Category: Wholesale Properties

How to Evaluate A Real Estate Investment Deal in Cape Coral, Florida

This blog was forwarded to me by one of my Wholesale Property Investors, Brandon Mitchell from his Investor Carrot web site.  Timeless information for anyone interested in Investing in Real Estate.  Thanks Brandon:

We talk with lots of people looking to buy real estate investment properties in Cape Coral and surrounding areas. Some of them know what they’re doing… and some of them are still in the learning process.

But, since our entire business is finding great deals… and often passing those deals onto real estate investors like you at huge discounts… I thought it would be a great idea to share with you some resources on how to effectively evaluate a real estate investment deal. This works in any market… Cape Coral, surrounding areas, florida, any other states across the country.

When you really boil it down… evaluating a real estate deal is a pretty simple process. If you’re looking to buy real estate as an investment, wholesale properties, hold them for rent… whatever, one of the most important parts is buying it right (i.e. – not overpaying).

So lets dive in.

How To Evaluate A Real Estate Deal – (for single family houses)

There are just a few main elements when you’re evaluating a deal.

  • Cost of repairs needed to get it back up to good condition
  • The after repair market value of the property (what it’s worth and can sell for today once it’s fixed up)
  • If you’re going to buy and hold for a rental… you need to know what you can rent it out for and what your “debt service” (mortgage payment) will be. Knowing this makes sure you’re buying so the property cash-flows each month

There are other things you can (and should) look at too… but those 3 are the main important things to look at first.

Cost of Repairs

One of the things you should do when you are looking at a property is find out how much it’ll cost you to fix it up to a point where it’s in great shape. In other words, the cost of repairs. This could be a new roof if it needs it, carpet, paint, a new kitchen, yard, maybe even more.

To find a good estimate of cost of repairs, the best advice we have is to get to know a contractor or two in your area and have them walk through the properties with you the first few times… have them quote out the repair cost… and build that into your offer.

After Repair Market Value

This is simple, but many investors get stuck on this part. This is essentially what you could sell the property for today… after you repaired it and brought it up to a great condition. This is found by finding out what other similar houses in the same area are actually selling for. NOTE: Don’t look at the “Listing” price… look at what houses similar to yours have actually sold for in the past 3 months. This helps you determine how much you could actually sell that house for if you had to… right now. You never want to over pay to a point where you can’t sell it for a profit in the next 3 months.

How do you find this? There are services out there that can help you with this… but often times the best way to find out the true value of a house is to talk to a Realtor that you know… or an appraiser. Heck, if you don’t know one… call up a few today… tell them you have a property that you’re potentially going to sell in the near future… and ask them what they think it should sell for.

Buy And Hold For Rental 

So, you’re going to buy and hold for rental? Great! You don’t need to worry about what it’ll sell for right away. What you need to know is if it’ll pencil out on a month to month basis. You know… cash flow.

So, talk to a mortgage broker (or a private lender) and find out what the monthly mortgage payment will be for that specific property.

Then find out what you can rent the place out for on a monthly basis.

Then, you work backwards… and find out at what purchase price your mortgage payment will be low enough so you can make the monthly cash flow you need to make on the property. Be sure to figure in other expenses too like property taxes, maintenance expenses, property management fees, and keeping money in reserves for future repairs.

So, your offer price here should be:

Monthly Mortgage – Monthly Rents – Operating Expenses – Taxes & Insurance – Monthly Cash Flow = Offer

Simple enough right?

The cool thing is, the more you’re bringing into the deal in cash… the lower your mortgage is.

Making An Offer

We’ve been talking about how to look at the numbers and analyze a real estate deal.

From there, just make an offer. Many times the properties we let you know about will already be so deeply discounted that we get multiple offers… often above our asking price.

So, if you really want a property… find out what is the bare max you could buy the property at… and offer that. Otherwise you may lose the deal because someone else is likely making an offer too.

With that said, the golden rule in real estate is to never over pay for a property. That’s why our own deal analyzing criteria is so darn strict… and why our buyers (like you) get such great deals.

