North Fla Capital LLC

08/27/2014

Got another contract on 1441 house and at better price!!! Close in two weeks Looks like good end to month. Now for next project!!

07/21/2014

Recieved contract on 24 ave house. Showing on Tuesday and taking best offer. Then onto next project.

07/11/2014

TAKE ADVANTAGE OF ME!!! DROPPING PRICE. IT'S NUTS. $49,900. NOW A WHOPPING $30,000 BELOW MARKET!!!

07/09/2014

CHEAP CHEAP CHEAP!!!! $20K BELOW RETAIL. 4/2 concrete block home rehabbed less than a year ago. http://youtu.be/e-YC9psjY4E

DIRT CHEAP!!! A STEAL AT $20K OFF RETAIL. $60000 4/2.

06/11/2014

Wanting Private investors for properties we buy. Guaranteed at least 10% return in short period of time with no very little risk. Better than stock market...bond market or most any other investment.

04/23/2014

Have one Equity Partner lined up but wish to have more. Projects will provide minimum of 10% return with some being much higher.

04/23/2014

Customer Display
Detached
MLS # 347308 Active 1441 SE 24th Avenue
Gainesville, FL 32641 Photo Gallery(13) L$60,000

Area: 250-Lincoln Estates Area
Style: Traditional County: Alachua
Beds: 4 Subdivision: Breezy Acres
Full Baths: 2 New Constr.: No
Half-Baths: 0 Condition: (OTH)Other
HERS Rating (Year Tested):
Split BR Plan: Yes Sect-Twp-Rng: 9-10-20
Year Built: 1959 Assoc. Fee: No
Total Ht/Cool SF: 1,498 Assoc. Fee $:
Total SF Under Roof: 1,674 Assoc. Fee Pd:
SqFt Source: SF from Tax Roll Parcel Size: .33 Acres
Parcel Size-Range: .33-.49 Short Sale: No
Apx Lot Dim.:
Legal: BREEZY ACRES PB E-25 LOT 37 OR 2818/1168OR 3328/0655
Schools: Eastside High Lincoln Middle
HOA Name: HOA Phone:
Builder Name: Model:
Tax Parcel #: 15995-037-000
Tax Jurisdiction: Gainesville City Zoning: Save our Homes: No
Homestead Exemp (Last Yr Appl): 0
Remarks: House recently rehabbed with new carpet, paint, appliances, blinds, door hardware. Great for possible investment. Priced for positive cash flow. Property recently rented for $950/month for a one year lease. Big backyard for family and kids and nice Oak tree. Fenced in yard.
Nearest Main St/Rd: SE 15th Street
Directions: From Williston Road turn east on SE 4th Street; turn south on SE 13th Street then turn east on SE 24th Avenue; 6th house on right (1441).
FEATURES
Equip./Appl.: Cable TV/Prewired , Electric Cooktop , Oven Electric , Refrigerator
Subdivision Info:
Exterior Misc.: Wooded Lot
Interior Misc.: Blinds/Verticals
Accessibility Feat.:
Const.-Exterior: Concrete Blk-Brick Front Other Rooms: Great Room
Property Access: Paved , Public Maintained Heating/Cooling: Central H/C Electric
Lot Type: Wooded Lot Hot Wtr Srce: Electric Water Heater
Fencing: Chain Link Floors: Ceramic Tile , W/W Carpet
Parking: No Garage/Carport Roof: Shingle
Dining Area: Separate Dining Equip. Leased:
Utilities Source: Cable TV Available , GRU Seller Info: Provide Title Insurance
Certifications: Docs In MLS: None
Terms: Cash/ Conventional , Sold As Is Docs Available: None

04/08/2014

Looking for equity only partners on real estate deals I find. I will find property...analyze...oversee rehab...and sell or rent depending on end objective.

02/06/2014

How to Pay Yourself When Buying an Apartment Building with Investors
by MICHAEL BLANK on FEBRUARY 3, 2014 · 18 COMMENTS

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Pay Yourself When Buying an Apartment Building
When I bought my 12-unit apartment building (read the entire gut-wrenching discourse here), I put the entire deal together with a handful of investors.

In fact, I ended up not putting any of my own money into the deal and got paid $15,000 at closing.

Let’s talk about how to pay yourself when doing deals, especially when you have other investors involved.

Getting Started

When you’re putting together a deal to buy an apartment building with investors, you’re doing a lot of hard work: chances are, by the time you have a building under contract, you’ve looked at many others.

You negotiated the deal and did the due diligence. You brought the investors together to raise the equity and you secured financing for the rest. You’re doing all the work to raise the value of the building, and then you try to sell or re-finance for maximum profit.

