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Thursday Jun 10, 2021
Thursday Jun 10, 2021
#EntrepreneuroftheWeek #Post2 Yinon Kadis “… Take Baby Steps, that is the key to long term success ” Robert kiyosaki 7 years back, deep in the military era, I bounce a friend of my big brother. The friend, a former business owner, is a successful entrepreneur who has relocated and experienced a number of areas among them - alternative restaurants. anecdote; Yinon of that time, bursting with ambition and a desire to advance and precisely between roles from one unit to another, wants to do and advance but feels "shredded" into the army. At the end of the trip, after a fruitful conversation and a lot of interest on my part about the business field in the past, I asked him for some ideal tips that he sees fit to apply, both in daily life and in the long term. And that's the phrase he told me "Honey, Baby Steps" Speaking of progress - dear gentleman I knew this year, Gad Regensburger, added another sentence that calls to mind "Why run to the top when you can walk ?!" But back to that evening. I took what the friend said, and decided to try to harness the "demon of ambition" to the idea that things are going to take time and the most important thing is to move forward. After about three months I found myself at a key point in the unit. Why? I correctly channeled the ambition, instead of finding myself with two birds on the tree, I decided to invest in learning and directing the desire to advance in the military, rather than in the wrong investment of energy and money (which I barely had). And it's not that I did not invest properly, I had falls, I also invested in digital real estate and came out a loser… But after calculating risks incorrectly, not because of recklessness and haste. What were we talking about ?! Ahh yes progress .. So I recommend, to take everything in the mindset of - "agile without pressure", to move forward in an orderly manner - whether it is in writing goals and proper timing whether it is in lack of self-sacrifice and high self-criticism every day, each one and his process. But in the end, remember. If you progress, all is well. Direction is the ultimate goal. You can want more, but under "pressure" things don't really work out. Thank God for everything. And may we all succeed hugely !!!
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YouTube Channel:https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3gYou can contact us on the site - we have more then 10,000 articles in 12 languages:www.ForumNadlanUSA.comOr join the Facebook group -Hebrew:https://www.facebook.com/groups/ForumNadlanUSAEnglish:https://www.facebook.com/groups/USARealEstateForumAnd get weekly educational updates about the USA Real Estate market:https://www.forumnadlanusa.com/newsletter-signup/Contact Us At:https://www.forumrealestateusa.com/Phone: 978-600-8229Email: Support@ForumRealEstateUSA.com
Wednesday Jun 09, 2021
Wednesday Jun 09, 2021
#EntrepreneuroftheWeek #Post1 Yinon Kadis
Very pleasant friends and young entrepreneurs!
This is my first post in the Entrepreneur of the Week series.
This week I will mainly touch on my personal touches from this world, from constitutive points and situations from the business world to my belief in the Creator of the world and how it affects me in my daily life from end to end.
* Approach the job, and in Gaza we will do and succeed *
Name: Yinon Yaakov Kadis, 26, engaged to Shir (for about a month).
Hobbies: traveling, surfing, succeeding and football.
Education: First year law student.
Residence: Has lived in Hasmoneans almost all my life.
Employment: Currently engaged in real estate in the United States.
To the business world and especially to real estate, I came through the conclusions of my father's life.
Dad, did not have a financially stable family and orphaned from a young age, despite the difficulties, managed to establish a glorious family, and in between even invest in real estate.
Towards the end of high school and after opening up to adult concepts, such as "rat race" and other stylistic expressions, and at the same time rubbing shoulders with the real estate world with my father, I decided to start reading mentoring books and gain a foundation in economics (Fisher, 18). I decided that until the army, whatever it was, I would make sure my fortune (Alak fortune) did not sit quietly, and that was my first lesson.
My first investment - a startup in the field of ecology. From there, a lot of water passed through the river, which I will detail later this week.
Fast Forward
Three and a half years later,
After - Army for three years as a fighter in engineering - Yahalam, NCO, commander of a mining unit.
And after the trip: South America half a year and three months in the East.
I returned with a clear goal, to enter the world of real estate!
I started my career as a real estate agent, in a great boutique office called Spritzer Real Estate. After a period of about a year and a half, I decided to change phase and focus specifically on the real estate investment niche after the world of housing developers felt too emotional for me.
At first I was looking for marketing projects in the country, more, but it was still in the field of housing improvers and did not give me peace, I decided to go abroad due to the high and attractive yields.
