In Florida, as in many other states across the country (February 2004) residential land prices are shooting up at an alarming rate!
FACT: THE PRICE OF LAND IN FLORIDA ALONE IS RISING SO FAST ITS ABSOLUTELY SCARY!
Now one might think this is great for people in real estate such as builders, developers, investors, etc - well it very well may be but you know what they say "there is two sides to every story". On one hand it's great if you bought property a few years ago (2000-2002) if so you probably doubled your money. Now this sounds exciting and it's probably enticing many investors to jump back into the market and buy more land and hoping for prices to double in the next five years again. The problem is that building lots that were selling for $25,000 (in 2000-01) are now selling for $50,000 to $70,000 (2004). Ironically all that gain in value has taken place within the last two to three year's alone. Many of those same investors who bought building lots at $20,000 a few years ago, are having a hard time coming up with liquid capital to get back in the game and buy more lots at today's higher prices. Sure maybe they can buy one lot or two but taking down ten, fifteen or twenty lots at $50,000 a piece, your're talking a half million dollar capital investment! (Note: most banks will not finance raw land unless accompanied by blueprints and a building permit to construct a new home.) Thus, leaving an investor or builder dependent upon their own capital or that of a partner. Remember, the land business is not buying and selling existing houses, there is plenty of financing out there for people who want to buy and rehab houses. When you are dealing with land you have to have the liquid capital in the bank to purchase the property or secure owner financing. Unfortunately, this makes it harder on builders and developers because the price of land has risen so high from Palm Beach County down to the Keys it is almost untouchable for the small mom and pop builder to buy land. At first Wall Street Realty Partners, LLC we found an answer to this. What we do is seek out remote areas in Florida, mainly small up and coming towns, such as Lehigh Acres in Ft. Meyers, Sebring in Central Florida and other rural, small developing suburbs (approximately 60 to 90 minutes travel time by car to either Tampa, Orlando or West Palm Beach). These rural up and coming suburbs offer incredible potential for upside returns in the building and development end of real estate. At this time we are actually buying fully subdivided lots with roads and water many times these lots costing us less than $10,000 per lot. These small inexpensive lots will support a house selling from $110,000 to $130,000 thus allowing a potential investor to possibly hold the land for future appreciation or building on it A.S.A.P. (history shows the appreciation rate on sub-divided lots in Florida has been as high as 20% per year in various areas). While doing our market research we could not find any lots in up and coming towns in Florida that were not appreciating at a rate of at least 10 - 15% per year (and that is the low side). The lots we acquired range in size from 80' to 120' or larger. They are fully adequate for building a small single family CBS home. Preferably a 1400-1700 square foot, (three bedroom, two bath) with a two car garage. The land price is so cheap for these homes in Sebring and other growing Central Florida towns that it allows a small investor to acquire a multiple of lots, three, five, ten, etc. For less than the cost of 1 lot in Broward County, Dade
County or West Palm Beach where similar lots of this type sell for $50,000 to $75,000. In fact a building lot for an average residential house in Broward County is over $60,000 at this time (2009) if you can find one! Although, in the town of Sebring where we are buying finished building lots for under $10,000, good dry lots in existing neighborhoods with houses already built on many streets in the development. We are also finding lots in golf course communities from $18,000 to $20,000 (not on the golf course but across the street) to as high as $35,000 for actual golf course lots. Note: lots on a golf course community in Dade, Broward or Palm Beach County on an average cost $100,000 to $200,000 per building lot. Now you can see why the average investor is just plain priced out of the market in South Florida. The affordable lots are in central Florida, in the rural, less populated areas, especially in the town of Sebring which we are concentrating all our efforts at this time.
Sebring is an up and coming town with beautiful lakes and is built around a main highway #27 with all the main franchises, Wal-Mart, Home Depot, Winn-Dixie, Olive Garden, Out Back Steakhouse, Red Lobster, etc. It's also home to the famous Sebring Race Track. There is even a nice mall just across from Lake Jackson. (Lake Jackson is huge, it has over eight miles of shoreline - you can barely see from one side of the lake to the other). On the banks of the lake sit some of the most beautiful homes in Sebring where lots range from $250,000 to as high as $1,000,000. Sebring is a growing town offering unlimited possibilities and huge potential for future profits from the building of new homes.
We invite you to become a partner with us acquiring land for future development to either build on within the next 12-18 months or at a later date down the road. I personally have made many trips to Sebring and am constantly going up there every other week finding new lots and new opportunities to invest in. Come see how you can get involved and potentially make a lot of money being our partner, purchasing completely subdivided and finished building lots with utilities and water to the site. Learn how you can be our partner in these lots, many of them costing less than $10,000. Note: Unfortunately it's a sellers market, building lots disappear on a daily basis and because of this many lots that we look at on a Monday are gone by the following Friday. FACT: Timing is everything in real estate and right now Sebring is starting to explode! The same lots we're buying under $10,000 were under $5,000 just a few years ago! Driving through a typical neighborhood in Sebring we're seeing evidence of new construction everywhere! The boom is just beginning. Builders are coming in from all over and building on these inexpensive lots, selling affordable homes to the working class and retirement residents of Sebring. History has proven that building affordable homes has been the least risky but yet most profitable type of new home construction allowing you to build a multiple amount of homes thus spreading your risk by not having all your capital tied up in one big mansion. I personally would rather build 15 $100,000 houses than one $1.5 million dollar house. At First Wall Street Realty Partners, LLC we did not reinvent the wheel, we're just practicing and following in the footsteps of what other great real estate builder developers have done before us. History will also show many real estate builder developers have made fortunes in a relatively short period of time through acquiring massive amounts of inexpensive finished building lots to later build on
and sell to the working class homeowner. FACT: MOST OF THE NEW HOMES BUILT TODAY IN FLORIDA ARE SOLD BEFORE THEY ARE EVEN COMPLETED!
We anticipate the same situation in Sebring - we have studied other builders who are building homes and none of them seem to be sitting around waiting for buyers. There seems to be a buyer for every home that we have looked at.
Therefore, review the pictures displayed with this information and see for yourself what these lots look like along with what type of homes are being built in the neighborhood, what they are selling for, what they cost to build, our fees for construction management, etc. and determine for yourself if this is a good investment opportunity for you. We are looking forward to working with you in our land banking program or our new home building partnership, buying, selling, building and developing residential real estate in Central Florida and other hot areas of the country.
For further information on any of the lots or opportunities available give us a call directly at 201-289-2500.