The years 2021 and 2022 saw record growth for the real estate market in Florida. There are calm suburbs and eclectic neighborhoods for every taste, making Florida a kind of buyer’s paradise in terms of wishlist items. How can real estate businesses take advantage of smart opportunities?
Why Florida Is Such a Hot Real Estate Market
The growing appeal of urban centers such as Miami, Orlando and Tampa Bay is one of the reasons Florida housing markets tend to be hot. These cities have it all: gorgeous vistas, amazing nightlife, strong economies and luxurious homes.
Another advantage of living in Florida is the incredible weather. Many people simply dream of living in this state of eternal summer, so the demand for housing stays traditionally high, just like in many California cities.
Why 2021 and 2022 Saw Incredible Market Growth
On one hand, needing to work from home meant that having a comfortable, safe and attractive house was an important investment, both for financial reasons and personal happiness. At the same time, interest rates for loans were exceptionally low for quite a while, making it even more enticing to purchase a dream home for the family.
Many people only see positives, not negatives, when it comes to buying a home in Miami or Miami Beach. Housing can costly here, but knowing that the price is likely to increase significantly in value in 10 or 20 years is a powerful incentive to invest without fear. What better time to enjoy the calming relaxation of sun, sand and refreshing breezes?
How To Take Advantage of Real Estate Opportunities
Real estate businesses, investment property owners and house flippers are in the middle of all of these potential profits. The situation is like farmers having an exceptionally bountiful harvest just when the prices for produce are at an all-time high. Entrepreneurs with the necessary resources stand to make incredible profits.
The key is having sufficient financing to cover purchase costs and needed improvements. Normally, getting ahold of such significant capital for today’s elevated housing prices would require many years or decades in business. Fortunately, with asset-based lending, newcomers can get started more easily than ever.
Why Bridge Loans Are Popular in the Florida Housing Market
Bridge loans are a type of asset-based lending. They provide short-term funding based on the value of the real estate you plan on buying. The property acts as collateral. This offers many benefits in Florida:
- Lower credit score requirements
- Faster approval
- More flexibility for remodeling and improvements
- Simpler documentation requirements
- Wider range of available properties
It’s relatively easy to obtain approximately 75% of the cost of real estate with bridge financing, drastically reducing the capital your business needs to invest.
How The Future Is Shaping Up for Real Estate in Florida
Some analysts expect the supply of homes to increase gradually in the coming years. This may lead to partially lower sale prices and supply and demand equalize somewhat. That said, given the naturally strong demand for housing in many parts of Florida, especially around Miami and Orlando, a seller’s market is still expected for a long time.
It’s anyone’s guess how the market for investment properties such as luxury apartments in downtown areas may perform. On one hand, many people are retiring and looking for their dream home on the Florida coast. On the other hand, as up-and-coming business professionals return to work at the office, the demand for apartments with a lower commute may surge.
What Real Estate Market Changes Mean for House Flippers
Real estate market changes aren’t generally an obstacle for established real estate businesses. Instead, they provide an opportunity to increase profits.
In a seller’s market, savvy entrepreneurs can take advantage of higher prices and increased demand to make top dollar on real estate sales. When prices for homes drop, it becomes easier to find promising properties in need of improvements.
Whatever the market conditions, having access to flexible, fast and abundant capital is vital. At HML Solutions, we can help your business get approved quickly for a bridge loan. Receive the needed funds in 7–14 days with interest-only amortization, APR as low as 6.99% and loan amounts ranging from $100,000 to $50,000,000.
Contact us right away to learn more about asset-based financing for real estate.