Sarasota Real Estate Market News

CoreLogic: Fla. home prices rising

SANTA ANA, Calif. – April 4, 2012 – CoreLogic today released its February Home Price Index (HPI) report. Excluding distressed sales, month-over-month prices nationally increased 0.7 percent in February from January, but fell year-over-year by 0.8 percent if distressed sales are backed out of the equation and 2.0 percent if they’re included.

In Florida, however, prices rose in February 2012 compared to February 2011 whether distressed sales were included or not. The CoreLogic HCI found that Florida home prices rose 4.7 percent overall, and 1.6 percent without distressed sale numbers. Distressed sales include short sales and real estate owned (REO) transactions.

Even with the declines, however, the national housing market shows signs of improvement.

“House prices, based on data through February, continue to decline, but at a decreasing rate. The deceleration in the pace of decline is a first step toward ultimately growing again,” says Mark Fleming, chief economist for CoreLogic. “Excluding distressed sales, we already see modest price appreciation month over month in January and February.”

“Non-distressed home sale prices, which represent two-thirds of all sales, have appreciated by just over 1.0 percent since the beginning of the year,” adds Anand Nallathambi, president and CEO of CoreLogic.

HCI highlights February 2012

• Including distressed sales, the five states with the highest home price appreciation were: West Virginia (+8.6 percent), Michigan (+5.8 percent), Florida (+4.7 percent), Arizona (+4.5 percent) and South Dakota (+4.1 percent).

• Including distressed sales, the five states with the greatest depreciation were: Delaware (-11.2 percent), Connecticut (-7.9 percent), Rhode Island (-7.8 percent), Illinois (-7.1 percent) and Georgia (-6.6 percent).

• Excluding distressed sales, the five states with the highest appreciation were: South Dakota (+5.9 percent), West Virginia (+5.6 percent), Maine (+4.5 percent), Utah (+3.7 percent) and Montana (+3.6 percent).

• Excluding distressed sales, the five states with the greatest depreciation were: Delaware (-8.7 percent), Connecticut (-4.9 percent), Nevada (-4.6 percent), Vermont (-4.0 percent) and Minnesota (-3.3 percent).

• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to February 2012) was -34.4 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -24.6 percent.

• The five states with the largest peak-to-current declines including distressed transactions were Nevada (-60.2 percent), Arizona (-49.8 percent), Florida (-48.6 percent), Michigan (-44.0 percent) and California (-43.7 percent).

• Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 67 are showing year-over-year declines in February, nine fewer than in January.

© 2012 Florida Realtors®

May 19, 2012 Posted by | News related to Buyers, News related to Investors, News related to Sellers, News related to the Market | Leave a comment

Buffett: ‘I’d buy up a couple hundred thousand’ homes

WICHITA, Kan. – March 1, 2012 – Warren Buffett, the billionaire investor and Berkshire Hathaway CEO, said on CNBC’s “Squawk Box” recently that he’d “buy up a couple hundred thousand” single-family homes if it was practical.

Buffett said that’s because he believes purchasing a home with ultra-low mortgage rates and holding it for the long-term has become a better investment than stocks right now.

“Housing will come back, you can be sure of that,” Buffett wrote in his annual letter to shareholders recently.

Buffett forecasts an increase in household formations, as more people who moved in with their parents or family members during the recession look to move out and get their own home soon.

“People may postpone hitching up during uncertain times, but eventually hormones take over. And while ‘doubling-up” may be the initial reaction of some during a recession, living with in-laws can quickly lose its allure,” Buffett said.

Buffett said the recovery in the housing market could vary quite a bit among local housing markets, however. He did not provide a timeline of when he expected a full housing recovery, admitting that his prediction last year that a housing recovery will take shape within the year turned out to be “dead wrong.”

Source: “Housing Market Forecast Beyond 2012 From Warren Buffet,” International Business Times (Feb. 28, 2012) and “Warren Buffet on CNBC: I’d Buy Up ‘A Couple Hundred Thousand’ Single-Family Homes If I Could,” CNBC (Feb. 27, 2012)

May 19, 2012 Posted by | News related to Investors, News related to the Market | Leave a comment

Renters are losing their leverage

NEW YORK – Feb. 29, 2012 – During the boom years of homebuying, property manager Charlie Biter used to offer new apartment tenants one or two months’ free rent as a lease enticement. Now, as rental demand continues to surge, no such offers are necessary.