Following my residence in the Hasmoneans - a national religious settlement with about 50% of its inhabitants new immigrants from the United States and its socio-economic status no less excellent. Through contacts / acquaintances, etc., I was looking for projects for marketing abroad - I was interested in Cyprus, Montenegro, Germany ... but all of these were not enough ...
One bright day, under a lot of private supervision, came to a gap-closing meeting with my former boss Joel, Jonathan Lakerman.
The two originated in South America, the first from Uruguay and the second from Argentina.
After a meeting between the two and an understanding that Jonathan was doing real estate in the United States, a meeting was scheduled between us and things definitely "made sense."
We have progressed and developed, and for about two years now, and since the first meeting, things have been bearing fruit and the friendships and partnerships are tightening day by day.
Jonathan took me and taught me for a long time what the focus of discourse and regulation is in the US markets, and in that capacity I want to thank Gd and Gonatan for the baptism of fire.
So for a first post summary.
Inon, loves to travel and is crazy about landscapes, loves real estate and investments, is studying law, is engaged to the stunning song, believes in private supervision and is on his way to devouring the whole world!
EE, in the coming week, I will share with you founding moments, especially from the last decade, and points that have shaped me from the first moment I walked through the house my father invested in.
Love you and have a good week
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You can contact us on the site - we have more then 10,000 articles in 12 languages:
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Hebrew:
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Tuesday Jun 08, 2021
Tuesday Jun 08, 2021
Where the Hell is the Technology
#Entrepreneurofthe Week #Post5 #DaniBeitOr
Warning: * Also * This post was not written in the context of Corona
And today on our subject - unloading frustrations
On the one hand real estate and technology have always been close and on the other hand only fundamentally. That is, you see technology in accessing information, using management applications, images, video, DRONES, and more. The real estate industry tends to adopt technology.
But, there is one area that for some reason is left behind - decision making.
Without going into the discussion of whether Zilo is good or bad Zilo was one of the bodies that made a significant change in the field. Unfortunately I remember the days I would get a screenshot or a blurry copy of printed paper with property data from the MLS the agent sent. Lol, yes I'm not young anymore. Zilo opened up the world of MLS and public property data. Before that it was just through the various MLS interfaces and for those who think these interfaces look like today. . . Really wrong. It took MLS a long time to produce information accessibility like they do today, sorry - a lot of time.
Now let's think about an investor. Sitting in a country or in the US and wanting to buy an investment-rental property. Opens a computer, enters Zilo and starts searching. First question - where to buy? Second question - what to buy? Then many other questions. Let's say all the other questions are similar whether it is a property In New Orleans or a property in Tucson Arizona - important questions but I'm putting them aside right now.
Today this investor is looking for the metro and staff first and only then the property using the top-bottom method (top to bottom), and why actually? Because mostly decision-making tools rely on local knowledge and staff. And from my experience I know that except for one single case usually local knowledge has limitations. Note: As a lender of real estate investors for over 15 years it has always felt wrong for me to operate in only one area. It's true that I did not operate in a lot of areas at once but I was always skeptical of one market precipitation lenders because somehow I always had the feeling that what answer would I get from the one offering deals in New Orleans - that he would really recommend Tucson to me?
Back to technology. . .
In an ideal world the decision making of this investor was a combination of investor preferences, and according to these preferences - choosing a property that meets them regardless of whether this property is located in New Orleans or Tucson. Thereby actually reducing the impact of the local staff on decision making.
And in fact the question arises why does it not happen like this? I mean if there is a combination of science and art in decision making why are we 80% art and 20% science?
The answer lies in technology of course. And maybe it seems that real estate surrounded by apps on the one hand does not offer a real, advanced and smart solution to this problem... At least not yet. And yes, yes me and two of my friends are already working on it.
So why the frustration - because there are not many areas that have so much information, which has been collected and stored for so many years. US real estate is an information bond machine. Yet the information is used relatively superficially. In a world where models run on tropical storms, viruses and disease and even risk pricing in insurance there is no good model for running high-certainty decision-making in such a popular field? It's frustrating and that my friends and I are working to change.
So how do you see it? No, not how you operate today in the decision making world, how would you like to see the decision making process happen in the ideal world of real estate investors? Come on run with the imagination and fantasies... Even exaggerate a bit. Who came the furthest with the ideas and thoughts!
By the way if you are interested in seeing what we are working on and taking part in this great thing invites you to join us in the Bata group.
