Investing in Florida Real Estate

Deals on the Beach

2007-04-17T13:01:00.000-04:00

Now could prove to be an opportune time to start fishing for condo new construction deals on the beach. Specifically Hollywood, Hallandale, and Sunny Isles Beach, FL. Lots of times owners that were looking to flip are undercutting the developers, who have units coming back to them from other "investors" looking to flip but found out they could not or chose not to close.

Are you looking to find the very best deal on an oceanfront condo? Let me put my expertise and experience to work for you! Call or email me today.

http://www.stevenangelil.com

Multi-Family Housing

2007-03-15T20:49:00.000-04:00

As the residential RE market slows, commercial property is chugging right along. To capitalize on this trend, now is the time to look into buying multi-family, up to 4 units. To learn more, call today!

Active Rain/Localism

2007-03-05T11:24:00.000-05:00

If you are an agent, appraiser, mortgage broker, loan originator, title company, etc. please click on my link to the right to join Active Rain. It's free and gives a lot of useful local information. Network with other professionals and potential clients as well. Enjoy!

Check out my new listing here

2007-03-04T12:07:00.000-05:00

http://activerain.com/blogsview/52558/Hot-Rolling-Hills-New

Invest Today!

2007-03-01T10:37:00.000-05:00

We think we have the best real estate investment for people w/ good credit that don't want to invest a huge sum of $$.

We can build you a SFH, or multi-unit property (up to a quadraplex) with as little as $3500 out of pocket!

Either sell after completion, or hold- YOUR choice! Call me today to find out more. Remember buying discount and selling premium is the way to make money in investing.

Land, Land, Land.

2005-08-30T15:51:00.000-04:00

One of the next phases we will be looking into is buying and selling vacant land in the "hot" parts of Florida (are there any cold ones?). What we are doing is a statistical search throughout most parts of Florida through the MLS, looking for towns that have a high turnover in vacant land. Is it speculative, yes. Can it make investors a lot of money, also yes. We feel there is a 2-3 window of opportunity for making a large ROI. Normally these holding periods are from 3-9 months, depending on the strategy that works best for you. If you are interested in buying vacant land in up and coming parts of Florida, please contact me.

What a Deal part II

2005-08-23T13:28:00.000-04:00

Well, the marketing of the Boca townhomes went about as well as expected. I received many calls and emails. However, when I met my first client at the property last Saturday, he was sort of taken aback as there are mobile homes across the street. Not a trailer park, mind you, but nonetheless there are mobile homes on regular residential streets. To the east of the site there are villas from the 1980s. So my customer did change his mind and decided not to go forward. I cannot blame him. I thought I knew the exact area of the project but got it confused with Militarty Trail and Sandalfoot Blvd W.

However, with that being said, when you begin to take emotion out of it the project still has merit. First, where can you get a 3 or 4 bedroom brand new townhome with a one car garage for $339,000 or $349,000? The answer, several hours north of Boca. There are many examples of pre-construction projects that turned out very well for investors saavy enough to look beyond the obvious. An example that comes to mind is Murano in Miramar. No offense meant for anyone that lives there, but that is not the best area. I'm sure a lot of investors changed their mind when they saw the location. But the people that took a risk made over $100,000 profit on each unit bought. I think the same potential exists here.

There still are 4 units out of 10 remaning. BTW, the company sold the first 5 to people who plan to live there as their primary residence. So less competition for any investors that will either rent or sell after closing.

If you would like to know more, either post a comment or call me.

What a deal!!

2005-08-18T21:33:00.000-04:00

I found out about a most interesting pre-construction opportunity today. It is ten (10) townhomes in beautiful Boca Raton, Florida. What is unusual for this project is that it is a very small townhome community consisting of two five unit buildings. There are two models, one that is a 4bed/3b with a one car garage. The other is a 3 bed/2.5b with a one car garage. However, both models are over 2000 sq. ft. under a/c. For any readers not in the south Florida area, this is a very large townhome. The best part of all of this is the pricing. Either $349,000 or $339,000. Only 10% down payment is required at contract. No investor restrictions. This is from a quality builder, but one that is a little smaller. Thus, this flies under the radar of most investors. That's where I come in. It's my job to find these types of investments for our clients. If you happen to be on our email list, keep an eye out for this. If not, please call me right away as these will go fast. I'm reachable at 954-655-0667.

