COMMUNITY INVESTOR
COMMUNITY INVESTOR
SUCCESS STORY
SPOTLIGHT: ORLANDO
arl and Peggy Mullin have made it their mission to provide real estate solutions. “Whether you are selling a house, buying a home or looking for investments, we provide solutions that are moral, ethical, legal and provide win-win- win results,” they state proudly. That’s a tall order in any investing sector, but it can be particularly difficult when it comes from such a diverse population of buyers, sellers and investors, all of whom tend to have different goals and perspectives on what a “win” means for them. That doesn’t stop the Mullins, however, who simply do it all from “traditional” representation of buyers and sellers to providing hard money loans, deals and cash-flowing turnkey rental properties to real estate investors. With all this going on, one thing that remains a “common denominator” for Carl and Peggy is their membership in the Greater Orlando Real Estate Investors Association (GOREIA). “GOREIA not only has the things that most REIAs offer in terms of vendors offering goods and services to help you build your business, it also has something unique in [its leader], Robyn Thomas,” Carl said. “She introduces her members to her personal coaches, teaches the highlights of her investing boot camps to the membership for free and brings in speakers for the membership who actually help us grow personally as Nonstop Support GOREIA’S LEADERSHIP, MEMBERSHIP AND RESOURCES PROVE INVALUABLE TO INVESTORS. by Carole VanSickle Ellis C
of the overall market and make these properties more desirable on all fronts.
to target Orlando with an eye toward massive, commercial development. Dolmar Cross, Florida investor and managing director at Maxall Capital, credits Orlando’s growth trajectory, in substantial part, to rising prices in Miami driven by national and interna- tional investors. “Prices in other cities like Miami have risen until they no longer make sense for investors,” he said, adding, “Orlando, the home of Disney and other major theme parks, has a unique selling point (that) makes it easily recognizable and a popular city for international investors.” Cross predicted that prices would continue to rise as international and institutional investors “fuel demand and rising prices.” Many experts cite Chi- nese investors’ preference for buying in groups and more than one unit at a time as a reason that Florida’s housing mar- kets will likely continue to benefit from this sector of international interest. PUTTING THE ‘BOOM’ IN BOOM-BUST Florida in general—and Orlando in particular—is commonly referred to by analysts as being a “boom-bust” market
because things seem to go very well or extremely poorly. In reality, however, real estate investors who make educated investments and purchases on either end of the cycle tend to beat the cycle by focusing on cash flow. At this time, Orlando is poised to potentially be a prime location for cash-flowing turnkey rental purchases because of its growing population, its thriving job market that offers opportunities and advancement potential at all skill levels and at least another 12 to 18 months of statistical probability of above-national-average growth and appreciation. With most experts projecting that the metro area will return to some state of “normalcy” within the next two years, now is the time for investors to make their move in the Orlando area before the competition heats up further and opportunities become harder to find and access. •
INTERNATIONAL INTEREST Another indication that Orlando is still on a solid growth trajectory is the burgeoning presence of international investors in the area. Although tradi- tionally foreign buyers—Chinese inves- tors in particular—have focused more on West Coast luxury and New York City for their investments, developers are pushing these buyers toward Florida in general and the Orlando and Miami areas in particular because these areas offer far more affordable building op- tions than major metro areas elsewhere. And they have the added appeal of being attractive tourist destinations. International money also flows into the area regularly in the form of com- mercial development. In fact, according to the Orlando Business Journal, a new theme park based in the United States but backed by international money is looking at acquiring and developing as many as 200 acres on the city’s Interna- tional Drive. While that rumor cannot be fully confirmed, it is not an uncom- mon event for international investors
well as professionally.” “Our experience with GOREIA is probably best summed up by our experience with an investment we nicknamed ‘The Cat House,’” Carl said. The couple first spotted the property while they were out “driving for dollars” in a neighborhood known for its ideal location near The Villages, the world’s largest retirement community, and its excellent educational opportunities. “We actually learned about the across-the-board A-rated schools in that area at GOREIA,” Carl noted. On paper, not only was the location good, but the 1,800-square-foot property had a popular layout and appeared to be a great find. When they went inside, however, things changed. “You could smell the house from the street even with the windows closed,” Carl recalled, adding, “The owner went inside like it was no big deal. I had to stop after about four steps because my eyes, ears and lungs were burning from the smell of ammonia and all the filth in the house. And my white socks were turning black from the fleas.” If you guessed “cat hoarder,” you were right. Deterred from entry but not from purchasing, the Mullins made a low offer ($20,000) and started leveraging the connections and materials available to them through GOREIA. “We not only knew to purchase protective gear for our laborers, but we also had them sign liability waivers provided by the REIA
to its members,” Carl said. He added that Robyn was also responsible for ultimately recommending the product and service kits that eventually enabled them to get rid of the smell that lingered after nine dumpsters of trash, 21 live cats and 17 dead and mummified felines were removed from the property. They sold the property for $185,000 less than six months later. Despite the expense of getting the smell out of the house and holding the property longer than they would have preferred, “we still got a pretty good paycheck,” they said. Carl and Peggy credit GOREIA with giving them the tools they needed not just to flip “The Cat House,” but also for helping them turn their flipping “hobby” into “an actual business.” “Having the information from GOREIA, access to the pre-screened vendors we needed and the process all laid out was invaluable,” Carl said. He added, “Robyn said it best when we presented the deal for sale at GOREIA: ‘After that, you’re not afraid of anything!’ And now, they’re really not, thanks to ongoing support from GOREIA.” •
Carole VanSickle Ellis serves as vice president of research and analysis at the Self-Directed Investor Society, helping investors “declare independence from Wall Street.” Contact her at editor@bryanellis.com or visit sdiradio.com.
RESOURCES
BUREAU OF LABOR STATISTICS: ECONOMY AT A GLANCE :: www.bls.gov/eag/eag.fl_orlando_msa.htm THE CITY OF ORLANDO :: www.cityoforlando.net CORELOGIC :: www.CoreLogic.com CITY-DATA.COM ORLANDO ECONOMIC BREAKDOWN :: www.city-data.com/city/Orlando-Florida.html
ORLANDO REGIONAL CHAMBER OF COMMERCE :: www.orlando.org ORANGE COUNTY CONVENTION CENTER :: www.occc.net DISCOVER ORLANDO :: www.visitorlando.com ORLANDO OFFICIAL VISITORS GUIDE :: www.nxtbook.com/nxtbooks/orlandocvb/ovg2016/index.php REALTYTRAC :: www.realtytrac.com TRULIA :: www.trulia.com U.S. CENSUS – QUICK FACTS ON ORLANDO :: www.census.gov/quickfacts/table/PST045215/1253000 ZILLOW :: www.zillow.com
LOCAL MARKET MONITOR :: www.LocalMarketMonitor.com ORLANDO REAL ESTATE INVESTORS ASSOCIATIONS (REIAS) & LANDLORD ASSOCIATIONS GREATER ORLANDO REAL ESTATE INVESTORS ASSOCIATION (GOREIA) :: www.goreia.com CENTRAL FLORIDA REALTY INVESTORS ASSOCIATION (CFRI) :: www.cfri.net/ APARTMENT ASSOCIATION OF GREATER ORLANDO :: www.aago.org
Carole VanSickle Ellis is the host of Real Estate Investing Today, a daily nine-minute investing podcast, and the editor of the Bryan Ellis Investing Letter. Contact her at editor@bryanellis.com or
visit www.investing.bryanellis.com.
62 | think realty magazine january :: february 2017
thinkrealty . com / mag | 63
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