Important Tips for Investing in Florida Real EstateTerry Riffe | April 18, 2016
While there are many things to consider when you are planning to invest in Florida Real Estate, I consider these tips the most important.
- ~ Real Estate investing is a business, treat it as such and do not get emotionally involved.
- ~ ALWAYS use a local specialized licensed Real Estate Broker or Agent, preferably one specialized in investment real estate. There is NO cost to the buyer to be represented by a Licensed Real Estate Broker, so why not have free representation. Real Estate agents and Brokers, in the state of Florida, are licensed – unlike other countries where anyone can become an agent. They are also obligated under Florida regulations to continue their education on a consistent basis to keep them up to date on new rules and regulations.
- ~ Have funds ready – ideally cash – as this gives you the extra leverage at the time of buying.
- ~ Always have a CMA (Comparable Market Analysis) done by your REALTOR.
- ~ Make sure to always have a long term plan in real estate…it is safe to look at real estate as a long term plan, even though you may want to sell fast and you may be able to make a fast profit. It is always smart to look at it long term a real estate will always make money over time.
- ~ Diversify. Buy some property to keep long term (look for good ROI), buy something short term, buy in different areas and different price category.
- ~ Ask for a pre-HUD or closing statement so you know what the costs will. Calculate what exactly costs will be at buying, costs or repairs and you cost for selling. You will have to calculate some margin for worst case scenario and then add your profit margin. Is this still a price you can sell this home for? It is vital to take everything into account. However, you may want to rent out the home for 2 years and also count on the extra appreciation. Ask your Real Estate agent what the market appreciation prognosis is.
- ~ Pay for an inspection! Have an inspection done. It is worth the money and good to know in advance. Any repairs needed may still be negotiable during the buying process.
- ~ Take out a home warranty if you are planning of keeping the home for a year or more.
- ~ Set up an ‘LLC’ by a licensed CPA to buy our investment Real estate in Florida, USA. This will help you with expenses, inheritance rights and any liability problems if the would ever occur.