Dear Readers
I wonder who amongst you has successfully invested in Miami, Florida. Recently I’ve been hearing a lot about the idea of investing in pre-construction deals whereby a deposit is made and no more payments are required until completion of the project at which time the buyer sells regaining the deposit plus profit. Or alternatively, buying off a plan with only a small deposit and then selling once the properties have sold out and construction has begun…..
My work takes me to Miami regularly, so this may be viable for me…? What do you think?
Hi Noysee,
You are correct that there these types of deals are quite common. I have a contact over there that puts them together, and would be happy to pass on his contact details if you are interested.
Regards
Alistairnoysee
Yes as Alistair mentions it is common practise and from my days in the UK we used to finance many clients into similar.
All i would say from my US Banking contacts in Miami the construction market is getting saturated and clients are finding that they cannot off loan the properties when it comes to completion.
Why not consider buying something a below market value and holding it for cash flow and appreciation rather than making a quick turn by flipping.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
To Alistair
Thanks, I would appreciate the contact information of your Miami contact. All information is welcome at this stage. Another thing, you mention that this practise is common, but you didn’t discuss your opinion on the potential of making a profit this way…. Since you know a little bit about this, is this something you would consider, why/why not [exhappy]
To Richard
I appreciate your comments, thank you! I was getting the impression that this type of thing is becoming very popular. I was afraid that I’ve become aware of this too late and would find it difficult to sell as you described…. In regards to your suggestion of buying below market value and holding…. do you think there are many opportunities like this around? I would love a bit more info here. I’m very eager for advice and suggestions.
Colette
Hi Collette
Feel free to shoot me an email and i can put you in touch with a couple of guys in Oz that specialise in US property.
Some of the deals i have seen they have at the moment are well under market valuation.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Collette,
I think there is definately potential for making very large profits in Florida, given the continued strong influx of people which should continue to drive prices up over the longer term. However, it concerns me that prices have risen very substantially over the last few years, so I think risks for short term investors there are substantial.
Havoing said this, if you travel there frequently you would probably have a better feel for price movements there than I do.
Regards
AlistairThank you, both of you for your information and contacts [exhappy]. I will definately get in touch with the people you recommend. This area “feels” good to me right now, so I’ll persist with my research. However, like you, I am concerned with the dramatic increase in prices over the past 3 years and am trying to get a clear picture of the risk associated with flipping properties like I mentioned… I’m now interested in looking for some properties that are under market value, since you, Richard, feel confident that they do in fact exist.
Now, I’m looking forward to speaking with your contacts. However I can’t do that immediately since I’m on a ship and calling by satellite phone is so expensive [glum2]. Very frustrating!! I have to rely on email until I get to a US port when I can use my cell phone.
Noysee,
Be careful if you decide to hold rather than flip as vacancy rates are climbing in Florida in general. Some Uk investors have been caught out big time with high vacancy or short term leases to holidaymakers in Orlando. The New York Times also reported that Southern Florida was one of the those US metro areas like LA/SanDiego/SF/NYC/LasVegas/Boston that could be in for some downward value correction.
Hi Bardon
Thanks for your input. This is a much more negative opinion of the market than I’ve heard so far. A devil’s advocate is also welcome.
If anyone else is of the same opinion, please let me know. And alternatively if there is anyone who views the Miami situation more favourably, I would appreciate your comments too.
I’m eager to invest now, but I obviously I have a lot more research to do…..[worried]
Colette
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