

In parallel I am working with the lenders to find the best financing terms possible.

It’s important to know that these steps work only if you already know the market you are investing in. If you don’t really know the market, surround yourself with people that do and start learning about cap rates in that market, vacancy rates, rental growth rates, unemployment rates, employers (job generators), governmental policies and regulations, and so on.

This is just a short version of the way I analyze a deal and I hope it helps. Feel free to reach out if you have questions or want me to elaborate more on a specific point.

What is your purchase process? I’m interesting to know !

@Leonardo Maia

Just google Brokerage companies in XXX and call them. Go see their offices, meet them, ask questions and get a feeling on their expertise in the market you are trying to enter. I would start with big name brokerage firms as some of them have different departments and agents that specialize in different type of assets (residential, commercial, industrial, etc).

The best way to go about it is by learning yourself about the market you are trying to enter, that way, when you talk to someone that says they know about it, you will be able to figure out if they do have experience or not.

Some investors try to find the “perfect agent” with access to off-market deals, amazing opportunities, and so on. But the reality is that there’s no such a thing. Of course there are great experienced agents that will work with you and help you finding good deals, but don’t rely your future or dreams on them, be proactive.

This is why I encourage you to dig deeper into the industry, and here some pieces of advice:

1. Get involve in your local market, assist to government events (now they are mostly virtual which is easier to be present) to learn about the projects the government has, new regulations, new highways, new developments approved, etc.

2. Read the news. I use the app “the real deal” which talks about real estate news in Florida. I also read every morning apple news , but I go to topics and have Real Estate as my main topic so all the news are related to that topic.

3. Learn, learn and learn. Here at BP you can find really valuable information and real life anecdotes from people like you and me that are in real estate. I also listen to their podcast every time I’m in the car.

Also, read books on real estate or take online courses. I recommend Udemy for the courses.

4. Network. Just like you are doing it now, talk to people, ask for advice, be a sponge and even though you may already know a lot, pretend you don’t, and let people tell you their perspective on topics of your interest. You will see how that will change your view and a lot of times, help you avoid mistakes and have a more objective opinion on such topics.

Best of lucks!!

@Leonardo Maia

I see. That’s a good idea.

With that in mind I would focus on a condo with low HOA (as they tend to get very high down here in south Florida which results in squeezing most, if not all, your profits).

I’m not very familiar with the Boca market but I would suggest to contact a local agent in the specific market you want to buy.

Also, having a team you can trust is key. I have a few contractors that could help you with the repairs, and if you are looking for Miami dade or Broward county I could assist you.

For BRRR right now is a good time in south Florida due to the fact that prices are going down for condos and you can get a good deal for your money.

The challenge is that rents are also going down.

Based on your price point and been realistic on my experience, I would focus on buying something that after paying all expenses (mortgage, taxes, insurance, repairs, etc) leaves you with $50-100 per month profit. I don’t know what your expectations are but it’s important that are aliened with what the market can offer.

Good luck!

A friend of mine just started working for this crowdfunding company that basically connects investors with real estate projects (income producing portfolio or development). I manage a syndication business and getting intrigue and kind of interested about exploring fund raising through these platforms.

I currently fund my portfolios with my capital, friends and family investors and referrals. Has anyone in BP ever raised capital from these platforms? Can you share you experience? Pros and cons? Any advice?

@Leonardo Maia

Welcome Leonardo!

That’s a tricky question, as it has a lot to do with your risk appetite, asset class, and investment strategy.

I my opinion, however, some good, strong markets are:

- Allapattah

- El Portal

- Homestead

- Fort Lauderdale

- Hollywood

Good luck!

@John Soba

Hey John! Welcome to Florida !

I live in Miami but invest mostly in Broward. I manage a syndication business and always open for JVs, network, learn and grow. Let’s try and set up some time to connect! Take care