Cherif Medawar

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Crucial Factors and Calculations to Consider for Best Results in Real Estate Investing

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retail courses

If you are investing in real estate you must understand the relationship between price and value. I want to share with you what calculations I do to figure out that difference and how I apply the strategy: My buy and sell strategies My buy and hold structures The business models I offer my investors Under the “price” consideration I calculate: How much money will I have to pay to purchase the property How much money and effort will it cost me to rehab the property, including other fees to reposition it and get it to perform to its highest & best use How much time will it take to get it to a level where it can be resold or rented Then, I compare each of the options to alternative assets and opportunities Under the “value” consideration I calculate: After spending all of the above to get the property to its highest & best use, how much income will that property bring in each year and over how many years? What would be the incremental effort, and ongoing cash expenses required to keep the property performing (Monthly operating expenses and periodic capital reinvestments)? At what price would I be able to re-sell it once I finish the repositioning vs. what value would the property have if I held on to it for income over a period of 5 years, 10 years or longer? Then, I try to compare the long-term value of that property vs. the price (based on time, money and effort) that I would pay, and I compare that to other income producing assets. If I am buying to resell (flip) the property, then here are the factors I would consider that combine the price and value calculations: How much time, effort and money will it take to: Find a property below market price and purchase it Improve the property to increase its value Resell the property (closing costs etc.) The next step is to figure out: What is my expected average profit on each deal (percentage wise: i.e. 20% annualized)? How long would it take me to find the next deal (down time with no returns between deals, cost of the money)? How much would my yearly returns be after all the time, effort and money spent on all the deals I could do in one year? How would that compare to other business models that would require a better balance between my resources (time, money and effort) at that particular time in the market and in my life? After doing all these calculations, and after many years of experience in the real estate business and profit sharing through my various real estate funds and educational companies, I have created the safest and most profitable business model for students/investors. If you wish to flip properties with no investment of your time or effort— and down time on your money, then my business model is a perfect fit. Your money will produce returns from day one when you acquire the properties. It is a “done for you” model to buy and hold, as well as flip with cash flow of 9% per year, and an approximate upside of an additional 30% +/-. Right here right now I have a business model that produces for my students/investors a hands-off, hassle free, secured return of approximately 40% per year. That is true “TURNKEY”. Watch my next blog for details to go to www.SFIFundDirect.com Sincerely, Cherif Medawar CEO SFIFund Direct www.SFIFundDirect.com      

How to Make 40%+ Per Year in Real Estate Safely and with Little Effort?

