Bulk Buys of Foreclosures in Florida for Rental Investment Properties: More and More Investors Becoming Landlords in Florida, Taking Advantage of Bargain Home Prices

by Rosa Eckstein Schechter
Contact

In yesterday's Sun Sentinel, Paul Owers wrote an interesting piece, "Florida foreclosures big business for investment firms," and if you delved into the article, you'd discover that the business these investment firms are targeting is bulk buys of foreclosed single family dwellings here in Florida to re-vamp and rent.

Turning Foreclosures into Rental Investment Properties in Bulk Buys

We've been monitoring investors, both foreign and domestic, coming into Florida to buy foreclosures for investment purposes - including these volume purchases where companies are counting on a strong rental market here in hard-hit Florida. For details, see our past posts where Beezer Homes out of Atlanta was buying up homes here in Florida for Rental REITS back in May 2012, and by August 2012, real estate experts all over the country were opining that Rental REITS were the next big thing in real estate investment.

Heck, back in August Warren Buffett was quoted as thinking that buying up all these foreclosures, fixing them up a bit, and then renting them out for a profit was a smart thing to do right now, given the depressed housing market in the United States generally. And there's no place in the country that's got more bargain buys in real estate right now than the State of Florida.

In the Sun Sentinel article, other names pop up as investment groups buying in Florida, adding their names to biggies like Beezer and American Residential Properties. These include:

  1. Waypoint
  2. American Homes 4 Rent
  3. Invitation Homes (Blackstone Group)

Investor as Landlord - Will This Work in the Long Term?

One of the criticisms of these rental REITs is the problem of daily duties that must be met by a landlord. There's upkeep. There's dealing with tenant squabbles. There's slow pays and sometimes, the need to start eviction proceedings. Toilets will need repair and trees will need trimming. Will the investor find these cumbersome in the future and regret taking on the role of landlord? Some have thought so.

However, as the wave continues to hit the Florida market, interesting things are emerging that speak to the success of these ventures in the future. Waypoint, for example, is offering tenant incentives called "Waypoints" that give the tenant "points" for things like keeping up the property, paying the rent on time, and participating in classes on finances.

What do these Waypoints provide? Not cash. Instead, as explained by Waypoint on its website:

As a resident in our Lease Plus Rewards program, you have options when it comes to putting your Waypoints to use. During the course of your lease, you can redeem Waypoints for a variety of home customizations. If you're interested in pursuing homeownership, Waypoints can be put to use at the end of your lease as a home purchase credit - or simply redeem your Waypoints for cash back. With our Lease Plus Rewards program, you have the flexibility to make the most of your rental experience.

With creative ideas like Waypoints, these rental investments look to be good deals in the long run for both the tenant as well as the investor.

 

Written by:

Rosa Eckstein Schechter
Contact
more
less

Eckstein Schechter Law on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.