Feeding Frenzy In Florida?
What is going on in the Panama City, Destin area?
I am hearing of some outrageous deals being put together. Investors buying 600k condos and flipping for 1M in less then a month. Beach front, off water, residential, commercial anything goes. Investors buying everything because the market is hyper appreciating.
Is it true? Anybody know whats up? What is causing such a crazy market?
Hmmm, I didn't know that was happening down there, but I love Destin and wanted to buy some beach property down there to expand my RE portfolio. Sounds like the prices are really skyrocketing!
Ginnie
It's about retirement time for all those baby boomers. Where are they gonna want to move??? Somwhere warm and by the water. Why do you think most of the guru's have moved to Florida? It's NOT for the sunshine!
pspiers,
Glad to meet you.
I will give you 3 clues, let's see if you can tell me what is going on in Florida.
1. Don't trust anyone over 30.
2. Sometimes you feel like a nut.
3. Say kids what time is it?
Now you should be able to figure out what is going on in Florida.
John $Cash$ Locke
JohnLocke
I am not the brightest tack in the box so you will have to help me with your clues. I cannot figure out if you are talking about spring break, baby boomers or something else entirely different.
Over the last couple of weeks I have heard from different sources about numerous high margin deals in the PC - Destin area. For example:
Hotel sold for $5M and flipped for $14M within six months.
An investor making $3M since January flipping condos.
A group of peanut farmers form GA buying a commercial property for $40M and doing a simultaneous close on the resale for $70M.
Investors flipping off water lots for a $150k to $300K profit
Investors buying everything and paying whatever it takes to get it not worrying about the cost knowing they can flip for a profit.
I am sure the stories that I am hearing are embelshed some what. But, I believe my sources when they tell me this market is going balistic. Has any other TCI member heard or know first hand about the PC-Destin area?
The baby boomers have been the driving force behind the real estate market in the southeast for years and I believe they will countinue to drive the market. However, there is more to what is going on in PC then the baby boomers. This looks wilder then the dot-com stock market of the 90's.
Any ideas?[ Edited by pspiers on Date 05/14/2004 ]
The boom you're talking about is going on in all major markets in Florida. I'm not familiar with the panhandle but I've personally seen waterfront lots triple in value over the past 6 months throughout South Florida. I will continue to enjoy this activity for as long as it lasts but regardless of what you hear or read don't expect it to last as long as everyone thinks. The mass thinking of "the crowd" is always wrong.
pspiers,
These are all phrases that any baby boomer has heard many times.
As they are getting to retirement age, then forget any more winters let's head for the sunshine and purchase a home when we get there.
I predict a boom in Florida for the next several years, along with Arizona.
John $Cash$ Locke
I can tell you first hand that all the water front (not ponds for I-p5 though) lots and properties are going pretty much for whatever the buyers' ask. I bought an oceanfront condo for 454K in April 2002, moved in Sept 2002- and sold it in May 2003 for $560K. Residentials are absolutely amazing, however commercial properties are lagging behind. I bought a riverfront office building, 6000 SF with the USPS as a tenant and have renovated the rest of the building - taking the rent rolls from $1600 per mo to $4500. The renovation cost 42K but the tenant added another 20K himself with only a 4 yr lease. The lease ends with the USPS lease. At that time, I may decide to add stories for more offices and apartments or demolish this building for luxury condos. I just bougth 3 more commercial buildings that adjoin (with owner financing) and have a contract on the fourth. All properties are rented and I enjoy a $750 +CF, but they are all ugly and in need for renovation or demolishing. I think the area needs new buildings with mixed use, so I am planning to a project with 3 years. I also have my money on a new riverfront condo, just in case I want to sell the one I am in for $$$$$$.
So, yes, the Florida market is hot but I don't think it will slow much. Warm climate, low taxes (relatively), lots of golfing, boating, and recreational eating and drinking for all. Higher interest rates will calm the market, but it is still going to outpace other areas.
Reva in Titusville, across from NASA.
Roughly 1000 people a day are moving to Florida and they all have to live somewhere. Moving from overheated NE markets, they have equity to burn and are pushing prices up! I think certain areas of FL are due to slow down, but we said that last year, but prices have still continued skyrocketing!
Hi,
I am a new investor, please let me know if there is any pre-construction I can get into.
Thanks,
AA
I know two people who flipped properties in PC. My first friend purchased the property for around 700 K. She invested about 200 K cash in decoration and furnishings. She sold it six months later for 1.2 mil. She has done this three times with approx. the same margin (we are talking beach front homes).
My second friend bought a condo on the beach for 1 mil. He sold it 24 months later for 2 mil.
I would not expect to make the margin that of the examples that you provided.
One other thing to watch out for in PC, it is a very trashy area...steer towards Destin if you can.
Same thing is going on in GulfShores, Orange beach, Dauphin Island, Biloxi, and Pass Christian. Doesnt seem to matter as long as it on or near the gulf. Get in and out while you can. We have seen some properties increase from $130,000 last May to $330,000 today. Seems alarming but dont sit around on the fence, get in and some of your own!!! Talked to investor the other day who is buying these condos at 330,000 and putting them right back on the market for close to 500,000. He has bought 70 condos in my market in the 8 months since hurricane Ivan.
you may want to read this thread...it has some good info in it:
http://www.thecreativeinvestor.com/commercial/ViewTopic26709-26-165.html
what part of the globe is this deal located in?