I’ve been friends with Jenna for a few years now and we get together for dinner every once in a while. She likes to pick my brain about my career as a professional real estate investor because she’s been considering doing the same for a few years. She likes to think that she’s pretty well read up on the topic, too.
That’s why, when we started talking about buying investment property in South Florida, she protested my focus here. Surely, South Florida is too competitive these days because there are so many foreign investors in the market, she told me. She just didn’t see how investing in South Florida could possibly be a good idea.
Little did she know, the tide is turning. In South Florida, it’s not just the beaches that are hot: South Florida is becoming ripe with more investment opportunities as the foreign market influence simmers. As a result, I told Jenna that the time to invest in South Florida is now.
Investment Property in South Florida is Primed to Deliver Strong Returns
While foreign investors are not direct competitors of the distressed housing sector that my business focuses on, their purchases had the effect of keeping us in a persistent seller’s market. And, it increased the costs for regular homebuyers at all price points—many of whom were priced out of homeownership.
But, the South Florida housing market may be no longer skyrocketing out of control. While it’s true that prices themselves are still rising moderately in two of the South Florida three tri-counties, the number of sales are falling. In fact, this year, sales of single-family homes in the tri-county area totaled 2,841, which is 7.2 percent less than the year prior. This means that competition between buyers is less intense and that sale prices may soon simmer.
There are other signs that a buyer’s market may be on the horizon. Mortgage rates have been falling this summer nationwide, making South Florida homes more affordable for buyers. So, those who may have been on the fence before now are potentially in a position to buy a home here.
You may think that a buyer’s market is a bad omen for investors, but it’s not. In fact, it opens up a whole pool of new potential buyers able to consider homeownership. And, these buyers will be honing in on houses at the lower end of the price spectrum. That’s just the kind of house I provide: older, uglier homes that have been renovated for the current market of new homebuyers.
Even better, unemployment is down in South Florida, so a rehabbed home is even more in reach of the local paycheck. This year began with nearly 60,000 more new jobs since the start of 2018. Stronger jobs market makes potential buyers feel more secure in making the leap to homeownership.
So, while you might not be able to sell a distressed house that you rehabbed for a beyond-the-pale price point anymore, you gain more opportunity to provide entry-level homeownership to more people.
But the only way you can cash in on this change and have properties ready to sell to the crop of aspiring buyers who are in reach of their homeownership dreams is by locating and renovating investment property in South Florida now. But, how?
To find off-market properties in this increasingly competitive distressed housing market, you’ll need a solid lead generation strategy. When the supply is low, a lot of investors flock to real estate auctions to buy up foreclosed homes. But, these can be fraught with risk, from not being able to inspect the house to finding out there are liens attached that suddenly become your responsibility. You might also try connecting with others at one of the many real estate investing clubs here in Florida. Keep in mind, however, that most of the attendees at these clubs are likely to keep their own leads close to their chest.
You’ve probably guessed by now that I don’t do any of that to find investment property in South Florida. I have a better lead generation strategy in place.
Finding Leads in the Changing South Florida Housing Market
Before I started my own independently owned and operated HomeVestors® franchise, I struggled with the South Florida market just like everyone else—regardless of which way the tides were turned. But, now that I have access to HomeVestors®’ nationally-known and trusted “We Buy Ugly Houses®” marketing, my professional real estate investing business really took off here. I don’t have to depend on just digging for leads; instead, qualified leads come to me.
In fact, I have a steady supply of qualified leads to keep my business plenty busy, and that’s just what you need, too, if you want to build a real estate investment business here. With enough conversion-ready opportunities, it doesn’t matter that you’ll temporarily sell for a slightly lower price point in the current market. After all, nobody has built a solid investing business off only one property. You need to be able to sell your rehabbed houses again and again to make a professional real estate investing career.
If you’re ready to buy investment property in South Florida and build a professional career, contact HomeVestors® today!
Each franchise office is independently owned and operated.