Posted by Eric (MI) on May 29, 2006 at 10:45:52:
This the same same Charlie Parrish that was at Bill Gatten’s seminar in Baltimore a few weeks back? If so we met briefly, I was the real tall guy that almost stepped on you in the hallway near the end of the seminar 
Anyway, where can one go to get more information on what you do regarding the auction method? Contact me privately if appropriate.
Thanks
Eric
Brevard County Investors and market - Posted by Daniel_Fl
Posted by Daniel_Fl on May 28, 2006 at 12:24:00:
Any local investors for Brevard here? Looking at what the market is doing. I
talked to a realtor this week and was told there are 6900 houses on the market
as of this week, compared to 2600 about 2-3 years ago. I am trying to figure
out what approaches to use on my next investment. Currently I am rehabbing
my primary residence with plans to sell in 2-3 years. I believe this should work
through forced appreciation and pondering that approach on doing rehabs at
the lower end of the market due to rents struggling to keep up with prices even
with this decline. Sell through lease options or wraps dependent on what rates
are doing. Any thoughts?
It is hard to determine comps when the market is in steady decline.
Re: Brevard County Investors and market - Posted by Carl_FL
Posted by Carl_FL on May 29, 2006 at 19:47:57:
Daniel, I am an investor in Brevard and also a licensed re agent (mostly for my own investing). I’ve been watching mls activity for a while and here’s a trend I noticed:
3 months ago new listings were outpacing sold about 3:1. Price changes to sold were about 2:1
Today, new listings to sold are about 4:1, and price changed to new listings are about 5:1
What this means is there is a lot of price reductions happening, and we haven’t seen the bottom yet. I see a lot of properties that have been reduced 20-30% over the last few months. So, even if you buy at a estimated 20% below market it may not really be the case. Personally I believe we won’t see bottom until the end of summer at least. So is it all doom and gloom? No, if you can buy a rental that will cash flow it is still a smart move (assuming low down payment and 30 year amortized mortgage).
BTW there is a local investing club you may want to get involved with. We haven’t been meeting the last few months but will be starting back up in June or July. Check www.breia.org for announcements.
Carl
Re: Brevard County Investors and market - Posted by JR_FL
Posted by JR_FL on May 29, 2006 at 14:58:02:
I am in the county south of you in Indian River. I have a subdivision that I am finishing up in Micco currently. If you get anything palm bay area looking to wholesale let me know.
Jonathan Rexford
Re: Brevard County Investors and market - Posted by Charles Parrish
Posted by Charles Parrish on May 28, 2006 at 20:45:00:
Dan, the good news for you as an investor is that there is lots of inventory. This means that sellers are not selling and they tend to have a higher motivation to listen to creative offers.
I suggest you make many offers, 20-35% below market value. Once the property is controlled and while in contract, sell it immediately.
Since I am a real estate auctioneer, I suggest using the auction method of marketing before you need to settle, assign you contract and wait for settlment.
Wishing you good luck,
Charles Parrish
Re: Brevard County Investors and market - Posted by John Vosilla
Posted by John Vosilla on May 31, 2006 at 01:49:50:
Carl how is the rental market in Palm Bay? Seems in many overbuilt markets in our state flippers left holding the bag have turned into reluctant landlords and flooding the market depressing rent prices…
Meanwhile in the crowed already built out markets with little new product there is a shortage of affordable single family homes to rent but a flood of high end condos…
Re: Brevard County Investors and market - Posted by Daniel_Fl
Posted by Daniel_Fl on May 29, 2006 at 22:27:20:
Thanks Carl,
This is what I have been seeing, but it is great to hear someone with
their finger on the pulse. I agree we have not seen it level out as of yet.
These are great ratios that confirm what is becoming reality.
I know where I gained in this market and see that we are in a buyers
market but trying to wait just a little bit to better understand what a
20-35% discount really is, as it declines… This is not a negative to
me. I will make my profit on what I own no matter, like many, but need
to figure out where to buy at this point.
I am excited about the investors club!! Is this in the Melbourne or
beaches area? I am in Satellite. I know of the Cocoa branch of Orlando
Club, but never really understood why this area didn’t have one up and
rolling. If it is in this area I will be more than happy to participate!
I had my RE license in 2000-2002 and know most of the county
through that and different business ventures.
So again thank You and I would appreciate any notice of an investors
meeting.
Re: Brevard County Investors and market - Posted by Daniel_Fl
Posted by Daniel_Fl on May 29, 2006 at 22:06:47:
Jonathan thank you for responding. What are you doing in Micco
pricing wise?
One area I am looking at is NE Palm Bay due to city water,construction,
etc… cbs mainly because of the GDC homes in the area that are
framed. It will be a couple of months before I proceed due to some
travel and Biz organization, mainly due to past structure and
improvements to this for tax issues.
