First Time Buyers Face Challenges on Real Estate Investing Florida

Realestate investing Florida seems to be quite a challenge to many first time home buyers in the state. This is because there is an influx of sellers that are coming in to South Florida in order to take advantage of current housing prices, thereby out bidding first-time home property buyers.

The main issues that are going against these newcomers seem to be the lending guidelines that have become more strict since the housing market meltdown. Moreover, savvy investors that offer straight up cash money to purchase property are also another factor that buyers have to deal with.

A Third of Home Buyers

Based on data released by the National Association of Realtors, first time home buyers comprise about a third of the total number of real estate investors nationwide. They make up a significant economic force because not only do their purchases stimulate the housing market, they also stimulate other industries associated with it such as appliances, furniture, and other accouterments. This creates a ripple effect to other US businesses and is not simply advantageous or limited to the housing sector per se.

Even with so many advantages at their disposal, the biggest drawback that home buyers possess is the fact that most of their efforts are only possible with the assistance of financial lenders. If they have to choose between someone that can pay the full price upfront or with a financing offer, sellers most often choose the former as they are able to get instant gratification and no longer have to deal with annoying issues that can come with some lenders.

Where the Offers are coming

Most investors that prefer to pay cash up front are international buyers and corporate entities that view American home properties as a form of investment venture which they can profit from once the real estate cycle begins to come around. They are easier to work with as they have lesser demands when it comes to pre-finalization repairs as compared to FHA lenders. They prefer to purchase and repair later.

For more information on how you can take advantage of Real Estate Investing Florida click here: http://www.stevemartel.com