Realnet Tampa Bay has Florida's best Investment Specialists, constantly looking and researching the best real estate investment deals on the market for the Tampa Bay area.

Robert Fausette Sr. Acquisition Partner Phone: 813-451-4452	Jack Fontan Sr. Acquisition Partner Phone: 813-401-1167	Jon Meyer Sr. Acquisition Associate Phone: 813-385-8935
Frank Borgia Sr. Acquisition Associate Phone: 813-787-7036	Joey McGuire - "REO Joe" Sr. Acquisition Associate  Phone: 813-352-7649	Mike Youngblood Acquisition Associate Phone: 813-966-3248
Artis Williams Sales Associate Phone: 813-361-5115	John C. Lewis III Sales Associate Phone: 813-505-4427	Mike Hernandez Sales Associate Phone: 813-220-5610

Whether you’re a first time investor, a seasoned veteran, or just looking opportunities for real estate investment, it’s a good idea to keep an eye on the available foreclosure listings. Many sites charge a fee to browse their lists; why would you choose that option when we can provide you with Florida foreclosures for free?

Have you added yourself to our First Call List? If you want the jump on new properties, contact us to get a call as our properties become available. Alternatively, you can subscribe to our weekly foreclosure listings by email. While you’re looking at our current foreclosure listings, add your email in the “Join Our Mailing List” box on the right side of the page!

The Tampa real estate market has been at a plateau since September 2010. The prices on sub $100k investment properties are no longer declining. As the media is offering a positive outlook on the economy, we have seen an increased demand in our foreclosure listings. Our First Call List has become very valuable to real estate investors. It gives you an opportunity to take advantage of the bank relationships we have developed over the past 12 years, and gives you an inside track on the newest and best deals on Tampa’s bank foreclosures.

Best of all, you can see all of our foreclosure listings for free! So add yourself to our First Call list and get the jump on other investors!

As with any investment option, real estate investment isn’t foolproof; many make mistakes that can cause them to fail. You want to avoid these mistakes so that your investments are successful and profitable. Here are some of the biggest mistakes beginning investors make, and how you can avoid making them yourself.

Perhaps the most important mistake is failure to plan; it’s very important to set goals, then make a plan to reach those goals. Oddly enough, many wannabe investors skip this step, and simply start searching foreclosure listings, throwing their money at any cheap house. The problem with that is without properly evaluating an investment you can’t be sure a property is really a good deal. If the house is only $30,000, but needs $40,000 of work done, it’s not really a deal, is it?

Successful real estate investors all share three specific traits:

1. They write down specific goals.
2. They create a plan that will help them achieve those goals.
3. They follow the plan, and check their progress periodically.

So to avoid this mistake, write down your goals; are you looking to have a certain number of properties, or make a certain amount of money? Whatever your goals are, write them down, then determine what you need to do to reach those goals. A plan will also allow you to check your progress periodically, to make sure you consistently stay on track.

A second common mistake is taking advice from unknowledgeable sources. If you are looking for investment advice, you should talk to a broker; they are the ones who are going to be able to accurately answer all of your questions. Friends, family members, co-workers and neighbors all have good intentions, but making decisions based on advice from people with no knowledge of real estate investment can cost you way too much! Just remember that what works for one may not work for another.

A third mistake is buying property without researching to verify the value first. You’ll need to evaluate the investment to make sure it’s worth the price it’s listed at. You should only buy a property if the price is significantly below market value. Remember that when you’re investing in real estate, you should look at the properties as sources of income, nothing less, nothing more.

Consider the purchase price, the cost of any work the property requires, and how long that work will take. Essentially, you should ask yourself how long it will take to generate an income from this property.

Another common mistake many investors make is making emotionally based investment decisions. It’s very important to remember that when you look at investment properties, don’t buy a house because you fall in love with it; you always have to look at the bottom line: how much profit will I make?

You aren’t going to be living in the house; it is solely a vessel with which you will earn money. Therefore, it doesn’t matter if you like it! Avoid buying properties that appeal to you, unless they appeal to you for their value. This is important, not only when you purchase a property, but also later when the property becomes more of a liability and it’s time to sell. Too many investors fall into the trap of holding on to a property because they like it, long after they should have gotten rid of it.

