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The median home price in Ocala grew over 23% in 2005 with some areas growing more than 35%.

Ocala offers affordable homes and has been appreciating at a rapid pace. The time to invest in Ocala is NOW! You can build pre-construction, spec homes with close to 100% financing.

We use words like potential and projected, because we want to always remind you that real estate investing is not the same as putting money into the bank. Over the years it has been much, much better. But, unlike most real estate investment web sites, we try to keep it real. I hope you will appreciate this.

Nevertheless, without some portion of your investments in real estate, inflation is going to destroy your retirement savings. You must continue to have investments that exceed the returns found in the stock market.

The Ocala housing market has a potential for significant housing equity gains.

Are You Going to Miss the Boat Again?

The lot prices are going up and the Ocala area is growing. This is a well documented fact.

As materials become more difficult to obtain the builders continually raise their home prices. The increases in home costs due to material costs are significant. This alone, without the increasing cost of land or the high demand, will give you excellent appreciation.

This is not rocket science. The cost of building a house goes up, you buy and lock in the price. A year to three years later you sell the house at a profit.

The past is the past and you cannot go back and buy all of the great properties you should have. You are getting a second chance.

Our Program

Our program is as much about the loan as it is about the builder or the location. This program is based on the fact that our bank will lend to appraised value as opposed to purchase price.

With traditional financing, if a home were purchased for $200,000 and the bank financed 90%, you would need a down payment of $20,000. But, if the house appraised for $220,000 (all of our homes appraise for at least 10% more than you pay for them), the bank is lending you $198,000. So, you only have a small down payment to make.

The fact that are homes appraise for much more than they cost, gives you a built-in profit cushion. A year later, the house has appreciated even more. Even in a slow market, the area will generally see 8% appreciation or more a year. So, the $200,000 house, that appraised for $220,000, is now appraising for $237,000 a year later. Rent it for a year and you will have a home worth about $256,000 in a slow market. Keep in mind that the appreciation in Ocala has been a lot more than 8%. With a modest 12% gain each year, the house appraises for over $275,000 a year after completion.

Qualifications

If you have $5,000 in the bank and hope to make your fortune in real estate, I cannot help you. You will have no trouble finding other web sites with similar programs that will set you up for disaster. I just like to sleep at night.

To qualify, I generally like to see the following:

- A credit score of 680 or better
- A reserve put aside for the investment of at least $10,000
- An understanding of how the investment works

The last qualification is as important as the others. This is an excellent investment and you can make a very nice return. But, I want you to have a complete understanding of how you are going to make a profit. Ask me lots of questions until you are confident about what we are doing. However, just try not to be one of those individuals who ask questions for the next year and miss your investment window.

The Builders

The builders that we use must be approved by the bank. We are using the top builders in the area. We will help you select which floor plan to use, in order to maximize your Return on Investment. The builder gets paid only as the building progresses.

Investment Example

These numbers are from the actual Settlement Statements and Appraisal for our Client J. C. of Pembroke Pines, FL and was provided by my broker, Dennis London of London Realty. The closing was in February 2006.

Below is an example of the profit our investors might see when investing in our pre-construction homes.

Where We Build

You can find lots in Ocala for $35,000 and build a wood frame, vinyl sided home for about $180,000. Of course, after it is finished you would have a piece of garbage in a lousy area. Its your choice, but will not build those houses.

Our lots are in the "better" areas and we only build CBS, concrete brick homes. So, please do not take me on a tour of what you found on the Internet. I do this for a living and have already seen what I like and what I do not like. I need to insure, to the greatest extent possible, that you will be able to sell the house at a profit or rent it with the least problems.

There are builders and other individuals who have already purchased lots and need to move them. Whether you make money or not is of no concern to them. You are, so to speak, "a one night stand" to them. I will keep the builders honest when they start to pull out their lots or sneak in upgrades you don't need.

I know of one agency sitting with 80 lots that their agents are directed to sell. Not great lots but they will move them come hell or high water. Hopefully, your personal real estate education will not come to you at an unnecessary expense.

What We Build

Currently, we are building homes on one acre lots with living areas of between 1800 and 2500 square feet under air. Upon completion you may sell the homes. Although, you could rent them for a year and pick up the long term capital gain rate on the profit as well as benefiting from another year of appreciation.

Renting Your Investment Home for Increased Profit

When renting a house today, it is very difficult to maintain a positive or even neutral cash flow. Without substantial down payments it is next to impossible. But the advantages of renting out your new investment home for a year bring you rewards that usually outweigh the costs.

1. You get an extra year or more of appreciation
2. You get the long term capital gain treatment
3. You can do a 1031 exchange and defer all of the tax on the gain
4. You have a depreciation expense
5. There is less pressure to sell the home immediately and you can wait for the right offer

Depending on the price level of the home your negative cash flow can be anywhere from $50 a month to $500 a month. But even if it cost you another $6,000 to hold the home for a year, it only a takes a 2% increase in price to make it up and we are running a hell of a lot more than that. Plus, if you save 10% on the gain (or more) that will give you about $5,000 more in your pocket. So, do not dismiss this method too quickly.

