Monthly Archives: May 2017

Ice Cream Sales cause Shark Attacks. A Real Estate Perspective.

Did you know there is a correlation between shark attacks and ice cream sales?

When ice cream consumption rises in the summer, so does the number of shark attacks, a study shows.

Do Ice Cream Sales cause Shark Attacks ?

At first look, it  appears as if ice cream sales and shark attacks are correlated. So are we supposed to believe that Ice Cream Sales cause Shark Attacks? The answer, of course, is NO! Shark attacks are likelier to happen in summer, which is also the season when ice cream consumption goes up. The commonality is a higher temperature. This is a great example of correlation does not always show causation.

In statistics and probability theory, correlation means how closely related two sets of data are. There are many correlations to be found in an interconnected world. These correlations don’t always imply a causal relationship. Causation is the “causal relationship between conduct and result”. That is to say that causation provides a means of connecting conduct with a resulting effect.

This is a profound example for both life and business. The human mind frames life’s experiences in a narrative. Everyone has their own unique narrative. That narrative most of the time benefits us. On some occasions it twists the situation presented. Its important to see the bigger picture.

The most important books are the one you have not read

 

Often I am reminded that in 2005 “investors” would stand in line to buy $330,000 North Cape Coral houses that rented for $1,900 a month. Correspondingly, it was a struggle for the investing community to recognize the value in a $50,000 house that rented for $750 a month just 3 years later. At that time the real estate market was full of “half cyclers”. They has only seen a speculative cycle and had not been thru a downturn. Its not their fault. They had not read the right books. Fortunes are made buying from pessimists and then someone someday to optimists. That is done(the buying) in the downturn.

So where does all this leave us? Most of the current market participants narrative is currently driven by the experiences of the last cycle. Everyone is trying to frame that cycles intensity and duration over this cycle. We are in a boom currently. 2005 thru 2006 was a mania of historic proportions. There is large difference between a booming (growing market) and a mania. This cycle is different from the last cycle.

In closing: tune out the noise. Get some quality data and a calculator (excel works too 🙂 ). Then get to work!

Also, you can enjoy some ice cream and swim at the beach at the same time!

by  Jeff Tumbarello, Director SWFLREIA, Broker Steelbridge Realty LLC.

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Profit saving techniques for better cash flow

Management tips and profit saving techniques for better cash flow and better long term gain.

profit saving techniques for better cash flow

  • All rentals that have carpet flooring should have no pets!! (Long term investment property should not have carpet at all, they should have TILE flooring!)
  • Glass top stoves are the best. they last longer and have less parts to go bad.
  • Perform Quarterly Inspections  (check a/c filters, well equipment) You change/inspect the a/c filters while you are there.
  • When meeting with your prospective tenant check these things; the upkeep and condition of their car, and drive by if previous rental is local.
  • Prorate the second Month.
  • Make it as easy as possible to pay (envelopes, labels, electronic payment options).
  • Video tape/take pictures with your tenant in the pictures when you move them in.
  • Run back ground checks! You get what you inspect not what you expect. Do more than just call their references, employers, and previous/current landlords. Use the internet (Google/Facebook are your friends).
  • Be respectful and reasonable but do not be friends with your tenants.
  • Do not call, return missed calls, and/or see how things are going with your tenant.  Only respond to specific messages for for specific purposes.
  • Be realistic with your monthly rent ($50 more for an overpriced home can add months of vacancy).

Expenses over $300 are what kills your annualized returns.

 The most common expenses over $300 are;

  • Roof
  • Septic System
  • A/C
  • Well Equipment
  • Appliances

 

Budget these for replacement.  They will last longer if they are properly maintained

 

Rehab/maintenance costs

  • Tile verses carpet
  • Pool maintained by tenant or by pool company
  • A/C filters changed by owner/manager or tenants
  • Have tenants maintain well equipment verse company

 

Mistakes to avoid when investing in Real Estate

  • Do not estimate or use the opinion of someone else to determine market value. (Used recently sold comparables to determine value)
  • Never make a decision on impulse or emotion
  • Avoid investment property that is not separately metered (water or electric)
  • Septic vs. Sewer, Well equipment vs. City water.
  • Avoid fixer uppers outside of your expertise or have an expert (GC) with you
  • DISCLOSE, DISCLOSE, DISCLOSE (i.e. licensed realtor)
  • Find out about the financials, board membership, and rules and regulations when purchasing in a community
  • General contractor vs. jack of all trades… Never band aid a repair or rehab a property halfway…
  • Have either an exit strategy or long term plan for the investment (when you sale with the asset be purchased by another investor or an end user?)

Written by and presented at a SWFLREIA meeting by: Michael Lyons MBA, CAM Lyons Real Estate Inc  239-560-6164


SWFL REIA General Meeting

Wednesday 5/17/2017, 6:00 PM

LOCATED AT: 1400 Colonial Blvd Suite 48, Fort Myers, FL 33907 click here a map of location

Topic: Seasonal versus Annual Rentals. Which technique returns a higher ROI?

