Felix Montanez gives expert opinion at Real Estate Investing Seminar
Felix G. Montanez, the managing partner and founder of Montanez Law Firm was proud to serve as an expert panelist at a Real Estate Investing Seminar hosted by Enterprising Latinas.
Enterprising Latinas is a non-profit organization that teaches new skills to Latinas in Tampa Bay to promote economic mobility and equity.
Here are some notes Felix took in preparation for speaking
Why invest in real estate?
-Tax friendly
-Ultimate finite resource
-Great way to build generational wealth
How do I get started? What are the steps?
-Easier if you have money, but there are other ways as well:
-Seller financing
-Wholesaling
-Crowdfunding
-Househacking
-Fix and flip
-Partnerships
What are the risks?
-Anytime you invest money, there are risks.
-Partner with an expert in flipping
-The investments I see go wrong is when a new investor decides to try a fix and flip. The project takes longer and costs more than they expected. They often used a hard money lender. So, they lose money on the deal.
How much money, realistically, do I need to invest in a property?
-With wholesaling and seller financing, you may not need any money up front at all. Those deals are not easy to find so you have to do the legwork. Those are generally off-market deals.
-Partner with someone with money. You find the deal, they fund it, you both share in the profits.
-With crowdfunding and REITS, you can invest in a fraction of real estate. They have minimum investments but the amount varies. Could be as little as a couple thousand dollars.
Do I need to use my own money?
No.
Who will I need along the way? (realtor, but who else? who is my team? talk about broker, bank, etc)
-Title company
-Lawyer
-Inspector
-GC
What should I do to prepare for a real estate venture, besides having financial capital?
Education
What other sources of financial capital exist, besides banks?
-Hard money
-Private lenders
- Joint ventures
Once I've acquired the property, what do I need to know or do to maintain it and ensure it stays Profitable?
If it’s a rental then you need to familiarize yourself with landlord/tenant law and have a good screening process. If you don’t have time, you may want to hire a property manager.
Do I need to become a realtor to invest in real Estate?
No. Lots of investors prefer not to be realtors because there are additional ethical requirements required of realtors.
Is this a good time to invest?
The investors I know generally make money when the market is good and when it is not. There are always opportunities. The market is slow, but prices have stabilized. Increase in interest rates makes buying a home harder, which may lower competition for a creative investor.