Housing is the New Economy

2005-08-17T10:55:00.000-04:00

I'd appreciate any comments:

HOUSING IS THE NEW ECONOMY
Outpacing the flaccid, once technology-driven stock sector as an investment tool, the more potent housing market has hammered home its position as a cornerstone of the economy's foundation -- and it appears to have much more staying power.
Consumer spending, as everyone knows, is the real petrol that powers the economic engine and housing wealth is proving to be a stouter grade of fuel than stock market investments.
Housing and all its related transactions -- purchasing, furnishing, maintaining, improving and investments -- accounted for 23.1 percent of Gross Domestic Product in 2003 and over the past 50 years that figure has been as high as 25 percent.
Consumers spend about five-and-a-half cents out of every dollar increase in both housing wealth and stock wealth. Spending from housing wealth, however, takes only a year or so to reach 80 percent of its long-run wealth effect, compared with nearly five years for the same effect from stock market investments," according to "Housing Wealth Effects," produced by the Joint Center for Housing Studies at Harvard University and Macroeconomic Advisers, LCC.
"In other words, housing produces a quicker lift to the economy while home-price growth provides lasting benefits," said David Lereah, the National Association of Realtor's chief economist.
"Homeowners are more confident of gains in housing wealth, so they spend more readily and quickly when they occur," he added. NAR's National Center for Real Estate Research commissioned the study.
For years, many homeowners have known the feeling of owning, something once called the "psychological equivalent of gold," and the new Harvard study helps second that emotion.
The new study also says:
About six in 10 homeowners have more home equity than stock wealth. The percentage is higher among lower income households, according to another study.
Housing wealth accounts for 36 percent of the nation's tangible assets.
Late last year, the home ownership rate was 68 percent, but only 52 percent of households held stock.
In 2001, the Federal Reserve Board's Survey of Consumer Finances showed that the top 1 percent of stockholders controlled 33.5 percent of stock, while the top 1 percent of homeowners controlled 13 percent of home equity.
"The broader distribution of home ownership means that changes in stock wealth affect a much smaller share of households and mostly affects those with larger disposable incomes," said Lereah.
Underscoring the significance of the Harvard study, just days after it was released, Freddie Mac reported in its quarterly Conventional Mortgage Home Price Index that home values increased by an annualized rate of almost 16 percent in the third quarter of 2004, up from 9.9 percent in the second quarter.
Meanwhile, the Dow Jones Industrial Average has been stuck in the 10,000 neighborhood for nearly half a decade and other stock market indices have likewise floundered.
A less scientific study by EscapeHomes.com revealed earlier this year that homes in select second home markets were appreciating even faster -- by as much as twice as fast as the rest of the housing market. Strong anecdotal evidence also points to a growing trend of investors who traded in stock market investments for residential real estate -- both those who won and lost during the dot com boom and bust era.
That's due in part to a near 45-year low in interest rates appearing just as many small investors were pulling out of the stock market when values began to fall in 2000, the Harvard study says.
Acquired equity, along with low interest rates, has allowed many laid off, outsourced and otherwise unemployed homeowners to "eat their home" or live off the equity gain until better days arrived.
The study also reiterated the intrinsic tangible value of home ownership as physical shelter that also shelters owners from taxes while yielding a financial return.
There is also value in home buying as a highly leveraged investment. Buyers get a large piece of the rock for a small, upfront investment in the form of a down payment and closing costs.
In return "investors" build wealth in two ways -- through price appreciation and via forced savings in the form of mortgage payments that shrink the principal.
"It is also appealing because it allows owners to tap into that wealth at favorable interest rates to finance other forms of investment and consumption," Lereah said.
A growing number of homeowners are doing just that and they are rolling their returns right back into real estate in the form of home improvements and second home purchases.
The NAR-commissioned study isn't without an ominous edge.
Its findings suggest that an expansion of monetary policy -- a lowering of interest rates -- at the onset of economic weakness can boost the economy. On the other hand, higher interest rates could slow home sales, reduce equity borrowing, curtail consumer spending and send the economy into another tail spin.
After struggling to maintain dips in recent weeks, mortgage interest rates on Dec. 2, 2004, rose slightly, in what could be the beginning of a delayed trend toward higher interest rates in 2005.