“Back then, everybody was being creative to bring renters in,” said Biter, who oversees 2,000 apartment units in the Nashville area for Continental Property Management. “But now I’m not aware of any units offering concessions.”

Across the country, as more people compete for apartments in the wake of the housing collapse, the market has swung in favor of landlords. For tenants, that means saying goodbye to move-in incentives and watching rents edge higher.

About a quarter of all apartments nationwide offered some type of concession in last year’s fourth quarter. By comparison, 53 percent of apartments offered concessions in the first quarter of 2010, according to data tracker MPF Research’s latest report.

“The industry moves in cycles, and right now not a lot of apartments are available,” said Jay Parsons, an analyst at MPF Research. Until apartment construction catches up to demand, landlords will maintain their control of the market, he said.

The vacancy rate in Pittsburgh, at 2.2 percent, is among the lowest in the country, according to MPF’s fourth-quarter data from 2011. University of Pittsburgh master’s student Harrison Murphy knows the difficulty first-hand. Four years ago, he found an apartment within an hour of searching, he said. Now, not only are rentals harder to come by, but many landlords require stricter background checks.

“I have been unable to find a single place that doesn’t require a recommendation from your previous landlord, with some even asking for recommendations from teachers,” Murphy, 24, said.

In New York, too, as rental demand swells in some of the most desirable neighborhoods, rates are reaching new highs. In 2011, average rents across all apartment categories rose 8.4 percent compared with the year-ago levels, according to the Citi Habitats annual report.

In Chelsea and the East Village, average monthly rent in January for a one-bedroom apartment hit $3,218 and $2,616 respectively. Both neighborhoods have vacancy rates below 1.5 percent. Furthermore, landlord concessions in New York plunged 68 percent from 2010, according to the report.

“With high demand in the marketplace, landlords were not likely to negotiate with potential renters, and needed to do little to attract clientele to their available apartments,” said Citi Habitats President Gary Malin.

In Portland, Ore., one of the country’s tightest markets, the year-end vacancy rate was 3.1 percent, according to the Barry Apartment Report, a local data tracker.

“Nobody’s giving concessions. That’s history,” said Joe Weston of Weston Investment, which owns 3,000 apartments in the Portland area.

In April, his firm plans to raise rental rates about 5 percent. “People living in suburbia are moving to the city center,” he said. “And some of those people were foreclosed on and are now renting.”

Feeling squeezed

Increasingly, real estate observers say, more people are finding themselves in situations like Chicago resident David Sundquist, who says his rent, which continues to inch up, squeezes his budget. He said most affordable apartments he finds on Craigslist ads are in unsafe neighborhoods. In addition, “It seems like the only way to get a place is to have a roommate,” said the 31-year-old commodities trader.

In the heyday of the housing market, when the country saw droves of empty apartment units, some landlords attempted to woo tenants in striking ways.

For instance, Woody McLaughlin of Nashville’s apartment association remembers one landlord offering a trip to the Bahamas to new lease-signing tenants. But now, deals offering even one free month’s rent are scarce, he said.

Todd Jackovich, a developer with Atlanta-based Stonehenge DCM, said he and other property managers use a computer program that shows how much rents can be increased based on rates at nearby apartment buildings. “Landlords are trying to set a new floor (price) on some of their products,” he said.

Construction up

While the country’s single-family home construction is still recovering from the depths of the downturn, this year is expected to be an important milestone in the tide of new multifamily home construction occurring in many cities. MPF Research estimates 125,000 apartment units will be completed by year’s end, an 89 percent gain from 2011.

“That sounds like a huge increase,” MPF’s Parsons said. “But it’s really still on the low side by historic standards. (It) puts in perspective just how very, very low 2011 was.”

Waiting lists are getting longer at apartment buildings around the country, which is fueling a spike in apartment development, real estate professionals said.

Skeptical observers, such as Weston, the Portland apartment manager, worry some markets may be over-betting on construction, creating the conditions for a speculative bubble several years from now.

“The income the developers want for some of their units is too high,” Weston said. “By 2015 we’ll have a lot of apartment products, but will there be enough people?”

© Copyright 2012 USA TODAY, a division of Gannett Co. Inc., Bobby Allyn, The (Nashville) Tennesseean

May 19, 2012 Posted by | News related to Investors, News related to the Market | Leave a comment

A new breed of investors steps forward

NEW YORK – Feb. 17, 2012 – “Mom and pop investors” are trying to capitalize on a depressed real estate market in the hopes of cashing in one day.

