Big Investors Leaving... (Palm Beach, Valrico: contractor, maintenance, zoning)

[Roscoe Conkling]

It's a fact of the real estate business, as in any other, that good realtors will survive and make a good living and bad ones won't.
The ones who are late in answering your calls, if they answer them at all, and are economical with the truth, if they're not actually lying to your face, will always struggle.
I've dealt with one realtor who was everything I've described above and another who was the complete opposite.
Guess which one makes a good living ?

[Red3311]

Just heard on the news this morning information about the flood insurance hike. Supposedly, this is going to cause investors to flee (more costs) and less people to buy stunting the "recovery".

[EngGirl]

I don't see how flood insurance will make investors leave because most of them buy with cash and don't really need this insurance, right?

[Red3311]

Originally Posted by EngGirl

I don't see how flood insurance will make investors leave because most of them buy with cash and don't really need this insurance, right?

Not sure how it works, maybe becuase they wont be able to "flip" the property to real buyers who cant afford the insurance? Just heard it on 10 NEWS this morning.

[EngGirl]

Originally Posted by Red3311

Not sure how it works, maybe becuase they wont be able to "flip" the property to real buyers who cant afford the insurance? Just heard it on 10 NEWS this morning.

Most investors who bought anything within last year got it as rental properties. This new insurance will affect real buyers for sure. Are there any maps to show what areas will be affected?

[DUNNDFRNT]

Originally Posted by EngGirl

I don't see how flood insurance will make investors leave because most of them buy with cash and don't really need this insurance, right?

When they say big investors they mean corporations not some dude that saved 40k and its buying a shack cash to flip, prior to investors committing to buying properties to rent they do an analysis part of that is a risk assessment one of the risks is flooding/hurricanes etc, they would insure those properties in order to mitigate that risk, if that insurance is more expensive it just changes that equation of how much money they can make possibly not making it their while.

[bentlebee]

Most "smart" investors never bought homes in Flood zones anyway. Their criteria's didn't incl. that!

[Not_liking_FL]

Originally Posted by DUNNDFRNT

When they say big investors they mean corporations not some dude that saved 40k and its buying a shack cash to flip, prior to investors committing to buying properties to rent they do an analysis part of that is a risk assessment one of the risks is flooding/hurricanes etc, they would insure those properties in order to mitigate that risk, if that insurance is more expensive it just changes that equation of how much money they can make possibly not making it their while.

This.

Also, I believe I read that their plan was to sell the properties when the value increases.

[bentlebee]

Originally Posted by Not_liking_FL

This.

Also, I believe I read that their plan was to sell the properties when the value increases.

Many have a multiple year plan not a few months plan like some local small investors had and now are facing to deal with 2 appraisals if they want to flip right away and a buyer needs a mortgage.

[Red3311]

Just spoke with a coworker about this who lives in Valrico, she said they re-zoned her last year for a flood zone because she is across the street from a retention pond and her insurance went up $1400...coincidence? Seems someone high up had a plan to make their corporate buddys in the insurance industry more money.