Oceanfront condo bubble?

2005-08-16T21:48:00.000-04:00

One of my potential clients sent me this in an email today. I don't know where it's from, but here it is:

Very Interesting Condo Update
I spent the entire day in a conference that I wish all of my clients could have been at. Let me start with this number:
A - 2,850 condo and rental units built in Miami in 2002-2004
B - 13,518 condo units under construction NOW
C - Plus another 4,264 planned and approved.
D – And dozens of new projects in the approval process pipeline, maybe as many as 30,000 to be delivered in the next 5-6 years!
During the next three years 17,782 units will be coming on line. That’s 12.48 times what has come on line during the last two years. This is the same picture in Fort Lauderdale, Naples, Panama City, Orlando, etc. Granted . . . Baby Boomers are coming and South Americans are coming, but not 12.48 more than have shown up during the last two years. It is a very scary picture, since prices on these units have more than doubled since 2003. In some cases, tripled and quadrulpled. Despite this, I get dozens of requests each week for condo units in these overbuilt markets. Moreover, all the requestors want to flip immediately or even before they close. Not only is that over, but prices are coming down in these markets.
Compare this out of line scenario with some of the other areas that do not allow high rises, and where new construction is falling behind the demand. Do your due diligence. If it sounds too good to be true, it is.
Another interesting fact:
A – 2004 saw less than a dozen condo conversions in the entire Orlando market.
B – 2005 has more than 49 condo conversions going on this month with a dozen more planned!
I’m sure I’ll get some of you blasting me that I’m crying wolf. Let me explain the other part of the conference before you shoot yourself in the foot. These numbers have not escaped Greenspan and Washington DC. Fannie Mae, the organization that supports our entire mortgage market has some surprises for investors. They are planning on tightening up credit to investors and spoke about only accepting mortgages where buyers hold for a minimum of 90 days. If that happens, I can guarantee you that there will be a lot of problems in our markets. Our suggestion was for the Feds to implement that plan gradually so we don’t wind up with hundreds of thousands of buyers that cannot close.
My advice to everyone is to be very careful. As I have been preaching all along, stay away from high rises and stay away from markets where there are high rises. I hope the numbers above demonstrate this very clearly. My second piece of advice is not load up on a lot of properties that you expect to flip at closing. Plan your purchases and spread them out. If you do have to hold for a few months after closing, you certainly don’t want to wind up with multiple projects if you can only carry one. I have discussed this with all of my clients in the past. However, for many of you, you are buying things in other markets, so I have no idea what some of you have coming into your pipeline.
And here’s the other shoe. Insurance companies are now balking at writing insurance for investors. That is a very huge problem, because without insurance you can’t get a mortgage. Right now, all of my clients are fine when it comes to insurance. All of the projects I have you in will provide insurance. What you get into with some of the other agents out there, I have no idea.
On the bright side, we learned that the population of Florida is going to double in the next 15-20 years. Different figures from different people. In any event, our population will surpass Texas and be number 2 only to California. Everyone was in agreement that Florida will remain the hottest real estate market for the next 20-30 years. 76 Million Baby Boomers and where the Baby Boomers go, so go the jobs.
My best advice is to start buying quality property and hold it. Forget about the fast money. It’s over. It doesn’t exist anymore, even though most agents are still singing the song of riches with $1,000 down.
1031 Tax Deferred Exchange Call tonight at 7:30
Next week Real Estate IRA call
Regards,
Mike
*****************************************

My client asked for my opinion on it. Well, here it is. Yes, the huge coming supply of high-end condos is a well known and much reported fact. I believe these have been marketed to foreign "investors". If they are hoping to flip them as soon as they are completed, they may or may not make a nice profit. However, there will be buyers for all of these units. If the price comes down I cannot see it being more than a 20% dip. Remember the last part of the article regarding Florida being the hottest real estate market of the next 20-30 years. This gives me reason to believe that any possible dip of any measure will be met by willing buyers. Who wouldn't want to live in a nice oceanfront condo in Miami if the price were right??