This new breed of small-scale investors likes to buy and hold properties, as opposed to the high-dollar large investment firms that once dominated the real estate market that flipped properties quickly.

For “mom and pop investors,” the strategy is to buy homes at rock-bottom prices, rent the properties out to cover all of the costs of homeownership for several years, and then one day sell the homes when prices recover.

“An unprecedented number of investors are looking into this,” John Burns, CEO of John Burns Real Estate Consulting, told USA Today. Investors purchased more than 26 percent of single-family and condos in 167 U.S. markets in the first nine months of last year, according to data supplied by Burns.

For investors in the rental market, an 8 percent annual return is fairly normal, according to Burns. “That means that someone who buys a $100,000 property – and pays cash for it – makes $8,000 a year after expenses, including maintenance and taxes,” the USA Today article notes.

Of course, the threats of tenant and maintenance issues always has the potential to derail that potential profit, so investors need to be careful before jumping in, some experts warn.

Source: “Mom and Pop Investors Propping Up Home-Buying Market,” USA Today (Feb. 14, 2012)

May 19, 2012 Posted by | News related to Investors, News related to the Market | Leave a comment

Beat the competition in buying foreclosures

NEW YORK – Feb. 7, 2012 – While bank-owned homes are plentiful in many markets, they aren’t always easy for a buyer to get. Foreclosures sell at bargain prices – sometimes at 35 percent discounts when compared to nonforeclosures. But the ultra-low prices attract investors and all-cash offers, which makes it difficult for other buyers’ bids to win out.

So how can buyers beat the competition to get a foreclosure?

Get the first look: Fannie Mae and Freddie Mac’s First Look program offers first-time homebuyers and others who need financing and are looking for a primary residence the first opportunity to see bank-owned homes before investors. Buyers have a 15-day window to submit offers before investors have the opportunity to start bidding. Homebuyers can search for Fannie Mae’s REO properties at HomePath.com. Properties owned by Freddie Mac can be found at HomeSteps.com.

Submit a competitive offer: Homes priced at heavy discounts are usually in high demand and attract multiple bids. Lowball offers won’t likely get far. Some housing experts suggest starting with your best offer. “My advice is to offer the most you feel you would ever pay for the property,” said one recent foreclosure buyer.

Make a large deposit: If a buyer wants to get the banks attention, they could offer a larger than typical good-faith deposit. But if the buyer has to back out of the deal for some reason, he or she may be risk losing the deposit.

Even if buyers really want the property, don’t let them cave in to unreasonable demands, like waiving a home inspection. Otherwise, it may be a decision they quickly regret if the home is later found to be rife with problems.

Source: “How to Beat the Competition and Buy a Foreclosure,” Sun Sentinel (Fla.) (Feb. 5, 2012)

May 18, 2012 Posted by | News related to Buyers, News related to Investors, News related to Short Sales and Foreclosures, News related to the Market | Leave a comment

Foreign buyers see big bargains in U.S. real estate

MIAMI – Jan. 16, 2012 – Foreign investors are finding plenty of deals in the U.S. when it comes to real estate, and, as such, more international investors are flocking to key states to buy their piece of the American Dream.

Mexico is the top country of origin for foreign buyers purchasing U.S. homes, according to a recent study by Credit Sesame, which used National Association of Realtors® data for its findings.

“In this period of tremendous uncertainly globally, real estate here is a safe haven,” Susan Wachter, professor of real estate and finance at The University of Pennsylvania, told MSNBC.com.

The top destinations of foreign investors for U.S. real estate purchases are:

1. Florida: Thirty-one percent of all home purchases are made by foreign buyers, with most coming from Cuba, Haiti and Colombia.

2. California: Twelve percent of all home purchases, with most coming from Mexico, the Philippines, China, India and Vietnam.

3. Texas: Nine percent of all home purchases, with most coming from Mexico, India, Vietnam, China and the Philippines.

Source: “Housing more affordable than ever … for foreign investors,” MSNBC.com (Jan. 13, 2012)

February 6, 2012 Posted by | News related to Buyers, News related to Investors, News related to Sellers, News related to the Market | Leave a comment

(Sarasota) November 2011 sales up 12.7 percent over last year

November 2011 property transactions in the Sarasota real estate market totaled 602, up 12.7 percent over last November.  The total also exceeded the October 2011 sales figure of 577.  The market has remained strong and stable as the winter season gets into full swing, reflecting continued confidence in Sarasota as a destination location.

