Flipping Jacksonville, but where are the Buyers

7 Replies

In the last 2 years I have seen a incredible increase of new property investors in Jacksonville. Most of them are wholesalers or flippers. This year there has been a rush of turn key providers taking a foot hold in the city. There are almost 1000 homes listed under $100k and another 3200 above that. Then there's what seems to be a endless supply of properties that have yet to hit the market. You can drive down any given street and see homes boarded up and abandon. I have bought a few of these properties, cleaned up the deeds and titles then resold for a nice return. With so many flippers in the market it is only a matter time before the market is flooded with rehabbed homes. What does this do to the price points? History dictates that market will run flat until the inventory shrinks but with so much potential inventory waiting to brought to the market, then how can it, before the next market adjustment. Jacksonville is a little different from other markets with similar history. Like in Las Vegas for the last 5 years with the exception of last year it was standard to have multiple vacant homes on each street now it's a feeding frenzy with low inventory. But Jacksonville ( which is the biggest city in the U.S, per land mass) has a long way to go before this can happen. There is a increase in properties hitting the market but the DOM are getting longer. I have flippers calling me asking for a great deal but it is hard to get someone to follow through with the purchase. Jacksonville will fast become a out of area investor market. The signs of this are already starting to show just the fact that turn key providers has set their sites on this city is a clue. I am running into a lot of tire kickers and no takers. The true winners in the Jacksonville market are the investors that will offer seller financing for a primary buyer. I can go on and on about this but what do you think ?

Thanks @Mark Webb ...@Robert Rayford I am ready to buy, just have to secure financing.  I have to purchase homes under $50K for now. I just created a list of  sources of $$$ from family and friends that have the means. Now the tough part is convincing them to buy into my investing dreams.  These people are typically not fans of stocks and investing, so they'll take a lot of convincing.  Any suggestions?

@PeTika T. , What are your REI plans and business model ? Goals ?

For all the New Investors entering the Jacksonville market. Other than having low volume investors as your competition there are the Local and National Turn Key Companies. As stated above the Jacksonville market is plagued with tax and nuisance liens on the inventory and if you think this is only on the low end properties , it's not. These turn key companies have acquisition personnel on board or working from home calling owners and other property sources daily. They pinpoint the properties that fit into their acquisition model and send out the offers. Properties with liens, most of the time are passed on unless the ROI has a great margin. With the new Fed tax plan being finalized, I can only imagine that this type of investing will increase. Here in the Bay Area, California and Vegas I get investors asking about the Southeast market. Most wanting to park some cash in R.E using a turn key provider because it's passive/hands off.

The new investor should be vigilant in your quest for your 1st or 2nd property. Remember that the big companies have a "model" that these properties have to fit in, you must be flexible and be able to find value where others can't or won't.

Originally posted by @Robert Rayford :

For all the New Investors entering the Jacksonville market. Other than having low volume investors as your competition there are the Local and National Turn Key Companies. As stated above the Jacksonville market is plagued with tax and nuisance liens on the inventory and if you think this is only on the low end properties , it's not. These turn key companies have acquisition personnel on board or working from home calling owners and other property sources daily. They pinpoint the properties that fit into their acquisition model and send out the offers. Properties with liens, most of the time are passed on unless the ROI has a great margin. With the new Fed tax plan being finalized, I can only imagine that this type of investing will increase. Here in the Bay Area, California and Vegas I get investors asking about the Southeast market. Most wanting to park some cash in R.E using a turn key provider because it's passive/hands off.

The new investor should be vigilant in your quest for your 1st or 2nd property. Remember that the big companies have a "model" that these properties have to fit in, you must be flexible and be able to find value where others can't or won't.

 Robert, can you share some of these turnkey company contacts? I have been investing in JAX for a couple years now. Want to see what kind of inventory they may have.

@Mushfiq S. - Jacksonville Wealth Builders is a prime example of a turnkey company. They have 1700 properties they manage for investors. They are building new homes or renovating and selling to investors with a 36 month term. 

@Mushfiq S. , look up Oceanpoint Management. They are a turn key company operating in Jax.

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