Is the Market Overheated in South Florida?

[Emmett Dempsey]

I live in Port Saint Lucie, and it seems that it is very hard to find any kind of investor opportunities. REOs that need a ton of work are being bid up to near ARV. The Foreclosure auction is a crap shoot, and has all the risks associated with that. What is your opinion of this market? Are we due for a correction? I am looking to buy cash and fix and flip, but wondering if I should just keep my powder dry and wait. What do you guys think?

[David O.]

The South Florida market in general  (and Miami where I am from) can be quite challenging to find the very good deals. It is all about networking, patience, and persistence, but they can be found. You need good systems and a good process that you execute on consistently. Networking with reputable brokers/agents & wholesalers is a must and extremely important in real estate. All of my best deals have all been introduced to me by agents/brokers and the occasional wholesaler.

Also, I constantly monitor the MLS and setup alerts in different areas I am farming and make aggressive offers quickly and methodically.

Also remember the execution of your offers. Overall South Florida is an ultra-competitive market. You can judge & critique the price of the property all day by what the seller asking price is, but real deals are made all day by consistently making offers and through delicate negotiations. Many investors will simply judge offers, be afraid to send in deposits or shy away from the contract writing process because they feel like the seller will not accept their offer. However, properties can and do sell for much lower than asking price, you see this all the time.