 

In fact, the Today Show‘s real estate report from Barbara Corcoran in late November noted that Sarasota was one of the top recovering markets in the nation. (emphasis added)  Corcoran said Sarasota is a “beautiful beachfront community” that offers residents and visitors “a sophisticated, urban cultural experience” that is propelling sales and prices in 2011.

 

Overall, sales in 2011 continued on pace to exceed last year by a wide margin, and should put the Sarasota market at the highest level since 2005. In fact, at the end of November, overall sales were within 186 sales of exceeding all of last year. This sales resurgence has paralleled the drop in the available inventory, and put the remaining months of inventory in the range of a seller’s market.

 

The inventory of available properties for sale in Sarasota was at 4,672 in November, up slightly from October’s level of 4,525. The inventory sunk to a 10-year low of 4,408 in August 2011.

 

The November 2011 median sale price for single family homes rose to $162,000 from the October 2011 median of $149,838, a rise of 8 percent. This month’s figure was also higher than last November, when the median was $160,100. The condo figure has been fluctuating for several months, and again dropped in November to $127,000 – lower than last month’s figure of $143,000 and last November’s figure of $159,000. The year-to-date median sale price was $155,000 for single family homes and $157,250 for condos. These figures have remained remarkably steady for the past year, indicating a stabilizing market.

 

…Pending sales were up in November 2011 to 782 compared to last month’s figure of 772 and last November’s total of 764. Last month, 552 single family homes and 230 condos went under contract.

 

The distressed property market was relatively unchanged, but did drop slightly from 43 percent of the total market to 41.3 percent. At the height of the foreclosure crisis, that figure topped 51 percent in the second quarter of 2010.

 

Click HERE for the complete press release in PDF format, plus six pages of statistical charts.

December 29, 2011 Posted by | News related to Buyers, News related to Investors, News related to Sellers, News related to the Market | Leave a comment

Leading U. S. economists: Fla.’s housing market bouncing back

ORLANDO, Fla. – Dec. 7, 2011 – Despite national and global headwinds, Florida’s real estate market is entering 2012 on an upward trend, according to three leading U.S. economists.

“Our state is in a mini-recovery,” said Florida Realtors® Chief Economist Dr. John Tuccillo at the state association’s 2012 Real Estate and Economic Forecast Conference in Orlando. “Sales are trending up, listing inventories are falling, the supply of lender-related properties has stabilized, and we are seeing multiple offers on homes in some local markets.”

In fact, Florida homes today may be undervalued, Tuccillo added. “That may seem like a drastic statement,” he said. “But a buyer who plans to own the home for five to seven years can get some great bargains today.”

Mark Vitner, senior economist at Wells Fargo in Charlotte, N.C., said the U.S. economy will continue to face significant challenges, particularly financial concerns related to the European debt crisis. But he expects the U.S. economic recovery will continue next year, making it easier for Midwesterners, for example, to buy Florida homes.

“Florida’s economy is recovering, with tourism and healthcare leading the way,” Vitner said. “International tourism has been particularly strong in Miami and Orlando.”

Looking around the state, Vitner said Jacksonville’s unemployment rate has dropped and home prices are stabilizing. In Orlando, prices have not yet reached bottom, he said, but the winter tourism season should help the regional economy. Tampa and Southwest Florida have seen solid job growth, with little new home construction.

South Florida’s economy is growing thanks to trade relationships with Latin America and the Caribbean, while in the Panhandle, Fort Walton Beach is outperforming Panama City and Pensacola, according to Vitner.

Dr. Lawrence Yun, chief economist for the National Association of Realtors®, said many Florida markets are showing sharp drops in inventories of homes for sale – a sign that demand is picking up and prices are stabilizing. “That’s a major change from just a year ago,” he said. “Buyers have stepped back into the Florida market.”

Noting the state’s powerful appeal to international buyers, Yun said he was particularly optimistic about the outlook for South Florida. “Don’t be surprised to see a gain in home prices in the Miami and Naples markets in the next 18 months,” he said. “From there, the recovery is likely to roll northward to Central Florida and then North Florida.”

Tuccillo noted that foreclosed and distressed properties will remain a significant part of the Florida market in 2012, but lenders are feeding these properties into the market at a gradual pace rather than pushing them out all at once.

