All Forum Posts by: Frank Mongiello

300k is a tough price point for SE Florida but a little further north you hit Brevard county. That's where SpaceX(and sometimes NASA) have been doing their launches. There are also some other medium sized businesses targeting this area. You should continue to see population growth in this market as the commercial infrastructure expands. 

Let's connect. Let me know when you come down to West Palm. There are some great commercial multi family meetups in Delray and a great REIA in Port St. Lucie to meet other investors!

(Tennessee, Nashville, greenbrier, Hendersonville, goodlettsville)

Hey BP community, 

I wanted to see if anyone had experience in or know's someone that specializes in single family land development around Nashville, more specifically Greenbrier. The subject property is 70 acres, with roughly 60 of them having the ability to be rezoned, subdivided and built into half acre lots with single family homes. Nearby a similar project was done and homes were selling in the $450k-$500k range. Also I've heard a lot of new commercial and residential construction is going on with the explosion of Nashville real estate, was hoping someone could fill me in there as well. 

Frank

Speaking of local REIA's, my team runs the Coastal Florida REIA in Port St. Lucie. I live in Jupiter and go up there every month partly because the Palm Beach one doesn't exactly hold meetings(future opportunity anyone) and second we're close to 200 members and have some rockstar investors in the group. Anyway, anyone on this thread feel free to reach out for more info or search Coastal Florida REIA.

Hey Hope! 

My team runs the REIA in Port St. Lucie which is a great place to meet first time and seasoned investors. Would be happy to send over the details and talk about other events around where you can meet like-minded people!

No closer to Indiantown 

The sky is falling(chicken little voice): 

I get a lot of questions on what's going on in the South Florida market. Below I'll outline the data I'm looking at from my local MLS board on the state of the market in Palm Beach County. I'll use the last 4 months of data so you can get a feel for where the market has been trending. (November data get's released on the 21st)

Closed Sales: October 1944, September 2116, August 2330, July 2236

Active Inventory: October 7416, September 6837, August 6687, July 6620 

New Listings: October 2938, September 2769, August 3108, July 3513 

Medium Percent of Original List Price: October 95.7%, September 96.1%, August 97%, July 98.7% 

Medium Time to Contract: October 27 days, September 21days, August 17 days, July 13 days 

Months supply of Inventory: October 2.8 months, September 2.5 months, August 2.4 months, July 2.4 months 

What I'm seeing(my opinion) is with the rise in interest rates and uncertainty, demanded has softened. This has led to less closed sales and this trend will likely continue. That being said, we haven't seen a massive uptick in new listings which has kept active inventory from sky rocketing. In a traditional stable market, the rule of thumb is 6 months supply of inventory. We are still a little less than half of that. Sellers are still getting on average 95% of what they are asking and highly desirable properties are still selling fast. Where I see the opportunity is in the medium time to contract data. Sellers are used to properties selling in a week, and medium time to contract is the only stat i've seen that has had a major swing in the past 6 months. Contacting "stale" listings that have been sitting for about 30 days and negotiating price and terms is the best way I'm aware of to get great deals in this market. 

Let me know what you think and if other markets are acting similarly. 

@Josh Shaughnessy @Annie Johnson 

I'm a licensed agent so I use the RPR which is provided through my MLS board. If you have a certain neighborhood in mind I can draw a target area on the map and sort by absentee owners for all properties, or get more specific by property type, square footage, etc. The whole process doesn't take long and I can email you an excel doc with the results.

I've done 3 deals this year with out of state remote buyers since January. It seems to always be calm and then panic within a short inspection period. 

If you are comfortable with the area/community/ and numbers, have a good lender ready, trust your agent, have a good insurance agent(especially in Florida where insurance costs can get pricey and quotes can vary), an investor friendly inspector, and a solid title company, you should be good to go. 

In my market(Jupiter, North Palm, West Palm, Hobe Sound, Juno), 

like many markets, it seems like every listing is getting a cash deal.  Beating cash can be tough especially if the seller is a little stubborn and doesn't want the headaches of extra contingencies. One of the tools in my tool belt is a lender that will provide a proof of funds for the full amount, assign you the contract and then lend you back on the property with a 21 day close. 

Best part is as long as you don't need to close before 21 days, the rates are comparable and their aren't added points. It's one option I've seen work recently and wanted to see if anyone else has lenders that are doing the same thing to stay competitive.