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Common Misconceptions Held by Beginner Real Estate Investors

Almost anything has common misconceptions Real Estate Investing is no different.

When it comes to real estate investments, there are plenty of misconceptions held by beginner investors. Thankfully, you can deconstruct the three most common mistaken beliefs.

Common Misconceptions: It Takes a Lot of Money

It’s a common fallacy that you need lots of money to invest in the real estate market. However, there are numerous ways that you can capitalize on it with little to no money available. Have you ever heard of an owner-occupant situation? Well, it’s one of the easiest ways to invest. You buy a home, pay it off within a year while you live in it, then you move out and rent the property. You move on to the next home and do the same thing. Another option you have at your disposal is wholesaling. In this process, you don’t own the property, but you negotiate deals between the sellers and the buyers. Finally, you can become partners with other investors. This win-win situation allows you to learn from a well-seasoned investor as well as not tie up too much money financially.

Common Misconceptions: It’s a Quick Way to Make Cash

There is money to be made in real estate, but keep in mind that you won’t get rich quick. You must watch out for scammers as they are plentiful in this arena. According to Estate Surplus, real estate is nothing like the stock market, and the market behaves differently, as well. If you hear anyone say there is a trick that can make you get rich quickly with real estate and beat out people who have been at it for decades, then they are most likely trying to scam you. It takes time to build an excellent portfolio of homes and other buildings. You can certainly make money, but it usually won’t happen overnight. Investing in real estate can be good for retirement savings but not for quick cash.

It’s an Easy Job

Real estate investing isn’t as easy as it seems. According to HomeVestors Franchise, there’s a lot to do, and there’s a lot to learn. You will be required to manage tenants, handle maintenance issues, budget finances, and do all the other duties that come along with this job. Like any other career, there will be times where you feel there are not enough hours in the day. However, don’t let that discourage you from being an investor. It’s a lucrative market once you get in and get your feet wet.

To be a successful real estate investor, you must be prepared, adaptable, and driven to succeed in this market. Once vested, you can enjoy flexibility, influence, as well as all the tax benefits that owning property offers.

You might also like: What Do You Need to Get Started in Real Estate Investing?

See you at a meeting soon!

The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.

Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.

To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.  

Click here for information about our nighttime general meeting. 

One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.


How to Select a Good Real Estate Location

A good real estate location will make or break an investment. “Location, location, location” is one of the most common things said within the real estate industry. However, many people don’t seem to understand what a good location really is. Although the meaning of a good location is subjective to each homeowner, you must always keep in mind the needs of future potential buyers. The following list entails some of the most important things to keep in mind when choosing your real estate location.

Select a Good Real Estate Location: Community Growth

Ever run into an unstable neighborhood with a nicer house randomly planted right smack in the middle? You might think to yourself why someone decided to build that here. What you might not know is that the neighborhood might be quickly becoming a hub for small businesses. That nice home will soon be worth much more once the community begins to grow over time. Therefore, when choosing your location, it is always best to understand the potential of an area as your investment can lead to big profits in the future when you finally decide to move out.

Your Kids

One of the most common reasons for people deciding to move out of their homes is because of their growing family. If you have kids, you may want to consider a number of factors before deciding on a new location to buy or build your home. This means understanding how close the nearest schools are, how safe the neighborhood is, and if there are any potential safety hazards within the area, such as large lakes. Looking into these things will make both you and your children’s lives easier.

Select a Good Real Estate Location: Lot Location

A very important thing to consider when deciding to build or buy your home is the location of your lot. Hasty placement can ruin even the most beautiful home. Not many people would want to spend millions on a home right next to a busy street. Other factors to consider are the surrounding areas. These can include being right next to gas stations, retail stores, or other places of constant activity. This is actually why many homes become rentals rather than sold entirely. Be sure you end up moving to a home with a lot in a convenient location for you and your family.

Location is everything when it comes to real estate. Sure, people want the perfect home, but they also want to make sure that their property doesn’t lose value or that living doesn’t become a frustration due to location. Simply adhere to the list above to ensure that you don’t make these simple mistakes.

See you at a meeting soon!

