Florida Real Estate Investment Opportunities – Bilzin Sumberg partners Anthony de Yurre, Sara Barli Herald and Carter McDowell advise Florida developers and investors on all aspects of condo redevelopment – from land acquisition and rights to financing and construction. .
By 2022, the Florida Congress has passed a series of laws affecting nearly 1.5 million condominium units across the state, along with 28,000 associations responsible for property oversight. These policy changes include stricter rules for how apartments are maintained when structural inspections occur and how the association’s budget and reserves are managed.
Florida Real Estate Investment Opportunities
The new law has created a perfect storm for many residents and associations struggling with existing repairs. The prices of decay are approaching. Older condominiums are particularly vulnerable as their residents weigh demands for improvements against the fact that their buildings may be approaching functional obsolescence, making the basement more valuable than construction.
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“In some cases, the association skips compliance with the new law in order to be satisfied with the completion of the condo and the complete sale of their property. This dynamic increases the inventory of available land and opportunities for real estate developers and investors seeking deals in Florida,” explains Carter McDowell , Bilzin Sumberg’s partner in land development and public relations practice.
As a peninsula surrounded by water on both sides, Florida is a challenging market and a limited number of development areas. The land shortage is compounded by an increase in new residents, with the Census Bureau reporting that 320,000 Americans will move to Florida by 2022, more than any other state.
This population growth is driving the historic demand for residential and commercial real estate in communities across Florida, placing mature condominiums for redevelopment among out-of-state developers looking for entry points.
Anthony de Yurre, Bilzin Sumberg’s partner in the land development and public relations practice, explains: For sale is art and science. .
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Under the law passed in 2022, all apartments in Florida over 30 years old must undergo a structural assessment conducted by a certified engineer and report the findings of the study to a local city hall. These reports eventually become public records, creating information.
Adds de Yurre: “A thorough review of these engineering reports, along with a thorough understanding of local land use and zoning grants, allows a trained eye to determine whether any property is worth exploring,” added de Yurre.
The latest wave of condo completions in South Florida has focused on expensive waterfront sites targeted for redevelopment into luxury homes or hotels.
However, a closer look at the old apartment in Florida shows that many of these properties are offshore. In many cases, older land-based properties can be purchased at a lower cost per unit and benefit from flexible zoning, opening the door to wider uses.
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– More emphasis has been placed on the water’s edge, but in many cases there are more opportunities in the soil because in some cases the soil is set to higher densities as a matter of course, says partner Bilzin Sumberg Partner Sara Barli Herald who is speaking. . Focus on public-private partnerships, affordable housing and land development.
“From sites designed for affordable housing and marketing to offices and retail, getting cheap local real estate can lead to more favorable long-term investments. The key to increasing returns is understanding what can be developed and how much it costs before making a purchase , the Herald added.
At Bilzin Sumberg, a multidisciplinary team of attorneys specializes in identifying Florida homes that may be suitable for remodeling based on a variety of factors, including age, repair requirements, association finances, property prices, debt, taxes, insurance premiums and more. and potential. Zoning.
From there, the company guides developers and investors through all stages of development, including initial acquisitions, guarantees for financing and construction. In many cases, this involves the formation of joint ventures that include local development partners with specific expertise in municipal matters.
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To find out more about real estate development in Florida, please visit Bilzin Sumberg’s Development Conference 2023 March 15, when looking for profitable and promising real estate investment opportunities in the state of Florida, you need to focus on how much it will rent. And how your income will measure up to your expenses.
Investing in a rental property is a great way to build wealth and build a profitable portfolio. You have the potential to get cash flow as your investment increases in value, and you can also reap some great tax benefits.
Before you can think about investing in Florida rentals, you need to create and understand your investment goals. Perhaps you are buying a retirement home that you plan to live in 20 or 30 years from now. Or perhaps this is your strategy to diversify and strengthen your growing investment portfolio.
Whatever your intentions, understanding your goals and expectations is the first step in buying an investment property. Commit to these goals and don’t be left behind by attractive investment opportunities that don’t fit your portfolio or strategy.
Housing Group Investments
When investing in real estate, you need to know what you’re looking for, and you need to be able to identify it quickly.
Remember that you are not buying a home that you are moving into now. Maybe when it comes to your home, you insist on living in a room with hardwood floors, granite countertops, and a jetted tub in the master suite. Most tenants in the market do not need to request these updates, especially if it means a higher price. Qualified tenants want a clean and well-maintained house in a good neighborhood at an affordable price. Think like a tenant when you decide to invest in the home you want to buy.
Many investors want to buy an affordable home, need a lot of work. This is a strategy and if it fits your investment plan, buying such a house can work. But don’t waste time and money on a lot of job demands if it means there’s a delay in getting that property on the rental market. Although the prices are guaranteed to be attractive and low, the amount you have to pay to get the property to ready condition may be more than you expect. Not only do you have to invest in repairs and renovations, you also have to wait a long time to start earning rent.
Location is also an important part of identifying the best investment properties. Get to know your neighbors. Is there a good school? Is it easy to get to shopping and entertainment? Does the traffic get bad during rush hour? Your investment property will be more profitable when you have something in the desired location that is close to what the tenant needs. More remote homes will have a harder time attracting tenants with larger pools.
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Forget emotions and aesthetics and focus on data and numbers. When identifying the most lucrative rental property in Florida, let your math guide you. You need something that makes financial sense.
Calculate income and expenses. Make sure the numbers match what you need and expect the investment. Your comfortable cash flow and interest rate will depend on your investment goals and what you need to make this purchase work. Run numbers through many different scenarios. For example, what would happen if you were homeless for six months? How will your cash flow be affected by maintenance work? These are just some of the goal setting shareware you can use.
Another important thing to consider when buying a real estate investment property is that you may need the help of an expert. A good property management company can help you have a better investment experience. You can rely on the local expertise and knowledge of a property manager to estimate how much rent you will receive and how long it will take to find a good tenant. A good property manager can also discuss what types of cosmetic or functional repairs and updates will be needed before the property you’re considering is ready for the rental market. Don’t wait until you’re ready to rent a property to consult with a property manager. Find out what you need to know before you buy. Our team is ready to work with you at every point of your investment experience. Contact us at Florida Property Management Services.
Which property should you buy? Almost all real estate investors, at least just starting a business, ask themselves this question. What type of property is best to buy. It is true that the return on the investment, the rate of increase and the risk varies from property type to property type. All investors want to buy the property that gives the highest return on investment with minimal risk. We have many options when it comes to good returns, risk.