My Current View on Investing in Florida

My Current View on Investing in Florida

Homeowner · Saint Petersburg, FL · Member since 2013 · 41 posts · 4 votes

Just beginning to learn about investing. Been reading on wholesaling and contract flipping. I talked to a realtor yesterday who basically made me rethink what I'm trying to do (dream buster). He told me that he was working with a man who tried doing the same thing and for two months, he and the guy would meet twice a week. He never made any $$ because the guy wasn't able to locate any property where the seller would allow the contract to be sold, plus most realtors are not agreeable with it. He wasn't totally sure what the client was initially doing because he was never direct about it, but eventually he figured it out. He said this type of business (flipping contracts) is more difficult to perform than any other real estate deal. He did tell me about the ABC transactions with short sales but you need thousands of dollars to purchase the home in order to resell it. Florida, he states, is very competitive in real estate, and there are many investors with huge amounts of money; basically if you don't have thousands of dollars to invest initially, you won't get much assistance. In fact, I contacted a couple of title companies to get information on their services and mentioned what I wanted to do (assignment of contracts) and never got a response back. I can't avoid what I want to do so I've been honest with anyone I speak with. I'm not asking anyone for a handout and I believe in bootstrapping my way if necessary, if that's what the environment calls, but there must be an easier way for the little people like me to connect to someone that can at least be a mentor and say 'yes' or 'no' from time to time as I find my way. Many investors have been in the same position that I've been years ago. Then again, many people forget that's where they once been.

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  • Huntsville, AL · Member since 2013 · 66 posts · 11 votes
    12y
    Sheena Prattis if you're trying to assign contracts, you need to take advantage of the fact that there are many investors with large sums of money! It sounds like the problem is that you're trying to assign contracts on properties listed with agents. Don't. You'll have to find the motivated sellers who are willing to sell for much lower than retail and who don't care HOW you get their house sold. Finding the sellers is probably 95% of the work in wholesales.
  • Homeowner · Saint Petersburg, FL · Member since 2013 · 41 posts · 4 votes
    12y

    Understood... I was thinking about this whole process earlier and realized that was the missing piece to my puzzle- find properties with no realtors assigned. I had even read that earlier in my research- don't know how I forgot that... thanks

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    @Sheena Prattis

    Exactly. Realtors get hounded with wannabe wholesalers/flippers all the time. The reality is that properties on the MLS are exposed to the entire market, so they're aren't going to be many 70% FMV listings. You have to find properties that are off market. The reality is you need to find a seller usually who is somewhat ignorant about the value, or under some distress/pressure that makes them knowingly accept less than FMV. There are guys to try to wholesale off the MLS, but they send out 30-50 blind low ball offers a day with automated systems. I get their offers all the time and they are easy to recognize, in addition to the low price.

    Find your local REI groups to find title co.s, etc.

  • Huntsville, AL · Member since 2013 · 66 posts · 11 votes
    12y

    @Sheena Prattis

    I'm glad I could help you remember. Happens to everyone.

    Don't end that relationship with the realtor, though. While looking for those sellers, you will probably come across some who are more ripe for a shortsale or even traditional listing at retail that you can refer to your realtor friend. In exchange, he can help you with comps. And who knows, you may grow to a rehab business one day, and want a realtor who can list properties for you.

    As far as the title companies not returning phone calls, you might want to try to find the newer and smaller companies that are trying to build their business also. If you go to the first name in the google search, or the one a realtor recommended, chances are they've got plenty of business and aren't as eager to give you the time attention you're after. It might take some time, but you'll get all the pieces in place.

  • Homeowner · Saint Petersburg, FL · Member since 2013 · 41 posts · 4 votes
    12y

    Thanks again for the information.

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