May 16, 2006

A colleague of mine just passed along an excellent investment opportunity. Here is what he sent me:

"an exciting way for you to purchase pre-construction homes with no money down and priced 10% below appraised value in the Sarasota/Charlotte/Highlands County areas. Attached, please find an overview of the program.

North Port, a city located between Sarasota to the north and Ft. Myers to the south, has all of the demographics that we seek for investment and is the affordable housing center for both Sarasota and Ft. Myers areas. Homes in Sarasota County are increasing in value rapidly. Prices for new homes in North Port range from $200,000-$350,000 and there is a ready pool of potential rental tenants. We can offer you the following investment opportunity:

Purchase of a Pre-Construction CCI Home with an appraised value 10% greater than your VIP price - current models to choose from are - The Key West II - 2307 living SF; or the The Lido - 2116 SF - each home is 3 bedrooms and 2 baths with a 2 car garage on a lot of approximately 1/4 acre.

* A $3500 fee to SunCoast Properties is required to secure your spot and to lock in pricing.

• The Key West II - 23017 SF - Standard Retail Price = $308,000 - VIP Price = $278,000

• The Lido - 2116 SF - Standard Retail Price = $292,000 - VIP Price = $263,600

• Prices includes the cost of the lot, improvements on the lot, permitting, closing costs, mini blinds, septic & well, appliances (refrigerator, stove, dishwasher, washer & dryer), and standard landscaping."

For those that don't know the area, the Sarasota / Bradenton area is highly desirable with access to excellent beaches, fine restaurants, schools, the arts, golf courses, etc.

Because of its desirability, the real estate market was one of the hottest in the country the past few years with average price increases of 33%. The average priced house in that area is now approximately $340K. That price, of course, is out of reach for many potential homebuyers. What's happening in Sarasota (like many cities) is that more and more people are willing to sacrifice a longer commute in order to have a more affordable house. This is a change from when I used to live there in the 1980's and 1990's, when it was basically a retirement town.

What does this all mean? I believe towns like North Port, Englewood, Venice, etc. will probably experience above-average growth rates in appreciation the next few years. Now is a great time to act on an investment like the one above. Please call me (813-748-2505) for a free consultation and I can tell you more about structuring the proper loan for your investment purposes.