W Prize: 1X1 with me for a virtual Corona beer of course
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YouTube Channel:
https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3g
You can contact us on the site - we have more then 10,000 articles in 12 languages:
www.ForumNadlanUSA.com
Or join the Facebook group -
Hebrew:
https://www.facebook.com/groups/ForumNadlanUSA
English:
https://www.facebook.com/groups/USARealEstateForum
And get weekly educational updates about the USA Real Estate market:
https://www.forumnadlanusa.com/newsletter-signup/
Contact Us At:
https://www.forumrealestateusa.com/
Phone: 978-600-8229
Email: Support@ForumRealEstateUSA.com
Monday Jun 07, 2021
Monday Jun 07, 2021
# Entrepreneur of the Week # Post 4 #Dani Beit-Or Partnerships and mortgages and capital raising Warning: This post was not written in the context of Corona Financial constraints and solutions Many investors, beginners and advanced, find it difficult to start or even continue investing because of financial constraints. There are several ways to overcome this obstacle. Loans 1. The trivial solution of course is to take out a mortgage. Many investors whose center of life in Israel thinks they cannot get a mortgage in the US - this is not true, it is possible. Some banks are willing to give their mortgage at market interest rates. The main problem of these banks is that they have to build a borrower profile for everyone and it takes time, and even then these banks will use mechanisms to protect themselves in terms of risk, and therefore will require higher capital adequacy or higher interest rates than market interest rates. But it is important to understand that there are "ordinary" mortgages - that is, from institutional entities. For some of us, the direction of a loan from a non-banking entity, for example a flip deal, can also be a solution. For those who work in this direction, it is important to understand that there is quite a bit of ability to negotiate with such a body. Negotiating guidance on mortgage terms. For example, the ratio of the value of the property / the amount of the mortgage will affect the interest rate, in addition, the borrower's experience can also affect the terms of the loan. I recommend that those involved in this field collect and track the transactions in an orderly manner so that in the future they can present past transactions that testify to the experience. These entities are often willing to give a discount to a returning investor. 3. There is also the possibility of taking a loan or mortgage in the country on an existing property. 4. There is also the option of an owner loan. Quite a bit has been written about this topic here. And is a topic for the post in itself. 5. There is another option that is less common in the country - a private loan. What is a private loan? - An entrepreneur takes a loan from a friend, and not from a commercial entity, and against this loan gives him collateral in the property just as a bank or commercial entity will grant. That is, instead of raising capital to execute a transaction, an entrepreneur can raise capital in the form of a loan from a friend or group of friends. Before anyone goes in this direction it is important to know how to build control mechanisms for such a loan. Partnerships Many times we think of a partnership as something between an entrepreneur and an investor. I personally very much connect and really like the direction of two entrepreneurs, especially with the novice entrepreneurs, who invest together. For example, two investors who buy one property for $ 100,000 in cash instead of two properties for $ 50,000 each. There are several benefits here: First, we probably bought at 100,000 a better quality property. Second, bringing in a partner cuts the risk in half for each party. Third, connecting with an investor with a profile similar to my profile. Throughout my career I have seen quite a few times couples who are investors who have decided to invest either together right in one deal or go through the process of investing together that each one buys his property. In my opinion and experience, when there is a combination of two people with a similar investment profile, the chance of success in terms of execution and investment increases significantly. Precisely two is much stronger than one but also three or more. I therefore suggest mainly to those who have various inhibitions to locate a friend with a similar profile and invest the capital together or do the decision-making and investment journey together and in the end everyone buys their property. The chances of success are in terms of making the investment and not in terms of the investment itself in my opinion will increase significantly. What other ways do you see or do to overcome financial constraints? What other types of partnerships or capital raising are you running?
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YouTube Channel:https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3gYou can contact us on the site - we have more then 10,000 articles in 12 languages:www.ForumNadlanUSA.comOr join the Facebook group -Hebrew:https://www.facebook.com/groups/ForumNadlanUSAEnglish:https://www.facebook.com/groups/USARealEstateForumAnd get weekly educational updates about the USA Real Estate market:https://www.forumnadlanusa.com/newsletter-signup/Contact Us At:https://www.forumrealestateusa.com/Phone: 978-600-8229Email: Support@ForumRealEstateUSA.com
Saturday Jun 05, 2021
Saturday Jun 05, 2021
Lessons from the 2008 crisis
#EntrepreneuroftheWeek #Post3 Dani Beit-Or
First it should be emphasized that what was during the crisis of 2008 is not necessarily true these days. Caught in a crisis of a different kind that has never been seen before.
However, crises are always a period of learning, personal growth, learning lessons and an opportunity to improve the decision-making process for the future. A crisis is a kind of stress test and puts our investments and our strategy under a certain kind of load and shows us whether or not our economic decisions stand the load test.
