Tampa: The Holy Grail of Wholesale Real Estate Investing

Ybor City

According to a recent report from WalletHub, the city of Tampa ranks #10, out of 169 other cities in the United States, for wholesale real estate investing. Tampa Bay has undergone some astonishing changes in the past couple of years. In January of 2010, Tampa’s unemployment rate was at an appalling 11.7%. In 2011, Tampa’s GDP per capita, which is a measure of the worth of all goods and services produced, minus the value of goods and services used up in production, was at $38,863. In September of 2013, the median sale price of all properties was $177,500. On the contrary, in 2018: The unemployment rate, as of June, is 3.8%, the projected GDP per capita is $42,047, and the median sale price of all properties is remaining at $239,000. Home values have risen 15.3% in the past year and are anticipated to increase another 7.9%. Older neighborhoods such as Seminole Heights, and properties downtown, especially near Channel Side, are being revitalized and invested in. Since the Tampa Bay Rays announced the potential construction of a brand new ballpark in the Ybor City area, investors have been scrambling to snag properties in the 33605 area code. With all projections pointing upwards, the time to flip is yesterday.

Flipping homes may seem like a simple endeavor, you purchase an old, outdated property, make a few renovations, sell it, and make an enormous profit. Unfortunately, wholesale real estate investing is not as easy as depicted on popular TV shows such as Property Brothers, and in fact, requires more time and money than most people realize. If one is looking to do some flipping in Tampa, there are a few important points to remember. Most professional flippers will stress the importance of expedience. You want to buy and sell a property as fast as possible due to the property maintenance costs, mortgage, and potential property holding costs which may reduce final profits margins. Another major aspect is financing. If you are financing the property renovation and must borrow money, you will have to pay interest which is not 100% tax deductible. It is essential that you find a mortgage lender who offers low-interest rates. You can pay for everything with cash, but you will still be subject to the capital gains tax. When flipping a home, you must understand the amount of time involved. You must invest the time in buying, renovating, ensuring the property is up to code and selling the property.

If you are seeking to flip a home on top of your normal occupational work, you may find it extremely difficult or impossible to accumulate the time required. Inexperienced flippers also find themselves lacking the skills and knowledge demanded in flipping a property. If you have to pay out of pocket for the professional renovation and resale of a property, you will find your profit margins to be extremely slim. In summation, wholesale real-estate investing should not be taken on unless you have done all the necessary research and due diligence. With that being said, the profit potential in Tampa has never been higher. Three years ago a 3 bedroom, one bathroom bungalow in a Ybor neighborhood sold for $25,000 in a foreclosure sale, and today the property will most likely close at $164,900. Like all investments, there are risks involved, but right now, Tampa is a risk worth taking.

GTAR: Mortgage 101: Guiding Customers through the Mortgage Process

.     Mortgage 101: Guiding Customers thru the Mortgage Process

  • DATE: Thurs., March 17, 9:30 a.m. to 12:30 p.m., GTAR Auditorium
  • DESCRIPTION:  This course covers the basics of what every Realtor needs to know. Review lenders requirements – from check stubs to the newest Loan Estimate and Closing Disclosure by the Consumer Finance Protection Bureau, including Qualifying a Buyer, New Loan Estimate and Closing Disclosure, and The Processing Flow. State-approved with 3-hours of CE credits. Instructed by Robert Paredes of Envoy Mortgage.
  • Sign Up: https://mdweb.mmsi2.com/tampa/tampa_courses.pl?course=16PRO0307

 

GTAR: Discovering Commercial Real Estate

.     Discovering Commercial Real Estate

  • DATE: Wednesday, February 24, 9:30 a.m. to 12:30 p.m.
  • DESCRIPTION: If you are a newly licensed agent or a residential agent who wants to learn about commercial real estate, this course is NAR-approved that offers a broad overview of the basics of commercial real estate and how it differs from residential real estate. Realtors will be able to distinguish and understand the broker’s role and discover the different types of commercial properties, terms, valuation methods, marketing and resources for further education. While it will not equip you with all to practice commercial real estate, it will explain the business and introduce many of the resources needed to pursue a commercial transaction or a career in commercial real estate. Instructed by Carlos Fuentes, CCIM. PLUS, course is state-approved for 3-CE hours.

This course is NAR-approved that offers a broad overview of the basics of commercial real estate and how it differs from residential real estate._ Realtors will be able to distinguish and understand the broker’s role and discover the different types of commercial properties, terms, valuation_ methods, marketing and resources for further education. This is an ideal introductory course for those who are newly licensed and/or residential_ agents who want to learn more about commercial real estate. While it will not equip you to practice commercial real estate, it will explain the business_ and introduce many of the resources needed to pursue a commercial transaction or a career in commercial real estate. Instructed by Carlos Fuentes,_ CCIM. PLUS, course is state-approved for 3-CE hours. What You Will Learn in the Discovering Commercial Real Estate Course: * The duties of professionals who assist in commercial transactions * The key differences between commercial and residential real estate * Types of commercial real estate (Office, Retail, Industrial and Land) * Types of commercial transactions * Commercial contracts Brought to you by GTAR’s Realtors Commercial Alliance and co-sponsored by AB Capital Group and Florida Community Bank.

http://www.gtar.org

Sign-Up: https://mdweb.mmsi2.com/tampa/tampa_courses.pl?course=16RCA0224;

GTAR: Completing an Effective Purchase and Sales Contract

DATE: Tuesday, February 16, 9 a.m. to 1 p.m.

DESCRIPTION: The Sales Contract is the ultimate destination – the culmination of the Realtors® expertise with the customer’s binding agreement. In recognition of the full power it carries, this course was designed for real estate professionals to polish up their process of completing a contract from the first word to the last signature. Learn to view the contract as more than just an official document, but rather understand how to use it as an influential instrument to aid in closing. In conclusion, student will be able to explain the agreement to a customer/client, as well as identify the proper timing of execution and the use of the appropriate disclosures. Instructed by Phil Riek, Lic. Florida RE Instructor. NOTE: This course will cover the “as is’ contract only. Course is state-approved for 4-hours of CE Credits

 

LOCATION: Greater Tampa Association of Realtors