Is South FL Real Estate even worth it anymore??? SO EXPENSIVE!

Is South FL Real Estate even worth it anymore??? SO EXPENSIVE!

Fort Lauderdale, FL 路 Member since 2017 路 17 posts 路 10 votes

Ugh I am so discouraged with the real estate market in south FL. I live in the Ft. Lauderdale/ Dania Beach Area and want to invest locally (Broward County) since it seems like the most logical thing to do. Problem is I feel like the pricing is outrageous compared to a few hours north. Getting a loan might be tougher to get down here than if I were to invest in say Orlando/ Clermont area; i think. I need some wise and encouraging advice right now guys lol. Should I even consider the beginning stages of investing in sfl. Am I over reacting about the market? Am I looking in the wrong places? Help please :( 

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Investor 路 Miami, FL 路 Member since 2017 路 229 posts 路 271 votes
8y

@Chris Rivers There are definitely deals here. As a buy and hold investor here in Miami I understand how you feel. It seems like nothing is within a decent price point. I recently closed on my first deal in November of last year. People don't really talk enough about the fact that Miami has the most disproportionate rent/income ratio in the US and I mean #1. Filling your rental property at top price here is much easier and with interest rates being as low as they are it is still time to take advantage if you can develop relationships with good local lenders to help you grow. Its all about perspective and the hustle you put in. Since starting my REI journey a year ago I've hand mailed thousands of direct mail letters, run around at 3 am in the morning putting up or looking for bandit signs for deals, made contact with dozens of wholesalers and even ventured to a few REI meetups. If youre just looking online at the MLS youre not going to see much in my opinion. keep pushing!!!!!!!

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  • Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    8y

    You have to turn over a lot of rocks to find the diamond. They do exist, but get taken rapidly. Are you ready with cash? Many investors are.

  • Fort Lauderdale, FL 路 Member since 2017 路 17 posts 路 10 votes
    8y

    @John Thedford I am currently working on that now. When I am ready with the cash I want to be able to make the best investment property (best bang for my buck). 

  • Investor 路 Miami, FL 路 Member since 2017 路 229 posts 路 271 votes
    8y

    @Chris Rivers There are definitely deals here. As a buy and hold investor here in Miami I understand how you feel. It seems like nothing is within a decent price point. I recently closed on my first deal in November of last year. People don't really talk enough about the fact that Miami has the most disproportionate rent/income ratio in the US and I mean #1. Filling your rental property at top price here is much easier and with interest rates being as low as they are it is still time to take advantage if you can develop relationships with good local lenders to help you grow. Its all about perspective and the hustle you put in. Since starting my REI journey a year ago I've hand mailed thousands of direct mail letters, run around at 3 am in the morning putting up or looking for bandit signs for deals, made contact with dozens of wholesalers and even ventured to a few REI meetups. If youre just looking online at the MLS youre not going to see much in my opinion. keep pushing!!!!!!!

  • Fort Lauderdale, FL 路 Member since 2017 路 17 posts 路 10 votes
    8y

    @Jason Brown Its like you know exactly what to say to me! Lol Thank you so much for your wise words Jason. I just decided to start putting myself out there and go to REI networking events. I'm still wet behind the ears in this industry but I at least want to be in the right circles and see if I can find more folk such as yourself who are willing to drop some wise gems on me :) Again thanks!

  • Rental Property Investor 路 Maryville, TN 路 Member since 2009 路 529 posts 路 414 votes
    8y

    Chris,

    It is tough investing everywhere! And we are late in the r.e. cycle, so defensive investing is paramount!

    Don't get sucked into the frenzy and let your guard down. If no deals are in your area, consider alternatives, like reits, syndacation, mobile homes, lot splits,looking further north etc.

    Value investing in real estate is predicated on: a distressed sale, death,foreclosure, a really dumb seller, problem no one wants to deal with, non obvious opportunity to reposition a property, rezoning potential etc. 

