Many properties throughout Florida’s metro areas are still in recovery from price drops that followed the recent housing bust. Steep price declines are being reported for properties in several areas including Orlando, Fort Myers, Sarasota, and Naples. While some experts are predicting a further drop in the market prices, some optimistic real estate investors are anticipating an economic reversal and could be viewing these low-priced properties as prime buying opportunities. Undervalued properties in Florida that are purchased primarily for investment purposes, however, require a competent real estate attorney.
Investors who purchase residential properties to make a quick profit often tend to look for foreclosures that can be bought at an auction, fixed up, and then sold for twice as much or more. Generally, a title search should be conducted when purchasing a property from an auction because not all of the information about the property is immediately known.
A real estate attorney can assist in uncovering those aspects of a property’s history that usually aren’t disclosed in an auction listing, such as liens or overlaps in ownership. Before foreclosure properties are sent to the auction block, they could have been transferred several times between mortgage companies, as an Orlando couple recently discovered when the foreclosed condo they purchased at auction was actually owned by a bank with a superior first mortgage. That left them with no condo and out nearly a half a million dollars. A title search will verify the sequence of ownership, which could help prevent possible future discrepancies and problems from flaring up.
Sometimes a former homeowner who is still in a state of grief or shock after losing a home through a foreclosure unrealistically believes that he can take back the property. An experienced real estate attorney can ensure that all of the proper documents needed to purchase an investment property from an auction are up to date, accurate, and rock-solid and protect the new owner’s property rights in court if the former owner files a civil action.
Undervalued investment properties purchased in Florida specifically for rental income require extensive long-term financial planning. A real estate lawyer can assist an investor in drafting all of the required tax and financial documents that are a vital part of carrying out a successful landlord-tenant relationship and investment-return strategy and draft a lease that ensures the landlord’s rights and income streams are reliably maintained. A financial loss-prevention strategy can also be implemented so that in the event the market plunges, the investor can have a workable plan to sell the property.
Frank Charles Miranda, P.A. provides experienced real estate representation for investors of Florida properties. Call us at 813-254-2637 or contact us online before you attend the next real estate foreclosure auction.