The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.

Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.

To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.  

Click here for information about our nighttime general meeting. 

One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.


How to Avoid the Short Sale of a Property

A short sale of a property is something that a bank can request if your home is headed toward foreclosure. It’s a practical way for you to avoid foreclosure, and it can save the bank some money. Without the right guidance, navigating a short sale can be extremely difficult. It’s also a very lengthy process. Many short sales can take over one full year in order to be approved. For someone looking to invest in real estate, this is something that many avoid because of its complications. Luckily, there are some ways of avoiding a short sale of a property. While they can’t always be avoided, there are some things that can be tried first.

Avoid the Short Sale of a Property: Modify Your Loan

According to the Cunningham Team, a short sale usually happens when the property is headed toward foreclosure. Modification of a loan can sometimes make it easier for a property owner to pay their mortgage. These modifications and restructurings often include a longer payment plan, different interest rates, combining debt or securing an additional loan for repayment. Some banks will even switch the mortgage loan to another lender that is willing to take on the loan issues.

Avoid the Short Sale of a Property: Rent the Property

A really easy way to make money and avoid a short sale is to rent the property to someone who is reliable. If a steady stream of income is coming in, this money can be used to catch up on the loan amount. The key is finding someone who will occupy the property immediately. They must be willing to stay for a bit, and you need to be able to rely on the person who is going to be paying you monthly.

Consider Selling With Owner Financing

If all else fails, try selling the house by using owner financing. According to Nav, selling a house with owner financing just means that instead of having the buyer pay a bank for the house, they pay the seller. People do this all the time with lease option purchases and lease option sales. Just make sure that you get some help from a lawyer to make a good contract so you can make sure you can depend on the buyer to pay you so you can pay your mortgage.

Deciding to sell your real estate property through the process of a short sale can be a very practical and convenient option for a real estate investor or a homeowner who is trying to avoid foreclosure of a home. The process of a short sale may also be avoided through a loan modification or renting out the property.

Want more tips on real estate investing? Come to one of our monthly luncheons!

See you at a meeting soon!

The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.

Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.

To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.  

Click here for information about our nighttime general meeting. 

One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.


Did You Know That These 4 Factors Affect Your Property Value?

There are many factors affect your property value. There are several different factors that contribute to the overall value of a property. Paying attention to these factors can help you determine if you’re about to make a wise real estate investment. Some of these details are commonly known by real estate professionals and investors, but sometimes there are lesser-known elements that contribute to the value.

Factors Affect Your Property Value: Heating and Cooling

Every home has some sort of HVAC system that provides heat to the various rooms in a home. Some houses will have an air conditioning unit attached as well. The more updated and efficient the system is, the more value that will be added to the home. In the Florida area, air conditioning is a big deal. A home that doesn’t have that feature included will see its value go down.

Structural Factors

It’s common for a real estate agent to share when a home was built, but it’s not always a necessity for structural information to be provided. The value of a property will go up if the roof has been replaced in the last few years. The same goes for the furnace or driveway. It’s even better if warranty information is provided for these items. People will know that they have been recently updated, but there will also be coverage information that will accompany them.

Factors Affect Your Property Value: Smart House

Many parts of your house can be connected to smart technology, which will raise the value, especially if it connects directly to your phone. This includes a security system, lighting, door locks and window treatments. This little bit of added technology can make a home seem like a lot of thought has been put into its functionality. These are mainly convenience features, but this is an investment that pays off in the long run.

Upgrades

When a builder constructs a home, the buyer is given the opportunity to select what they want in the way of lighting and other fixtures. Increasing the value of a home comes from upgrading these various items. Instead of picking out the contactor-quality finishings, a step up will increase the overall value.

Some factors that contribute to the value of a home can cost a substantial amount of money. However, there are also ways to increase the value of a home that aren’t overly expensive. With every property being different, it’s a good idea to assess each property as a brand-new investment before you decide to invest.

If you would like to start investing in Florida properties, contact us to become a member!

See you at a meeting soon!

The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.

Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.

To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.  

Click here for information about our nighttime general meeting. 

One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.


