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Today’s top stories…
How multifamily investors can prep for an economic recovery
Uncover the shocking tale of a $500K home accidentally built on the wrong lot
Get the scoop on Jeff Bezos' latest mansion acquisition in Miami's "Billionaire Bunker"
đź’° Deal of the Day!: 3 bd | 4 ba | Hartford, VT
Today’s mortgage rate (30 Yr. Fixed): 7.06%
Playbook for Economic Recovery
Do your homework. Know your local market inside out. Rents, regulations, cap rates - you gotta know 'em all. Familiarize yourself with cost, cash flow, and sales comparison value approaches. This knowledge will be your foundation for making informed investment decisions.
Next, network. Don't wait for properties to hit the market. Reach out to owners directly, especially those with prime locations like waterfront properties, and let 'em know you're ready to buy when they are. Building these relationships can give you a competitive edge and access to off-market deals.
In a down market, cash is king. Raise equity, manage your treasury, and be ready to pounce on those discounted properties. Implement cash management tools and rent payment solutions to save time and money. Older buildings can be gold mines. At $300k per unit vs. $500k for new construction, it's a no brainer. Add some stainless steel appliances, laminate wood flooring, unique amenities, and proptech, and watch those rents soar. The upfront expenses can be limited, but the payoff can be significant.
Keep an eye on the big picture, too. From politics to housing markets, stay informed on the factors that could impact your investments. Geopolitical dynamics can affect supply chains and market volatility, while the U.S. political landscape can influence infrastructure spending and economic growth. The housing market, particularly the single-family sector, can drive demand for multifamily properties as high home prices keep would-be buyers renting.
Remember, real estate investing is a marathon, not a sprint. With the right strategy, a little elbow grease, and a keen eye on the economy, you can come out on top.
Oops! $500K Home Built on Wrong Lot, Legal Battle Ensues
Imagine buying a piece of land, only to find out someone accidentally built a half-million-dollar house on it. That's exactly what happened to Annaleine Reynolds in Puna, Hawaii.
Reynolds purchased a lot in 2018 for about $22,500, with plans to use it for meditative healing women's retreats. But when the pandemic hit, she was stuck in California.
Fast forward to last year, when a real estate broker called her with some shocking news: a three-bedroom, two-bath home, valued at $500,000, had been mistakenly built on her property by local developer Keaau Development Partnership and PJ's Construction.
Now, Reynolds is being sued by the developers, who offered to swap her a neighboring lot or sell her the house at a discount. She's refused both offers, and her attorney, James DiPasquale, warns that allowing this could set a dangerous precedent.
Reynolds has filed a counterclaim against the developer, and the construction company, architect, previous property owners, and the county are also being sued.
Meanwhile, the house sits empty, except for some squatters, and the $500,000 mistake is headed to court.
Bezos' Miami Mansion Spree Stirs Up Billionaire Bunker
Amazon's Jeff Bezos is making waves in the exclusive Indian Creek island, Florida, snapping up his third mansion in an off-market deal worth around $90 million.
With a net worth of $203.7 billion, Bezos is no stranger to luxury living. His latest acquisition, combined with his previous $147 million purchases on the island, brings his total investment in the area to a staggering $237 million. Not bad.
Bezos plans to reside in his new mansion while his other two island properties undergo demolition and renovation. But not everyone's thrilled about his expanding presence. Some of the island's affluent residents, who were eyeing their own slice of the exclusive enclave, are reportedly miffed by Bezos' off-market deals.
"Property on the island is already scarce, so there is no doubt that Bezos making off-market deals will rile up a few who have been eyeing homes there," a source familiar with the area's real estate confided.
Indian Creek, nicknamed the "Billionaire Bunker," is home to just 41 residential properties and boasts a star-studded roster of residents, including Jared Kushner and Ivanka Trump, Tom Brady, and Carl Icahn.
Bezos' latest purchase, sold by former banker Javier Holtz, last changed hands in 1998 for a mere $2.5 million, showcasing the astronomical rise in its value over the years.
While Bezos' Miami spending spree is making headlines, his recent $8.5 billion Amazon share selloff has raised questions about his long-term investment strategies.
One thing's for sure: Bezos' growing presence on Indian Creek is shaking up the island's elite real estate scene.
đź’° Deal of the Day!
Price: $1,250,000
This Vermont Post and Beam Sanctuary would make an exceptional vacation rental, offering guests a chance to immerse themselves in the breathtaking New England mountain scenery while enjoying the thoughtfully designed and beautifully crafted interior spaces, providing a perfect balance of comfort, luxury, and natural beauty that will leave visitors feeling rejuvenated and inspired.
Airdna data:
Estimated monthly payment: $8,774/month (if financed)
Estimated monthly revenue: $11,608/month
Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.
Thanks and see you tomorrow!
✍️ Brett