Diversified Real Estate Analyst - Christopher LaFrance, MAI - Valuation - Consultation - Experts Witness - Tax Appeal - Estate Tax Planning......
Good deal making is all about solving problems
Benefits of Real Estate Investing
- Price Appreciation
- Equity Build-Up
- Cash Flow
- Leverage
- Depreciation
- Capital Gains Treatment
It's all about your strategies
Not all real estate investments are created equal
Start with the end in mind
Real Estate Opportunities
Commercial & Residential
Investor Q and A
1) Types of Investment
Buy Fix and Flip
Rentals
Buy Fix and Hold
Buy Fix Refi and Hold
Commercial
2) Geographical Area
Local
Out-of-Town
Out-of-State
3) Capital
How much capital
Timeline
How soon
4) Active and Passive
How active or passive
5) Asset Entity Structure
LLC
Partnerships
Sole Proprietorship
C Corp
S Corp
Personal Name
Non-Profit…..
*See Tax-Free Investment Vehicle
6) Expectations
Factors
Size and scope of deal
Amount of Capital
Timeline
Risk
Investor resources outside of capital
Degree of buying below market
Alternative sources of capital
Functions
I find the deal – put the deal together
Turn-key operation – A to Z……
My team and I get the remainder of the profits
I may split my % with one or more people who assist in a variety of functions.
This includes finding the deal – funding – consultation….
Profits – Returns
Returns Negotiable- Fair – Reasonable
Split Profits – % Return – Combination
Create and structure win-win
Small Residential Deals
Typical % Return
Commercial Deals
% Return – % Profits – or Both
Management Function
May be a management component on the more involved deals
Treated as an expense
Negotiable
Residential
3 Targeted Strategies
1) SFR’s – New
Buy Land – Entitle – Sell
Buy Land – Infrastructure – Sell
2) SFR’s – Existing
Buy – Fix – Sell or Hold
3) SFR’s – Target Landlords
Free and Clear – 100% Equity
Seller Financing
0% to Low Interest
Balloon in 10+ Years
Payment @ 90% of NOI
Commercial
2 Targeted Strategies
1) Buy Land– Entitle – Sell
2) Value Added Deals
Buy Below Market
Determine Exit Strategies Before Acquisition
Distressed Single/M-T Bldgs.
Repurpose
Renovate
Investment Objectives
Recession Resistant Deals
Below Market
Value Added Deals
Good – Excellent Profitability
Target Lower Risk Deals
Funding
Self-Funded
Private Money
Partners
Hard Money
Banks
Need Funding?
Need to fund your own deal?
Maybe your deal could be the right fit for some of my clients
Disclosure to Clients
I can appraise just about anything with proper disclosure. However, It may not make sense for me to handle traditional 3rd party valuation matters for a client if there is an investor relationship. I would have the client go elsewhere for any of those matters. Anyone is advised to do their own research and evaluate it for themselves to see if it’s a good fit – same goes for any real estate dealings – do your own research and/or seek independent 3rd Party due diligence.
My broker’s license is for my own deals – myself or with others – I don’t list or sell properties for others. My compensation can be derived from a number of sources to include but not limited to… appraisal and consultation fees from clients – brokerage fees – profits – and other forms of compensation on my own deals – and marketing fees on various activities. I’ve enjoyed the good fortune of having a clean record over my 30+ year tenure by striving to adhere to good judgment and common sense.