The Mortgage Go To Guy!!

The Florida Real Estate Market has many opportunities to offer investors that looking to buy low and sell high. Savvy investors from all over the globe are seeing the low prices combined with good exchange rates on the dollar (for foreign national investors) and relatively low interest rates for mortgage financing as an invitation to start buying Real Estate in Florida.

Many Real Estate Investors, though, are joining forces and their money to form a Syndicate - a group chartered with the specific function of buying Real Estate together. These Investors are bypassing the weak spots of the market - like condos for rental - and skipping ahead to larger purchases such as shopping centers, hotels, apartment builders or even new developments.

Yes… people are still developing new residential and commercial developments in Florida since the population is continuing to grow!

Investors that are looking to invest in New Residential or Commercial Real Estate Developments are finding that forming a syndicate not only helps them invest in larger and often more stable properties… but also helps them avoid some of the pitfalls due to the current mortgage crisis.

Buying a single family home or condominium for an investment can always create a challenge to an investor looking for cash flows. With a single tenant, vacancy rates alone can eat up any profit. Maintenance on a single family property can be costly especially to an out of state or foreign national investor.

Another issue is that the mortgages currently available for an investor in a residential property are almost all full documentation… and the rates can also prohibit a profit from the monthly rents.

Foreign Nationals are having a particularly tough time finding good income producing properties due to the lack of lenders that will fund their loans… as well as the restrictions that active lenders will impose on properties due to high investor concentration, fractional units or even geographical limitations.

Since Cash Flow is king in real estate investing, savvy investors are seeking out Florida Real Estate Professionals who can help them identify opportunities… and the partners that can help them acquire these properties.

Instead of a Foreign National purchasing a Condo-Hotel unit, a group of Foreign Nationals may acquire an entire Hotel through Syndication. They get all the same treatment for the room they “occupy” but the cash flows are typically stabilized due to current operations. This means that they can forecast more closely their return.

With the weakness of the dollar versus pretty much every other currency in the world, Foreign Investors are seeing their deposits stretch further… plus a healthy return on their investment simply from the appreciation of the dollar over time.

At the same time, Lenders who are choosing not to fund development projects are opening options to opportunistic Investors looking for a good return on their money. These investors are finding new developments that are seeking funding in different stages of the development and are willing to pay to get it.

These investors will seek either a Syndicate or the developer may offer the investors a Private Placement which will lay out all the terms and timelines of the investment.

Whether a commercial or residential real estate development, the different options for investment could be used for:

• Outright Land Purchase

• Land Buy and Hold

• Equity Investments

• Wholesale Purchase of Building Units

• Loans for Construction

More Florida Real Estate Industry News You Can Use from
David A. Podgursky, MBA
TheMortgageGoToGuy!!
Your Source for Residential and Commercial
Mortgage Loans in Florida

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