The rush on residential real estate in South Florida has put quite a bit of pressure on prospective buyers. Previous posts here have detailed how the continuous rise in demand in the area has pushed purchase prices higher and higher, sometimes aided by bidding wars between families and investors. With real estate transactions occurring left and right every day, it can be especially interesting when a major purchase is made in South Florida. That was the case recently, according to a news report, when an investment firm announced a plan to purchase approximately 1,000 homes in the South Florida area.
According to the report, Colony Capital will make this sizeable purchase with the intent to renovate and rent out the properties. This is becoming more and more common for investors in the area, as it is very obvious that South Florida is at least one part of the country where the housing recovery is in full swing – possibly with much more upside to come.
The report on this purchase indicates that many of the properties are located in Miami-Dade County, Broward County and Palm Beach County. There was no indication as to the total amount of money to be spent on the purchases, but a representative from the firm stated that the company is looking at the expenditure as a long-term investment.
Any type of real estate sale can get complicated, whether it is an investor purchasing thousands of properties or one family looking to buy or sell. The exact terms of sale, liens and other problems with titles can all pop up at any point in the process. One of the best protections against these types of problems is to go into negotiations fully aware of all of the available options.
Source: The Palm Beach Post, “International investment firm to buy 1,000 South Florida homes,” Kimberly Miller, March 4, 2013