You’re adding value to your investors, and you’re doing all the work. Many people who go through the trouble of syndicating a deal don’t compensate themselves appropriately, when in fact it’s perfectly reasonable to do so.

There are three ways you can pay yourself when syndicating an apartment building deal:

Upfront at closing;
While you own the asset; and
When you dispose of the asset.
Getting Paid When you Purchase the Building

If the deal allows it, pay yourself an acquisition fee at closing. How much? Whatever the deal allows and whatever seems reasonable to you and your investors. The broker gets paid 3% – 6% of the purchase price. Wouldn’t it be reasonable to pay yourself 3% for putting the deal together?

Say you’re buying a building for $1M. A 3% acquisition fee would be $30,000 … not a bad pay day, right?

Paying yourself an acquisition fee increases the overall cash required to close. This of course reduces your investor’s returns. You need to work the acquisition fee into your projections and see if you can still achieve your desired returns for the investors.

In general, you should try to pay yourself something at closing. Shoot for 1%-3% if possible. If the deal doesn’t allow for it, either don’t pay yourself or find another deal!

Getting Paid While You Own the Building

There are two ways you can pay yourself while you own the building.

The most obvious one is cash flow distributions. You should retain at least 20% equity in the property for being the managing member (with your investors getting at most 80% for putting up the cash). This will then entitle you to at least 20% of any cash flow distributions and profits from appreciation.

The other way is to pay yourself an “asset management fee”. This concept is borrowed from money managers who are paid a small percent (1-2%) of the assets they manage. You, too, could pay yourself 1% of the total cash invested. This would be paid out before any kind of preferred rate of return distributions for your investors.

In our example of a $1M building, let’s say you raised $300,000 of equity and cash to purchase the building. A 2% asset management fee would be $6,000 per year, or $500 per month while you own the building.

Getting Paid When You Sell the Building

When you sell the building, you need to pay closing costs and sales commissions. You need to repay the outstanding loan and the initial investment to the investors. Whatever is left over is called the “Net Proceeds from Sale”.

If you own 20% of the building, you are then entitled to 20% of the Net Proceeds. That’s one way you get paid at closing.

You can also pay yourself a “Capital Transaction Fee”. This would be a small amount (1% – 2%) of the sales price that would be paid to you at closing.

If you sold the building for $1.5M, a 2% fee is another $30,000.

Keep your Investors in Mind

Regardless of how you decide to pay yourself, make sure you disclose how you’re compensated to the investors up front. This is usually done in the LLC operating agreement and/or the Private Placement Memorandum (if you have one).

Also make sure that your compensation is reasonable and that your investors achieve their projected rates of return. If you are the only one being paid and the investors are not, it will leave a sour taste in their mouths and they’re not likely to invest with you again.

Conclusion

You are providing real value to your investors and are doing all the work, so don’t be afraid to compensate yourself reasonably when you buy the building, while you own it, and when you dispose of it.

In our $1M apartment building example, you paid yourself $30,000 upfront, $500 per month while you own it, and another $30,000 when you sell it. Plus you’re getting 20% of any profits.

Then do another deal!

01/20/2014

When Hongtao Liu first interviewed to work as an agent for Bosshardt Realty Services two years ago, the brokerage took a pass. After all, he was a newly minted Realtor with no track record, fluent in Chinese and Japanese, but not English.

01/16/2014

Rental Property Benefits: A Dummies’ Guide
by ALI BOONE on JANUARY 13, 2014 · 14 COMMENTS

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money
There are a million articles floating around on the internet and probably even in some books that talk about the benefits of owning rental properties. You’ve probably read them and even heard everything I’m about to tell you already, but sometimes it’s good to bring it up a notch, leave out major details, and really hammer in the big picture.

You’ve inevitably heard that owning rental properties is a very strong investment method with tons of benefits. Could you explain those benefits to a kindergartner? If you can’t, it means you don’t quite understand them fully yourself so how about I explain them for you. Very simple, straight to the point, no nonsense or confusion.

