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Finding Real Estate Investments
You would not have your local family doctor perform brain
surgery. You would no doubt find a specialist. Its the same
with real estate. The local realtor is great for finding a
house or apartment in your neighborhood but for real estate
investing you should use a specialist.
We have numerous real estate investment opportunities with
more coming in all the time. If you are a new real estate
investor we will provide expert guidance. If you are
experienced you can use us to find new deals for you.
Old School v. New School Real Estate Investing
Old School
The late night infomercials, real estate seminars and books
will tell you that in order to make money in real estate you
have to find someone who was willing to sell you their home
for less than market value.
Guess what! Sellers don't want to give away their homes.
They were not watching the infomercial you were and did not
buy the course. They don't know that they are supposed to
bow down and kiss your feet for stealing away their home.
Some techniques relied on finding a "fixer-upper". You would
pour money and/or labor into it and sell it at a profit. In
this case you have a few variables to contend with:
1. You know enough about construction to accurately estimate
repairs.
2. There are no surprise repairs you did not plan for.
3. You have the cash to buy the home and pay for all the
repairs before you resell it.
4. You can find such a home before one of the thousands of
other investors find it
Then there are what I call the "lifesaver" techniques. This
is where you find someone who can't pay their mortgage
and/or taxes and will lose their home and destroy their
credit. You come in and negotiate with the bank, offer them
a couple of bucks to move and save the day. Many of these
homes need work as well.
Every now and then you can find one of these deals. But
remember, there are agents, mortgage brokers and thousands
of pros looking for these bargains. You need cash to do the
deals. The bank wants you to close in a week or so with cash
in your hand. You can't start looking for financing.
Of course you can really go crazy and use your credit card
to get cash. This is a great technique because after awhile
another investor gets the chance to buy the home from you
under its market value and bail you out of trouble.
New School
I am not saying that the aforementioned techniques don't
work. There are some very successful investors who use them.
We go to a local real estate association meeting with as
many as 500 people in the audience. There must be at least a
dozen people who have been successful with them.
Our methods do not rely on your ability to swing a hammer,
find once-in-a-lifetime bargains or put yourself in
financial jeapordy. We use pre-construction properties where
the profit is already built in. They sell at 25-40% discount
to their completed price and the down payments run from 2.5%
to 10%. So :
- you minimize your initial outlay of CASH
- you close upon completion - 6-12-18 months from date of
contract
- you have time to find buyers/renters
- repair costs are almost NOTHING
- reserves for replacements are ZERO
- you EARN the discount up front and the appreciation on the
back end
- you don't run around like a chicken with your head cut off
looking for deals
We deal primarily in investment real estate. We know the
state of Florida very well and stay on top of local
developments in a number of different counties. In some
instances, large developers come to us with deals that are
not released to other brokers and certainly not the general
public.
Finding Opportunities in Post-Construction Properties
I recently received an e-mail from a potential new client
asking to be a "first phase" investor. He wanted to be
notified about upcoming projects where he could be among the
first in line to purchase at pre-construction prices.
Now this is nothing new, we have done this before, it works,
why not do it again. The answer is "We Will!" But not all
the time, and maybe not every time.
What am I saying, could there be a "better strategy"? Maybe
not better, just different. Think outside the box.
- Strategy One: Be the first in line, pay the lowest price,
sell when complete
- Strategy Two: Be the first in line, pay the lowest price,
buy and hold, sell later
- Strategy Three: Buy later in the project, pay a little
more, sell when complete (Phase One sellers are gone)
- Strategy Four: Buy later in the project, buy and hold,
sell later (when you don't compete with the builder)
Are any of these strategies wrong...NO! The answer is that
they can all work in differing scenarios.Here are the
basics:
The Market (Value) is always determined by Supply and
Demand.
In the beginning the builder has all the properties for sale
(highest level of supply)
Further along, the builder has sold half, is closing on the
first 20% (all investors) (still high on the supply side)
Later, the builder is almost sold out, the initial rush of
Phase One flippers have flipped (lower on the supply side)
The builder is sold out, most of the investors are gone,
market value is based on RESALES!! (lowest supply)
The market (value) is always determined by supply and
demand.
So, here is the question do you want to sell your investment
when the supply is the highest or when the supply is at it's
lowest point?
New Investors
We will work with you and help you learn about real estate
investing. We want you to become as knowledgable as
possible. It is a lot easier for us to work with someone who
is experienced. Ask lots of questions and learn. That is
what are service is all about.
There are plenty of investment opportunities to choose from
and new ones come along all the time. It is not too late too
invest in real estate. There is nothing as foolish as the
person who thinks they missed the boat. Those individuals
will always have an excuse.
Experienced Investors
Many of our clients are experienced real estate investors
who are looking for new investments. You already know it is
all about the numbers. We have lots and lots of deals for
you to evaluate. Give us a call
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