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We Understand Real Estate Investing
At New Southern Properties – we understand real estate investment. We know the ins and outs of the complete process and understand the requirements of a real estate investor.
We have been actively involved with real estate investments and investors – both commercial and residential properties - for more than 10 years. Thus, we recognize the risks presented with real estate investment and are aware of what is involved in the risk analysis that comes with every investment property contemplated. We also understand the specific research data required, along with the mathematical models and spreadsheets educated investors use in order to properly proforma a potential acquisition.
The Opportunities of a Lifetime
We have never seen the opportunities for investors that this economic and real estate downturn has produced. Properties that sold for $200,000 three or four years ago can often be had for MUCH less than $100,000 – potentially making them perfect real estate investment vehicles.
The Consequences of Failed Analysis
During the real estate run up in Florida three years ago, many “investors” were not really investors at all. Most were simply “come-lately-types” who were relying solely on the rampant and unsustainable appreciation for all of their returns. They relied on “flipping” the house or property quickly in a game of real estate musical chairs. The problem of course is that someone gets stuck when the music stops – and sooner or later it always stops.
In doing so, they completely ignored the negative cash flow these properties incurred. And they ignored the fact that, demonstrated by proper proforma (if they did one at all), these properties had no chance of cash flowing. This left them no fall back position – no plan if there was a problem. Thus, when the appreciation gravy train came to a screeching halt, these investors could not timely service the debt load. The result was inevitable. Without the income necessary to cover the debt – they were the ones that got stuck.
Since then, most, if not all, of these properties have gone into some sort of foreclosure. This, coupled with the general economic downturn and the non-investor sub prime mortgage defaults, has resulted in the real estate quagmire we have today.
Lenders Finally Accepting the Situation
While it has taken literally a few years to sink in, lenders are now finally accepting the fact that this is not just a blip in history or short term situation. Many of these properties are not going to return to their former inflated prices on which the loans were based for years to come. This will only come through normal year over year appreciation.
As such, they now understand and are accepting of the fact that they have to short sale their pre-foreclosures whenever possible and slash prices on their Bank-Owned/REOs properties in order to sell. And selling is the only way for the lender to more quickly book the inevitable losses in order to defuse regulatory concerns and scrutiny and more quickly return to year over year profitability.
NOW IS THE TIME TO ACT
What does this means as an investor? NOW is the time to get great rental properties at pennies on the dollar. Prices are now down so low that sales have have risen more than 50% year to date in Central Florida. Don't let yourself regret this opportunity later by not acting.
Let us provide you with the real estate investment opportunities we will never see again. Contact us today.
Check out our other Investor articles below !
As part of your over all Internal Rate of Return study, your cash flow analysis is critical when considering a residential real estate investment. It defines your fallback position and answers the questions, “What happens if I can’t sell the investment at the price I need or want at the time I need or want?” and, “Can I afford to carry it until I can sell it?”.
The basic fundamentals of investing in residential real estate are no different from those of the commercial real estate world. Seasoned investors look for generic marketable characteristics and objective, quantifiable mathematical proformas to guide their decisions.....
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