Rental Property Benefits

Cash Flow. Every month your tenant pays rent. That rent should cover all of your expenses on the property with some leftover. That leftover money is free money in your pocket. Score.
Equity. This one is a kicker. You buy a rental property and after however many years let’s say your mortgage has been paid down $40,000. The cool thing is you didn’t have to pay a penny to pay down that mortgage, your tenants essentially paid that down for you. So now you have an additional $40,000 equity to which you can now take a cash-out refinance on the property or use that as a home equity line of credit, or whatever other way you can pull that $40,000 out. That is $40,000 of free money you just earned! Oh, and it’s tax-free too.
Appreciation. Or, your property appreciates a good bit and you decide to sell. If you’re smart you sell it for more than you paid for it, so any profit there (a lot due to inflation) is free money in your pocket. You can also get that money tax-free if you 1031 exchange it. You also profit from whatever principal your tenant paid down for you too, so maybe it’s that $40,000 plus whatever the house appreciated for. Holy mother.
Tax Benefits. Have you ever stopped and thought about how much more money you would have in your pocket if you didn’t have to pay anything out in taxes? Seriously, think about it. So how cool would tax-free income be then? Well guess what, income from your rental properties is basically tax-free. You get to write-off depreciation on your properties which just about cancels out any taxes you would owe on the income. And whatever amount isn’t covered by depreciation is probably covered by the gajillion other write-offs you can take when you own a rental property.
You’re making so much free money people!

Cash flow every month is free money, the equity you build in the house is free money to you, anything you make with appreciation is free money, and you get to save what you would normally have paid in taxes… for free! Yes, all investing methods should give you free money (if it doesn’t it’s a bad investment), but rental properties stand out a lot from the rest because of how many ways the free money can hit your pocket.

While rental properties may not put as large of an amount of cash in your pocket in a short amount of time like some other methods, those other methods also force you to take a huge tax hit (so you have to forfeit a good bit of your free money) and the income stops if you stop working.

Now do you see why rental properties are awesome? On the surface it seems like they only bring in a small amount of cash flow every month, but there is sooo much as far as your returns going on behind the scenes. At the end of it, you gain serious financial gain. All the while, rental properties are really nice because you have so much control over the operation of them. If something starts going sour with them, you have quite a few options on how to remedy the situation.

If you are more of a flipper or want to focus on wholesaling or whatever you want to do, that is all great but make sure that you are investing whatever profits you make from those into smart passive investments, such as rental properties. Flipping and wholesaling will never make you financially free (unless you are able to put an entire team together who does all the work for you, but even then you essentially just started a business), but rental properties, whether small residential or large commercial, will.

In case you didn’t grasp the overall benefit, it’s free money. I love free money. Do you?

01/02/2014

You Don’t Fit The Mold: Why Real Estate Estate Investors Struggle
by KEVIN PERK on DECEMBER 30, 2013 · 19 COMMENTS

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Fit The Mold
I have been investing in real estate for over 10 years now. Almost 8 of those years have been as a full time investor. I always thought that once I went full time, real estate investing would become much easier, and in many ways it has. But in a lot of ways, I had to change direction or find totally new ways of running my business. I was not ready for that. I was not ready for the fact that real estate investors do not fit in the mold.

The mold is not made for the real estate investor. The mold is made for people who work 9 to 5, who commute, who have W-2 income, who own one, or perhaps two properties. If you step outside of these criteria, you become weird. You become something that does not fit, something that simply does not compute.

It is simply not “normal” to be a real estate investor. It is not “normal” to own a bunch of properties. It is not “normal” to have rental income as your primary income source. Yes, you are a professional investor, which on the face of things should make things easier. But many times it does not. Being a professional is seen as a risk.

This perception of risk actually can make your job as an investor much more difficult. You would think that it would get easier to get bank financing as you grow and become more experienced. Not so. Many financial institutions now see you as a risk and the funding will stop. You don’t have a “job” anymore so how can you possibly pay the loan back?

You see, as a professional investor, you no longer compute. You no longer fit into the bank’s molds. As an example, I once had a loan processor at a major bank tell me he could not process my loan refinance application simply because he did not have enough slots for property addresses on his computer form. You do not compute.

Insurance companies will see you in much the same way. Insurance is of course all about risk and because you no longer fit the mold, you have become a higher risk. You would think that the opposite would be true as you grow your business and become more experienced. Not so. Insurance can actually become quite a concern as you acquire more and more properties. Insurers perceive more risk and can significantly bump rates or drop coverage all together.

So as you go through your investing career remember that the world likes to put things into neatly organized boxes and you simply are not going to fit. That does not mean however that these problems are insurmountable. What it does mean is that you have to work, sometime a little sometimes a lot, harder than the next guy. It means that more barriers than you realized are going to be erected to try and force you back into one of those boxes. It is a pain and it is frustrating, but you have to just go around or over them. The path may be more difficult but the reward at the end is greater.

What experiences do you have not fitting the mold? Let me know with your comments.
Photo Credit: JD Hancock

You Don't Fit The Mold: Why Real Estate Estate Investors Struggle by Kevin Perk