702 S 17th Ave is Hollywood’s hottest new boutique rental community! Located less than two miles from the beach and walking distance to Young Circle, Hollywood Beach Golf Resort, Publix, Starbucks, and Hollywood’s best restaurants and nightlife, our new community is perfect for living, working, and playing in the South Florida sun!
In earlier posts we discussed direct ownership of real estate and private lending investment options. In the third and final installment of our series, we’ll be explaining a real estate investment option known as co-investing or syndication.
Advantages of Co-Investing
We discussed the importance of due diligence in our post on private lending. The same holds true for co-investment opportunities. As the success of the project depends on the experience of the sponsor, you should be certain the sponsor has a good track record.
Disadvantages of Co-Investing
Ultimately, everyone’s investment preferences are different, and only you know what types of risk and how much risk you’re willing to tolerate. However, we believe real estate investing – if done diligently – offers something for everyone. If you’ve got any questions about any of the real estate investment options we discussed in this series, or if you’d just like to talk about real estate investing in general, please do not hesitate to contact us at any time. And if we’re not already connected, remember to find us on LinkedIn and Facebook! One of the projects we’re working on right now is an eight unit apartment building in Hollywood, less than two miles from the beach and just a few blocks from Young Circle and Hollywood Beach Golf Resort. With its 1930s charm, 10 foot ceilings, and spacious layouts, this one promises a truly unique living experience. Our favorite feature? Each unit came with its own screened in porch, which we decided to turn into an enclosed Florida room with hurricane impact windows. As it currently stands, we’ve completed all the drywall work, textured and painted the walls and ceilings, installed AC vents, and updated the electrical work. We’ve also installed new tubs and tiles in the bathrooms, plumbing for stackable washers and dryers in each unit, and high impact windows throughout the building. Next comes the fun part: laminate wood floors, new kitchens, and the finishing touches like doors, hardware, and fixtures. We’ll be seeing a real transformation over the next few weeks, so stay tuned for updates!
While we’re on the topic, let’s talk about what to look for when you’re doing your due diligence for a private loan. First, look at the track record. Does the business have experience with the type of projects it is requesting money for? Second, try to understand the company’s financial position. Ask for credit reports and personal financial statements, but keep in mind some (but not all) borrowers are seeking private funding because they can’t qualify for a conventional loan. This is not necessarily a red flag, but as a lender you can increase the interest rate to mitigate the risk. In some cases, borrowers are very well qualified but can’t secure a loan because traditional lenders don’t like non-cash flowing properties in need of significant renovation. Vacant or mismanaged properties may need a lot of work and may not cash flow, but they can represent excellent opportunities for private lenders.
Disadvantages of Private Lending
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AuthorChristopher Kennedy and Jonathan Kennedy. Archives
January 2018
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PO Box 222, Fort Lauderdale, FL 33302
Phone: (855) 563-8273
PO Box 222, Fort Lauderdale, FL 33302
Phone: (855) 563-8273