Governments change, economies shake and Miami remains solid

2017 is a year full of expectations for some, doubts for others, especially when it comes to investing in Real Estate. But as history has shown us, markets go up and down, but they ultimately stabilize. That’s not the case for South Florida; apparently, this region of America is somehow “bullet-proof”. Maybe we are exaggerating, but what we can say for sure is that all the employment policies and immigrant matters will not negatively affect the housing market in this region; governments change, economies shake and Miami remains solid.

In 2016, many experts predicted an implosion of the Real Estate market in Miami, and by the end of the year, it turned out to be just a slowdown. Of course, this might discourage some new investors, but after all the growth that this town has seen in the last years, a slowdown isn’t much of a problem for most investors. Experts suspect this slowdown happened because of the November elections, and it’s just the beginning of an upward cycle; in other words, the market took a deep breath last year.

 

On the other hand, 2017 is not going to be the year for constructors, since financing has become harder than in the past. Still, this is no reason to worry; there’s still plenty of choices for investors looking to put their money on Real Estate in Miami. Last year, many sellers paused their properties and decided to rent only, while investors held their breath until the election was over. Now, at the beginning of the second quarter of the year, the foggy expectations are starting to look bright once more.

Talking about immigrants, we all know South Florida has one of the highest immigrant populations in America, especially latinos. Illegal immigrants are quite a topic nowadays, and there’s a lot of speculation about this, but the truth is, this matters don’t apply (at least not directly) to the Real Estate market. Many investors in Miami and its surroundings come from Central and South America, but most of these people are buying their second home. This means they are looking for legal ways to get American Citizenship (if they actually want it at all). While immigrant policies might affect the economy in other ways, the Real Estate market doesn’t shake to this matter.

Five Reasons to Rent in Coral Gables

Moving into a new town can be a very stressful thing to do, especially if you are arriving somewhere you know nothing about. The good thing about South Florida is that its citizens are very friendly and always willing to help you. Still, if you’re deciding among Florida cities to move in, then here are five reasons why you should consider Coral Gables as your next destination, especially if you’re looking forward to renting a home.

1)     If you’re looking for comfort, then Coral Gables is your best option. You’ll find infinite amenities that will adapt to any lifestyle. It has one of the most unique public pools: the Venetian Pool. You’ll also find gyms, clubhouse facilities, bars, sports courts, a shopping district, all kinds of restaurants, libraries, and so much more.

2)     The Marina at Coral Gables is always an extra plus. If you’re a boat and sea lover, then you’ll find peace of mind at the Marina.

3)     If you have a family, education is always an important factor you need to think about. In Coral Gables you have excellent schools for your kids to study, and you also have the University of Miami for more advanced studies (which, by the way, was envisioned by the developers of Coral Gables).

4)     If you’re moving with your family, Coral Gables is perfect since it’s a very safe area for your kids. Also, Coral Gables offers big houses, with lots of rooms and bathrooms for your comfort. You have a great variety to choose from.

5)     Right now, there are lots of great rental deals. You can rent a home at Coral Gables for less than $1,400 a month. There are even 2-bed/2-bath units available for a family of three or even four members.

Check Gables Riches’ website for all the great rental deals Coral Gables has to offer: www.gablesriches.com. You can also contact us and we’ll take care of finding your dream home!

Communications from a business standpoint

When I started in the real estate business our main avenue to reach clients was word of mouth. At the beginning this was enough. We were able to sell real estate investments to most of the people we knew. This strategy worked up to the point where we had sold to everyone we knew because obviously family and friends are a limited resource. You can argue you can make friends fast, but earning their trust is way more complex and it takes time.

Trust is a very important factor in almost all businesses and especially in real estate. If people do not trust you, it is going to be extremely hard to close deals. When you start working in any business, the people who already trust you, usually family and friends, are the first ones to do business with you. But how do you do when you need to grow your business outside of your circle of family and friends?

In our case, we grew organically up to a point where we did not have time to speak to more clients but we still needed to keep growing. It reminds me of a friend of mine, owner of a pizza restaurant, who told me once that he was very frustrated with his business while we were having dinner and all the tables were full.  I was puzzled and did not understand. He explained that he could no longer grow his business; that he had reached his maximum and could not grow anymore.

One of the best ways to slowly earn people’s trust is to be in constant contact with them. Therefore, communication is essential to earning somebody’s trust, especially at the beginning of the business relationship. We try to be in touch with our clients frequently via either meetings or phone calls. This allows us to slowly earn their trust. This model does not scale, as time is a limited resource. I needed to talk to more people to be able to close more deals. Our rule of thumb is that you have to talk to 100 people so that 10 listen to you and you close 1 deal. Therefore, the challenge lies in reaching the maximum number of qualified prospects using channels that allow you to grab their attention while slowly building trust.

For these reasons we started experimenting with social networks because the entry cost was very low, almost zero, and more and more people use them everyday. We were able to attract a lot of followers but were not able to attract new qualified prospects. We realized we needed a well-defined communications strategy to maximize the number of qualified people we could reach and ultimately gain their trust. Consequently, it is more than just hiring a community manager; you need to hire somebody who can define a realistic communications strategy that allows you to grow.