Although I had a lot of conclusions from the 2008 crisis, both on a personal level, also on a business level, also in everything related to investments and more, I will focus on the main conclusions in terms of investments.
Maximum leverage
Assuming the purchase is made with a mortgage.
The mood in the United States before the 2008 crisis was that real estate did not stop rising, so the obvious conclusion is to buy as many properties as possible and in order to do so leverage as much personal capital as possible. This means mortgages with equity of 5% or 10% were very common at that time. The implication is that such low self-financing combined with such a high mortgage the assets will not generate a positive cash flow, meaning that the cash flow the asset produces will be negative, though not dramatically negative, between $ 100 and $ 400 negative cash flow per month per property.
If we take for example the asset that generates an average negative cash flow of $ 300 each month, or $ 3600 per year (before tax) but at the same time, this asset costs $ 15,000 a year in value, we can well understand the benefit of taking a negative cash flow. The problem is that as long as the investor can cover the negative cash flow from his personal income he will not have a problem.
When did a problem arise? Once the source of income used to inject the money into the property (such as a job, dismissals, etc.) is harmed. Maybe $ 300 a month doesn't sound like a lot of money but as long as there are one or two properties it might not be problematic. But if there are 20 or 30 such assets and at the same time the livelihood is harmed - then it directly affects the portfolio of assets.
Conclusion: Buy a smaller number of homes, put enough equity that each property generates a positive cash flow, and in fact the property is independent of its owner - that is, avoid a situation where the property owner has to inject money into the property on a monthly basis.
Note: Some readers read these lines and say to themselves "obviously, and how can it be that someone invests in such an irresponsible way" etc. But a few things need to be remembered. The first, was an optimistic mindset that led to such moves. Second, even today if you look at the conduct of real estate investors who have not gone through the recent crisis you see quite a bit of behavior of complacency and high self-confidence that leads to decisions that do not always take into account that there is a crisis on the horizon. An Israeli who started investing 10 years ago and experienced successes feels like he has cracked the method because for the past ten years he has enjoyed a strong back wind. In this spirit she was able to make up for various mistakes, glitches, and decisions. This means that it is very possible that the back wind offset 30 percent of the planned profit but still left with a nice profit.
Boring assets
The second conclusion was to invest in the most boring assets possible. And work according to a formula that adheres to the identification of these assets. In my world, boring properties are characterized by the following: BTC (detached house) in a suburb of a large metro, ie a metro of over a million and a half people, a metro with the presence of not only many large employers but also businesses representing different and diverse industries, With good schools and sought-after areas, in countries where the laws favor the property owner rather than the tenant and in countries that show strong positive immigration.
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YouTube Channel:
https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3g
You can contact us on the site - we have more then 10,000 articles in 12 languages:
www.ForumNadlanUSA.com
Or join the Facebook group -
Hebrew:
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Phone: 978-600-8229
Email: Support@ForumRealEstateUSA.com
Thursday Jun 03, 2021
Thursday Jun 03, 2021
# Entrepreneur of the Week #Secondary #Post 1+2 Dani Beit-Or
Nice to meet you . . . again
Pretty amazingly just a year ago I was an entrepreneur this week.
Not much has changed in the introductory post from a year ago except for age, and more deals and accumulation of knowledge. . . Here is the introductory post from a year ago http://bit.ly/2xBkdqu
This week begins in the shadow of the corona plague. There is not a day in the last 10 days that someone has not contacted and asked what I think is going to happen in the US real estate market due to the situation. I even opened a Facebook group dedicated entirely to this issue because I too would like to know. And tell you I know? And present possible theories. We have not yet encountered an even similar situation.
My challenge this week
How to innovate for a group that each week has a different expert and shares his experience and the vast knowledge he has. The amount of knowledge and experience that comes up in this group is impressive.
I will share with you my hesitation:
Whether to deal with the issue: how to help investors maximize success or whether to target the experienced in the group this time - since a significant portion of the uploaded content speaks to beginners or how to get started, perhaps this time to engage with content that is more relevant to experienced advanced investors who have already made several deals.
so lets start . . . . Good week and only health
Ahh. . . And in the picture are the momentary things in my life: family, real estate and passing on the knowledge.
The challenge is not small in such crazy times to talk about investments, strategies, successes, and failures. And maybe this is the time to learn from previous crises. Different backgrounds, but crises.
At the time of the 2008 crisis, I already owned quite a bit of real estate that I had personally invested and also considerable experience in accompanying close to 1,000 transactions.
