Hey guys, I recently created an LLC to invest in real estate. I have been interest in real estate for years, but finally have the capital and partners to move forward. I am interested in all aspects, but would like to start in rentals.
I am looking to network with others in the Central Florida area. I don't mind helping others with their investments. In fact, I think that would be a great step. So let me know you need any help, have any words of wisdom, or would like to team up. I'm all ears!
HOA investment programs give the investor tremendous leveraging power in purchasing distressed homes. Once you hold the deed to the property you have now established a vehicle to cloud the title. Here, in South Florida, at least 40% of distressed homeowners have values less than the mortgages. Banks know that they will never get the mortgage paid off. They are receptive to the title holder and understand that they need to settle somewhere between 60 and 65% of the Fair Market Value. They are weighing the cost of fighting the "quiet title" issue, what they are going to get at auction, the time frame of getting the property to a sale date and the cost of carrying the HOA fees, the property taxes and the homeowners insurance during that time frame. Note that during that time the title holder owns the deed and can rent the property while negotiations are going on. Many investors can't compete with the hedge-fund "boys" as they will pay well over market on certain properties at auction. With the HOA's the tail is wagging the dog. The investor is technically in the drivers seat. Banks are settling rather than bearing the costs of continuing with the foreclosure action. If the investor has an end buyer than when the bank settles he is the transactional buyer so the only major outlay, for the investor, is the cost of the HOA at auction. There is your leveraging. With a formula and stringent due diligence these types of real estate purchases are very profitable.
NOTE: If the bank wont settle than the property can be rented usually long enough to recover the HOA cost and a profit to boot.
You formed the LLC first, before having a Dealflow?
What's your plan to create that Dealflow?
Welcome to BP. I'm a new investor who also reside in Orlando. I'd love to network with you. Not sure exactly what you're looking for but as for us, we'd love to meet mentors, possible partners, and private lenders.
We'd love to invest in mortgage notes, a few wholesales, and definitely rental properties.
If you're up for any of those, please feel free to send me a private message. Looking forward.
Know your post is from a little while ago but wanted to reach out and see how things have progressed for you?
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