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real estate

Right here, right now I have a business model that produces hands-off, hassle free, secured return of approximately 40% per year for my students/investors. Let me tell you more: If you are a novice or an experienced investor, you are better off buying a few properties in cash that are already rehabbed and rented bringing in 9% net profit per year. That is a 9% cap rate per year on the cash you invested. (This will save you the time, money and effort to hunt down deals, rehab them and rent them or re-sell them. Immediately you will start making money 9% per year on your cash invested. There’s nothing of greater vale for an investor than to start earning cash flow immediately after you close on the purchase of the rented properties that have a reliable management company in place. Earn from Day 1.) Next, immediately thereafter, place these rented properties online For Sale at 8% cap rate, which makes the selling price higher and ensures a nice back to back upside profit for you. (The reason another investor would pay more and receive a lower net return, a cap rate of 8% per year on each property, is because you will allow them to buy one property at a time, through financing, whereby they get referred to a local bank that offers 80% financing at an interest rate of less than 5% fixed for 30 years.  This makes them able to hold on to the property for long term, and all they have to invest is 20% of the purchase price as down payment. Their cash on cash return becomes approximately 14% power year for the next 30 years). This is Virtual Flipping. When you buy the property, you get the cash flow of 9% per year— and whenever it sells you get an upside profit of an additional amount within a few weeks to a few months. The upside annualized gain is approximately 40%+ which makes your yearly return over 30% per year. This gives you the power to buy other income producing properties immediately back to back to reinvest your money. (You don’t even need to market to find sellers, or negotiate with anyone. You don’t even have to deal with contractors to rehab the property, and deal with delays and frustrations. You simply buy income producing properties 5 at a time in cash producing 9% cash per year. Let my company, the real estate hedge fund that I manage, keeps them posted online and we resell them for you at a profit so you can come in and buy again.) Let me show you the numbers: You invest in cash say $100,000 on a property netting $9,000 online through my real estate hedge fund’s website (That is 9% cap – $9,000 divided by .09 = $100,000) These are sold in packages of 5 properties. My real estate fund keeps it posted for sale on the website and we promote the properties for sale individually to investors who pay slightly more because they wish to finance the properties one at a time. A few weeks or months later, we contact you with a buyer who would be paying $112,500 for that same property producing the same income of $9,000 a year – The returns are 8% annualized which is $9,000 divided by .08 – $112,500. (Remember that this new investor buying the property will finance it and we refer them to the local banks in Ohio that like our business model and offer a 5% or less interest rate fixed for 30 years. This makes the return for the new long term hold investor over 14% cash on cash after they place only 20% down) You get $12,500 gross profit, minus the closing costs in and out and minus a 1% posting fee and 1% commission fee. Your net profit would be between $8,500 to $9,000 within less than 4 months – you can easily make over 40% per year on your investment doing these transactions online hassle free and secured since all purchases and sales are handled by the title companies. To recap, all you need to do is go to, www.SFIFundDirect.com,  and click to buy no more than 5 properties in cash. The title company will contact you and finalize all through phone and email. We keep your property posted online and you keep getting the monthly rent deposits made by the management company until we contact you to sign a resale order. You resale for more money and sign on the dotted line again through the title company to cash out all your money and upside profits. Virtual Flipping. In our experience, it has never taken them more than 4 months to resell any property through financing. Everyone wins in this business model: You, the short-term investor, who seek cash flow right away from the rental income at 9% while holding the property and an upside profit when you flip it of another 30%+ for a total of 40%+ (All with lower risk, less time, no effort and no hassles). You, as a long-term investor, who seeks cash flow forever and invests only 20% cash down payment, then finances the property at a low fixed rate for 30 years to get a cash on cash return of 14% plus per year. My Real Estate Hedge Fund that seeks to buy, rehab, and rent properties to deploy the massive amount of capital that we need to invest and put to work— safely, ethically and profitably into a cash machine. This machine gives us cash flow when we hold the properties and some profits when we resell them in packages to short term and/or long term investors. All the numbers are posted on the real estate hedge fund website – All properties are at or around $100k each. They are all located in Ohio, which is a solid and steady rental market. This makes the strategy of a long-term hold a defensive and profitable … Read more

What Would a Balanced Real Estate Portfolio Look like?

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hotel real estate investment

As a real estate hedge fund manager for a decade now, I use an approach I developed years ago involving 5 parts to a balanced real estate portfolio: safety, solvency, liquidity, reserves and leadership. Safety Different asset types such as some multiple units and some single units Different locations such as different cities or states with high demand and steady growth in population as well as scarcity of potential new competition of new buildings Different strategies such as buying to rehab and resell for immediate profits and some to buy and hold for long term Diversified asset type of income such as from multiple units small tenants like apartment buildings or high income from less units such as single tenant retail buildings with corporate guarantees Solvency: Low to no debt obligation (low LTV) If debt, then well-structured in both the low amount owed and the terms over time (non-recourse) High reliable Income against all expenses (high DSCR) Great insurance covering business interruption and asset protection structure Liquidity: Locations that make it easy to resell if needed (based on demand) Credit lines against properties to access cash through borrowing at low rates in case of a cash crunch Reserves: Having cash reserves equal to one-year payments on the side in case market drops in various locations simultaneously and resale gets delayed Having a reserve of back up investors interested to be involved in transactions at reasonable terms in case of a cash crunch Leadership: Having the right team members in place (intelligent, ethical, energetic and committed) Providing the right incentives and rewards as well as feedback and penalties Supervising the progress of each project and property and getting the proper accurate reporting as frequently as needed Maintaining financial controls at all times In my real estate funds Welcome to MIGSIF and Secured Fixed Income Fund we buy, fix and sell higher end residential properties in California, mainly the Bay area, where demand is higher. We also buy and hold in Old San Juan, Puerto Rico where cash flow is more reliable due to cruise ship business and the historic zone. Wishing you all the best in your investments.   Cherif Medawar (407) 608-5448

