How do I find out what is the HOT REI Strategy in my Area of FL

Question

Hello,

I am just starting out in real estate investing.  How can I figure out what is the best or hottest trend or strategy at this time in real estate investing in my area?  Thanks in advance.

Adam Adams · Answer

Hi @Victor Correa Just a couple things for you as a new investor:

1) Co-Wholesaling

Co-Wholesaling is a great way to get started because you can do some deals but technically (if youre doing it right you'll be doing 25% of the work per deal and getting paid 50% of the profits.

My strategy for Co-Wholesalers is to either focus on seller acquisitions or buyer acquisitions. get really good at feeding other wholesalers deals they can sell for you, or get lots of wholesalers to feed you deals for a couple strong buyers.

If you would like to go into more depth on Co-Wholesaling, just reach out to me and i'll answer any questions you have on it.

2) Driving For Dollars

Driving for dollars is the cheapest and least risk for acquiring property (unless you are in a bad neighborhood, haha)

in short:

you drive around and take note of all the properties with deferred maintenance, boarded up windows, over grown grass, or obviously vacant. Take photos of the issues.

then you find the owners on the county assessor site, and send them a personal letter and pic of the property saying you drove past and noticed this house, that you were not sure if anyone was living there but you were interested in buying the property.

while you are sending out these letters you should try and find any of the following:

private money, hard money, flipping partners, landlords, cash buyers, etc

you can find these people on BP, or go to a title company and ask who has been buying in that area for cash over the last couple years, you could ask your family members, etc.

Now when you get calls back from the homes you drove by, you already have the exit strategies.

anyway, that was a condensed version of driving for dollars so if you have any questions about that, feel free to reach out to me or anyone else here on BP

Adam Adams

Ronald Filian · Answer

Hi Victor, I just moved out of that area.  in my opinion, the best market for hold and rent are Jupiter Farms and Stuart. Both areas near 95 on / off ramps. Jupiter is hot priced and the farms are catching on.  But Stuart has better property taxes. If you stay in Palm beach area then go into the area called the "acreage"  good deals back in there and plenty of growth.  lot of the land is being bought up by the big developers down there. Retired people are still buying down in that area in season.  If you get a SFR, you make pretty good income just renting out as a seasonal with less headaches. If you can only afford condo pricing, then jensen beach is still an underpriced gem for seasonal rental. just watch the HOA fees. Good Luck. My opinion only but your money.

James Mc Ree · Answer

I recommend first looking in the mirror and stopping there.  What are you interested in and prepared for?  Don't worry about the hottest trend.  It might be something you know nothing about.  You could spend time learning the new hottest trend, but it might not be the hottest trend once you learned it.  What then?  I find people do best with what they are passionate about and what they know or want to learn.

Focus on your financial goals and your portfolio.  If real estate has a place in your portfolio, think about how you want to engage in it: passive as in a REIT, passive as in buying property and engaging a property manager, active as in buying and actively managing property.  Do you want to buy and hold, flip, etc?  Commercial or residential?  How much do you plan to invest?  Do you have time for it?  Are you prepared for it (educated, funded, etc)?

Jim.

Ivan Vargas · Answer

The hottest trend IMO is what you want to stay away from. So much competition in Palm Beach right now they're only ruining the market for each other by driving prices up to the point where there's not enough profit left in the deal. I don't know how they make money with the numbers I see sometimes but hey maybe they know something I don't. The hottest trend right now is offering <$25k over asking price on the REO listings.

Get creative and learn something different from the rest. That's how you find a deal and make money. While everyone else is busy competing over the obvious deal in the most sought after area they tend to overlook the hidden gem in the hood.

The "Cancer Cluster"! Test results shut that story down years ago. I personally wouldn't live there but that's because I don't like dirt roads and well water. The Acreage is hot right now... Those lots are selling for more and more and asking prices are only going up. Jupiter Farms is half million and up, even the lots are over $100k. For someone just starting out vacant land or ground up is probably not a good idea. I'd stay away from membership required and 55+ communities also.

Victor Correa · Answer

Thanks @Adam Adams  I have your contact info and will be reaching out to you real soon.  I appreciate your reply.

Ronald Filian · Answer

I don't do lower income rentals anymore, learned enough lessons with those types of tenants in Fl. Earlier this year, I sold off my few homes on the west side of 95 in stuart.  I bought them 3-4 years ago, had good rental income and a decent appreciation.  But happy to be out prior to all of the bad publicity of the algea water.

Will G. · Answer

Yikes, the reason the acreage is priced well is cause it is in a "cancer cluster" caused by the thousands of gallons of jet fuel and other chemicals spilled by pratt whitney!

Stuart only has a few area's that have a decent cap rate like "golden gate" which is a lower income neighborhood.

To the op's question, affordable housing will never go out of style. Look around for the least expensive housing option, and then see if you can offer more value.

Victor Correa · Answer

Thank you @Ivan Vargas

I appreciate that tip.  Are you involve in any local REIA?

Victor Correa · Answer

Thank you all for replying.

@James Mc Ree Those are great questions to ask.  I appreciate your guidance.

@Ronald Filian Nice options to exam and research.  Much appreciated.

@Will Grabert Stuart is a great area to invest.  I actually really like Stuart but want to start closer to home in West Palm Beach.  Thanks for possibly opening up my mind to other areas.

How do I find out what is the HOT REI Strategy in my Area of FL

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