Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development.
Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment.
The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency.
A similar practice known as flipping is another reason for failure as the nature of the investment is often associated with short term profit with less effort.
Real estate markets in most countries are not as organized or efficient as markets for other, more liquid investment instruments. Individual properties are unique to themselves and not directly interchangeable, which presents a major challenge to an investor seeking to evaluate prices and investment opportunities.
For this reason, locating properties in which to invest can involve substantial work and competition among investors to purchase individual properties may be highly variable depending on the knowledge of availability.
Information asymmetries are commonplace in real estate markets. This increases transactional risk, but also provides many opportunities for investors to obtain properties at bargain prices.
Our TEAM, typically use a variety of appraisal techniques to determine the value of properties prior to purchase.
WHAT I DO: I help investor, complete an exhaustive analysis of the physical asset to fully understand legitimate downside scenarios and future capital needs. By capitalizing each deal appropriately and independently of one another, we prudently manage financial risk and ensure compliance and achieve a return on investment.
My Investment Focus, Puerto Rico and Florida Market, Single family / Residential Bulks / Multi-Family / Office / Shopping Centers / Hotel, $1 to $30 million assets with value-add and core plus risk profiles, On- and off-market opportunities sourced through brokers, note purchases, recapitalizations, short-sales, and bankruptcy sales.
