Hello everyone, and welcome to another episode of Passive Real Estate Investing. So before we get to today's episode, I wanted to bring on one of our Florida property providers. He was on the show about five months ago. We did a market spotlight on Southwest Florida. Reed, welcome back to the show.

Hey, thanks a lot for having me today, Marco. I appreciate it.

Yeah, so we were chatting, and you had mentioned to me that you're running some specials on properties that you guys are constructing new construction in Northport. Mm-Hmm. and in Port Charlotte, which is just north of Fort Myers, the Fort Myers market, and some pretty interesting incentives. So you asked if you could come on the show and share them, and I said, well, sure. You know, sure. I think the audience wants to hear about it and, you know, it might be something that can take advantage of, especially when it increases cash flow. So just give us a very quick overview of what you're building and where, for those people who are not familiar either with the market or have listened to the episode that we did together on the market spotlight about five months ago. It was actually a, what was it, August? I think it was August

Yeah I believe it was August. It was before the storm, so, yeah. Okay.

All right. So give us a quick overview of the two markets, what you're constructing, and and then those incentives. And we will we'll, we'll drop this into our next episode.

Awesome, awesome. Well, we build single family homes in southwest Florida in port Charlotte, north Port. The model we build most often is 1500 square feet three bedroom, two bath, two car garage, really nicely built with luxury vinyl plank flooring, granite stainless steel appliances, taller ceilings. So it's a, it's a really nice looking house and it's worked out really good for a lot of our, you know, investor clients as a nice rental. And now we, we know what over the last six or eight months, interest rates have changed and, and cash flow numbers have changed. But what we've been able to do is with one of our strategic partners that's a lender, is we're able to do an, an adjustable rate mortgage for either seven or 10 years. That way you can take advantage of the lower rates in the adjustable now.

And when interest rates straighten back out within a, you know, some people say a year, two years, whatever it is, then you can refi back into a 30 year fixed. But in the meantime, we will be paying 2% of the amount financed in order to pay for that buy down of the rate or that adjustable rate mortgage. The other thing we're gonna do is we are gonna be paying the first two years of property management and that really is gonna increase cash flow. You know, right now with the higher rates, cash flow's, not as sexy as it was a couple of years ago, but doing these two things we're able to get you right back to the same cash flow numbers when things were were awesome. It's, you know, know three 50 to four 50 per month is what our clients are seeing in terms of positive cash flow.

So Northport, and by the way, those are two good incentives. So Northport and Port Charlotte, and these are single family homes, new construction, typically three bedrooms, sometimes four if I'm not mistaken. We

We do have a four bedroom model that we're starting to to, to get a few of 'em that are nearing completion on that.

Okay. So to summarize, you've got two years of what you're calling free property management, which means that there's no monthly management fee on collected rents, correct? Correct. And 2% is 2% of the purchase price. And that goes towards a rate buy down with mortgage financing?

Correct. Okay.

Is you can use the 2% for whatever, but most often people are doing a rate buy down or an adjustable rate, like a seven one arm or a1 year arm, but that's between them and their lender. But the money is available and set aside for that.

Okay. That 2%, by the way,