It was my first real estate crisis and you could also say a first economic crisis. In the crisis of 2000 I was still young without economic exposure.
The crisis erupted after about 4-5 years after my first investment and about three years after I started engaging in real estate professionally and fully (so I did not even know it was called "investor accompaniment"). To my delight a lot pretty quickly realized what we were heading towards. I have no explanation for why but I just understood. So I started making decisions under this insight. I later thank you for operating under this insight. Don't get me wrong, I lost, and a lot! But I reduced damage.
My biggest disappointment from this period was precisely from the flawed human behavior of people who until then had considered them leaders in the field. A large portion of them simply disappeared, there was no oil to support and abandoned investors in distress. To this day (12 years later) I have no idea where some of them have gone, mostly charlatans.
Another part went underground or buried its head in the sand and was not really there to lead in moments of crisis, and resurfaced in rage.
I guess some of these people experienced the crisis in their flesh (yes, yes I do too) and it probably affected them badly.
Already at the beginning of the crisis I made a decision with myself - I will be there and answer any call or email that comes from my client even if it means a difficult call, complaints, etc. - and there were many. When it comes to crises people look for culprits and run away from personal responsibility. We are all adults and no one has made a decision to invest in real estate under gun threats, so let us not forget that everyone's responsibility is also personal.
And yet I was there to support and address. Such conversations lasted until 2010 and possibly even after. I guess these are many hundreds of such conversations. My wife was already angry at me for answering all the calls as if it was my personal responsibility especially when she saw the impact of the calls on me.
But my account was simple - someone is in crisis, I will try to help him and contribute to him from my knowledge and experience, I too in this boat, maybe I can also learn something from him, and at least I give him a chance to express anger and frustration.
Later this week I plan: Lessons from the 2008 crisis and how I see them are really being reflected these days.
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YouTube Channel:
https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3g
You can contact us on the site - we have more then 10,000 articles in 12 languages:
www.ForumNadlanUSA.com
Or join the Facebook group -
Hebrew:
https://www.facebook.com/groups/ForumNadlanUSA
English:
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And get weekly educational updates about the USA Real Estate market:
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Contact Us At:
https://www.forumrealestateusa.com/
Phone: 978-600-8229
Email: Support@ForumRealEstateUSA.com
Tuesday Jun 01, 2021
Tuesday Jun 01, 2021
Entrepreneur of the Week Yossi Beit Yosef # Post 5
How do I check the soil in Florida and in general?
In post 2 - I mentioned that developers or investors do not ask what can be done with the land?
This is a very important question because only if we know what can be done with the soil can we know what to test and start the testing process.
An equally important second question, is what is our goal in the deal? - What is our starting point and what do we want to do with the land in general?
The answers to these questions will give us an answer to the question: what tests, I want to do and how much money I want to spend on tests!
The most important thing is to know the area and know the rules of the place - how do you do it?
Open up county websites, talk to local land brokers, and travel at least once to get to know the area.
If we take the example: Florida is a state that protects the flora and fauna and has many restrictions on this issue in different areas - ignorance can make you buy land at too expensive a price.
In Texas, on the other hand, it is advisable to pay attention to the issue of "mineral rights" - you would not want to purchase land in which the oil rights will remain in the hands of the seller! Especially if one day you find yourself sitting on a huge oil slick
Zvika came to me to help him sell land he had bought a few years earlier. "I have an excellent plot, my corner was proud of Zvika in my ears," The test we did revealed that there are two turtle nests on the field.
In Florida as soon as there is turtle nesting - the lot is automatically declared a nature reserve and construction on it is prohibited,
The training of the plot for rebuilding increases the price of moving the turtles to another place - the price is about $ 6,000 per nest
So a potential buyer of Zvika's plot will have to invest another $ 12,000
The price of the plots at that time was $ 8,000, so it made no sense to buy Zvika's plot.
Zvika also bought the plot at an exorbitant price of about $ 35,000 and had a hard time dealing with the bitter cut.
And he decided to find his own solution - at this point I said goodbye to him - leaving you to imagine Zvika's solution!
If Zvika had done the necessary tests, he would not have reached this state - get to know the area!
My friend Yossi Golan wrote in his post as an entrepreneur this week an orderly list of what should be checked for construction needs, read his post there is a detailed list and I will not repeat it here.
As a flipper of lands, I will perform only an initial inspection and the rest of the inspections I will leave to a customer who wants to purchase the land, as an entrepreneur who wants to build tomorrow morning I will conduct other inspections.