I hope this little tutorial has helped you sharpen up your real estate deal analyzing skills… and we really look forward to working with you in the near future.

If you have any questions at all… don’t hesitate to contact us anytime for anything.

Happy investing!

Florida Commercial Real Estate Investments -1/21/17

These properties are listed the day received.  They sell quickly and may not be available shortly after posting.  Email:  InvestSWFL@gmail for information.  Need specific property address and Buyer information.  No Brokers, Principals Only.  Commission for Agents must be paid by your Buyer.
This group receives information from known sources but is not responsible for any misinformation.  Posted as received.
Note Buyers Looking for Huge Discounts

PN’S, NPN’S, Commercial and Residential. Choose your locations. Due to a recently developed relationship we are now able to place real and performing note buyers directly with the sellers that supply such assets. Deal directly with the asset owners as they custom portfolios that meet your own criteria. Call for additional information and to move forward. Direct buyers only who have previously bought in this market place.
________________________________________________________________

$1,750,000 + 3% fees to be paid by buyer!!
Cap Rate
8.19%
Floors 3
Units 29
Occupancy 95%
Lot Area 16,464 sqft
Building Size 44,000 sqft
Year Built 1974
29 Unit Multi-Family
101 SOUTH PENINSULA DRIVE, DAYTONA BEACH, FL 32118 
 
 
 
COUNTY Volusia
BUILDING SF 44,000
LAND SF 16,464
NUMBER OF UNITS 29
YEAR BUILT 1974
YEAR RENOVATED 2006
OWNERSHIP TYPE Fee Simple
FINANCIAL SUMMARY
OFFERING PRICE $1,750,000
PRICE PSF $39.77
OCCUPANCY 95.00 %
PRICE PER UNIT $60,345
NOI (IN-PLACE) $143,348
NOI (MARKET) $184,388
CAP RATE (IN-PLACE) 8.19 %
CAP RATE (MARKET) 10.53 %
 
 
 
 
DAYTONA, FL.
20  UNITS 
GOOD SIZE ONE BEDROOM & ONE BATHS
CONCRETE CONSTRUCTION
WELL MAINTAINED
100% OCCUPIED
NEW ROOF
NEW KITCHENS, BATHS,
A/C’S, WATER HEATERS,
 NEW LAUNDRY, PARKING
40 YEAR CERT.
Net Income: $ 216,000
Expenses: $ 55,000 *real number
CAP RATE: 9%
$1,400,000 3% FEE
SELLER OPEN TO OFFERS
WILL CARRY A MORTGAGE
 
 
 
OFF MARKET
HOMESTEAD
2 COMPLEXES
TOTAL 110 UNITS
MANY HAVE NEW KITCHENS
MANY HAVE NEW BATHS
REMODELED & GREAT CONDITION
98% OCCUPIED
2 BUILDINGS NOI ABOUT $410,000
RENTS LOW, GOING UP TO $900 P/M
BUY BOTH FOR $5,891,600 +2% 
CALL FOR PROCEDURES & FINANCIALS

 CLEAN AND UNIQUE PORTFOLIO

•  Location: Broward & Dade County
•  Properties:19
•  Units: 49
3 Single Family home
12 Duplexes
1 Triplexes
3 Fourplexes
•  Asking Price: $5,650,000.00

•    Transferable Mortgage debt: $3,175,125.00
•    Asking Price per door: $115,306.00
•    Average rent per unit: $1,250.00

•    Vacancy: 3.9%
*Vacant units are currently being rehabbed.

