Real estate investing is a big draw for many due to its strong ROI potential as well as its flexibility in investment strategy. There are a lot of ways to make money in real estate without keeping your finger on the main pulse of the deal. This is most evident when it comes to wholesaling and assigning contracts. Buying and reselling interest in a property allows for increased earning potential. It also allows for expedited turnarounds on deals.
Assigning contracts allows investors to sell interest in the property title without being responsible for following the deal all the way through. Essentially, investors can buy and sell properties without ever having to lay hands on the property itself. While this definitely has it’s perks, it is not without risks.
President-elect of the Central Florida Real Estate Investors Association, Todd Hutcheson, joins us today to discuss his experience starting out in wholesaling and assigning contracts. Listeners will remember Todd from episode 111, in which he discussed how investors can get into real estate with limited cash. Todd is an investing mentor. He is the founder of IBuyHomes and an active wholesaler in Central Florida. As he shares in this episode of Landlord Tales, assigning contacts can quickly become a snowball effect and your control over a closing can disappear before you know it.
What to Know About Assigning Contracts
Understand contract assignment process before selling interest
Write your control over closing into the contract
Contract assignments do not show up under public records
A final sale price listed in public records will not record contract assignments
Make sure to notify title companies of contract assignments when recording a title claim, otherwise it will not be insured
Finding a real estate market that fits your investment goals seems to be getting tougher and tougher. With markets tightening up across the state, investors are starting to feel it. Now, more than ever, investors need to be tracking investment market data – looking for trends and analyzing data to find viable markets.
Investors may be familiar with Yardi for property management services, but did you know they also offer comprehensive market research and data software? This system allows real estate investors to track investment market data on a national level, or zero-in on specific markets and sub-markets.
This episode, we welcome from Yardi Matrix: Senior analyst and editorial contributor, Chris Nebenzahl, and research and data analyst, Doug Ressler.They discuss what investors need to know about tracking investment market data. They also offer up an update on Florida’s commercial and multifamily markets.
Florida Multifamily Overview
Rent growth and development strong overall
Focus on A + Super A properties
Increasing demand for B + C properties, but limited supply
B + C properties seeing value-add opportunity
Florida Multifamily Market Highlights
Miami and Orlando: 9000 expected multifamily developments for completion, 2017
Tampa: 7200 expected multifamily developments for completion, 2017
Development expected to crest after 2017
Rapid rent growth may pose affordability issues in Miami/SFL