    In a market where all you need is a sign out front to get top dollar, there is no reason one should expect any "deals" on the mls or other obvious sources. So dig for the non obvious:-)

  • Bernadeau C.Pro Member
    Rental Property Investor 路 Orlando, FL 路 Member since 2014 路 540 posts 路 230 votes
    8y

    Hang in there, I just started so I'm focusing on reading books , listening to different podcast and networking with the locals in my area. slowly but surely, one step at a time and you will get there.

  • Miami, FL 路 Member since 2017 路 24 posts 路 12 votes
    8y

    Chris,

    I have been investing for my clients and myself in South Florida for many years.  Jason is absolutely right about disproportionate rent/income ratio.  For buy and hold investors it is a plus. Many people like yourself will run away from market like this, but if your intentions are to hold for a long period of time it isn't so bad.  Vacancies for down here in decent neighborhood is usually 3 weeks max.  Most importantly do the numbers and if it works for you it is a great market.  If it isn't start going north.

  • Boca Raton, FL 路 Member since 2017 路 29 posts 路 8 votes
    8y

    @Jason Brown pretty much nailed it. Me being a realtor/investor in palm beach county can 100% relate to what you are saying. Deals are not as easy to come by but they still are there, don't give up. If you're ever looking in the palm beach county area and need some assistance feel free to reach out!

    Jo.

  • Fort Lauderdale, FL 路 Member since 2017 路 17 posts 路 10 votes
    8y
    Originally posted by @Jo Mendes:

    @Jason Brown pretty much nailed it. Me being a realtor/investor in palm beach county can 100% relate to what you are saying. Deals are not as easy to come by but they still are there, don't give up. If you're ever looking in the palm beach county area and need some assistance feel free to reach out!

    Jo.

    Thanks Jo! You guys are great. Next time I am in WPB I'm holding you to that Jo ;)

  • Real Estate Agent 路 Pompano Beach, FL 路 Member since 2016 路 7 posts 路 6 votes
    8y

    Hi Chris, I didn't see what your price range is, but I come across properties in Broward, Palm Beach and Miami that are great flip opportunities. It is true these are not usually on the mls, but I can email you some examples. I've seen things for under 200k. I get most of my leads thru a Hard money lender, they use their own cash and require 20% down hold for 6months and you would have to come up with repair funds on your own. If you wanted to hold for over a year I have a different company that will finance with repairs and appraise using ARV.

    PM me. I鈥檒l get you the info.

  • Multifamily Syndicator 路 Houston, TX 路 Member since 2016 路 1k+ posts 路 2k+ votes
    8y

    @Chris Rivers A lot of real estate investors share your sentiment; however, one can always find deals floating around (good or bad). So, as real estate investors, our challenge is to figure out ways in which we can find good (or great) deals in our market of our choice, but more importantly, we have to be willing and able to flex into other markets, when necessary.

    In addition, our mindset is absolutely crucial as whatever we tell our brain becomes bigger in our mind. Having an abundance outlook is the starting point. 

    Did you know that 11-14% of Americans relocate every year? From a deal perspective, someone has to sell their house and then buy a new house. 2 deals right there! 

    Expectedly, I can tell all the things you "need" to do at a tactical level (DM or drive for dollars [boring]). I believe that all these approaches are secondary to mindset. 

    Hope this helps, Chris. Goodluck and keep pushing 馃挭

    The idea is not to stop, but keep pivoting. Thanks! - Ola 

  • Investor 路 Arlington, TX 路 Member since 2014 路 114 posts 路 92 votes
    8y

    @Chris Rivers you got some solid advice on this post. Like @Ola Dantis puts it, keep pivoting. We're at a strange point in the market, so the time you put into figuring the details out now will do you good in the long run. You may have to change up your strategy, but I'm sure you'll figure it out. Just an idea, but maybe consider Tampa. The market there is pretty nice, and the prices are much more favorable. I know you want to remain local, but again, it's just an idea. Good luck.

