Florida to Reap Benefits of Real Estate Owned to Rental Investors

Florida’s abundance of REO inventory could be a blessing in disguise for national and international real estate investors. According to Core Logic, the single family home rental market is stable and shows a good amount of activity. This has the potential to give these investors return on investments that are far above most in the country. The predictions come from examining the capitalization rates amongst many different markets nationwide, and Florida, coupled with a few states in the mid-west, are at the top of the list. The rates are calculated by assessing the annual cash flow relative to the price at which they purchased the property. This has been our reality and has been relatively stable since 2010 in Florida. A factor that is causing our capitalization rate to increase partly stems from the discounts investors receive when purchasing real estate owned distressed properties, which is usually around 30%. If more sales come to fruition, these discounts could be larger for investors, yielding even higher capitalization rates. Core Logic reports that some areas in Florida are at the 12% range in regards to cap rates, while the national average was 8.6% in January. According to the Federal Reserve, during the last five years, completed foreclosures have transformed over 3 million homeowners into potential renters. Some investors are chomping at the bit to get in on this trend and make their dollars stretch that much further. Here in Tampa, Florida, we have seen a competitive trend with investment properties on the market for sale. No longer are the first offers being accepted. Investors are competing more and more for properties that were once available for longer periods of time. The listing prices and sale prices are moving upward. If you are considering your real estate options, and you think you are ready to invest in today’s real estate arena, contact our investor specialists today to learn how you can take advantage of the real estate market during these unprecedented times. SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”

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Florida Ranks Highest In Foreign Investors Buying Real Estate

When it comes to foreign investors searching for a lucrative real estate return, Florida ranks number one in the US, especially among Cubans, Haitians, and Colombians. The National Association of Realtors data shows that almost a third of all home purchases in Florida, come from foreign residents. With the constant struggles of qualifying for mortgages these days in the US, many of these foreign investors are in a better position because they are cash buyers. Many Cubans see investing in Florida as a safe bet because the concept of owning real estate is still a novelty to them. Now that direct flights to and from Cuba are in full swing, the Tampa Bay area can expect to see an increase in Cuban interest. There are currently about 80,000 Cuban Americans in the Tampa Bay area, all of which are excited that they do not have to travel to Miami for a flight to the island.
Another factor that may increase investor activity is the number of home foreclosures in 2011. Down almost 34% from the previous year’s numbers, foreclosures are no longer impeding the progress of the Tampa Bay housing market. More short sales are being signed off on, which are attractive options for foreign cash buyers.
With a drop in inventory and median sales price for homes up about $10,000 from last January’s records, there are definitely some areas to capitalize on, as realtors and investors.

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Real Estate Tips: Be a Savvy Buyer

In 2011, real estate remains a true buyer’s market. In Tampa, prices are the lowest in the last decade and interest rates at historic lows, now is the time to purchase real estate. Whether it is your dream home, a vacation home, or an investment property you need to make sure you are looking at the big picture. Buyers now more than ever need to be savvy to recognize the good value when they see it.


Realty Times just published an article this week, “Savvy Buyers Know Value When They See It”. In this PJ Wade, compiles a list that all buyers should review before their next real estate purchase. She reminds all buyers that you do not need to approve of a sellers color scheme or décor, rather look beyond superficial things to the bones of a home. To help keep you on track during your purchase remember this important tips.

Be prepared if the first showing is the right place

Most buyers are anticipating the first house to not meet their expectations. If you go into the first house and it is what you are looking for, don’t wait too long to put in an offer. The good properties go quick if you delay two weeks to see other properties just for comparison, you may miss your opportunity completely. Be prepared before you start view real estate listings to know exactly what you want and be prepared to act right away.

Experience the property

The goal is a real estate showing is not just for you to take a quick glance from each doorway. You need to step inside each room, get a feel for it, and move around. See if the space is adequate for the furnishings you prepare to put in it. Real Estate is a large investment, make sure you are getting a true perspective in if this is the right property for you or not.

