condo financing- no brainer???

[Ed Gieske]

I just don’t get it! I’ve been a business entrepreneur for over 25 years. I have recently shifted my business energies to my first love “Real Estateâ€. I have two partners that have been mortgage brokers for over ten years and one of them has flipped over 20 properties in the last 3 years. After months of research, I have realized that the BEST and most profitable area in Real Estate lies in Condos in Florida.
Right now, I could buy 150 Condos that were selling for $160K each, 2.5 years ago for 35K each today. The whole market has shifted. Condos use to sell for their selling and m,arket value. Today, most Condo developers have reverted their Condos to apartments to create cash flow and to cover their debt. In turn they have lowered their value. Now their developments are valued at a CAP rate of +- 10%. And are selling for 25K-35K each!
Please correct me if I am way off base!!!! But, If we can buy Condos at such a low price, and rent them with a 10-11% Cap rate (80%-95% occupancy Rate) and HOLD long for 5-10 Years, how are these Condos not pay their way ongoing? If they pay their way with cash flow, but even increase to 50% of their 3 years ago value, we could sell for a 2-3 hundred percent increase!
The math makes sense no matter how you slice it!
What I don’t have and don’t get is the financing. 100% financing seems to have disappeared, JV financing seems to be too rich, and nobody seems to want to enter this arena!
If anyone has an idea to facilitate this type of deal, please step up, I am all ears!!!
Thank You,
ED