The event also featured a panel of Florida real estate professionals, who discussed the 2012 outlook for several sectors of the state’s real estate market from a practitioner’s point of view. Panelists were Clark Toole, president and COO, Coldwell Banker Residential Real Estate Inc. in Florida, discussing residential real estate; Cynthia Shelton, 2009 president of Florida Realtors and a director at Colliers International in Orlando, discussing the commercial market; and Dean Saunders, accredited land consultant and broker-owner of Coldwell Banker Commercial Saunders Real Estate in Lakeland, covering the market for land and undeveloped property.

Florida Realtors real estate and economic summit was webcast to 32 local association or satellite sites around Florida. “Turnout was high for our statewide event,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “We hope to hold more of these forums on a regular basis – sharing knowledge of market trends is a powerful way for our Realtor members to connect with buyers and sellers.”

A PDF of PowerPoint slides used during the 2012 Real Estate and Economic Forecast Conference is available on the floridarealtors.org research page.

December 28, 2011 Posted by | News related to Buyers, News related to Investors, News related to Sellers, News related to the Market | Leave a comment

The spec house makes a return in Sarasota-area market

They’re back. Spec houses, which once ruled the real estate world, went into hibernation when the market collapsed in late 2005. But the houses, built by contractors on the speculation that they can be sold at a profit during or soon after construction, are turning up in select locations — one of them the West of the Trail neighborhood between Mound and Bay streets, where some of Sarasota’s most eclectic and vintage housing stock is located.

Read more HERE

December 28, 2011 Posted by | News related to Investors, News related to the Market | Leave a comment

Thinking about becoming a landlord? You should know this

JUPITER, Fla. – Dec. 6, 2011 – With real estate prices low, many people are considering buying an investment property and becoming a landlord.

It might sound simple, but real estate pros warn that there’s a lot to know. The landlord who doesn’t follow such basic guidelines as conducting a thorough background check can get stuck with a nightmare tenant. It takes both business sense and common sense.

“Most of my tenants, 98 percent, are terrific,” said Jupiter real estate broker and investor Carl Presto, who owns 60 properties. “The problem is that 2 percent.”

The down economy that has resulted in real estate bargains also means it’s more difficult to find a tenant who can afford to pay first and last month’s rent and a security deposit upfront. Landlords report they have to go through 30 to 40 applicants before finding a qualified tenant.

Landlords also find they are competing with foreclosed houses, which some people rent below market, forcing rents lower.

Although picking up a cheap condominium unit might be tempting, David Dweck, founder and president of the Boca Real Estate Investment Club and a real estate broker and investor, advises avoiding them. Instead, buy a duplex, triplex, small apartment building or single-family home where you won’t be subject to a condominium board, he suggested.

Special assessments levied by condo associations can run into thousands of dollars.

Presto agrees: “Pay cash and buy a duplex. Offset your rent. Rent one side, and live in the other.”

Financing is also difficult. Douglas Rill, a West Palm Beach real estate broker who has been a landlord for 38 years, said about 70 percent of investment properties are cash deals.

Whatever the property, Dweck, Presto, Rill and other experts say finding a decent tenant starts with the screening process.

Credit checks and criminal background checks are a must. Small-scale landlords can find help at websites such as http://www.mysmartmove.com. Operated by Trans-Union, a major credit bureau, SmartMove gives independent rental owners access to the same tenant screening used by large property management groups. It also gives renters data privacy because they provide their identifying information directly to TransUnion in a secure, online setting.

For $25 the landlord receives a credit-based leasing recommendation, national criminal report including 50 state sex-offender and terrorist searches, renter fraud warnings and automated renter identity verification.

For an additional $5, the landlord also can get access to a credit report, a credit score and a detailed rental address history.

The $30 is well spent compared with the basic eviction filing fee, which is $185 in Palm Beach County.

A West Palm Beach landlord contacted recently did not conduct a background check. Now he has a tenant whose true identity is a mystery.

“My experience with landlording has not been positive,” the man said. “I am in the middle of an eviction and the person will not say who he really is.”

Dweck collects a nonrefundable application fee paid in cash before showing a property to a prospective tenant.

An application should be filled out in full as part of that process. The one Dweck developed covers such details as whether the applicant owns a vacuum cleaner, works on cars, owns a boat or personal watercraft, works at home and why he or she is moving.