It is very challenging and costly for small businesses to hire a full-time communications expert, let alone a communications team. Therefore, most small businesses decide to hire an outside communications consultant or firm. This is a very important step, as this consultant must understand your business and your goals. They will not understand your goals –or it will be very difficult– if they have not worked in your line of business before.

After we hired an outside communications firm and defined a strategy, we started getting calls from qualified prospects. Moreover, we were able to train more salespeople to understand how to communicate the right message to prospects and how to slowly earn their trust. As a result, our team started to grow and our business started to expand. We meet regularly with our outside communications team to tweak our communications strategy and to learn from mistakes. The more they get involved to understand the intricacies of the business, the better the results. This is a very important point. I have heard a lot of people in the real estate business saying we hired a consultant who used to manage our communications and it did not work out so we stopped the service. And when you ask them how often you met to go over the strategy, most of the time they say we only met at the beginning.

Every business is different regarding communicating through social media. In some businesses you can produce a sale using social media directly. It is still really hard to sell real estate through social media, but you need a strong message to be able to catch the attention of qualified prospects and bring them knocking on your door.

It is still important to keep in touch with prospects and clients through phone calls and meetings, but if we had not hired an outside communications consultant, we would not have been able to grow our business and make more clients happy and satisfied with our service.

Carlos E. Rojas – Lic. Real Estate Broker, America Riches

Investing in Miami is Still a Safe Decision

When looking for a new home or a place where to spend your vacations, Miami always comes to mind. Not only will Miami offer you an excellent lifestyle, but it also comes with a great environment, amazing weather, excellent schooling zones, beaches, infinite recreational areas, great job offers, and best of all, economic stability. Miami is still one of the safest places to put your money in, and real estate is one of the most stable markets of all. If you are thinking about investing on a new property, here are some reasons why Miami should be your first choice.

·     Miami is the eighth largest growing city in the United States, and it’s growing daily. Thousands of people are moving to Florida every day.

·      85% of Greater Downtown Miami is under construction. Products to be delivered in 2016 are pre-sold.

·        Over the next 3 years, 100% of the inventory under construction in Greater Downtown (about 7,200 units) will be delivered.

·     More than 80% of the new condos sold over the past three years were obtained allcash, without bank financing. This means a tremendous amount of equity and very little bank exposure or default risk.

·       The most important worldwide city for high worth individuals is New York City. On a 10 year projection, Miami and New York will be the only two U.S. cities for high worth investors.

So, Miami is still one of the safest cities to invest. Whether it’s to purchase a vacation home, a primary residence, or just as an investment, Miami is an excellent choice. This city has everything to offer in terms of quality of life. And numbers don’t lie; your money will be safe in Miami.

Little Havana: the best of Miami but with lower prices

Since prices have been rising around Downtown Miami and the surroundings of Brickell, investors have decided to revitalize and redevelop Little Havana. Rents are being pushed up while keeping a high level of demand due to limited affordable rental inventory. The upside to this market trend is that a potential buyer could replace the current Section 8 tenants and replace them with tenants who pay market rate. The units in the complex measure about 651 square feet, with a mix of three studio/one-bath condo, 48 one-bedroom/one-bath units, and 28 two-bedroom/one-bath apartments.

In fact, Key International places low-rise apartment buildings in Little Havana on the market. They are asking for $12million for all the units. The portfolio includes: 10 two-story rental properties at 931 Southwest 3rd Street and 910 Southwest 2nd Street in Miami, 79 units, and 51,774 square feet of rental space. Each unit costs about $152,000 and $231 per foot.

Little Havana has become a potentially commercial and it’s a magnet for multi-family investments. For residents, rental and sale property prices are significantly lower than in Downtown Miami or Brickell. Still, its location is pretty good, since it’s very close to Brickell. Little Havana has everything that Miami has to offer, but with lower prices. Investors see it as a great opportunity and they have their hopes high in the potential of Little Havana.

New Inventory coming up in Miami

A new inventory is about to be released in Miami. About 7,200 units, which are currently under construction, will be delivered in the next three years. Several big projects are being developed in this city.

For instance, the new Brickell City Centre will be inaugurated this year. This is so far the biggest project in Miami. About $1.05 billion dollars have been invested on this mixed-use development. It is located in the center of the Brickell financial district (between 8th and 6th Street) and it is believed to provide the most sophisticated and urban living experience in the area. The Brickell City Centre offers 5.4 million square feet of office, residential, hotel, retail, and entertainment space. This means 243 hotel rooms, 89 exclusive apartments, and 790 residential units distributed in two towers. It also includes a variety of stores and restaurants that will provide the most amazing experience in Miami. For example, the biggest Apple Store in the south of Florida, Saks Fifth Avenue, a Cinemex, and Porsche Design, among other luxury stores.

And the best complement for the whole Miami experience is the Brickell Heights project, opening in 2017. This new project consists of 358 residential apartments, spread among 48 floors. The apartments will have different sizes –between 676 and 1276 square feet, including big balconies. This Related Group project ensures a sophisticated and unique design and quality of the condos. The living experience in Brickell Heights will include a movie theater, a billiard club, a glamorous pool, playing rooms for kids, and concierge service. 

           

Miami is all about new projects trying to fit your interests and needs. As time goes by, more and more innovative developments are being carried out; at this moment we are very excited for the new inventory Miami has to offer. It is the perfect time to think about investing, since we are being given an extensive variety in terms of design, comfort, and prices.