One of the important tests to be performed for construction purposes are survey tests and measurements called survay
The Land Survey defines the boundaries and features of a plot of land, including roads, service lines, buildings and natural elements such as ponds and streams. Other facilitations cross the property.
Because the survey needs of a commercial real estate investor are different from those of a homeowner who adds a garage - and both are different from the needs of the lender - there are many different types of surveys.
These are the most common, although the commonly known names may differ slightly depending on the location of the land:
1. Mortgage or ALTA / ACSM survey
This is the comprehensive survey that most lenders need underwriting requirements. This ensures that the property is as described in the legal documents and covers all the features and characteristics of the property.
2. Boundary Survey - This is the survey that the homeowner will be able to identify and verify the legal boundaries of a property.
3. Location Survey - This is a comprehensive border survey with information on improvements, usually used for the purposes of area loans and permits.
4. Web Design Survey - This survey combines a topographic survey of roads, canals, services and batteries with a boundary survey. Web design surveys are used to plan home and subdivision plots, commercial and industrial developments, transportation infrastructure and leisure facilities.
------------------------------------------------
YouTube Channel:
https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3g
You can contact us on the site - we have more then 10,000 articles in 12 languages:
www.ForumNadlanUSA.com
Or join the Facebook group -
Hebrew:
https://www.facebook.com/groups/ForumNadlanUSA
English:
https://www.facebook.com/groups/USARealEstateForum
And get weekly educational updates about the USA Real Estate market:
https://www.forumnadlanusa.com/newsletter-signup/
Contact Us At:
https://www.forumrealestateusa.com/
Phone: 978-600-8229
Email: Support@ForumRealEstateUSA.com
Sunday May 30, 2021
Sunday May 30, 2021
# Entrepreneur of the Week Yossi Beit Yosef # Post 4
Flips of land versus flips of singles
Remember my story from the first post?
How did I get into the land industry?
“… I sipped my cold coffee, it was a little after 12 noon and I ask myself, what did I do what I got into it what me and the lands and more on the west coast of Florida (I live on the east coast)…” (this is a sentence from the first post)
I look at the address Cape Coral - yes I know there is such a city, considered beautiful, developing - I have never been there
What now ? I go into Zilo see prices in different ranges, do not understand what the differences are and come out well I take a breath, another lock from the cold coffee (remind you - Sunday lunch on the terrace - hot in Florida) I go to the district appraiser's site, first time I'm on this site I think to myself, I enter the details of the property and I start going through the data on the screen oh beauty the property is valued by the appraiser at $ 7,000 moment but it is written that he bought the property for $ 35,000 What is happening here Did the appraiser make a mistake?
I keep browsing the site and I find that I can see the plot and the boundaries of the plot by looking at the GIS map and when I mark the neighboring plot then I get the details of the plot owner - what could be simpler than calling someone who already owns a plot and asking him if he is interested In another plot? And so I started calling all the landowners on the street and then moved to the next street, while talking to landlords I learned what the buying and selling range of the plots in this area was more than the appraiser estimated and much less than the price Gil paid for his land in some calls they asked me what price I asked answered. To me "if this is the price you sell then sell my plot too", I finally got to the buyer who said - I will buy your plot - you have more plots - I told him maybe let me check, I went back to the same people who asked if I was willing to sell them Their plots and at the end of the day after Gil agreed to get well below his investment price (realized he was cheated at the time of purchase) I sold my plots 3 plots and a total profit of about $ 15,000.
It was almost 6 in the evening and I replaced the cup of coffee with a cup of frozen margarita when I realized that one Sunday I earned $ 15,000 and then the head starts working for a moment if I do it every Sunday - then in a month I will earn $ 60,000 and if I dedicate another day This week it will be $ 120,000 and if I dedicate another day to it then… (my head started to spin - I do not know if from the margarita or the thoughts)… All this from the chair at home without moving the car, without walking around dirty and ruined houses, without quarreling with the bunny renovator and without getting upset about delays Of the municipality - I discovered that I can do real estate without headaches, I discovered that I earn much more than the flips of singles I have done so far - a new business was born and since then I do not look back.
A week ago I was dealing with a termite problem that was discovered in one of the flips, I get a call from my buyer - do you have any more plots? "No" I tell him "but I can search"
Well he tells me you will find me in this and that area - but not such lands are lands of this kind and as he explains to me more questions are born to me and then he says "Come to Cape Coral I will do you a tour and teach you what to look for me"
And so it turned out he was one of the largest land dealers in Florida, he introduced me to his title company and to realtors who specialize in the area and land, he taught me what to watch out for and what not to do.
