Real Estate Investing in
Florida
by Jeanette Joy Fisher
If you want to become a Florida real estate
investor, the most tried-and-true way to do that
is by a simple formula: find distressed houses at
bargain prices, fix them up, and then sell them.
If you invest in fixer upper homes in Florida on a
consistent basis, you can become a
multimillionaire.
If you want a bayside gate
like this, buy fixers like this:
This fixer needs a walkway to the
front door, flowers, and lawn care.
Finding Fixer Upper
Houses
Financial difficulties can cause homeowners to
stop doing maintenance on their houses and to get
behind on their payments. There are as many
reasons for that as there are sellers, but the
most common problems involve job loss, divorce,
illness, or addiction. Regardless of how the
homeowner became distressed, the house suffers as
a result. Repairs don't get made and payments get
skipped, making it a perfect candidate for the
buy--fix-up--sell strategy.
Of all distressed situations, the one that will
net you the most money involves a "Triple D,"
which is a doghouse (one that's rundown, but in a
desirable area), owned by sellers going through a
divorce who are in default on their mortgage.
Ugly fixer upper houses are the most difficult
types of houses to sell, because only certain
people are interested in them. The average Florida
home buyer would much rather move into a house
that needs only a minimal amount of work. They've
not interested in tackling substantial repairs or
upgrades. Besides, most Florida fixer uppers are
entry level homes for first time home buyers who
do not have extra money for repairs.
In other words, home
buyers look for a home, not an investment. Your
task is to find a fixer that, with some work, can
become a "dream home" for buyers who want to move
in and immediately begin enjoying their new
residence.
Before you start, however, know how you're going
to get the repairs and upgrades done. Are you
competent enough to do repairs yourself or will
you have to hire them done? It will make a big
difference in your bottom line if you hire
subcontractors to do most of the repairs, so don't
buy any investment house until you know how the
work will get done and have a good handle on how
much the repairs will cost.
Many Florida investors fix
many houses at one time and have a working crew.
On the other hand, some investors buy a run down
house and do the work themselves. They only
may do a few fixer uppers a year but they make
more money on each property.
Ask your real estate professional to look for
listings with headings such as "as is,"
"handyman's special," "fixer," or other wording
that indicates a home in need of TLC. Your agent
most likely knows exactly what you're looking for
and may even have a list of handymen to help you.
Once you've done a few transactions, people will
get to know you and call you when they want to
sell.
Prepare Your Financing First
Once you've found a home
that fits your criteria, your next task is to
discover the seller's problem and offer a
solution. Most distressed sellers are having
serious financial problems, so if you're ready to
offer a quick close, you'll be in a position to
negotiate a lower sales price. You can offer quick
closes if you've been pre-approved by a mortgage
lender.
It's not rocket science, but you need to approach
fix-up investing cautiously, since mistakes can be
disastrous. However, if you get a team in place,
shop carefully, and always estimate on the high
side, you can use the system again and again to
put thousands of dollars in your pocket with each
transaction.
Call your real estate
agent and get started today!
Copyright © 2006 Jeanette J. Fisher
Jeanette Fisher helps
beginning real estate investors with free teleseminars, ebooks, and
Free Real Estate Investing Information.
"Best beginner's handbook on real estate
investing."
Doghouse
to Dollhouse for Dollars
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