Financial Advisor for Real Estate Investment

[StealthRabbit]

and I have been happy with commercial rentals

1) occupants usually keep the place up, since it is their business location
2) ez to terminate lease and immediately evict IF you have a strong contract
3) ez maint - you are only renting the shell, tenants do improvements and maint of plumbing, elect...
4) Triple net rents, - utilities and tax increases get directly passed on to tenant
5) You can get most of the tax sheltering and write offs of more intensive residential rentals, BUT the secret to all seem to be 'long-term' Happy, and dependable tenants, thus be careful and discerning at that effort - and have a very robust contract, including 'pre-inspection' and qualification process.

AND... do the LLC thing, and don't let the tenants know you are the owner... just be a representative of the owner. (LLC, or corp, or trust)

Carry strong insurance with umbrella liabilities.

Buy 30% under market, if you have to sell (Hopefully not) then use a 1031 exchange if you need to shelter gains, otherwise watch your capital gains, and tailor sale to best optimize a minor tax hit.

[Submariner]

In an apartment building, nothing cleans up a neighborhood like owner-occupied. I have seen Fire Marshals, in mid-sentence completely change their attitude when they realize that a building is owner-occupied. Building inspectors, Housing Authorities, are all much more willing to work with an owner-occupant.

We have learned to set our rent levels at 80% of the neighborhood averages. It keeps long-term renters. Everyone who visits them and asks what they are paying, will further re-enforce that they need to stay put. We have gone as long as three years at a time, where we have not had a single vacancy in an entire building. I much prefer being full 100% of the time; to having the loss of income, advertising, showing a unit, and trying to decide between possible tenants.

Also 'good' tenants who approciate paying low rent levels, will bring to you the next tenant. When they get a better job offer and have to move away, or whatever. The 'happy' tenants will bring their friends around, make introductions and I do not have to advertise or show at all.

I also learned a while back the secret to moving a tenant out quickly. Once it appears obvious that they are not going to move anytime soon, or that they are going to drag an eviction out in court, just offer them cash. One month's worth of rent money if they are out by the weekend. Seeing cash in your hand, will move a set of 'bad' renters quickly. Rather than going the next six months with a court appearance every two weeks, and no rent being paid.

[two talents]

Hello, aaauger. I was looking into financial advisors for real estate and came across you post from 2008. I have a question. In the nearly 3 years since your post regarding financial advisor for real estate, what have to been able to find?

[AONE]

Here in the Central Florida area we have many investors. I always say there are a million ways to make money in RE. Here are some of what is found in our region:

Short term rentals - with the parks and expensive hotels people buy homes and condos and rent them on a weekly basis. It is about 4 times what a long term contract would be for, caveates - mgmt fees, HOA fees, clean up fees, cost of property fro the rental returns, type of properties to buy

Long term - this is a simple deal, buy at a good price where cash flow is pos and keep it rented.

Apartments / multiple - dependent on a mgmt co this can bring in a larger return but the cost can be several million

commercial - relies on the health of business, initial investments are high costs are low and covered mostly by tenants

specialty properties - cell towers, bill boards and so forth. With the digital billboards the art has become much easier as well as the upkeep. Signs can be changed with an upload and remotely

Long term holds - where you buy a property because it is particularly cheap with a great potential. ideally it is rented to cover carrying costs until it is time to sell.... beach properties are excellent with this

Farm land - large tracts are bought - thousands of acres and run for the production, rented to the farmers. great long term growth, very popular now for those with the $$$$

Businesses - buying companies that are producing income from the start

Oil land - the most profitable of the investments with standard investments inthe 100k-a few million returns 15-45% and up. great for those with high tax liabilities as it comes with tax credits


Generally, all the RE investments will run from 5-15% return net net except the last mentioned. As a broker in the central FL area I work with many people that have each decided on what part of the market they want to focus on. I suggest to pick what you like and stick with it. become a master of one and you will win.

I can't speak for other brokers but i don't provide bad insights for one sale because I want more than the one sale. I'd rather have 3% on 20-100 properties than 3% on 1... I'm sure most feel the same way I do.

[JohnFrank]

Hi there!

Whether you choose to invest your money for a number of years or only for a few years, the idea of making your money “turn into” even more money is alluring. Whether you are comfortable watching your money grow just a touch at a time or want to see the thrill of a huge profit, there is a financial advisor who can guide you to the best types of investments for you.

Generally, the faster you want to see a return, the more risk you will have to take, which is one really big reason it makes sense to start saving for retirement as soon as you get your first “real job.”

[Submariner]

Originally Posted by two talents

Hello, aaauger. I was looking into financial advisors for real estate and came across you post from 2008. I have a question. In the nearly 3 years since your post regarding financial advisor for real estate, what have to been able to find?

Should be interesting.

[80skeys]

Your local realtors are the ones who best know the market. They deal with it day in and day out. They know when properties come on that may present a good investment opportunity. So the best thing is to find one who you like and who will keep their eyes open for you.