The Perfect City for a Real Estate Investor

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Perfect City for a Real Estate Investor

Have you ever been to a place where you thought to yourself, “Wow this is a cool place! I like it here.” If so, have you asked yourself, why you had this impression? What was it that you liked so much about that particular city or town? Well, as a real estate investor and hedge fund manager, I have always paid attention to what I like and what other people find alluring in a specific city. In the past, I had the privilege to live in a variety of places around the world like Egypt, the Middle East, France, and Switzerland, throughout Europe, various cities in the U.S.(mainly California), Cancun, Mexico and also Old San Juan Puerto Rico, in the Caribbean. I have had many residences for over a decade now and have enjoyed the beauty and uniqueness of all these different places. But I have come to realize that there is a set of criteria, when met, any city becomes attractive to its locals and most of its visitors. Here is a short list I developed after 3 decades of travels, while always keeping an eye on the beauty of architecture and attitude of locals that impact the overall lifestyle in a particular location. To feel like a great place a city or a town must have: Order: Balance, symmetry, and a variety of forms and colors. Its layout must be organized in a way that flows well with nature even in its complexity. Visible life: The streets should be alive with activities, full of life, energy, and excitement. It must give you a sense that a lot is going on and you don’t want to miss out on something. You want people walking, talking, sitting in restaurants and cafes enjoying life; not just cars or people hustling and bustling for work. It has to be as much on display as possible. Compact: While you want space, you also want a decent density. Having the balancing, moderating influence of living close to other people in an uplifting surroundings. Tightly packed well-ordered cities, with lots of squares, plazas, and places where we can hang out. The art of the square is a having good size, symmetry, and height of buildings. Having great statues and maybe a water fountain in the center. You want to have a place that is private within the public space, surrounded by cool places to hang out. Orientation and Mystery: You want to get a bit lost in the back streets that are cozy and quaint. A place that is both cool and warm. Anonymous and mysterious yet personable and familiar. Where you get the sense of the old respected history and the new modern energy. You want to sense the newness of the place as well as some intimate old familiar surroundings. Scale: You don’t want it packed with commercial interest posted on high rises. You want a variety of places of worship, museums, culinary places, and shops. No more than 5 stories high buildings are always more welcoming. Sizes and spaces with a density that does not make you feel too small or too big. Local influence: You want to immediately feel that there is a uniqueness to the character and feel of the place. You want to see people and architecture that reflect the local customs, way of life, and history. Climate: An inviting climate that makes you feel you are at the right place, no matter the time. Safety: You want to feel that you can go venture on your own and discover without having to worry about your own security or well being. Friendly and happy: You want to feel that everyone around you is happy to see you there. Making you feel welcome, appreciated, and wanted. I like places where people take time to share their stories and carve time out of their schedules to involve you in what is happening in their surroundings. It is great to feel open and connected. Especially when look you in the eye, smile and greet you and each other which gives you a sense of warmth and welcome. Educational: You want to learn something new to be able to share with your friends back at home. Museums, local customs, etc. In the early 2000’s I found such a city— and it is called Old San Juan, Puerto Rico. It is the oldest historic zone under a U.S. flag. This area features all of the criteria I wrote above and more. It has hotels, museums, churches, restaurants, art galleries, and great shopping. This enchanting city is all nestled into some unique and colorful colonial buildings with narrow streets covered by blue stone-casts that were brought over as ballast on Spanish ships in the 1500 and 1600s. This area is very charming and I have worked hard and invested millions into the area to restore the beauty and integrity of its colonial buildings. My goal has been to make everyone enjoy the history and charm of this Old City. That city offers everyone, locals, tourists, first-time visitors (coming off the cruise ships) to returning guests an opportunity to connect with each other and with the historic architecture and the story that is very much part of nature in its design and creation. Come and visit Old San Juan, PR and you may just fall in love with itas I did back a decade and a half ago. Cherif Medawar Old San Juan, PR

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