Rick Minor | A positive outlook for Real Estate and Politics in Tallahassee and Leon County

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In this episode, Thom and Jason sit down with Leon County Commissioner and CEO of America’s Second Harvest of the Big Bend; Rick Minor, to talk a wide variety of topics around local real estate development and politics.

Tune in to hear:

  • Rick’s background and how he’s really come to enjoy living and working Tallahassee.

  • The challenges Tallahassee faces with quality affordable housing.

  • Insight in to challenges investors have when it comes to storm water restrictions.

  • A coming forum designed to encourage neighborhood advocates and local real estate investors to engage with each other about coming development projects.

  • Rick’s take of the state of the local economy and even the current political climate in our country.

Episode Timeline:

00:45: Rick gives us some background on his story and how he’s come to really enjoy living and working in Tallahassee. He explains how he’s been involved in politics for a while.

01:54: Thom asks Rick “why politics” and Rick explains how he really just wants to make a difference. Rick goes on to tell us how he’s also serving as the CEO of the 2nd Harvest of Big Bend. Rick tells us how that organization’s food distribution is growing at an enormous rate and how hunger in the area is going down.

03:34: We talk about how Thom was not a great student when taking a class, taught by Rick’s wife Jessica Minor, years ago at Florida State University.

04:30: Jason asks Rick about his work in and around issues that impact local Real Estate investors. Rick tells us how he has frequent meetings with the Tallahassee Board of Investors and how local Realtors are are great resource for him to gauge how well the local economy is doing.

05:16: We talk about affordable housing in the local Tallahassee market and how people are struggling to find quality and desirable affordable housing in neighborhoods in safe neighborhoods. Rick and Jason discuss the struggles of actually providing quality affordable housing.

07:20: We talk about how we can encourage developers to set aside a certain number of their units to affordable housing and the challenges that play in to that. We discuss more about the options buyers have when it comes to finding quality affordable housing in Tallahassee and how each of them have their pros and cons for the local economy.

08:40: Jason expresses his concerns and frustration with the requirements around storm water. He explains how the city’s lack of efficiency when it comes to processing storm water requires developers to have larger holding ponds. He explains how these large holding ponds reduce the develop-able space for the project and therefore drive up the cost of each unit. Rick explains how the commission is right at the point where they could possibly do something about that. He also elaborates on the challenges around Tallahassee having red clay and how that also plays in to the need to have larger holding ponds.

14:00: Rick expresses his goal of striking the right balance that encourages investors to invest in Tallahassee and also preserves the things that make Tallahassee special.

14:38: Thom and Rick discuss a local forum he is hoping to start soon that will encourage neighborhood advocates and Real Estate investors to engage in dialogue about projects that are happening in and around our city. Rick tells us that he hopes to have this forum start in May or June but that the dates are still tentative. He tells us that he is working with Village Square to host and conduct the forum. We talk about the overall goal of the forum and the potential topics to be discussed.

20:08: We talk about Rick’s overall take on the local economy based on his interaction with local business people and Real Estate investors in Tallahassee. We talk about how unemployment in Tallahassee is slightly lower than the State average and how manufacturing is doing really well.

21:35: We talk about how college graduates are starting to stay more and more in Tallahassee after college due to the gradually diversifying economy. We talk about how Rick would like to see us double down on finding businesses that can utilize research from the Magnetic Lab and how he’d like to find the right person to really push that business development forward. Rick points out Tallahassee was just named one of the best places to live in America by Livability.com.

24:26: We talk about the investment opportunities in Tallahassee and, specifically, the highlights on investing in the “Opportunity Zones”. Rick explains the need for these opportunities to be beneficial for both investors and the people how live in our community. He expresses the concerns with potential gentrification with this program and how we need to be careful to not simply press out people who already live in a target zone. We talk about the concerns that were raised with the gentrification in Frenchtown in Tallahassee.

31:10: We talk about Rick’s take on the overall political climate in the Country and his view on National politics. He explains his idea logical differences with the current administration but expresses his understanding of why people support it. Rick elaborates and explains how he, as a local politician, needs to continue to listen to folks and try to solve problems for them; regardless of where they sit politically.