We will discuss the following:

  • Seasonal versus annual from an operational and legal standpoint.
  • How does each perform in the APOD? The APOD is spreadsheet. APOD stands for Annual Property Operating Data.

Presenter: Michael Lyons

 Mike Lyons, MBA

I have worked in real estate investing since 2001 and I have dealt with most all aspects of residential real estate investing. This includes property management, leasing, investing, wholesaling, flipping, property preservation, vacation rentals…
My education includes and an associate’s degree from Edison College, a bachelor’s and master’s degree in business from Florida Gulf Coast University. I am a licensed real estate agent and a licensed community association manager (CAM). I also served a two year mission for my church in Mexico and am completely fluent in Spanish. Other than the 2 years I spent out of the country, I have resided in Lee County my whole life.

My expertise is property management. I currently manage several hundred properties in Lee County (specifically Cape Coral, Fort Myers, North Fort Myers Lehigh Acres, and Bonita Springs. I am one of the few that enjoys doing property management. As a property manager and landlord of my own properties, I understand the importance of preserving an investment.

Schedule of events for the SWFL REIA General Meeting

6:00 Doors Open/Networking

6:30 Program Begins with a Mastermind Session

6:45 Featured Speaker begins.

SWFL REIA Members are free, all others pay $20.00 at the door!

Become a member today! Click here for more information.

 

 

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April 2017 Lee County Fl ForeclosureTrend Report

Trends at a glance for the April 2017 Lee County Fl Foreclosure Trend Report:

Complied and analyzed by  Jeff Tumbarello, Director

April 2017 Lee County Fl Foreclosure April 2017 Lee County Fl Foreclosure April 2017 Lee County Fl Foreclosure

Lis Pendens:

  • April 2017: 80 Mortgage related Lis Pendens.
  • March 2017:  88 Mortgage related Lis Pendens.
  • April 2016:111 Mortgage related Lis Pendens.

Certificates of Title:

  • April 2017: 53 Certificates of Title were conveyed.
  • March 2017: 93 Certificates of Title were conveyed.
  • April 2016: 111 Certificates of Title were conveyed.

Notes the April 2017 Lee County Fl Foreclosure Trend Report :

  • More of the same…
  • The top ten Lis Pendens filers represent 46 percent of the filings.
  • WELLS FARGO BANK NA was number 1 in filings.
  • There slight decrease in certificate of title conveyances/Lis Pendens month over month, as well as year over year.
  • The current trend of the distressed market NOT being a primary (last cycle) driver will continue.
  • Bertrand versus US bank still has not caused a significant increase in filings.

SWFL REIA MONTHLY LUNCHEONS:

  • When: 5/3/17
  • Topic:  Are HOA’s a Friend or Foe to Real Estate Investors.
  • Presenter: Dennis Paganucci
  • Paganucci, a real estate investor currently owning/managing approximately 35 properties located in South Florida, primarily condominiums.
  • Paganucci is currently the President of six condominium associations and on the Board of Directors of one additional association.
  • Where: Casa Lupita Cafe
  • Address: 13120 Westlinks Terrace # 10, Fort Myers, FL 33913
  • Click here for a map 
  • Time: 11:00 AM to 1:00 PM
  • From 11:15 to 12:00 there will be time for lunch and networking.
  • The formal part of the meeting will start at 12:00
  • For SWFL REIA members your cost is your lunch only.
  • Non-Members are $20.00 plus the cost of your lunch.

Click here for more information


The SWFL REIA is the premier source for Real Estate Investing education and networking.

The SWFL REIA is different in the Real Estate Investing world in that we do not do information product sales. Our content rich meetings focus on Real Estate Investing via collaboration with like-minded Real Estate Investors sharing their own experiences.

The SWFL REIA is on the cutting edge of data gathering and analysis of the housing market and foreclosures. Our Analysis and Trend reporting has made the SWFL REIA an expert source for the media and set standards by which the housing market is analyzed and trended within the industry.

Our members are Real Estate Investors, Real Estate Agents, Title Agents, Insurance Agents, Landlords, Property Managers, Wholesalers, Rehabbers, Note Buyers, Hedge Fund Managers, Bulk Asset Purchasers, Foreclosure and Probate Investors. Come and network!

Our Motto: Knowledge withheld is Knowledge wasted.

The number one key to being successful in real estate investing is?

To understand what you are there to do!

From our experience, this is the most critical phase.  If you have a clear plan it is easier to deploy capital while still operating within a margin of safety.

The SWFL REIA is the premier place to understand what you are here to do, in relation to real estate investing! We look forward to meeting you at a meeting soon!

Click here for membership information

Get our meeting notices and market data like the April 2017 Lee County Fl Foreclosure Trend Report emailed to you.




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