Don’t consider just the property alone, surrounding neighborhoods is key

No property is completely alone in a certain area of town. You cannot make a wise decision on a real estate choice until you have seen the surrounding neighbors and community. Most real estate professionals will instruct you to drive around, check on sources of noise (parks, schools, development. Make sure you will be happy knowing all the information you experience in the community. Check on zoning if you intend to have a home business for instance.

Get all the knowledge you need before making an offer

Sit down with your real estate agent and ask some important questions. Look up taxes, utility costs, and sales history. Get an idea of what to expect before you make an offer. This is a very important step that may get rushed over when you get excited about your new home. Be diligent, after the sale is complete this will help counteract any potential buyers remorse.

Don’t just look for a “dream house”, be realistic

All of these steps lead to one conclusion-be realistic! The excitement of your new home may inflate your expectations of the real estate market and what you can afford. Please savvy, know a good value when you see it, and be smart about the research you conduct before making an offer. You are not expected to be an expert on real estate, do not try and do all the work yourself. Have a licensed real estate agent you can trust in your corner to help you make the best purchase.

If you are looking for more tips on being a savvy buyer, or to find a trustworthy real estate agent to help you navigate through the buying process call SI Real Estate at 813.631.5144 or email us at Yourhome@SIRealEstateInvestments.com.

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Tampa Real Estate Sales Still Rising

Although there has been a high number of a sale in the Tampa Bay real estate market the last couple of months, the industry is sending some mixed signals. What is happening in our changing market?

According to The Tampa Tribune, “Homes sales are climbing, up 16 percent from a year ago and 24 percent from last month”. However since there is such a high number of bank owned and distressed properties, the median sale price is only $111,100.

Of the 2,375 real estate sales in Tampa in February 2011, a large majority were bought by investors. They see properties in distress, prices continuing to decline and investors are cashing in.

The spring selling season is around the corner however, and projections are expecting more traditional homebuyers to start jumping in. Most first time and repeat homebuyers are not interested in the distressed properties. They start off looking at the price tag, but are not prepared to deal with the challenges once viewing the property. They see the value in finding a home that is ready for them to enjoy immediately. New construction home sales are up and with the new selling season, median sales price is expected to increase.

All of these statistics are causing one more interesting trend in Florida, real estate sales agents are increasing. According to The Orlando Sentinel, After a slump in the real estate market in mid-2007, the pool of real estate professionals has dropped more than 13%, however Since the beginning of 2011, the numbers have been edging back up, it is predicted that 268,257 registered brokers and agents were active in Florida’s real estate market by the end of February 2011.

With homes sales rising, positive projections of buyers confidence in purchasing real estate again, and professionals confidence in real estate careers, Tampa bay may be shaping up for some market improvements. Now is your time to move forward.

SI Real Estate works with Buyers, Sellers, and Investors to get the most out of the Tampa real estate market. Call us today at 813.631.5144 or email us at YourHome@SIRealEstateInvestments.com.

SI Real Estate is also looking for qualified agents, whether you have 20 years experience or just received your license. Contact our office to start your real estate career with SI Real Estate. You will see that we are “Global Real Estate in Every Way”.

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Tampa Real Estate Trends for Buyers/Sellers

The Real estate market is still changing. Homes are selling every day however, buyers have changed their expectations. Keeping you informed on what to expect when buying or selling a property in today’s market.


1. Buyers are opting for smaller homes

Constraints on housing market really have made buyers reevaluate what is necessary in their next home purchase. A study conducted by the National Association of Home Builders (NAHB) reveals that homes are expected to be ten percent smaller in the next couple of years. “To save on square footage, the living room is high on the endangered list-52 percent of builders expect it to merge with other spaces in the home by 2015 and 30 percent said it would vanish entirely.”

2. Heavy influence on purchase decisions can be swayed in favor of green and eco friendly properties

The NAHB reports that not only floor plans are changing. “68 percent of builders are including green and eco-friendly features by 2015. This includes low-E windows, engineered wood beams, water-efficient feature and energy star rating throughout.”

