John Casmon

Multifamily Syndication and Market Selection with Larry Abramowitz, Episode 112

Larry Abramowitz began investing in real estate, while operating a flower importing and distributing company. He has completed over $30MM in real estate transactions in the USA, Columbia, Costa Rica and Spain. He resides in South Florida and has extensively researched the factors driving the state’s growth. Today, he shares how he selects his target markets and key lessons learned from his first multifamily syndication.

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Key Market Insights

Grew up in Costa Rica and moved to the US to go to Boston University
Moved to Columbia, running a manufacturing plant, lived there for 3 years
Did a development deal for low income housing
Moved to Miami in 2000 and started a fresh cut flower importing business
In 2014, wanted to get involved in real estate and started buying foreclosure homes at auctions after his wife put a house under contract
Focused in Florida, specifically in I-4 Corridor from Daytona Beach, Orlando, Tampa, Largo and Sarasota
Lots of migration into Florida – 900 people per day are moving to Florida
Reasons Florida Is Growing: No state tax, great weather and employment growth
Daytona to Tampa, Bradenton and Space Coast is generating a lot of employment
Closed on his first syndication, 108 units in Daytona Beach
Prior owner did not remodel any units, semi-remodeled 20 units with 1980s appliances
Acquired for $11.7MM and plan is to remodel for $5-6k per unit, seeing $150-200
Had 1-2 deals where he brought in partners, but this was his first syndication
Biggest lesson was to bring in the team: an attorney, property manager, help with the business plan
Raise more than you need when speaking with investors
The PSA took quite some time, almost 3 weeks to get it together
Looking at two deals north of 200-300 unit deals in Tampa/St Petersburg/Largo area
Reached out to everyone he knew and asked if he knew anyone else who might have interest in the deal
Had 22 investors in his first syndication
Lessons from Investing in Other Countries: Transparency and bureaucracy is challenging