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Wholesale Duplex Foreclosures SW Florida

Submitted by on 12/22/2010 – 9:39 amNo Comment

wholesale duplex foreclosures FloridaOur firm CRG, Inc is a licensed real estate brokerage and we specialize only in distressed assets at this time.  We also run the internationally popular website MyRealtySource.com.  Whether they be REO, short sales, deed in lieu, we have access to bank direct properties where our investors are making great returns on multi-family homes in SW Florida.  Our connections with asset managers and local lending institutions allow us to provide ourselves with a great opportunity to purchase off of their books.  As the housing market crashed in Florida, foreclosures increased dramatically.  Homeowners have lost their homes or have just walked away due to the negative equity position.  The homeowners have transitioned to renting, and rental property in our area has been as hot as the gold commodity as of late.  Our focus is the newer construction real estate built 2004 or newer.

Domestic and International investors are lasered in on SW Florida for good reason.   They are one of the only counties in the country that reported 10% Year over Year gains in 2010 in our median home values.

To give you a comparison on how prices have changed, during the peak of 2005, the Ft. Myers Greater Area had a median home value of $340,000.  By February 2009, the median dropped to $82,000.  Currently, as of November 2010, the median is around $96,000, an improvement from only a year and a half ago.  The cost to build a home in our area during the peak was about $116 per square foot.  The current replacement cost of homes today is approximately $66 per square foot (not including land).  We are able to provide these homes as investment opportunity to our investors for  a little over $30 per square foot.  We are able to beat the market value by about 20-30%.

See below for a sample pro forma on a typical purchase.  If you would like to preview our offering memorandum which includes pictures, charts, and additional info, CLICK HERE

Here’s how the approximate numbers work:  Continue to scroll down for a walk-through video of a recent duplex sale.

CASH FINANCED @ 70% LTV
Purchase Price $75,000 $75,000
Closing Costs $600 $2,800
Cash Out of Pocket $75,600 $28,300
Annual Debt Service +/-
$0 $4,800
Annual Escrowed Taxes $1,500 $1,500
Annual Escrowed Insurance $1,000 $1,000
Annual Monthly Lawn Service $720 $720
Annual Property Management $1,180 $1,180
Annual Operating Expenses $4,400 $4,400
Annual Gross Rental Income
$14,800
$14,800

Surplus Cash / Positive
Cash Flow AFTER Expenses/Debt Service

$5,600
Annual Net Operating Income $10,400 $10,400
Capitalization Rate 13.86% 13.86%

.

We are the most exclusive foreclosure wholesale real estate firm in SW Florida.

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