Thursday 22 December 2011

Florida Bulk Purchases Pose Unique Investment Opportunities

Before the market crashed in Florida it was booming with new developments.

Recall all of the stories about partially completed or new condo buildings that were basically empty ?

What do you think ultimately happened to them ?

In many cases the units were rented, either by the developer, the bank that took over the developer, or the receiver that took over bank. In some cases entire newer (2007 vintage) luxury buildings were converted to rentals.

Neither the developers nor the receivers intended to be landlords. Many are happy to exit from the rental market.

One of the biggest markets for these complexes are non-resident investors. An organization will generally buy the units in bulk and then market them at seminars abroad, adding substantial premiums. While the units offer investors a turn-key solution they are generally sold at considerably higher prices that the same units sell for locally. The investor must wait a considerable period to recapture the premium from increased values.



We are happy to offer investors the alternative of subscribing to the bulk purchases directly so as to bring them the lowest possible price: After we select a complex using strict criteria, we solicit for a group of investors to purchase the individual units. We then act for the investor group to acquire the units as aggressively as possible.

How do you know if you are paying too much ?

The same as in your local market: Look at the comparable MLS sales.

In Florida you can look not only at the regular sale prices but also the foreclosure and short sale prices on MLS.

On our subscriptions we can show prices not only below the local MLS prices but in some cases approaching or below foreclosure sales !  All for premium units in superior locations.

Oct 7, 2011 MLS Sale $ 225,000. Bulk price $ 160,000. 
Nov 4, 2011 REO/Bank sale $ 195,000 Bulk Price $ 174,000

Typically, bulk sales will be prices slightly higher than distessed sales but well (20% +) below MLS non-distressed sales to locals.

To find out about any upcoming subscriptions I invite you to call or email.

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