Good morning investor community. As everyone knows and hears the market here in South Florida is boiling. immigration…
Good morning investor community. As everyone knows and hears the market here in South Florida is boiling. Large migration from California from residents who are tired of paying high taxes in their state and moving to Florida, here their money has much more value and many investors from New York who are tired of the tough laws in New York State against capitalists and many tenant protection laws. The property has to pay for it for water and sometimes electricity even though the tenant does not pay rent!
Florida has had a steady rise in prices for 10 years but there is still an expectation of further rise and upward market correction similar to other major US cities where prices are still higher. The Florida market encourages investment with less regulation and more freedom of action, low taxes, and high value for money. And yet in such a high market one can still find good deals and slightly below the market.
Most of the good deals we find for our customers are multi-family that today the income is relatively low (this is how we perceive the good deal) but properties that for sure, after market research, we know the buyer will be able to raise rental prices after buying. Here is an example of a property that on the day it went on the market received 4 offers and we managed to get our hands on it, a 5,000 square foot building in Hollywood in a central location. We are in a contract on it, when yesterday came an appraiser (appraiser) on behalf of the bank, whose job it is to protect the bank, and gave a report that the property is worth $ 75,000 above what my client is about to buy! Great news for us to know that even the Conservative Bank values the property far more than the price we were able to close on. Of course after the purchase the customer will wait for all the tenants to complete the lease (whoever is in the contract) and then raise the rental prices to the fair price in the market which is much higher than the current price.
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