Ok, this is a carry-over from our Part 1 post last week where we discussed the first type of real estate investor on Sanibel, namely, the “Buy and Hold-ers”.

So, today we’d like to discuss the other two types, which are the “Rental Property Purchasers” and the “Flippers”.

Buying investment properties for the sole purpose of renting them out is yet another excellent way to make money for those investors with their sights set on long-term property investments.

Investors typically finance the mortgage with the rents paid each month and hopefully have a little left over to pocket or reinvest in the property.  If purchased outright (without the need for a mortgage), then obviously, all of the rent paid each month is pure profit.  These properties are simliar to the buy-and-hold crowd when it comes time to sell it in the future for a substantial difference.

One thing to keep in mind, however, is the expense regarding upkeep on the house and property, as well as the tenants that you choose to live there.  If these numbers are kept in check and the tenants you choose are respectful to the home and the property, then this type of investing can be quite enjoyable and profitable.

“Flipping” is another common type of real estate investment that is receiving a lot of press these days. The process simply involves purchasing a property below market value, investing in the repair, or “rehab”, of the property, and then reselling it for a substantial profit.

This is one of the few short-term options available to investors, which is why it has become so popular.  Investors get-in and then get-out relatively quickly making it the “day-trading” option for real estate, if one compares it to the stock market.

While there is not a great deal of “flipping” on Sanibel or Captiva Islands, there are some properties, both single family homes and condos, that could be great candidates for this type of investor.

In the current real estate market, short sales, bank-owned REO and foreclosures are also adding to the investment possibilities. With interest rates at all-time lows and many of these types of properties selling for $0.50 on the dollar, investors are snatching up these homes well below market value, as well as “never lived-in” new homes even below construction cost!

The idea is to buy low, place qualified renters (ideally previous homeowners themselves) in the property to cover your mortgage/expenses.  You then hold on to the properties until the market stabilizes and eventually sell for a tidy profit.

Those benefiting from these types of great deals also include first-time homebuyers and parents buying homes for their children to “rent” while they go to college with the thought of selling it upon graduation at a substantial profit.

Whether your investment needs are short-term, long-term, or somewhere in between, there is a style of real estate investment that is appropriate for your specific investment needs.

Robert and I can certainly help you find the property that will fit your specific investment criteria to a tee.  We look forward to working with you!

That’s it for now… Have a great weekend!

p.s.  Don’t forget to make your way over to our main website for all of your Sanibel and Captiva Island Real Estate needs.  See you soon!

Happy New Year (again)!

No time like the present to start this year with a bang and talk about the incredible potential of real estate investing in the current economy!

As you well know, there are a lot of different types of financial investments available to you these days.

However, the one most often touted in the past (and still today) for creating the most millionaires is, of course, real estate investing.

Taking into account that anyone, technically speaking, can become a real estate investor, it’s important to note that there are several different investment styles and approaches to this type of investing.

Each style involves varying degrees of risk, as well as time commitment, on behalf of the investor and many times as the investor starts the process or makes it through one deal, they quickly find out that it may not, in fact, be a field of investing that they are comfortable with, nor enjoy.

Some investors prefer watching the ticker roll across the computer screen with their heart racing, indicating the strength (or weakness) of their portfolio on a minute-by-minute basis. Others are much more content to sit on their investments in their 401K or IRA accounts snugly tucked away in the bank and watch them grow (albeit slowly, if at all these days) over time.

On Sanibel Island, we typically see three different types of real estate investors:

1.      The “Buy and Hold-ers”

2.      Rental Property Purchasers and

3.      The “Flippers”

The “Buy and Hold-ers”purchase property with the full intention of holding on to it for a very long time as the value of the property appreciates.  They plan ahead, such that they will be able to sell it well into the future to pay for their children’s college or wedding.

This strategy requires someone that is very savvy (or extremely lucky) when making purchases. More importantly, it involves someone who has the patience and tenacity to hold on to their investment over a long period of time, which isn’t always easy in the volatile markets that we have today.

A great example on Sanibel are many of the island condos that were purchased back in the ’70s for $40K and are currently valued at ten to fifteen times that much, some even more. Now those investors were savvy!

Well, that’s it for Part 1…  We’ll cover the Rental Purchasers and the Flippers in Part 2 next Friday!