3. Curb Appeal is still very influential in the buyers’ willingness to buy their new home

The National Association of Realtors reports, “49 percent of buying decisions are based on curb appeal” in a normal market. Even in times of foreclosures and short sales, buyers judge whether to view a property or not by the curb appeal. Curb appeal doesn’t just affect the property being sold either; a buyer looks at the neighborhood as a whole. Improving curb appeal can be as simple as removing some weeds, retouching paint, or simply asking a neighbor to straighten their yard if you are on good terms. It may make the difference in whether you get a buyers attention or they move on the next real estate listing.

It is important as a buyer, seller, relocation, or investor to know what trends affect your real estate decision. To get in contact with a real estate expert in Tampa, Florida call SI Real Estate at (813)631-5144 or email us at YourHome@SIRealEstateInvestments.com.

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The Affordability of Housing Reaches a 20-Year Peak

We all know that the housing market has had some challenges in the last couple of years. As the real estate market starts to even out, housing affordability is higher than recorded in over twenty years. This means middle income families can comfortably afford to purchase their own home.

The National Association of Home Builder/Wells Fargo records a Housing Opportunity Index (HOI) every year. This index compares the median income of families in a specified area compared to the income needed to comfortably afford a home purchase. This year they report, “73.9 percent of all new and existing homes sold in the fourth quarter of 2010 were affordable to families earning the national median income of $64,400.” This statistic is significant because it is the highest percentage on record since they started collecting this data in 1991.

How does this compare to the Tampa Bay market? The HOI in Tampa is 78.2% in the fourth quarter of 2010, with a median income of $59,400. The Tampa real estate market is opening opportunities for more people to become homeowners.

Housing affordability is not the only good news. According to the Mortgage Bankers Association, “Mortgage applications increased 13.2 percent from one week earlier” Interest rates are still very low, and buyer confidence is increasing. Buyers are looking for their next property and sellers are should be ready to help.

SI Real Estate is in the mix of all the Real Estate Market’s changes. We work with buyers, sellers, relocations, and investors to learn what trends are taking place in the Tampa real estate market. If you would like advice from Tampa Bay real estate experts call us today at (813)631-5144.

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Real Estate Half Time Report – Just the Facts!

The papers and the television are filled with stories about the real estate market here in Tampa, Florida and elsewhere around the country, leaving most people confused and perplexed.

Well, how about an up close and personal look at what is really happening from an insider’s view…that of our Real Estate Broker who works in this marketplace every day. With so much press and talk about how questionable the real estate market is, you may be surprised to hear what is going on out on the streets of Tampa’s real estate market.

The drop in real prices has caused an interesting shift in the marketplace. Properties are selling like hot cakes. Local, national and international investors are buying properties like there is no tomorrow. They realize with the prices where they are now that they just can’t lose by putting their investment dollars into the real estate market. Investors with cash are gobbling up homes, townhouses and condominiums just about as fast as they come on the market. Buyers are presented with a new and interesting problem these days. How to get to the property and get an offer in before someone else does. Here is a real life example of that. Our Broker found a property that a client wanted to make an offer on recently. The property was in the Westchase area of Tampa. Upon calling the listing agent to see if any offers had been made, our Broker was told that 32 offers had already been submitted. Yes, you read that right. 32 offers. Unbelievable! This is only one illustration of the multiple offer scenarios that occur day by day – every day.

This situation is causing a new and unusual dilemma for first-time home buyers trying to buy their first home. First-time home buyers are in fierce competition with investors. Often times, investors are able to purchase a property with a lower offer than that of the first-time homebuyer as banks and even individual homeowners are willing to take less money for the property knowing they won’t have to work with a first-time homebuyer and risk not selling the property due to problems that may arise with the purchaser obtaining financing. Obtaining financing has become extremely tough and sellers know that.

First-time homebuyers need to work with a real estate professional who is watching the market constantly in order to find properties that have just come available on the market. Bank owned properties do have a short grace period where buyers who are actually going to live in the property get a chance to get an offer in prior to the property being available to everyone else. Everyone else meaning investors.

