All Forum Posts by: Shawn McCormick

@Ryan Cotterill to help answer some of your questions, let me see if I can help. 

Yes, housing prices have gone up considerably. We just got numbers for November of 2021 and inventory is down 45.4% over a year ago, median price is up 20%, volue of sales is up over 30%...so it is very active and prices are continuing to rise. With the new Fannie Mae rules going into effect, this will curb some of the investors buying and allow homeowners more of a chance, but I don't see prices coming down.

For looking on Zillow, I think 25 miles out from Disney is way too far. First off, you can't airbnb in Orange County (for the most part), so you have to stick to Lake, Osceola and Polk and I would stick to 10 miles out if you want a high performing unit. More than that and the traffic is a nightmare! I see that the bigger homes are likely out of your budget, my advice is always buy as big as you can afford, you can always rent it out as a 'smaller' unit in non peak times, but there are simply less of the bigger units and you won't be competing on nightly rates with smaller units that want to rate cut their competitors.

For self managing, there is a big learning curve. Unless you have the time to learn everything and have contacts for all the trades and apps and software you will need, I think it is best to hire a PM until you get a grasp on how it all works and let them build your reviews and presence.

Hope this helps, Good luck!

@Darius Stanczyk There are a couple trains of thought on this. If you go to a particular spot with your family and get good use out of the property, than why not use it when you want and let other people pay for it. That is highly dependant on when you want to use it, you could be taking away revenue from yourself if you want to come during peak times. The bonus to this strategy is you could use a 10% loan and purchase as a second home.

You could go conventional route and do 20%+ down and use it strictly as an investment, possibly replacing an income with the revenue. Then you could use the profits to vacation where you want. Depends on where you enjoy going.

With the new Fannie rules going into effect very soon, the interest rates are going to be a bit higher regardless, but I don't think they will last long anyway. But Orlando is a year around, globally recognized destination. How many people in Brazil or Dubai or Hong Kong know Ft. Lauderdale?

Best of luck to you!

@Alex F. Sounds like you have a few differing opinions. I am definitely on the side of a full resort style community. As @Tyler Gibson mentioned, the things you get for that money go beyond a simple junk fee that many associate HOA's with. The cable/internet could be a 200-300 value alone. It is proven over and over that simple things like a house with a pool vs a pool/hot tub will get you more money per night.

Since most people use reviews to purchase, the resort communities that are fully amenitized with lazy river, arcade, movie theater, restaurants and even Flow-riders are a big draw and compliment your themed house. Not everyone comes just for the theme parks. Many are here for youth sports tournaments, tour groups, conventions and want to be in a community that offers more. You will simply see a better nightly rate and higher occupancy in these types of communities.

The biggest things you want in one of these types of homes is 1. proximity to the theme parks, 2. highly amenitized community and a well themed home. Keep in mind, the homes here are really not that special, most are quite cookie-cutter, we have no moutain views or isolated cabins or roof top penthouses. They are coming for the excitement for the kids and the amenities of the community help to enrich that experience.

@Brittney Smith, you may want to talk to local lenders, less junk fees than banks and more personable. Problem is, most are so busy with loans, they don't focus on the refi's, but I have several I could recommend.

Hi @William Morales as an investor and agent that invests out of state, I feel your pain. My expectations are never met to the standard that I give and it's frustrating. I work heavily with investors and honestly, 70% never buy and do waste our time, however that is the nature of being an agent..doing what others won't because most of the 18,000+ licensed agents (just in Central FL.) are looking for the low hanging fruit and right now, there is plenty of that. 

You do have an advantage with your brother, but if he isn't familiar with the neighborhoods you are farming then you do need some help. Depending on your strategy, fix and flip or hold, there honestly aren't too many areas that I would tell you to stay away from. The market has been fantastic in Orlando for nearly a decade, both rents and retail pricing are up in the teen double digits.

Best of Luck!

@Ryan Kwech I got my start being a business broker and helped people buy and sell restaurants, gas stations, hair salons and mfg. facilities etc. I got into it in 2006 and by the time I got good at it, the crash came along and wrecked that side of the real estate business. When I started investing, I just liked the creative deals side of houses and working with people that I could help. commercial is generally a boys club atmosphere and its all about numbers. I like to find solutions, use creative financing ideas to help people solve problems, so although I would do commercial deals, its just not my focus.

As far as getting your license. I'm on the side of getting it. As long as you are honest and ethical, there is no reason not to get it. Why not get paid to buy a house? I've bought and flipped several short sales ( I found the sellers myself). They have to be listed in the MLS, so I list them, then I buy them and get paid on both sides and that helps fund a portion of the flip or whatever I want to do with the money. 6% of 100k purchase means it covers your closing costs or appliance package or bonuses for trades etc. If you are buying a home for yourself or helping a family member, you get that commission. If you don't want to be an agent, just hang your license with a referral brokerage and pay dues. Biggest thing you have to do if you continue to wholesale is make sure you disclose..everywhere..everytime. For me, if I'm talking to a seller, distressed or not, I have more tools in my belt being licensed. Why would I walk out without a deal..I can buy it on terms as an investor or if it is better for them, list it and get them more money. I could also connect them with an i-buyer and still get paid that way too. I just change hats depending on what works best for them. Thats where the honest and ethical part comes in.

Hope this helps!

Hi @Ryan Kwech I live in Clermont and have invested in rentals, flips and subject to here. Lots of growth and opportunity. I'm not on the commercial side and only have a couple contacts in the development side as big builders usually grab anything decent years in advance. Rentals will continue to be a good avenue almost anywhere in Lake County.

@Tiffany Kho I sent you a message. 

@Tiffany Kho I believe that this is a product of STR homes. Sellers are generally out of state/country and to sell it furnished is easier on them as they don't have to pay to move the furniture and sell it for pennies on the dollar. It is also a benefit towards the buyer as it becomes more of a turn key investment. So if you are buying in a resort community where the majority of the units are being used as STR, than you are more likely to see them sold furnished.

@Nella DiBenedetto

Orlando is a great option. The housing market here(like most big metros) has been experiencing shortages in quality rentals from all of the growth that has come our way in the last decade. So the demand for rentals is extreme, but with prices higher than ever here as well, cash flow can be difficult to achieve, but appreciation is a solid play right now. There are plenty of great areas to Orlando and depending on your target tenant (students at UCF, theme park workers, families, retirees etc) might make a difference what part of town you invest in. 

Good luck!