Have questions? Contact us! We have a very knowledgeable staff that can help you reach your goals!

If you’re just getting started in real estate investment, it can be confusing to decide exactly where to start. Learning how to build your real estate portfolio is very important to your success. Luckily, it’s not hard to learn how; here are a few tips to get you started.

• Set small goals. As with any endeavor, you want to start small. Begin with one property (read more on choosing your first investment property), and once you have established income, move on to the next. Remember that investment properties often require work, so it’s best to focus on one property at a time when you’re starting out.
• Do your homework. While real estate investment isn’t necessarily complicated, you should learn as much as you can about it before you get started. As they say, knowledge is power. Here at Realnet, we are experts at short sales, Florida foreclosures, and buying investment property in general.
• Watch for deals. Before making an offer on any property, evaluate the investment. You should also determine the property value to make sure you’re actually getting a deal. After all, your goal is to make a profit, not be saddled with a money pit!
• Learn what your resources are, and make good use of them. While you’re learning about real estate investment, find out what types of financing or other financial resources you have, renovation companies or people who can do small repair work on the property. All of this is important, so once you obtain your first property, you can get any necessary work done right away.

You can become a successful real estate investor with very little fuss. Just learn everything you can, line up your resources, and start hunting for investment property for sale! If you have any questions at all, Realnet will be happy to help. Just contact us!

You have probably heard of REO properties, but do you know exactly what they are? Simply put, they are properties that were foreclosed upon, didn’t sell at public auction and were subsequently returned to the bank. REO properties aren’t always just houses; any property, including multiple rental units, commercial buildings and vacant land can be reclaimed by the bank.

Investors can often find REO properties listed on a bank’s website; however, you have to negotiate with a loss mitigator in order to make a purpose. Once you contact the loss mitigator and set up an appointment to view the investment property, you will work directly with that person if you decide to make an offer.

Unlike other types of investment property for sale, when dealing with a loss mitigator at a bank, the process can take a while. No matter how good of a relationship you have with him or her, it’s very unlikely that your first offer on the REO property will be accepted. Remember that the bank has already lost money on the property, and their goal isn’t only to get rid of the property, it’s also to make a profit.

Purchasing REO properties directly from a bank can be a huge hassle. Many would be investors choose to buy them from private investors. Sometimes going this route can not only be a much simpler process, but can also be a less expensive path. You would have to find someone who deals in purchasing bank portfolios in bulk (which means they get the properties at wholesale prices). Because they have the advantage of purchasing wholesale properties, you can often get an excellent deal, sometimes as low as 30% under the property’s market value.

Unfortunately, when people find out their house is going to be foreclosed on, they often destroy the property, or at least do significant damage. For this reason, REO properties often need repairs and sometimes even some remodeling; therefore, it’s definitely helpful if you can get the desired property through an independent investor and save that 30%.

Of course, you also don’t have any support by choosing this method. After all, the independent investor has his own interests at heart. Luckily, Realnet has a staff of experienced agents that can help your REO property purchase easy as pie! We have experts on REO Properties, short sales and Florida foreclosures.

The EB5 Visa Program provides foreign investors with an opportunity to come to the United States and live the American Dream. Everyone knows how long and drawn out the process to get a Visa can be; but if you’re an investor, the EB5 program offers a lucrative alternative.

In an effort to stimulate the American economy while encouraging international investors, the U.S Immigration Act of 1990 created this EB5 Visa Program to attract foreign investors while creating more jobs for the American people. Approximately ten thousand slots are available each year, half of which are reserved for those who choose to invest in states with low employment rates.

If you’re looking to get a green card through this program, Florida is a great state to invest in! By investing in Florida, you can qualify for an EB5 investment visa with a minimum investment of only $500,000. Other states, such as Texas, require a minimum investment of $1,000,000 in order to qualify.