In conversations I had with traditional real estate flippers I found that most of them do not know how to calculate the time element in their projects and the conclusions I have reached are as follows:
The average flip of buying a single renovation and sale lasts (from the day you spent money until the day you made money) for about half a year.
Everyone calculates profits in percentages and returns only but let's check how much it is in money and how long did it take to earn it?
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YouTube Channel:https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3gYou can contact us on the site - we have more then 10,000 articles in 12 languages:www.ForumNadlanUSA.comOr join the Facebook group -Hebrew:https://www.facebook.com/groups/ForumNadlanUSAEnglish:https://www.facebook.com/groups/USARealEstateForumAnd get weekly educational updates about the USA Real Estate market:https://www.forumnadlanusa.com/newsletter-signup/Contact Us At:https://www.forumrealestateusa.com/Phone: 978-600-8229Email: Support@ForumRealEstateUSA.com
Saturday May 29, 2021
Saturday May 29, 2021
# Initiated week Yossi Beit Yosef # Post 3
"It's the little one - it's going to be big" - Invert Guta - Invert - "It's the big one - it will be small"
In a previous post we already said "no more land is produced"
But the closest thing to that - is to produce smaller plots - Subdivisions
Creating small plots produces a profit similar to a "kimono" that buys a large inventory of what the "wholesaler" separates into small parts and sells them at a profit.
There are two main types of subdivisions big and small or in the professional language Major Subdivision or Manor Subdivision also called Landdivisin the names may differ from country to country and there are some that divide by area size or number of plots - for simplicity let's stay with Major and Manor.
The difference is in the level of complexity and the level of risk, the division of Major requires the planning of roads, sidewalks, etc. and its approval is subject to a large number of committees, therefore it lasts longer and the financial investment is higher.
Since the laws differ from country to country - if you want to engage in this field - try to find the countries that facilitate
Example: Distributing 20 arcs in California costs more money and the approval process takes much longer than in Texas, while in California a public hearing is needed - in Texas it is not required for 20 acres.
How do you approach and how do you start? (The topic is complex for one post) But I will try to simplify it to 8 steps:
1. Find the market that suits you to work in (state and province that make it easier and not burdensome)
2. Define your criteria - and find the appropriate area for the division
3. First programming test (what is the minimum plot area on which a house can be built and in what area, density test allowed - how many houses is allowed to enter a hacker ?, Front width test - the minimum width required in front of the road, which are the most important initial tests, any deviation will affect character The division and profit / loss is possible and of course the question is - will there be demand?)
4. Economic programming test
5. Initial meeting with the planning department (the goal - testing and approval of the programming you tested - it is advisable to attach your professional team
6. Establishing a treatment team (your team must include: a certified surveyor and / or civilian surveyor, preferably a realtor who knows the area well and an expert in the lands, a professional project manager - will save you time for self-study especially at the beginning, a professional lawyer who may assist you mainly in public hearings )
7. Preparation of plans (technical division into plots)
8. Advance meeting to submit approvals (bring a full plan and make sure with the committee that nothing is missing, make sure the process and schedules- we do not want to miss anything, we would like to get details of expenses and fees required to continue - even if such payments can no longer on us.)
After this meeting the application has to be prepared and if we have done it according to the book - there is a status to program approval and the plan goes out for a public hearing (usually the hearing goes through positively) and then the approval is received and recorded in the district books.
The process can take about a year or less - depending on the state and county, if you have not prepared the plan as required, it may take longer or even be delayed.
Tip: As part of the preliminary examination, you will investigate whether similar applications have been submitted in the past and check - why were they rejected?
At this stage it is possible to sell the project to a development company that will do the actual work of construction including permits and construction plans or continue the process independently, I think at this stage the continuation of the process was written in a post by Il Price members as entrepreneur this week so I will not go into detail here.
Another option is to sell parts of the project to various contractors.
The more we take on the project in money and time, the more profit we will make
Personally I prefer to shorten times, make less money, but make quiet and avoid headaches.
And pass the deal on
I am attaching a picture of an area that is currently in the initial planning stages - which is also a stage that can be taken out of and transferred to another developer in exchange for a not bad commission similar to Holsale.