Lessons learned investing in Cape Coral Lots

On this edition of REICAST we interview one of the OG’s of the Cape Coral lot market: Lessons learned investing in Cape Coral Lots.

Kevin Page Bio: 

Kevin has over 30 years of real estate experience as a licensed broker and property manager. Kevin started his career in Massachusetts buying and selling his own investment properties before moving to Cape Coral in 1987. Since then he has over 8,000 successful real estate transactions and has developed long term relationships with realtors, builders, developers, investors and landlords that has made his company successful since 1989. Kevin is well versed in 1031 exchanges and self-directed IRA’s. He has his own portfolio of rental property and investment land and owns several LLC’s and his own self directed IRA.

Kevin holds several designations and regularly attends the local meeting of the Southwest Florida Real Estate Investors Association and the Cape Coral Association of Realtors. As a proud member of the National Association of Residential Property Managers, Kevin is well versed in the Florida Landlord Tenant Act and the Federal Fair Housing Laws.

Lessons learned investing in Cape Coral Lots: How Seawall Code Changes will Affect Freshwater Lots

There are some code changes inbound in Cape Coral. While at this time we do not have cost certainly on how the code changes will change the true costs. Estimates are at least 200 percent.

Lessons learned investing in Cape Coral Lots: Understanding waterfront lots in Cape Coral Fl

There are two types of waterfront lots in Cape Coral. Freshwater and Saltwater canals. Each has its own reasons to own them.

 

Cape Coral Lot buying criteria for Builders.

Find out if city or community water and sewer connections are available on the lot or land. It is easier to build with central water and sewer than with septic and well. If the lot is in a gated development, ask for a copy of the restrictive covenants. Check a property’s use restrictions to ensure the builder can use the site and build the home the way they or their customers would want.

See you at a meeting soon!

The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.

Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.

To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.  

Click here for information about our nighttime general meeting. 

One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.


November 2019 Lee County Foreclosure Trends Report

November 2019 Lee County Foreclosure Trends Report

Where does the November 2019 Lee County Foreclosure Trends Report come from?

We download from public records and trend the data with Microsoft Excel. We have been doing this since 2007. This report has value because it is a leading indicator of bank-owned homes coming to the market.

Compiled and analyzed by Jeff Tumbarello.

November 2019 Lee County Foreclosure Trends: Lis Pendens

  • November 2019: 66 Mortgage related Lis Pendens
  • October 2019: 86 Mortgage related Lis Pendens
  • November 2018: 102 Mortgage related Lis Pendens.

November 2019 Lee County Foreclosure Trends: Certificates of Title

  • November 2019: 58 Certificates of Title were conveyed.
  • October 2019: 66 Certificates of Title were conveyed.
  • November 2018: 41 Certificates of Title were conveyed.
 Year Mortgage Originated Average Complaint Amount
2004 $255,626
2005 $313,830
2006 $108,070
2007 $79,266
2008 N/A
2009 $47,444
2010 $200,279
2011 N/A
2012 $89,862
2013 $202,494
2014 $347,638
2015 $172,739
2016 $225,493
2017 $155,422
2018 $127,910
2019 $155,422

 

Notes:

  • November 2019 is more of the same in relation to the foreclosure trend.
  • 6 of the foreclosure filings appear to be a result of the Bertram Versus US bank decision due to the date of the last payment. That explains the increase from last month.
  • The lack of Certificate of Title Growth in relation to the Lis Pendens filings shows that the market has improved to the point if you go into default. You can trade out.
  • The institutional distressed market will continue to not be a primary driver.
  • Most of the foreclosures appear to be smaller loan amounts. There is significant demand within those price points.
  • Appreciation has slowed down since 2016. This is why the vintage of 2016 through 2018 has as many foreclosures. They can not trade out unless they had a larger down payment.

See you at a meeting soon!

The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.

Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.

To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.

The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.

We meet twice a month.

Click here for information about the monthly luncheon.  

Click here for information about our nighttime general meeting. 

One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.

We look forward to meeting you at a meeting soon!
Click here for membership information

Get our meeting notices and market data emailed to you.


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