With that being said, for most of our investors this is NOT our prototypical investment. We focus on affordable housing at London Realty Corp. More on that in another blog. Stay tuned.

2005-08-15T12:38:00.000-04:00

Steven Angelil, Realtor

A Primer on Condo Conversions

2005-08-15T11:45:00.000-04:00

In order to make money in the condo conversion world, it really does pay to be discriminating. In some projects in Broward county, the converter tries to make all the money, leaving the purchasers with little more than an at market cost home. No discount at all! What good is that? You might as well just buy a property listed on the MLS.

Let me back up a little. For those of you that have never purchased a condo conversion, here are some of the ground rules. Firstly, current tenants have the right of first refusal when it comes to purchasing their unit. They have a 45 day window from the time they receive notice that the property is going to be converted to condos. They can choose to do nothing. That means they vacate or renegotiate their lease with new owner at lease expiry. Secondly, they can decline buying a unit. Thirdly, they can either choose to leave at the end of their lease or purchase their unit. The current tenants will almost always get the lowest price. Typically about 10-15% of tenants will purchase.

The next phase (normally conducted after the 45 day window has expired) will comprise of end users and investors who get to buy at a VIP event or at a lottery. The final phase of the conversion is selling the units that were under contract but became available again. The reason this happens is that by law there is a 15 day right of recession that all purchasers of condo conversions receive. Also, if the project did NOT sell out, then the marketing company handling the conversion would sell remaining units. After that it's just a matter of waiting the typical 30-45 days until closing. Some projects close later.

In my next post I will describe a recent very profitable condo conversion project and how it can be duplicated on other conversions. Please contact me if you would like more information on my next condo conversion!

Is there a Real Estate Bubble?

2005-08-10T14:40:00.000-04:00

Yes. Well, no. I guess it depends. I believe there is a mini-bubble in Oceanfront condos in Miami. Today on CNBC (aka Bubblevision) they highlighted a bar graph showing the coming supply of oceanfront condos in Miami vs. the supply of the last 10 years. Huge supply coming. Many of these are held by "investors" hoping to offload them to another "investor" IMO. I think we could definitely see some weakness there. However, an oceanfront condo in Miami Beach is a totally different world than a 3/2 townhome in SW Broward county. We are still seeing a huge demand in this type of residential property.

My answer to those worried about a bubble is this. If you are looking for a new place to live, whether it is a first home or a larger place to trade up to, don't worry about the possibility that your homes value to flatline or take say a 20% hit. You want/need a place to live so you buy what you are comfortable with.

Now if your plan is to buy a property and make $50,000 profit in two months, then you might be ready for a painful lesson from "Mr. Market."

We advise people to invest in affordable housing where you see strong demand from end users who need that type of property. That property could be in South Florida, Central Florida or North Florida. 1,000 people a day net are moving into Florida vs. leaving Florida. Most of those people are NOT independently wealthy. They need housing for their family. Thus, you will continue to see strong demand, IMO.

Have a great day and if visiting Miami beach to check out that new pre-construction oceanview condo, please don't go with any sharp objects!

Until next time...

My First Post

2005-08-09T22:37:00.000-04:00

Hello Folks,

Thanks for viewing my first official blog! So you already own a ton of Florida real estate? Or perhaps you are renting and you want to buy your own place? Then this is the place for you! I will be updating you daily both on what's happening in my world of residential real estate in Broward county Florida. Specifically, Pembroke Pines and surrounding areas.

I also will be updating you on many of the new ways of investing in real estate that reach all across the state.

Thinking of becoming a Realtor? Then you're in luck as I'll detail many of the crazier things that can occur in a residential real estate transaction. Trust me, when you're dealing with money and people, it's bound to get interesting.

Thanks for reading and stay tuned.