So have a good one until then,

p.s.  Don’t forget to make your way over to our main website for all of your Sanibel and Captiva Island Real Estate needs.  See you soon!

Well, today we tackle the age-old question of whether beachfront property is always a good investment.

First off, I want to clarify the difference between “beachfront” property and “island” property because there actually is a difference.

Besides sounding more exotic, “island” property has a more substantial feel to it than simply “beachfront” property that has the perception of possibly floating away or being hit head on by a massive tidal wave or something.  Thoughts of California falling into the ocean come to mind when I think of those high cliffs and “beach front”.

On the other hand, “island” property (depending on the size of the island, of course) has a more perceived stability factor over the long term.  In my opinion, beach front property is for vacation and island property is for living, simple as that.  And living is more valuable to invest in than the hopes of multiple beach vacations.

However, with that said, beachfront property is HOT!  Maybe too hot.

Everyone knows that prices are typically inflated and supposedly never go down, but that seems not to be the case these days.  There are many rental signs on the homes as you walk along coastal beaches.  And word on the street is that prices are lowering a bit when it comes to investors that were just buying to “flip and profit” and are now stuck holding the bag.

European investors are taking advantage of the soft dollar and cherry picking the best beach properties, but they are not buying up everything and seem to be looking toward “island” property which appears to be more stable.

One thing that these two types of real estate do have in common, is the fact that there is a limited supply of each, island property and beachfront property, which has always been its appeal to investors.

Low supply + high demand = Cash in the bank

Hmmm… what do you think?

Have a great Halloween weekend!

Rob and Sandy

p.s.  Don’t forget to make your way over to our main website for all of your Sanibel and Captiva Island Real Estate needs.  See you soon!

Does anyone actually believe that the world is coming to an end with all of this “financial crisis” talk?

I certainly hope not because as it turns out in the economic cycles of this planet, it is quite normal and we all just need to roll with the punches until we get through this…

Now, that’s not to say that some people are not losing money on the stock market or that many people that purchased their homes with a subprime mortgage are not suffering as they foreclose on their home, but it is to say that not every market is being hit as hard as the naysayers would like you to believe and those that have the financial means are obviously in a great position to take advantage and grab some real deals.

Sanibel and Captiva Islands are two places where real estate has always held its value and weathered many a storm, figuratively, as well as literally.

Foreigners are now discovering this magical place and swooping in to buy up what actually does come available, once again proving that beachfront property is always in demand.

We are seeing a lot of inquiries from abroad, which is interesting because this financial debacle is not only in the US, but global as well, yet investors everywhere are realizing where the “diamonds” are and wanting in on the action.

I hope that you are ok through all of this mess and please know that if you need any help on Sanibel or Captiva Islands, you can call Rob or I at anytime.

Until next week, have a great weekend,

Sandy

p.s.  Don’t forget to make your way over to our main website for all of your Sanibel and Captiva Island Real Estate needs.  See you soon!

Is this the bar chart of your real estate investments lately?

Unless you’ve been living under a rock, you are well aware that real estate in the United States has seen better days! “They” say that we are in the worst recession that has been experienced in the last 50+ years and don’t see any reprieve for the next 6 months (at least!)…

Ugh, I hate “doom and gloom” and avoid the news as much as possible these days, especially when we are not seeing those real estate trends here in our neck of the woods. Here on Sanibel and Captiva, we are witnessing a boom in “snowbirds” buying up their dream homes in the sun! Hurricane, Schmurricane… Recession, Reschmession… Nobody cares!

The truth is, that it’s rare for someone to sell their home on these islands and, as beachfront property is somewhat of a limited resource, we have had a steady stream of people coming down to stake their claim on these beautiful islands.

We are so well connected with people socially on this island, especially being located right next to the “Sanibel Bean” island coffee shop, that we are usually the first to hear if a property is opening up and therefore, we love having investors to call “on our list” to inform them that a real bargain has surfaced and that they had better snatch it up as soon as possible!

So, if you were/are considering investing in property on Sanibel or Captiva Island, get yourself on our list with your investment criteria and we will contact you as soon as something pops up…

Have no fear, the sky is not falling… at least, not in sun-kissed Sanibel/Captiva!

Enjoy your week,