Investing For Income and Return

For those of you looking for a decent return on your money it is important to know a few things:

  • ATTENTION FOREIGNERS – The term “investment” implies receiving positive income on a leased property. We DO NOT use this term to mean “acquisition” without income.
  • South Florida has been called the “6th borough of New York”. Don’t kid yourself for a minute thinking that you are the only one interested in a particular home. There are groups that have set up large private funds with the sole purpose of acquiring property.
  • The price range for “income producing property” is typically under $200k.  Be careful because also mixed into this range are “country club” and “adult communities” (55+) which have fees and restrictions that make carrying costs too high to make sense as part of an ongoing portfolio.  Filter those out (you will need our assistance)
  • Establish a very specific definition of the profile and location of your target properties because if not either your competition will beat you every time, or the quantity of targets to analyze will be too large to successfully react.
  • Remember that this purchase will have no financial contingencies, so you must have the full amount of your intended purchases in the bank ready for any deposit or quick closing, and any financing prearranged.

Today’s market has been selling at 5% and 6% returns.  To achieve more than that you will have to be prepared to buy multiple properties and spend a larger amount to acquire several in bulk.  Contact us so that we can set clear expectations and develop a plan for you that makes sense.