Investors I Think You Missed the Easy Money Bus in South Florida Real Estate

I have spent the last couple hours updating some information for investors that I work with and thought I would share this part of an e-mail I just shot off;

No matter what you might read or hear, the south Florida real estate market has been on fire. To give you an idea I just updated another investor who regularly participated in bank owned offerings at one of my favorite target “investor” developments in Palm Beach Gardens. We could buy 1 bedroom units in there in the low to mid $60,000’s not more than a couple months ago. It had been about 5 weeks since I had updated my cost analysis and I just did so this morning. In the $60,000’s an investor could easily make between 6% to 8% cash on cash return that I considered fairly risk free not counting tax benefits or future appreciation. Because of this and the risk in other investments investors have flocked to the market.

Believe it or not, as of this morning there are a total of 6 one bedroom units in this development with list prices between $130,000 and $190,275. Does this mean that prices have doubled? No, it means that prices are on the rise and the easy money has been made. It also means that these list prices look to be highly inflated and either prices are going way up or sellers need to lower their prices to see what buyers will react to. Needless to say the 6% to 8% limited risk days are over with and investors are going to need to count on future appreciation more so than cash on cash return. Still opportunities but the rocks I can find them under have thinned out considerably.

We still have a few years of foreclosures ahead of us but the market has been absorbing inventory as you can see by the illustration above.

Always at Your Service,

Tom Priester e-PRO
“Results Driven Real Estate”

Keller Williams Realty
561 308-0175
tom@tompriester.com

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Tom Priester

After spending years among the top individual performers at one of Palm Beach County’s largest and most successful real estate brokerages, Tom Priester knew there was another way to do real estate. A better way. Real estate services focused on the customer. Like the old days when the customer truly was #1. He tired of listening to why he should be going out to have his customers sign one sided buyers’ brokerage agreements. He tired of hearing how he should be selling customers why paying higher commissions, like 7% and 8%, was to their benefit. He tired of hearing how he should sell his clients on why they should be paying hundreds of dollars in additional “transaction fees”. The business had slid way too far from being focused on the customer. His customer. So he decided the time was right to be different…..by design. To start his own unique boutique real estate firm truly focused on his customers. They will now have access to a process focused on them. Only the best marketing techniques to sell their homes. No cutting corners. Commission structures based on his clients needs not his. Paradise Sharks was born out of Tom’s passion to return this business to the customer. Where it belongs. If you want a real estate experience that benefits you, just give Tom a call at 561 308-0175 or send him an e-mail at tom@paradisesharks.com. You can always pay more and receive less but that just would not make any sense. Would it?

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