  • Fort Lauderdale, FL 路 Member since 2017 路 17 posts 路 10 votes
    8y
    Originally posted by @Ola Dantis:

    @Chris Rivers A lot of real estate investors share your sentiment; however, one can always find deals floating around (good or bad). So, as real estate investors, our challenge is to figure out ways in which we can find good (or great) deals in our market of our choice, but more importantly, we have to be willing and able to flex into other markets, when necessary.

    In addition, our mindset is absolutely crucial as whatever we tell our brain becomes bigger in our mind. Having an abundance outlook is the starting point. 

    Did you know that 11-14% of Americans relocate every year? From a deal perspective, someone has to sell their house and then buy a new house. 2 deals right there! 

    Expectedly, I can tell all the things you "need" to do at a tactical level (DM or drive for dollars [boring]). I believe that all these approaches are secondary to mindset. 

    Hope this helps, Chris. Goodluck and keep pushing 馃挭

    The idea is not to stop, but keep pivoting. Thanks! - Ola 

     Thanks for this Ola. I am learning more and more that it all begins with perspective. Plus having all you guys give such great advice and encouragement has me pumped up! 

  • Fort Lauderdale, FL 路 Member since 2017 路 17 posts 路 10 votes
    8y
    Originally posted by @Michael Volek:

    @Chris Rivers you got some solid advice on this post. Like @Ola Dantis puts it, keep pivoting. We're at a strange point in the market, so the time you put into figuring the details out now will do you good in the long run. You may have to change up your strategy, but I'm sure you'll figure it out. Just an idea, but maybe consider Tampa. The market there is pretty nice, and the prices are much more favorable. I know you want to remain local, but again, it's just an idea. Good luck.

     Yea I have thinking about Tampa a lot lately. I might have to do a little more background studying on that area. Thanks!

  • Investor 路 Howey in the Hills, FL 路 Member since 2013 路 376 posts 路 114 votes
    8y
    Originally posted by @Chris Rivers:

    Getting a loan might be tougher to get down here than if I were to invest in say Orlando/ Clermont area; i think.

    I'm in the Orlando/Clermont area and we say the same things up here. Everything is crazy expensive. Margins on flips are so tight you'd be better off becoming a real estate agent and listing properties. Cap rates are so low you'd be better off investing in the stock market. You just have to keep grinding and if you're lucky you'll come across that rare opportunity that makes financial sense.

  • Fort Lauderdale, FL 路 Member since 2017 路 17 posts 路 10 votes
    8y
    Originally posted by @Matthew B.:
    Originally posted by @Chris Rivers:

    Getting a loan might be tougher to get down here than if I were to invest in say Orlando/ Clermont area; i think.

    You just have to keep grinding and if you're lucky you'll come across that rare opportunity that makes financial sense.

    Hustle and bustle it is Matthew! Thanks for the feedback. 

  • Miami, FL 路 Member since 2017 路 24 posts 路 12 votes
    8y

    Chris, Network with people and go to REI meetups. You maybe able to find wholesale deals. In my case I am partnering up with my clients to invest in multi families. You have the will and you will definitely find a way. Don't lose hope and never give up.

  • Developer 路 Boca Raton, FL 路 Member since 2016 路 49 posts 路 38 votes
    8y
    There are still deals down here just harder to find. Look at as many as you can and get educated. You will know when you will want to pull the trigger. Just like everything else in life, it鈥檚 work. Good luck!
  • Real Estate Investor 路 Palm Beach County, FL 路 Member since 2017 路 3k+ posts 路 2k+ votes
    8y
    Originally posted by @Maryann Freeman:

    Hi Chris, I didn't see what your price range is, but I come across properties in Broward, Palm Beach and Miami that are great flip opportunities. It is true these are not usually on the mls, but I can email you some examples. I've seen things for under 200k. I get most of my leads thru a Hard money lender, they use their own cash and require 20% down hold for 6months and you would have to come up with repair funds on your own. If you wanted to hold for over a year I have a different company that will finance with repairs and appraise using ARV.

    PM me. I鈥檒l get you the info.

    I'd like to see any potential deals you come across in Palm Beach County specifically.

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