‘Never be desperate’ for a tenant

Just because you’re offering a place you own for rent doesn’t mean you have to rent to the first person who comes along.

A rental applicant can be denied for such reasons as poor credit, poor personal references, poor job reference, lack of job stability, insufficient funds to move in, criminal background and too many occupants for the size of the dwelling, Dweck said.

“Never be a desperate landlord or landlady,” Dweck advises.

If the prospective tenants have been through a foreclosure or short sale, that doesn’t rule them out if their credit is otherwise OK, Dweck said.

“At the end of the day you have to make a good business decision. Do not let them tug on your heartstrings,” Dweck said.

Rill agrees that background and credit checks have to be conducted. At the same time, don’t expect a perfect credit report. It’s not uncommon to find people with credit scores below 600, Rill said.

“Most people going into a rental are not going to have an 800 credit score. There is a reason why they are renting. Some have low scores because they just lost their house,” Rill said.

Rill said he never checks with the applicant’s most recent landlord.

“If they had a problem, the previous landlord would say anything to get rid of them. I will go to the previous, previous landlord,” Rill said.

Rill advises thoroughly reading the Florida Landlord Tenant Law, Florida Statutes Chapter 83 and giving a copy to the tenant. It states what the landlord’s responsibilities are, such as complying with health and housing codes, and the tenant’s, which include keeping the dwelling clean and sanitary.

Understanding the law can help avoid disputes. For example, the law states that if a deposit is nonrefundable, that should be noted in the rental agreement. The statute also states that the landlord has the right to enter the property at any time in case of an emergency and under other circumstances, such as for repairs, with 12 hours’ notice.

Lawyer review of lease form advised

A written lease is essential. Standard leases are available for free at sites such as http://www.mrlandlord.com or can be purchased at office supply stores. Rill recommends having an attorney review the lease form you select and modify it specifically for your property.

Of course, leases cover such basics as the term of the lease, when the rent is due and how much the rent is. But they also should include sections on policies about late rent, security deposits and how many people are allowed to live on the premises and that the premises are for residential purposes only.

The lease needs to state what might seem obvious. Many landlords err by not spelling out everything. If you don’t allow pets, don’t just say, “No pets.” State that no pets of any kind are allowed, including visiting pets. Or one day you will knock on your tenant’s door to find her holding a ferret, as one West Palm Beach landlady did.

Don’t just state that parking is provided. Be specific. For example, the lease Dweck created states that the tenant must park in his or her assigned space.

Don’t simply state that the premises must be left clean and undamaged in order for the tenant to receive his damage deposit back after he moves out. Dweck’s lease requires tenants to comply with a number of conditions, such as having the carpet professionally cleaned and cleaning the entire home, including the range, oven, refrigerator, bathrooms, closets, cabinets, windows, carpet and balcony, etc.

‘Professional tenants’

No matter how ironclad the lease is, what some experts call “professional tenants” do exist. These are people who move in and never pay rent. They know that it often takes awhile for an eviction to be carried out.

“Anything is only as good as the tenant’s word. They can still walk out on you,” said a West Palm Beach landlord. “I went to court on an eviction. The guy said, ‘Yes, I owe the money.’ The judge said I did not properly file the three-day notice. The name and address were supposed to be on the bottom right-hand side. It was at the top on my letterhead. It cost me a couple thousand and the guy owed me four grand. I never got paid.”

Landlording is a business, and experts say it’s not for the softhearted.

When rent is past due, Florida law requires landlords to give tenants three days’ notice that they must pay the rent or move. If the rent is not paid after three days, excluding weekends and legal holidays, then the landlord can begin legal action to evict the tenant.

“You have to be on top of it. The stories can get ridiculous. I keep a three-day notice act in my car. I have had people tell me they will not pay the rent because they are buying Christmas presents,” Rill said.

Despite the challenges, people like Alberto Rabadan, a Jupiter real estate broker who owns a 14-unit apartment building in Miami, say they want to expand their investment holdings.

Rabadan was among 20 or so people who attended a real estate investment course that Dweck recently conducted.

“The property values have gotten to a point where it is feasible to be a landlord. I am looking for a bread-and-butter property. Everybody needs a place to live. I want to provide affordable, clean housing,” Rabadan said.

© 2011 The Palm Beach Post (West Palm Beach, Fla.), Susan Salisbury. Distributed by MCT Information Services

December 28, 2011 Posted by | News related to Investors | Leave a comment