GroundBreaker’s first deal may have been under the radar, but it was nothing short of extraordinary. Let’s start with the property: an original Art Deco triplex built in 1923 in Miami Beach. Since a picture is worth a thousand words, we are including two.
The entrepreneur, Adam Hassad (we have edited his name, since he asked that only investors see it) is the visionary and founder of a vacation rental booking and management
company, South Florida Vacation Rentals. Adam’s vision for vacation rentals occurred during the downturn of the economy in 2007. “I realized properties were not going to be able to make their mortgage and tax payments with long-term rentals, as people overpaid for these properties based on expected appreciation.” Adam figured out that income from short-term vacation rentals would not only cover the mortgage expenses but would make the owners a healthy profit. “In essence, my business plan was saving the property from foreclosure and giving the owners an immediate return on their investment.” His company grew from a small company to one that now books 150 properties per month throughout South Florida.
When Adam knocked on our door saying he needed an $80,000 short-term loan to purchase this Miami Beach jewel on a foreclosure sale, we knew we had to get it right. And we did: GroundBreaker quickly formed a fund and brought together a few investors from our and Adam’s networks to get Adam the money he needed. Investors got a healthy double-digit return and we were able to test firsthand our platform’s powerful technology, which made the process a breeze. This was truly a win-win-win!
Here’s a brief Q&A we had with Adam as he celebrated the acquisition of this triplex, which he will add to his short-term rental inventory once renovations are completed:
GB: Favorite thing to do around Miami.
Adam: I really enjoy walking the boardwalk in North Beach (north part of Miami Beach). The beginning of the boardwalk runs through the largest city park in the county and has been recently returned to its former glory. [This is on the same stretch where the Fontainebleau Miami, one of the most historically and architecturally significant hotels in Miami is located.] This is a great place to be on the beach without any high rises towering over you and just south of a private neighborhood directly on the ocean with $15,000,000 in brand new compounds.
GB: Favorite property in your portfolio.
Adam: I really do not have a favorite. I like them all and am proud of every acquisition equally.
GB: What do you look for in properties?
Adam: I look at a property that has hidden added value. Generally, even when you buy a property at a great value, it is not more than 20% to 30% in income. I try to find space to grow to really hit a home run. For example if a building does not have parking but there is space for parking, with a minor expense the rentals can improve as high as 20%.
GB: Your Take on GroundBreaker.
Adam: I am fascinated with this concept and company. I truly believe this can revolutionize the real estate industry, as well as give smaller investors a safe place to protect their money with a generous return. It also gives entrepreneurs an opportunity to demonstrate and potentially implement their ideas.