Mentioned in the Show:

Cristina Paredes & Richard Fetchick | Tallahassee-Leon County Office of Economic Vitality

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In this episode, Jason and Thom sit down to discuss local economic development and investment opportunities within Tallahassee with Cristina Paredes and Richard Fetchick from the Tallahassee-Leon County Office of Economic Vitality

Tune in to hear:

  • What the Office of Economic Vitality does and how they can help local Real Estate investors.

  • How local research at the Magnetic Lab is making an impact on industries and companies like Danfoss.

  • How real estate investors and developers can take advantage of Opportunity Zones; as well as make a meaningful difference in our local community.

  • And more.

Episode Timeline:

00:46: Cristina gives us some background around her story. She tells us how she came to Tallahassee to attend college and ended up staying to help push the local community forward.Richard echos Cristina’s story with his and explains how he started in Texas, bounced around to some larger cities, and made the intentional decision to come to Tallahassee.

03:44: Cristina explains how the cost of living in Tallahassee is around 3-4% cheaper than the national average.

04:04: Cristina explains the role the Tallahassee Office of Economic Vitality plays in developing the local community. The office focuses on business expansion, business attraction and women and business minorities. She explains the significance in the word “Vitality” within the name of the office and how it’s more than simply business development within Tallahassee.

05:40: Cristina highlights the development database on the OEV Tallahassee website that is available to local Real Estate investors and developers to utilize. This database is very useful to find activity in the local community.

06:39: Richard elaborates on the value of the data and information that their office provides and gives some examples of how local Real Estate investors can utilize the data.

08:55: Cristina explains how DesignWorks can be a great resource for investors and developers to identifying what can be done on a certain property. She highlights the most active places in Tallahassee in terms of development.

10:10: Cristina lays out her office’s 6 cornerstones; business formation, tech transfer & commercialization, business retention & expansion, business recruitment, the creative economy and talent pipeline.

12:56: We talk briefly about the importance of underground utilities in a zone that can be hit by storms.

14:10: Cristina discusses the 4 target industries and extrapolates on the fast growing manufacturing segment within Tallahassee. Likewise, we talk about applied science, the research being done at the Magnetic lab and how that research is being applied through companies like Danfoss.

16:00: Cristina elaborates on the Danfoss levitating magnet that is revolutionizing HVAC systems and we discuss how local research in magnetic is impacting industries like Real Estate.

18:22: We dig deeper in to Opportunity Zones and how real estate investors can utilize the opportunity to defer their capital gains earned on qualified investments. Richard furthers the discussion and argues that investors should keep in mind the intent behind the concept and encourages them to make investments that will have a positive impact in these zones as intended.

21:04: Cristina highlights the impact that public investment can have on the amount of capital invested by the private sector. She tells us that the Gaines Street initiative investment of 30 million dollars spurred a nearly 500 million private sector investment.

22:40: Cristina tells us about the Opportunity Zone perspective and how investors can use it to understand the opportunities and the County/City’s goals behind the initiative.

27:00: We end by talking about the various real estate developments in and around Tallahassee; including the large initiative to further develop the area in and around the airport.

Mentioned in the Show:

Jason Picht & Thom Holland | Nightmare Tenants

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In this episode, Thom and Jason break down some of the worst tenant experiences they’ve ever had and the lessons they’ve learned.

Enjoy.

Tune in to hear:

  • How mold can be a landlord’s worst fear and why regularly inspections are so important.

  • Jason’s advice when it comes to being a “nice guy” with tenants.

  • How Thom finally caught the raccoon that was terrorizing his house.

Episode Timeline:

0:25: Jason tells us how mold can be the scariest thing to a landlord and how he went about dealing with a major mold issue in one of his previous concrete multi-family properties.

2:00: We talk about concrete homes and how they can sweat if you don’t humidify the interior of the home; which can lead to mold problems in the home if you’re not careful.

