Lee County Real Estate Investing for Beginners

Blog Post Image
Real Estate

 

Lee County Real Estate Investing for Beginners

 

According to the News-Press, Cape Coral-Fort Myers active listing has gone up 1%, and the new listing count has gone up about 7% compared to a year ago. Some of the best areas for the real estate market include Tampa, Sarasota, Cape Coral, and Palm Bay. As these areas are some of the hottest on the market, investing in real estate is wise to think about.

 

There is no need to fret if you're a beginner at this! There's got to be a time to start somewhere, right? So here are a few things to consider when investing in real estate in Lee County.

 

Real Estate Investment Groups

If you don't want to take on the ordeal of running a rental real estate, you can partake in a real estate investment group. These are minor mutual funds that ultimately add up investments in rental property. Investors can purchase properties bought or built by a company and join a real estate investment group. The company takes on the managing and operation of the units, maintenance, vacancies, and guiding tenants in exchange for a percentage of the monthly rent. An investor, however, can own one or multiple units at once.

 

The benefit of this type of investment is that it is more hands-off, and the technical aspects are under the hands of a company. Plus, it provides income and appreciation. The downside, however, is that there are vacancy risks and fees similar to those with mutual funds and can cause you to be amoral managers. 

 

House Flipping

House flipping is when a real estate investor buys a property, fixes it, and sells it for a higher price than they originally paid. If done right, the person flipping the property and the buyer both benefit from this type of investment. The flipper makes money after selling the newly renovated house, and the buyer gets a bargain on the new property with new additions to the home.

 

Steps of house flipping

 

  1. Investor property selection

Investors must know the real estate market's current state, local buyers' trends and preferences, pricing, property condition, demographics, and potential renovations and selling costs. You hit the gold mine once you find a property underpriced in markets with rising prices, a strong demand, and a foreseen low improvement cost.

 

  1. Investor property purchase

Investors need to buy the home at the lowest price they can. Then, they finance the flip with either cash or a short-term loan. A loan provides liquidity. Cash eliminates the interest costs.

 

  1. Renovation

Investors obtain any needed permits and align them under building codes and regulations. Specific changes may require permits. Make structural changes, cosmetic improvements, and repairs required while adding long-term value to the house.

 

  1. Selling

Sell the house to make the most profit from a flip while still being comparable to other properties in the area. Show verified permits and proof of all the renovations and alterations done on the property to speak on the newly listed price and negotiate a reasonable offer.

 

Nationwide, house flipping has slowed dramatically as a result of the pandemic. However, in Lee County, house flipping has been a popular trend that has a longstanding history. Cape Coral is an excellent area for house flipping, so you may want to consider investing in this as it is still hot on the market.

 

Real Estate Investment Trusts

A real estate investment is something to consider for investors who desire portfolio exposure to real estate. Real estate investment trusts are made when a corporation uses investor money to purchase and manage properties. Similar to regular dividend-paying stocks, these investments are solid for stock market investors who want a consistent income. In addition, with it being highly liquid, you do not need a real estate agent and title transfer to cash out your investment.

 

It pools the capital of numerous investors, making it possible for individual investors to earn dividends. The property types that receive the most investments include apartments, buildings, data towers, cell towers, hotels, medical facilities, etc.

 

Online Real Estate Platforms

Get into more significant commercial or residential deals with online real estate investing platforms. The ordeal takes place digitally on platforms known as real estate crowdfunding. These platforms guide investors with real estate developers to finance projects.

 

It would help if you were careful, though. Real estate crowdfunding can have risks, mainly because this way of investing is relatively new.

 

Real Estate in Lee County

If you love the beach, sky-high palm trees, a mix of suburban, city, and rural feel, boating, and a strong sense of identity, living in Lee County encompasses all of that. Here are some recent statistics on the housing market conditions over the last year.

 

  • Since April 2021, Lee County has remained a seller's market, meaning prices are higher and property tends to sell faster.
  • The median selling price is $334,856 for a house.
  • Houses have sold for 27.9% more than they did a year ago.
  • 89% of houses were sold within 30 days.
  • 3% of homes were sold above the asking price.

 

Conclusion

Realty in Lee County holds favor to sellers. If you wish to invest in real estate in cities like Cape Coral, Lehigh, and Fort Myers, you're looking for a return that exceeds your expectations. Despite all of the lifestyle benefits these places offer, look into the different ways to invest in real estate that fits your budget, the level of involvement, and most importantly— what you're looking to get out of it. You can make a considerable investment in just a single decision.

 

Alec Salameh and his team work with real estate investors of all sizes and investing capital. Whether you’re just getting started or a seasoned investor, we can help you find properties with the maximum potential.

 

This is the time to invest in real estate property in Lee Country. Here are some tips for beginners to follow to invest the right way!