CALL FOR ADD’L INFO., FINANCIALS, PROCEDURES & MORE

OFF MARKET
SW DADE, FL
SHOPPING CENTER
ANCHOR: WALMART
235,000 SQ FT
31.91 ACRES
100% OCCUPIED
PRICE $75,000,000
INCOME/EXPENSES  AVAILABLE
CALL FOR ADD’L. INFORMATION PICTURES & PROCEDURES

OFF MARKET
WESTON, FL
SHOPPING CENTER
100,000 SQ FT
2.5 ACRES
NOI: $1,887,088
CAP RATE: 6.2%
SHOPPING CENTER: $27,000,000
2.5 ACRES: $3,000,000
CALL FOR ADD’L. INFORMATION PICTURES & PROCEDURES

 
 For more information:

Mike Cathell,
Broker/Owner, Investment Property Consultant

Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC

Cell:  (239) 770-6250   Fax:  (239) 288-2505
Email:  InvestSWFL@gmail.com
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Commercial Real Estate Loans Now Available!

AIUS – Automated Intelligent Underwriting

System Getting Started is Quick and Easy

With our AIUS getting the commercial loan that suits your needs is quick and easy. To receive a customized quote, simply complete the loan request summary below. You will receive a confirmation email and a Loan Production Manager will review your information and contact you with program information, including interest rates and loan options.

APPLY HERE

 

Mike Cathell,
Broker/Owner, Investment Property Consultant

Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC

Cell:  (239) 770-6250   Fax:  (239) 288-2505
Email:  InvestSWFL@gmail.com
 
Real Estate Services of SWFL, LLC
#Florida Real Estate     #Cape Coral Real Estate    #Fort Myers Real Estate
#Real Estate Investing   #Property Investments   #Wholesale Properties
#Wholesale Florida Properties  #Commercial Real Estate Funding

 

Real Estate Investment – Coral Springs, Florida

SOLD

12468 NW 19th Pl Coral Springs, FL 33071

Beautiful custom built Mediterranean style home in the Greens of Eagle Trace subdivision. Built in 1997, this home is located on a cul de sac and offers 6 bed, 5.5 baths with 4793 square feet of living space, and an attached 3 car garage. The curb appeal is breathtaking as you pull into the circle driveway with the palm trees and grand columns. Step into the foyer with tall ceilings and hardwood floors for a dramatic entrance. The rest of the home is a mix of ceramic tile and wood floors. There is a white stone floor to ceiling fireplace off the kitchen. The kitchen is huge, ample storage, prep space, and plenty of room for everyone to gather around the center island or at the breakfast bar. The home has lots of windows allowing for tons of natural light. Off the living room and some bedrooms is access to the screened in back patio. In the backyard, you will find an in-ground pool perfect for those Florida summers.

Features

  • 6 Beds
  • 1 Half Bath
  • 5 Full Baths
  • Size: 5,087 Sq. Ft.
  • Other
  • Built in 1996
  • County: BROWARD
  • Subdivision: GREENS OF EAGLE TRACE
  • 1 Floor
  • Lot size: 17,797 Sq. Ft.
  • HOA Dues: $200 / MONTHLY
  • Fireplaces: 1
  • Deck/Patio
  • Backyard
  • Garage
  • Swimming Pool

Asking Price:  $655,000

We obtain these properties through auction.  Buyer needs to close within 15 days.  Contact through email at InvestSWFL@gmail.com.  Put property address in email subject line.

Following property fees apply:

Buyer’s Premium: The greater of $625 or 4.5% of contract amount
BUYER Pays at Close
Technology Fee/Administrative Fee : $399
BUYER Pays at Close
Earnest Money : Lesser of $15,000 or 3.0% of the purchase amount.  Minimum of $1000.
BUYER Pays at Contract Approval

12468 Nw 19th Pl, Coral Springs, FL 33071

Real Estate Investment – Cormorant Cove Naples, FL

SOLD – 506 Cormorant Cove, Naples, FL 34113

Features

  • 3 Beds
  • 1 Half Bath
  • 2 Full Baths
  • Size: 2,292 Sq. Ft.
  • Single Family
  • Built in 1989
  • County: COLLIER
  • Subdivision: Eagle Creek Country Club
  • 2 Floors
  • Lot size: 9,148 Sq. Ft.
  • HOA Dues: $376 / MONTHLY
  • Deck/Patio
  • Backyard
  • Garage
  • Swimming Pool
  • Air Conditioning
  • Heating

Asking Price:  $315,000

 

We obtain these properties through auction.  Buyer needs to close within 15 days.  Contact through email at InvestSWFL@gmail.com.  Put property address in email subject line.

