California Dreaming (Nightmare)

If you are a Californian, Lucky You!  You live in a beautiful state with beaches, mountains, deserts, an ideal climate, and celebrities.  If you are a Californian and a Real Estate Investor, however, you have probably seen very tough market conditions which make it very difficult to grow your wealth long-term.  Whether you are a landlord, a flipper, or involved in some other niche of real estate investing, you’re certainly aware of the less-than-stellar returns you’ve been seeing on your investments.

I read an article recently that ranked California as the state with the WORST cap rates in the entire country.  Below are the averages per market for 2016.

• 3.6% in Sacramento Median Price: $278,600
• 3.6% in San Diego Median Price: $540,500
• 3.2% in Los Angeles Median Price: $585,100
• 2.7% in San Jose Median Price: $822,700
• 2.7% in San Francisco Median Price: $1,104,000

Average Cap Rate 3.13% | Median Home Price in CA: $500,200 | Value Increase YOY 7.2%

Like I said, not exactly ideal investment conditions.  On the other hand…

Tampa, FL is our home market and it continues to be a place investors can rely on to see solid returns on their investments.  The properties we source for our clients achieve 8-12% NET CAP RATES.  That’s right, 3 TIMES what CA investors are seeing.  The average home price in Tampa is $184,200 (14.1% Value increase YOY).  In Tampa, you can literally buy 3 rental properties that produce great returns for the same price as you can buy 1 in California and get a 3% return. According to Forbes, Metro Tampa was 4^th for flipping volume and 6^th for flipping returns in 2015.  Flips accounted for 7.4% of all sales and delivered 57.2% ROI to investors

We provide a TURNKEY PROCESS for our out-of-market clients in which we source the property, oversee the rehab work, and then manage the rental asset.  This allows investors from as far away as China to achieve returns that aren’t achievable in their home markets.  The digital age has made the world a much smaller place.

We also offer Wholesale Property assets to our clients as well.  We source the property, provide market analysis, refer vendors, and list the property for you when the rehab work is completed.

We would love to speak to you more about all of the great aspects the Tampa Bay area has to offer.  We have gorgeous weather, beaches, extremely low unemployment, steady population growth, theme parks, growing economies, and no state income tax to name a few.  Adding in the strong market conditions makes the Tampa area a can’t miss place to invest.  Call us today if you’d like to learn more about our market and the opportunities that exist, or fill out our Investor Profile.