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YouTube Channel:https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3gYou can contact us on the site - we have more then 10,000 articles in 12 languages:www.ForumNadlanUSA.comOr join the Facebook group -Hebrew:https://www.facebook.com/groups/ForumNadlanUSAEnglish:https://www.facebook.com/groups/USARealEstateForumAnd get weekly educational updates about the USA Real Estate market:https://www.forumnadlanusa.com/newsletter-signup/Contact Us At:https://www.forumrealestateusa.com/Phone: 978-600-8229Email: Support@ForumRealEstateUSA.com
Thursday May 27, 2021
Thursday May 27, 2021
# Entrepreneur of the week Yossi Beit Yosef # Post 2
Land sounds boring? - Let's check!
- "The land for immediate construction?"
-"No"
- Is the land thawed for construction?
-"No"
- "Is the land intended for construction?"
-"No"
- "So what can be done with the land?"
- "I'm glad you're asking - why did you not ask this question as a first question?
Most Israeli investors / entrepreneurs ask the same questions from a worldview that land is intended for construction only
-This is of course a wrong worldview.
I'm sure there are people here in the audience who have never been interested in the subject of land out of another misconception
"There is no current income from land - it's not like rented apartments" -
-is that so ?
Probably some of you are rolling your eyes - "What can you get a monthly income from land?"
Let's see what can be done with land?
The land industry is a huge niche in itself and is also the basis for any type of real estate on earth, in fact every one of you who has ever bought real estate of any kind also paid for a relative share in the value of the transaction determined by the value of the land
So no matter how we look at it we are all “land buyers”
What are lands used for?
- Civil construction - residential + commercial (this is what I call "traditional real estate") and most of you are engaged in the field of residence (multi despite being considered commercial - belongs to the residential category) Some of you are engaged in commercial real estate (hotels, nursing homes, commercial centers , Offices, storage, mobile home parks, etc.)
- Public construction - public institutions, internships, schools, kindergartens, etc.…
- Construction of infrastructure and transportation - roads, trains, airports, bridges, etc.…
Minerals, mines and natural resources
- Crops - Fields and orchards (fruits and vegetables) - Farms in English Farms
Farm for agricultural products originating from cattle, sheep and other animals - Farm in English Ranch
- Forests - Growing Trees for Industrial Purposes (Unique Branch Known as Timberland)
Recreation
In the United States, there are vast spaces that allow for different types of entertainment, which do not exist in the country and are not in our awareness as Israelis. In the US we can find hunters (a very strong industry) who hunt everything: pigs, ducks, deer and more… To this day I try to gently reject a colleague's invitations to join him for pig hunting Lily
"You were in the IDF… I'm sure you'll have success in hunting"
People go on fishing holidays on the shores of lakes and make a good living from the tent industry and rent the equipment or buy themselves a private piece of land that will be available to them whenever they want to relax and get out of the crowded city.
So just as there are real estate entrepreneurs, there are Restriction entrepreneurs who purchase or rent areas that allow them to operate various recreational facilities (kayaks, skiing, camping, etc ...)
Hops and without noticing - we got an answer to the question - how can you generate a monthly income from land?
Renters:
Operators of leisure facilities
Farmers
Farmers
One of my favorite ways to generate monthly income from land is by selling land using the “rent with option” / “owner financing” method.
About a little over 3 years ago I bought remote land in the Arizona steppe, the owners were heirs who did not know what to do with "this thing" that fell on them and they were happy to get rid of the land, the price I paid was about $ 500 for an area of about 3 acres and I sold it Priced at about $ 11,000 in installments of $ 300 per month
Guess - how much was the down payment? … True $ 500!
I did not mess with tenants, I did not mess with repairs and the toilets did not break down in the middle of the night, I did not even get a single inflated bill of repairing a broken windshield from the management company.
All of the above types of land have owners, tenants and investors and any type of investment - requires comprehensive knowledge of the same industry
Here too, as in traditional real estate, there are strategies of purchase - improvement - development, maintenance or sale, flip or hall sale, however, as an entrepreneur who deals with land, I have a wider range of clients compared to traditional real estate entrepreneurs!
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YouTube Channel:https://www.youtube.com/channel/UCliNShPg9cVs5HIz3kRbe3gYou can contact us on the site - we have more then 10,000 articles in 12 languages:www.ForumNadlanUSA.comOr join the Facebook group -Hebrew:https://www.facebook.com/groups/ForumNadlanUSAEnglish:https://www.facebook.com/groups/USARealEstateForumAnd get weekly educational updates about the USA Real Estate market:https://www.forumnadlanusa.com/newsletter-signup/Contact Us At:https://www.forumrealestateusa.com/Phone: 978-600-8229Email: Support@ForumRealEstateUSA.com