Following property fees apply:

Buyer’s Premium: The greater of $625 or 4.5% of contract amount
BUYER Pays at Close
Technology Fee/Administrative Fee : $399
BUYER Pays at Close
Earnest Money : Lesser of $15,000 or 3.0% of the purchase amount.  Minimum of $1000.
BUYER Pays at Contract Approval

506 Cormorant Cove, Naples, FL 34113

Latest Auction Properties – Florida

These properties do not last long, sometimes only hours.  For more information, please email me at InvestSWFL@gmail and I will have Crystal Snyder contact you directly.  In Subject, write “Auction Property 7-22”.

301 Lotus Path, Clearwater FL 33756
-5 bedroom
-6bathroom
-6791 sqft
-pool

This property sits across the street from the beach. It will need some updating and work. We just obtained the property from auction so I have not had a chance to get my contractor in there for n exact rehab estimate but we do estimate a $200,000 rehab based on updating and rehab that would be needed according to the comps.

The best comp that we have found is 327 Lotus Path. It’s just a few houses down the street from subject.
327 lotus path features
-4bedrooms
-5.5 bathrooms
-4370 sqft

This property sold for $920,000 on 5/4/2016 at $210sqft. This property was quite dated when sold.

As stated before, this property was obtained from an auction. It was listed on the MLS for $755,300. At auction, we were bid to $976,000 however I am able to pull this price down a little through my contacts at the bank. I am currently working on pulling it down and feel I can get it near $790,000-$800,000.
So, we feel the break down is  this-
Purchase price-$800k
Rehab-$225k(cushion for the unseen)
Closing cost-$40k(both front end and back end closing cost)
Realtor fees-$78,000
Holding cost-50,000

Based on the neighbor we can sell the home at $210 x 6791sqft =$1,426,000. Of course, you want a quick sale so we suggest selling at $1,350,000.

With all the cost you are looking at spending a possible amount of $1,193,000. Selling at our suggested below market price of $1,350,000 should net you a profit of $157,000.

Terms-due diligence to be done upfront. Buyer pays closing and buyer agent fees (I included the front end closing cost in the above-mentioned calculation), cash closing in 2-3 weeks.

Crystal Snyder

2285 Chilcote Ter Port Charlotte FL 33981

Features:
– on the river
-3 bedroom
-2 bathroom
-1898sqft
-pool

Needs some rehab. Tax assessed at $327k.
Asking $350k

according to our comp at:
2440 quail ter which features
-2/2 on the river
-1318 sqft
-11 years older than subject
– sold at $350k in 3/2016
Using sqft comps from the comparable subject has a value of $510k. Taking into account that subject is newer our local agent placed retail value at $550K after rehab.

Terms of sale- buyers pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before being fully executed.

12468 Nw 19th Pl, Coral Springs, FL 33071

6 Beds
1 Half Bath
5 Full Baths
Size: 5,087 Sq. Ft.
Built in 1996

Deck/Patio, Backyard, Garage, Swimming Pool, Air Conditioning and Heating

Custom built Mediterranean style home in the Greens of Eagle Trace subdivision. Built in 1997, this home is located on a cul de sac and offers 6 bed, 5.5 baths with 4793 square feet of living space, and an attached 3 car garage. The curb appeal consists of palm trees and grand columns as you pull into the circle driveway. Walk into the foyer with tall ceilings and hardwood floors for a beautiful entrance. New flooring would be a nice upgrade to this property. There is a white stone floor to ceiling fireplace off the kitchen. The kitchen is huge, ample storage, prep space, center island and breakfast bar. Off the living room and some bedrooms is access to the screened in back patio. In the backyard, you will find an in-ground pool. Needs some updating through out. This property is pending through the auction and was bid to $711k. Tax assessed value is $874k. With my expertise on auctions and connections as well, I can bring this property back down and let it go for $680k OBO.
Terms of sale- buyer pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.