I am pursuing full time investment but will approach this slowly, one
property at a time. Is there an investment club in your area for
investors… networking, wholesale, rehabs, info, etc.? Again, thanks for
your time!
Danny
Re: Brevard County Investors and market - Posted by Daniel_Fl
Posted by Daniel_Fl on May 28, 2006 at 21:37:20:
Charles thanks, I agree with the inventory being a good thing, and
appreciate your approach. I am looking at exit strategies right now so
your ideas are something definetly to consider. I am comfortable with
aquisition, but have always done buy & hold. Which I may still do but
won’t know if they cashflow until I find a deal. One question is: Does
the auction market work on Lower market values? If the target market
is 1st time home buyers, credit issues etc., or (investors)… I can see it
on mid-size properties. Which leads to the question of the auction
buyer being aware of an assignment. Is this typically disclosed prior to
bids? I would appreciate any info you can provide on the process. Email
direct if you would like. Thanks again, Danny
Re: Brevard County Investors and market - Posted by Carl_FL
Posted by Carl_FL on May 31, 2006 at 08:24:45:
I don’t think rent prices are decreasing, over the last 4-5 years there has been a slow but steady increase. Rents have not kept pace with home prices though, but I believe the rental market will continue to remain pretty strong for properly priced SFR’s.
One tip I would give is not to advertise a rental using MLS. An ad in the local paper (www.floridatoday.com) will give much better results. Keep in mind I am a licensed RE agent giving this advice! I have always used this approach and never had a problem filling a vacancy. I have talked to many people who used property managers & MLS and their rental can sit on the market for 6-8 months.
Condo rentals will continue to be a problem, but they are usually higher priced beachside properties (there are not many condos in Palm Bay). I have talked to several condo owners in the last few weeks who are trying to sell and finding it is a tough market, some are considering renting them out. They are harder to rent and come with their own problems so the demand is not as high as with SFR’s, and shouldn’t affect rent prices overall.
Carl
Re: Brevard County Investors and market - Posted by Carl_FL
Posted by Carl_FL on May 30, 2006 at 15:30:21:
The investors club had been meeting in Indialantic, and will probably continue to do so. This club is very informal and is mostly social / mingling with an ocassional local speaker (no sales pitches for courses, cruises, etc). The Cocoa club is more traditional and formally organized with national speakers and more strict of a schedule. Watch the breia.com web site for announcements.
When the club does start back up I’ll be giving a market report each month with more of the same types of stats for our area.
Carl
Re: Brevard County Investors and market - Posted by JR_FL
Posted by JR_FL on May 30, 2006 at 04:27:58:
I have a 80 acre subdivision under construction. They are going to be 5 and 6 acre lots. Location is behind Barefoot Bay. Priced fro 450-500K per lot.
We are starting a REIA club here in Vero Beach. ECREIA East coast real estate investors. I just have not had the time to finish on location and so forth.
Re: Brevard County Investors and market - Posted by Charles Parrish
Posted by Charles Parrish on May 28, 2006 at 22:01:14:
Buy and hold works. Now at 64 years old I like to Control & Roll.
The auction method works on all values of properties. Over $50 Billion of real estate will be sold in the US this year. Our company sells $40,000,000 in real estate.
The target market for buyers at auction is all targets, we market to get a many potential buyers as possible.
The auctioneer will make all the annoucments as to assignments, sold in as is condition, all cash and settlement in 30 days.
Good luck,
Charles
Re: Brevard County Investors and market - Posted by John Vosilla
Posted by John Vosilla on May 31, 2006 at 12:09:06:
Points well taken on rental houses. I find the numbers work well for purhase today in out of state markets with great job and income growth like Atlanta or Houston. I only fear handing properties off to property managers to keep rented. If I was there much of the time it would be different as signs, Craigslist and local newspapers would allow me to keep them rented. In Florida to me the opportunities going foward are flipping equity gained in the debt cleansing speculative bust now underway down here. Not interested in holding property as rentals at GRM’s much over 10, something not possible in most of Florida anymore even at a 30%+ discount…
Thanks- Control & Roll - Posted by Daniel_Fl
Posted by Daniel_Fl on May 28, 2006 at 22:18:09:
Thanks,
I believe CONTROL & ROLL is the best thing I heard all day. You are
making me think, which is always a good thing and laugh! Thanks
Re: Thanks- Control & Roll - Posted by Charles Parrish
Posted by Charles Parrish on May 29, 2006 at 07:38:28:
Thank you. Control & Roll is a unique method of turning real estate fast.
You must follow all the necessary steps, when you do, you make nothing but money and lots of it.
I am glad I caused you to think…and laugh…both are GOOD THINGS, we all should do more of both.
Charles Parrish
Baltimore - Real Estate Auctioneer