So, if you are looking to buy a home for yourself, don’t sit on the fence thinking that you will wait to make an offer on a place that you saw and liked. If you find something that you like, get an offer in and do it quickly. Otherwise, an investor is likely to buy that house right out from under you. It is happening every day. We see it.

For more information about what is happening in the Tampa Bay area real estate market, please give us a call at SI Real Estate at (813) 631-5144. We will be happy to discuss your options in what we call the “new normal” in the real estate market.

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Tampa Bay Real Estate Market in 2010 The Year in Retrospect

This has been an exciting year in the real estate market in Tampa, Florida. The real estate market moved at a fast pace in the first half of the year when the federal government decided to extend the 2009 Homebuyer Tax Credit. Originally, the tax credit was to end on November 30, 2009. However, the 2009 First Time Home Buyer Tax Credit was extended so that those with a binding contract on or before April 30, 2010 and closing on or before June 30, 2010 would be able to take advantage of this fantastic opportunity to become a homeowner. This fueled the real estate market in a big way.


Another major force in the real estate market this year has been the abundance of REOs (bank owned) properties that were for sale on the market. These properties sold just about as quickly as they were listed. Not only did they sell quickly, but they received multiple offers which caused an interesting bidding situation for all involved parties. This resulted in a serious reduction in the housing inventory which has been important to bringing pricing stability to the real estate market.

One cannot look at the past year without mentioning the force and affect of foreign investors on our market. International investors swarmed to buy properties in Florida and across the nation. The bloated inventory of homes combined with high unemployment and a weak currency created an incredibly attractive buyer’s market for the savvy international investor. Rather than investing in the stock market, many international investors purchased property and reaped immediate financial rewards for doing so.

Several factors have been at play in the real estate market in 2010. Tax incentives for first time home buyers and move-up/repeat home buyers, record high affordability in housing prices, near record low mortgage interest rates, and an influx of foreign investors, all combined have been and will continue to be critical to the housing and overall economic recovery.

SI Real Estate has had a fantastic year in 2010 and is excited about the upcoming year and opportunities in the real estate market. Are you interested in getting a piece of the real estate action? Give us a call at (813) 631-5144 any time.

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REALTORS® in Tampa, Florida Gain New Perspective on Global Real Estate Market

SI Real Estate has specialized in working with international real estate clientele for many years, and it appears that many other REALTORS® in Tampa, Florida and around the nation are learning the importance of understanding this sector of the real estate marketplace. The real estate market continues to enjoy a large international investor pool of buyers. This is great for the real estate market and the economy as a whole as it helps to reduce inventory of properties for sale and will lead to housing price stabilization.

The 2010 REALTORS® Conference & Expo in New Orleans that was held in the first week of November had a series of international discussions to gain global real estate insights during the “Bringing International Real Estate Practices to the U.S.” seminar at the conference. S. Nicolai Kolding, partner at REAL trends and Murray Consulting, spoke about the real estate landscape saying, “As a real estate professional, especially one that works with international clients, it is vital that you are educated on the differences in real estate practices throughout the world. Not only does it make you more valuable as a professional, but also it helps the U.S. real estate industry learn from other countries, essentially becoming a more global society.”

Vicki Cox Golder, president of the National Association of REALTORS® echoed that by adding, “According to the 2010 NAR Profile of International Home Buying Activity, more and more REALTORS® are working with international clients who want to buy in the U.S. and realize the importance of understanding different cultures and real estate practices – it’s just one more way REALTORS® add value to buyers, sellers and investors.”

International investors most often purchase real estate in the United States with cash. Cash is still king in any marketplace, and it is especially true in the world of real estate. So, while some prospective home owners and investors in this country sit waiting on the fence to see when the market may bottom out, international investors are snapping up properties in large numbers.

Ultimately, we will be living in a truly “global” society. SI Real Estate has prepared itself for this trend. Have you? To learn more about international investment in the United States, call SI Real Estate at 813.631.5144. After all, we are “Global Real Estate in Every Way!”