16647 112th Trail N, Jupiter FL 33478

Features:
-2.5 acres
-pool
-3 bedroom
-2bathroom
-4730 sqft
-2 kitchens
In need of an estimated 55k in rehab. Most recent company we could find is at
16840 113th Trail N and is only $365 sqft smaller and sold for $650k on 10/1/2015. This property would make a great investment opportunity.

Price-$275,000

Terms of sale- buyers pay closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.

9641 NW 28th st in Hollywood,FL 33024
-4bed
-4bath
-3846 sqft.
Will need rehab. Property sits on the water in Lake Maranatha Estates. The neighbor to this house is currently for sale at 2.2mm and another neighbor just sold for $625,000 and was 1500sqft smaller than subject. According to the comps this home is worth $914,000 and we r asking $575,000.

Sale Price-$575,000

Terms- 2 week cash close, due diligence to be done upfront, buyer pays closing and buyer agent. This will be a double close done by seller selected title company and a Pre- HUD will be furnished before fully executed contract.

4431 Ortega Blvd Jacksonville, FL 32210

Features-
-6083sqft
-on St. John’s River
-large pool
-6 bedrooms
-5.5 bathrooms
-chefs kitchen

It does need some rehab. This property was sold in 2006 for $3.7mm. There are no recent sold comps in the neighborhood but there are 2 houses for sale.
4105 Ortega Blvd at 2.95mm and 4805sqft
4115 Ortega Blvd at 3.39mm and 5881sqft

This property would make a great investment.

Price-$1,750,000

Terms-Terms of sale- buyer pays closing and buyer agent. 2 week cash close and due diligence to be done upfront. We will choose the title company and this will be a double closing. HUD will be furnished before going fully executed.
805 19th st west Palm Beach, FL 33407

It features
-4 apartments each 2 bed with 1 bathroom
-2916 sqft

Does need rehab. Asking $170,000

Terms- 2 week cash close, due diligence to be done upfront, buyer pays closing and buyer agent. This will be a double close done by seller selected title company and a Pre- HUD will be furnished before a fully executed contract.

Crystal Snyder

 

Crowdfunding for Real Estate Investing

Almost like being back in school, here are a couple of definitions to memorize.  Both are taken from Dictionary.com

  1.  Crowdfunding:    the activity or process of raising money from a large number of people, typically through a website, as for a project or small business.
  2. Vet:     to appraise, verify, or check for accuracy, authenticity, validity, etc.:
    An expert vetted the manuscript before publication.

Crowdfunding has become the new reality for Real Estate Investment.  The advantages to crowdfunding are:

  1. Lots of property choices
  2. Lots of Property categories
  3. Ability to borrow funds from large group of Investors for your projects
  4. Your property listings presented to a large group of Investors
  5. Transparency

The reason I also posted the definition for Vetting is another advantage of crowdfunding. ??????????????????????????????????????? The properties are analyzed by a group of Real Estate Investment professionals.  You are not at the whim of a single agent.  You are given an ID into the group website to view your trasactions as they are funded or purchased (transparency).  You also can view the properties, purchases and sales of the group as a whole.

Some of the groups have an average return of  11.5% to 14% return on short term Property Investments.  I t can go much higher for long term Property Investments.

I am working with a small team presently to Flip properties in Central and SW Florida.  Future blogs will talk about the progress of the group.  If interested in learning more about what we are doing or to get information about being a member, text “Investment” to (239)  770-6250 or email InvestSWFL@gmail.com.

Mike Cathell,
Broker/Owner, Investment Property Consultant

Real Estate Services of SWFL, LLC
Real Estate Services of Citrus County, LLC

Real Estate Services of SWFL, LLC
#Florida Real Estate     #Cape Coral Real Estate    #Fort Myers Real Estate
#Real Estate Investing   #Property Investments   #Wholesale Properties
#Wholesale Florida Properties