Getting a green card through this program will provide you, your spouse, and your children under the age of 21 a visa; after 5 years, all of you will be eligible to apply for citizenship. It also allows you to avoid the regular, tedious process you normally have to go through to obtain a US green card.

There are only three basic requirements for obtaining an EB-5 Visa:

• You must invest in a current business that was started after November of 1990, or establish a new business.
• You must invest a minimum of one million dollars anywhere in the United States of America. If you invest in a USCIS-designated regional center, you are only required to invest $500,000.
• The company must be able to create at least ten full-time jobs for American workers.

Today, there are plenty of businesses to choose from that support the EB5 program. A few short years ago, only around twenty regional centers operated throughout the country. As interest and knowledge of the opportunity grows, more and more companies will support EB5 investors.

There are many benefits to obtaining a visa through the EB5 program. First of all, you get permanent residency. Secondly, you don’t need to be sponsored from anyone. Perhaps the best benefit is that you don’t have to deal with backlogs and delays that can come from green card applications.

If you’re interested in investment property in Florida, Realnet has what you’re looking for. We have Tampa homes for sale and Florida foreclosures.

Bank foreclosures are the perfect choice for real estate investors. These bank owned properties are homes that the bank repossessed and didn’t sell at auction. Buying bank foreclosures is favored among many experienced real estate investors, because the price is right, and transfer is quick.

Bank owned properties can consist of residential homes, commercial real estate, or even vacant land; when the banks initially foreclose on the property, it is listed in a public auction. So why is it better to buy the properties that didn’t sell at auction? That’s easy; homes bought through auction may still have tax liens and creditor judgments, and sometimes even the owners still occupying the house. If you buy a house at auction, you’re responsible for taking care of it all.

If you buy bank foreclosures that didn’t sell at auction, you get a clear title. You’ll avoid the messy tax problems, second mortgages to pay off and aggravating evictions. Any price you pay for a property at auction only covers the single mortgage; if there are any other debts tied to the property, the purchaser is responsible for paying them.

If you need another reason to avoid purchasing foreclosures at auction, consider the fact that many states have a redemption period in which owners have the option to buy their property back from the auction winner.

On the down side, bank foreclosures usually cost more than foreclosures sold at public auction. On the flip side, because foreclosures bought through public auction can be tied up by many factors, bank owned properties are much more attractive to many investors. You have a clear title, and are able to take immediate possession of the property.

Now that you know why you should be looking at bank foreclosures as opposed to fresh foreclosures on the auction block, let’s discuss how to get the best deal. The price on new foreclosure listings are usually at a set price. Look for properties that have been listed for at least a month; the longer a foreclosure has been on the market, the more open the bank will be to negotiation.

Locating good deals on bank foreclosures takes time, but it’s well worth it. Remember to carefully evaluate the investment before you spend any money. At Realnet, we have investment property for sale and can help you find the best deals available. View our selection of Florida foreclosures and let us help you find the perfect property!

One of the dangers when becoming involved in property investments is making sure you can make a profit. After all, the whole point is to make money, so you don’t want to blindly buy homes without crunching some numbers first. To calculate the return on your investment, you’ll need the gross annual income of the property and the annual expenses the property will incur.

There are several calculations you can use to measure the potential success of your investment: yield, gross rent multiplier, debt coverage ratio and cash on cash return. Here’s how to calculate each, as well as how to interpret them.

Once you have the required numbers in hand, you can begin by determining the yield. The yield is the most basic analyzing calculation; to calculate, divide the gross annual income by the sale price. While this doesn’t give you much of an idea of its economical value, it does give you a general percentage that you can expect to receive back in profits. The higher the result, the better.

Another good thing to know is how long it will take you to earn back what you spent on it. The Gross Rent Multiplier, or GRM for short, is used for this purpose. Simply divide the sale price by the annual rental income. In this case, the lower the number, the better.

The Debt Coverage Ratio (DCR) is most commonly used by lenders, but it can provide a good overview of how well your property will be at covering its expenses. Essentially, this calculation will provide how much money in excess of the mortgage payments the property will net. Divide its net annual operating income by the annual mortgage payments.