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Foreign Investment in United States Real Estate Remains Strong

At SI Real Estate, we are keenly aware of the fact that international investors continue to seek to purchase real estate in Florida and in other regions in the United States. We have seen a steady influx of foreign investors who are actively investing in our Tampa Bay housing market. While some naysayers about the real estate market here in Tampa, have been sitting idly by, the global investor community are buying real estate, and making money doing it!

Some may ask, “Just who is it that is investing in our real estate market?” Well, the latest profile of international activity in the U.S. housing market published by the National Association of Realtors® has revealed many interesting figures regarding that question. Foreign Investment in U.S. Real Estate (2010) – The Stats (Realtors Report) shows the biggest finding was in the state by state breakdown of foreign purchases. The report shows that Florida had 22% of the transactions by international purchasers, California had 12%, Arizona had 11%, and Texas had 7%.

Also shown in the report is a look at the nationalities that are most prevalent in the U.S. housing market:

Another finding in this report was the breakdown of foreign purchases by purchase price.  During recent years there was a lot of talk about prime property markets performing better than lower bands, but the NAR report has confirmed that this is not the case in the U.S.

“All in all the report contained few surprises, right down to the fact that most properties purchased by foreigners were cash-sales. None the less it is still good to get a look at how the market today compares with the last few years, and if anything the lack of differences between the market during the boom and during the bust is the biggest surprise.”

SI Real Estate has worked with international investors for many years and continues to do so. The weak dollar along with bargain-basement real estate prices in the Tampa, Florida area makes this a great place for the international investor to purchase multiple investment properties. Feel free to contact us for more information on investing in the Tampa, Florida real estate market.

Call us at 813.631.5144
Email us at YourHome@SIRealEstateInvestments.com
Visit our website at http://www.sirealestateinvestments.com/

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Who’s In the Real Estate Market Now?

Investors…That’s Who!

Local, national and international investors are putting their real estate investment dollars into Tampa, Florida real estate. And why wouldn’t they? Tampa is truly a destination city. Fabulous weather year-round, sparkling beaches, super shopping spots, wonderful restaurants for casual and fine dining, and world-class tourist attractions here in Tampa and in nearby Orlando make this a fantastic place to be.

Combine the fact that Tampa is a beautiful place to live, and realize the unbelievable deals here in the real estate market, and it becomes a no-brainer. Tampa, Florida is a great place for investors wishing to purchase real estate!

It is no secret that property values took a major dip when the real estate bubble burst and much of the real estate that is on the market are properties at fire-sale prices! The statement that it is a buyer’s market is absolutely true.

SI Real Estate is anticipating the next wave of bank-owned assets will provide even greater opportunities for smart investors. Opportunities are abundant, and more chances for finding those great real estate investments are on the way. For those investors who are already participating in the real estate market, good for you! For those who have investment dollars and are not considering purchasing real estate we ask, “Why not?” What questions do you have that we can answer for you? Just ask!

SI Real Estate has a long history of experience dealing with investors. We already know that Florida tops the nation for attracting foreign interest. That knowledge is backed up by the National Association of Realtors® summer report which places Florida first with 22 percent of all foreign clients choosing to purchase here, and California in a far second with 12 percent of the international market.

We live in a global marketplace. “While all real estate in the U.S. is local, the same is not true for property owners,” said NAR President Vicki Cox Golder. “The U.S. continues to be a top destination for international buyers from all over the world”, according to an article titled International Interest in U.S. Homeownership Increases, Realtors® Report by the National Association of Realtors®.

So, if you have been thinking about investing in Tampa, Florida real estate, think no more. It is time to act. Call us today to learn how you, too, can join the ranks of the smart investor. After all, SI Real Estate is “Global Real Estate in Every Way!”

Call us at 813.631.5144
Email us at YourHome@SIRealEstateInvestments.com
Visit our website at http://www.sirealestateinvestments.com/

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