Many new condo and mixed use projects (residential with retail shops in buildings) that were put on hold in the last few years are now available at very attractive prices. South Florida real estate is continuing through its anticipated cycle and now that the fallout resulting in epidemic foreclosures and short sales is coming to a close, opportunities are ripe to purchase properties that now have the proper ‘pedigree’.
Also, many of the buildings completed in 2005-2007, that suffered from the market downturn, have been restructured and are reentering the market as improved, expertly managed properties ensuring sustainability. In essence, condo projects from Ft. Lauderdale to Miami Beach & Downtown Miami that faced foreclosure, were sold to developers that have proven experience, foresight and integrity.
Now these once forsaken buildings are being sold at extremely attractive prices, and the buildings have stability with reasonable maintenance fees and RESERVE FUNDS. The whole look, feel and vibe of South Florida real estate is, FRESH!
In commercial investment, multi-family properties of 5 units or more are a wise long term investment. Purchasing”right” is the key. Properties must be carefully analyzed and assessed long before offers are made. My team researches each property thoroughly and follows through on every detail of the transaction. As I always say in guiding my buyers, “the real work begins after the contract is signed”. That is when I go to work to ensure a smooth and seamless transaction. I oversee the inspection, appraisal, financing process, and anticipated repairs and renovations.
Purchasing “right” – the buildings that follow the criteria- are easily managed and for a cash on cash buy, there are CAP (Capitalization) rates of 9-11%, significantly higher than in many domestic and overseas markets. An investor can easily be an absentee owner and enjoy the monthly income of producing properties.
What are your biggest concerns about the market?
Oftentimes, banks can be unreliable and difficult to deal with, especially in short sale transactions. Fortunately, I work with great professionals that can cut through the bureaucracy and see the transactions through to fruition.
What is most surprising about the Miami market right now?
Surprisingly, the market has come back rapidly. Seasoned and well-informed buyers– an absolute international array- have made significant purchases based on value. It is the resiliency of the city and buyers’ lack of hesitance to sign off on a great opportunity that is very encouraging.
Buyers are committing with confidence.