Guest Post Written by: Jeremy Kloter – Realtor
“No one can see a bubble. That’s what makes it a bubble.” The movie The Big Short is a comedy-drama film about the real estate market in 2008. Although parts of it are humorous, many families were severely impacted, whether they were seasoned investors or not. Regardless of your investment strategy, know what you’re investing in and how to keep your thumb on its pulse.
Doing that can be a challenge in itself, so where do you turn for the right information? Objective data isn’t always the most apparent or popular. That is why you need to utilize a power team. There is a responsibility to know the right plays to make as the market is constantly shifting. We utilize data from different perspectives within the local market. Check your local newspapers, attend your local REIAs and interview residential and commercial Realtors, Realtor Associations, Banks, Loan Officers, Title Company representatives and Hard Money Lenders in your area, because they can provide important information on the current market. They can also give insight into the types of transactions that are becoming more common.
In addition to the public information, utilizing a company like HIS Capital Group, which has proprietary ways of analyzing markets down to specific neighborhoods and zip codes, has protected us and our clients. Investment firms can provide funding for different types of real estate with different investing strategies, including fix and flips and buy and holds. It also offers returns for those investors who are looking to deploy capital. The data it processes will keep you on your toes to determine if a given zip code is above the ‘06 market levels as we are seeing here in some areas, or still below what it was before the market crash. The collective experience and knowledge of these professionals will keep you protected when deciding to move forward with a project.
Through generated interest of the readers and clients of NuView IRA we’ve included some specific information about the Tampa market:
Tampa ranked second among all cities for real estate investment, according to the report from GoBankingRates.com, among four other Florida cities in the Top 15: Orlando (1), Miami (10) and Jacksonville (13). This list was gathered using a formula of employment growth, population growth, increases in home value and the number of years it would take rental income to pay off the median home value.
- Orlando, FL
- Tampa, FL
- Denver, CO
- Seattle, WA
- Austin, TX
- Reno, NV
- Dallas TX
- Portland, OR
- Raleigh, NC
- Miami, FL
- Nashville, TN
- Phoenix, AA
- Jacksonville, FL
- Charlotte, NC
- Richmond, VA
In 2014, Florida’s population surpassed New York for the third most populated state in the country. Hillsborough County alone added over 30,000 people from July 2015 to July 2016.
- January 2013 boasted a 7-month supply of inventory with December 2016 hitting an all-time low over the past four years of a 2.6-month supply.
- The average listing price to actual sales (sold) ratio has risen from 96% to 98%. This translates into sellers having more negotiating power and buyers paying the price.
- The average sales price over the same period went from $168,211 to $253,199.
- The average days on market (DOM) decreased from 80 days on the market to just 60.
The market is also experiencing commercial developments in the form of luxury apartments, self-storage facilities and retail strip shopping centers. In residential communities, builders are paying a premium to knock down older homes to build mini mansions. Ybor, one of Tampa’s oldest areas known for its cigar history and shops is a vibrant and transitioning area. Seminole Heights is trending with bungalow style homes where a 2 bedroom/1 bathroom is likely to cost you over $200,000. While some areas are hot, we expect to see the market cool a little with interest rates likely to rise.
Due to the influx of investors and capital, we’re also noticing a shift in the type of deals coming through our real estate investment brokerage. Discounted properties typically being wholesaled at 40-50% of value are becoming scarce. Investors hoping to buy, fix and sell are also having to pay higher prices (i.e., 80% minus repairs vs 70-75% minus repairs as seen in the past). Sellers are mindful of the positive market, so we have been capitalizing on our traditional listing sales of homes, property management or creative financing along with seller financing from property owners who want to get out fast. We land all types of deals because we approach appointments with up to 7 strategies for them to sell or get rid of the property. From brokerage services to investment expertise and options we welcome the opportunity to help anyone in their quest to reach their personal real estate objectives.
Every market has its own fluctuations. Finding the right, objective information is possible through your network.
For more information about short term and long term funding opportunities and portfolio diversification with HIS Capital Group contact:
Sam Ally
S.Ally@HISCapitalGroup.com
For more information about careers, lending opportunities or discounted investment properties in and around the Tampa Bay area with Out Fast Realty & Investments contact:
Jeremy Kloter
Jeremy.Kloter@OutFastRealty.com
References: Greater Tampa Association of Realtors. (1/10/2017). My Florida Regional MLS. Retrieved from http://mfrmls.com/mdocs-posts/gtr-december-2016-statistics/.
Disclaimer: The opinions, representations and statements made within this guest article are those of the author and were not influenced by NuView IRA. NuView is not responsible for the accuracy of any of the information supplied by the author(s).