Don’t forget to subtract maintenance costs from the rental income!

When lenders view the DCR, they like to see at least a 1.25, so if your property is at 1.25 or higher, you’re in good shape.

Last, but not least, we come to the Cash on Cash return (COC) calculation. This one tells you how much cash you’ll get from the property in a year, as opposed to your initial investment. To begin with, you need to calculate your cash flow prior to taxes. Subtract the mortgage payments from your gross annual income to get this number.

Now divide that number by your initial investment. If you put a down payment of $30,000 on the property and have a mortgage for the rest, then your initial investment is $30,000. The COC gives you a more accurate view at the actual return than the yield calculation, but remember it doesn’t take into effect all factors.

All of the above give only a basic idea of a property’s potential. Remember to also consider things like property taxes, equity and other factors.

Realnet has experts to help you weigh your options. We have Tampa Bay real estate foreclosures and other investment property for sale. Have questions? Contact us today to get all of your questions answered!

Real Estate Investment Trusts, or REITs for short, are great options for people without a lot of capital who wish to invest in real estate. These specialized companies buy and manage a variety of properties, from shopping malls to apartment buildings. Each REIT company typically invests in one type of property; you just have to find one that focuses on the real estate investment you’re interested in.

REITs operate very much like purchasing stock on the stock market; you pick a company that purchases the types of real estate you’re interested in and purchase shares of that company through a broker. Unlike the stock market, shareholders of REITS typically enjoy generous dividends; by law, REITs are required to distribute a high percentage of their returns to the shareholders.

Unlike the stock market, REITs avoid double taxation because they aren’t required to pay corporate taxes.

Because the REIT company does all the work, it’s a great choice for people who may have the capital to invest in real estate but don’t want to deal with the details, such as property management and repairs.

Another advantage of REITs is that not only do they offer a great income now, they also have a wonderful growth rate! Between property appreciation and the acquisition of new properties, REITs have a great income growth rate.

An alternative to contacting a broker to invest in REITs is to focus on mutual funds that deal exclusively in REITs. On the plus side, this option allows you to invest in a variety of different properties; on the down side, mutual funds have expenses that take away some of the profits. Mutual funds provide a safer alternative to people who don’t want to play Russian roulette with their funds.

As with any investment opportunity, do your research before you spend your hard earned cash. Typically, an investment portfolio can have up 10% of their assets invested in REITs; if your portfolio is for income purposes, you may want to assign up to 25%.

Once you’ve found the ideal investment property and approved its validity for your investment goals, you need to evaluate the property’s worth. Be sure to do your own research. You can easily lose everything you’ve worked hard for if you determine the value purely by the word of the seller or the county tax office.

The following assessment methods will enable you to get a better idea of the actual value of the property prior to your purchase.

The Comparable Sales Method

The comparable sales method is the most popular for determining the value of single family homes and buildings with less than 5 rental units. Go to the local county courthouse and research how much similar houses in the same area have sold for recently. There are also many realtors that will offer their assistance, and you can do some research online as well. Be sure to account for any difference in amenities between the properties. A great way to do this is to merely divide the sales price by the square footage of living space.

The Replacement Cost Method

A less common method of determining property value is to estimate what it would cost to build the exact same property from scratch. Remember to include costs for materials, labor and property depreciation for the most accurate assessment. The easiest way to get accurate figures is to call a local contractor and ask how much they would charge per square foot to build a home in the area of your subject property.

Income Valuation Method

Last but not least, we have the income valuation method of determining a property’s value. This style is better suited to commercial properties, including apartment buildings with more than 5 rental units. It’s really easy: figure out the gross annual income and subtract the property’s annual expenses, multiply the result by 10 and you have an estimate of what the property is worth.

Knowing the approximate value of your intended property ensures you’ll have a nice return on your investment. You’ll be sure that you aren’t overpaying, especially once you take the property’s condition into account.

Are you a first time investor? Realnet can help you build your portfolio! We have a large selection of South Florida real estate foreclosures for you to choose from. Buying investment property is an adventure, and we can be your guide!