4:20: We discuss the importance of regularly property inspections by you or your property manager and how it’s quite literally cheaper than cleaning up a mold problem later in your rental property.

6:10: Thom describes a nightmare tenant who questioned EVERYTHING on the lease and how it’s often best to find tenants that you interact with well.

7:05: Jason tells us about his “being a nice guy” experience with challenging tenants and how it ended up costing him a significant amount of money. We discuss why it’s so important that you have a solid agreement and the importance of sticking to that agreement.

10:00: We talk about how it can be a tough situation to be strict on tenants you’ve had for a long time and the importance of a grace period in your lease agreements.

10:43: Jason describes how his experience with renting to college students at FSU went surprisingly well and how you don’t necessarily need to fear all student renters.

12:09: We dig in to our opinions on the psychology behind why some renters end up being great renters where other renters end up being very challenging.

15:10: We talk about Jason’s dislike for cats and how pets can impact a property if you’re not careful. If you’re a landlord, a pet policy is generally a good idea.

16:06: Lastly, we talk about Thom’s dramatic battle with a local raccoon at his house and how eventually out smarted it. :-)

Real Estate Investing | Holland & Picht Answer the Internet

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In this episode, Jason and Thom answer some of the Internet’s best (and worse?) real estate investing questions.

Tune in to hear:

  • The craziest thing Jason has ever walked in on as a Realtor in Tallahassee.

  • How much money you need to start investing in rental properties.

  • Whether or not partnering with other investors to buy rental properties is a good growth strategy or not.

  • Thom’s story of the giant moth that attacked his family this past week.

Enjoy!

Episode Timeline:

0:45: Right out of the gate, Jason tells us one of the craziest things he’s ever witnessed as a Realtor.

1:29: We talk about how much money you need to start investing in rentals and how your goals will drive your strategy.

5:46: We talk about partnering with other investors to purchase rental properties and a few different partnership scenarios that you could establish.

7:12: We talk about how many rental properties do you need to make a good living. What is a good living? Are you trying to replace your current income? What do the numbers look like on your rental properties? Are your properties all cash flowing? All of these details will drive the answer.

9:04: We talk about the worst infestation Jason has ever had in a home and how it’s always a good idea to spend the money on a recurring pest control service for your properties. We talk

11:00: We talk about the return on investment that real estate investors should expect from a rental property and how to calculate a cash on cash return.

14:53: We talk about how some of the wealthiest people in the world amass 100’s of properties and wealth with rental properties when the expected ROI is just 10-15%. We talk about equity deals, the benefits of having a second income and old school deals that allowed for the original owner to take back a 2nd mortgage.

20:20: We talk about how some people today are very hesitant to purchase real estate and the possible psychology behind those thoughts.

25:15 We talk about the mindset of young buyers and how many today are more focused on life experiences than the equity building that is often provided by those who invest in real estate.

26:00: We talk about how real estate has recovered in the Leon County area and how investors are becoming much more interested in the location of properties than they have in the past.

26:50: We discuss how cosmetics impact the owner’s ability to sell or not. We also discuss how you, as a buyer, can take advantage of this dynamic to find a good deal.

30:34: We talk about investing in old homes and whether or not it can be a good investment.

Mentioned in the Show:

Josh DeSha | Commercial Lending Options

Josh DeSha | Commercial Lending Options

As you grow your Real Estate portfolio to a certain point, you’ll find that you can no longer finance your investments in the same way you’ve done in the past. You’ll find that you need to utilize commercial lending options; which can vary quite a bit from a traditional loan. In this episode, Josh DeSha, local business banker in Tallahassee, will walk us through the ins and outs of commercial lending options.

Will Peters | The Importance of Relationships and Being able to Sleep at Night

Will Peters | The Importance of Relationships and Being able to Sleep at Night

If you’re just starting your career in Real Estate investing, chances are you spend a lot of time thinking about the numbers and profitably scaling your portfolio. In this episode, we sat down with local real estate investor Will Peters who explains his experience achieving those things; as well as the underlying purpose that keeps him going.