Growing up in New York, it was always expected that I would eventually make my way down to Florida like my relatives before me. Half of my family are still snowbirds, spending the winter months in the sunshine state. Like so many other northerners, I dreamed of the sun, sandy white beaches, and glamorous natives. A life split between the city I loved and the one I yearned for was the destiny I ultimately fulfilled.
What I didn’t realize as a kid is what a great investment Florida would turn out to be for me. Opportunities abound to build your real estate investing business, whether you’re just starting out or are already an expert. But even with a bevy of investments to choose from, it doesn’t guarantee success. Knowing how to buy investment property in Florida requires a commitment to learning the ins and outs of the market. That’s your first step, but I’ll tell you what’s more.
What You Need to Know to Buy Investment Property in Florida
The Florida real estate investment market remains hot for a number of reasons. For starters, there’s something for everyone. Looking for a small-town with a low cost of entrance? Then places like Fort Meade can deliver. More the city type? Tampa is home to a ton of new residents flocking from other states—not to mention low unemployment. For those looking for beachfront properties without the expense, Palm Coast is an ideal city south of Jacksonville.
Without a doubt, Florida is a great place to buy investment property but there’s also risk. Many would-be investors have tried and failed, even when the odds were in their favor. To achieve your financial goals you have to be able to tick off all of these boxes:
Real estate investing isn’t as cut and dry as finding a property to purchase, fixing it up, and then selling it a short time later. It requires training and the insights of someone who has been there, done that. You might be able to find some training through one of the many real estate investing clubs across Florida. But, that requires time spent attending networking events and meetings, often held only once monthly. And, you’ll probably also find that the other attendees have just as much—or less—experience than you do. So, finding a mentor there won’t be likely.
You need a comprehensive class that covers all the nuts and bolts of real estate investing in a shorter amount of time than you’ll spend attending clubs. It’s the only way to get your investing career off the ground sooner rather than later.
Finding solid leads
One of the most popular ways ‘would-be’ investors go about buying an investment property in Florida is to try finding distressed properties at auctions, but that can be a risky proposition. Once you set your sights on a property you want to bid on, you have to stay on top of it until the date of the sale. The sale can be canceled before the auction—or worse, after you’ve laid your money down and the homeowner redeems the property.
A source of qualified leads is necessary to even buy your first Florida investment property. That means you need to advertise so that distressed homeowners come directly to you.
Have financing in hand
Unless you’re sitting on a stash of cash, you’ll need to figure out how to come up with the money required to purchase and renovate a real estate investment property in Florida. Often new investors try to go the FHA 203(K) loan route, but to be eligible, you have to live in the property for 12 months. Fannie Mae offers the HomeStyle Renovation loan, though there’s a lot of oversight involved when you take this route.
The best and most often used financing to purchase and renovate a real estate investment property in Florida is hard money loans. With these short-term private loans, the property is secured by its value. While these lenders weigh your credit score when approving the loan, the value of the property and your experience matter more. Even better, is when you have a way to make hard money lenders actually compete for your deals.
Evaluating the property’s potential
When it comes to buying investment property in Florida, you have one shot at getting the valuation right. Miscalculate what you should pay for a property, the rehab costs, or the after repair value and you could you’re your profit. There are a ton of real estate investing tools out there but the problem is that many only serve one or two functions and they don’t integrate easily with other tools. You’ll want to take a good look at all your options to find the property valuation tools that are right for your business.
These steps for how to buy investment property in Florida is only half the battle; closing the deal wins the war. That can be easier said than done. There are a lot of potential landmines you need to navigate to ensure you don’t tarnish your reputation or run afoul of any real estate investing ethics. It’s up to you to approach the distressed homeowner with empathy and respect so that everyone walks away feeling good about the transaction. They get to relieve their financial stress and you get a property that you can fix up and put back on the market.
Getting What You Need for Buying Investment Property in Florida
Going it alone when purchasing a real estate investment property in Florida is attractive to many. How hard can it be to spot distressed properties, renovate them and resell them? The answer: Very.
That is why I—and so many others— became HomeVestors® franchisees. You become part of a network of real estate investing professionals with over two decades of experience buying distressed properties in Florida and across the country. You get a treasure trove of training, tools, a nationally-recognized marketing brand, “We Buy Ugly Houses®,” and mentoring to empower you to make the right choice when purchasing a property in Florida. You won’t have to worry about how to find and buy investment property in Florida or make the mistakes I made when starting up. And, you’ll have exclusive access to some of the best hard money lenders. Not to mention, it will free up time to enjoy all the reasons that draw people to the sunshine state to begin with.
Ready to buy investment property in Florida? Then it’s time to request more information about the limited HomeVestors® franchise opportunities today.
Each franchise office is independently owned and operated.