Learn About Investing in Bank Owned Florida Property

Economic and market forces are aligning to create exceptional investment opportunities never before seen in the USA which generate positive cash flow at a fraction of their real value.  

Central Florida is by far the most exciting place for cash buyers to invest at the moment and the time to take advantage of the highly discounted bank owned properties is now.  

The Foreclosure Process 

Properties that first enter ?foreclosure’ are listed as ?short sale’.

  •  If they fail to sell at this point, the institution (bank / lender) that has provided the mortgage then moves to the next step of the foreclosure process, the auction. 
  • If the property fails to sell or reach the reserve price at the auction, the property reaches the final position in the process, REO / Real Estate Owned.  
  • At this point the lender / bank now own the property and it sits on their balance sheet. They are motivated to sell this property quickly, and it is at this point they are prepared to cut the price further.  
  • At this stage, Colordarcy negotiates with the lender / bank on behalf of investors to secure the desired property at the lowest possible price for cash purchasers.

In summary, REO properties are owned by a bank or other lending institution and have passed through the foreclosure process. 

Lenders and banks do not want to hold REOs on their books and try to dispose of these as quickly as possible. 

Florida – Low prices, low taxes, high rental yields

Apart from having the comfort of investing in an area that has been offering foreign property investors security and legal protection for decades, there is no stamp duty or state tax in Florida and both income tax and capital gains tax can be lowered to trivial amounts due to the sheer amount of allowable deductions available.

Colordarcy Investors will have the opportunity of purchasing property at less than 30% of their previous sales prices, which ensures a high net rental yield. These properties are also much easier to rent as tenants prefer and actively seek properties owned by cash buyers. They do this because it minimises their chances of being forced to leave again if their landlord misses mortgage repayments and the bank forecloses.  
 
Accurate Sales Prices & Rental Income

As previous sales prices are on public record for every property in Florida and as the current market value estimates we provide are sourced from the Orlando Appraisers office, investors can easily calculate the huge value in the low purchase prices of the bank owned properties we carefully select.

While there are often large differences between a property agents optimistic rental income estimates and the reality on the ground, investors in Florida can verify that the gross and net income figures we quote are extremely accurate. Firstly, there is a monthly publication called Apartments for Rent that lists units for rent across Metro Orlando with guide prices. Secondly, our partner management company has many years experience of renting properties in the micro areas we focus on, and thirdly, there are many other rental companies offering units to rent across metro Orlando which can be quickly compared against our quoted figures.

 Summary 

In short, Colordarcy does a lot of work behind the scenes to provide a completely hands off purchase process for this unique and very time sensitive investment product. The best properties are selected daily, the legal paperwork is processed efficiently, tenants are in place within weeks of closure, accountants are in place to take care of tax affairs and secure online bank accounts are quickly opened.

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