You do not have to necessarily spend your own money to make up the negative cash flow . There are a few alternatives:

1. We can establish a Home Equity Line of Credit (HELOC) on the house. You would dip into this credit line to make up the difference and pay off the loan when you sell it.

2. We can arrange a Option Arm at a very low initial rate. With this choice we can keep the out of pocket to a minimum and make renting a very worthwhile option.

If you like, you can put your home up for sale and rental at the same time and decide based on offers and tenant availability. But do not overlook this method of enhancing your investments.

Appraisals

We do not have our own appraisers. The bank or lending institution provides appraisers on a rotating basis. The bank is not going to do anyone a favor and boost the appraisal value. The appraisals are very real.

Next Steps

Frequently Asked Questions

How do I choose a lot?
We search for individual lots through MLS. We send you some choices and explain why we like a particular property.

What are the deposits for?
The $1,000 is a good faith deposit for the lot and up to an additional $4,000 - depending on the builder - towards your new investment property. The funds are held by the title company, as escrow agent. You will receive a deposit receipt. You will never pay us. Quite frankly, we do not want to hold money. I feel much better when it is in the escrow account of the title company, an attorney or broker.

Does the price of the house include the lot and if so, why do I receive two separate contracts?
The price of the house does not include the lot. We will send you two contracts; one is for the lot and the other is the Builder's contract for the house.

"Can you tell me about my lot?"
The typical lot may be as small as 1/4 acre, 80' x 125', or as large as 1 or 2 acres. Occasionally the lot will have has trees - in some areas, a lot of trees, some of which of course need to be cleared in order to build your house. We will be sending you the Property I.D. numbers, or addresses so that you will be able to go on to the County Property Appraiser's web site, The best site is www.netronline.com go to Florida and look up the individual county's appraisers site in public records.

You may also try (http://www.maps.google.com), put the property address in address bar on top and you will get an area map that you can zoom in on. If you go to the right of the screen near the top, you'll find "Satellite". Click on it and you will get an aerial of the site. You can also zoom in on it and if you hold the cursor down on the photo and move the mouse, you'll get the photo to move so you can see more of the neighborhood.

What about water and sewage?
In areas where municipal utilities are not available, we build with well water and septic as sewer. Eventually city sewer and water will be brought in by the city / county to most, if not all lots. This could occur one year or more from today. If and when it happens, the property owner of record at that time will be assessed for this. It is generally paid off in small installments over several years and paid with one’s tax bill.

What are the additional costs of the upgrade design options?
Your home includes many standard items, which are optional with other builders. You will have the choice of upgrade selections. Depending upon what you choose will ultimately be reflected in the total costs.

What is the time span from finding a lot to completion of my houses?
For pre-construction, it will take anywhere from about 9-16 months, depending on numerous factors.

What is the resale value of these homes?
These values are based on appraisals and are constantly changing due to the booming market in Florida. It is important to remember that, in our program, our goal is to obtain appraisals significantly higher than the cost to build. This is where the investor will have built in equity prior to the home being constructed.

How long do we have to wait to “flip”?
Technically you are free to seek another buyer immediately upon closing. We suggest that we market the property for sale 3-4 months prior to completion in order to secure a good buyer. We strongly suggest you consult with your financial advisor before making any decision in order to establish the best exit strategy for your specific financial goals and tax ramifications.

What methods are available to help sell my property faster?
The first and most obvious is to offer your house for slightly under the competition in order to draw more prospects to your listing.

We will list your investment property for resale as it nears completion. It will appear in the Local MLS, as well as Realtor.com, Yahoo, MSN, and many other internet sites.

How much money will I need at closing?
It is our goal to provide you with an opportunity in which you will NOT have to bring money to close.

What should I bring to closing?
Valid picture identification, and any other documentation requested by the Title Company. For your convenience, If you prefer, we will do what's called: a "Mail-a-way". As the name suggests, the Title Company mails all the closing papers directly to your home or office for your review and signature. You in turn would simply return all the executed documents back to the Title Company. It's all very easy and is routine for the Title Company.

Do you charge a fee for services such as: finding a qualified tenant to rent my house; supervising the property management; and locating a qualified buyer when I’m ready to sell?
As licensed real estate professionals we do charge a discounted fee for services performed to assist you in accomplishing your exit strategies.

If you would like to learn more you should give me call and/or fill out the Contact Page information.

Call 954 - 255-5056

Martin Unger
Real Estate Investments

- Pre-Construction
- Spec Homes
- Condos
- New Homes
- Land
- Relocation

954 - 255-5056 (office)
954 - 461-0319 (cell)
775-254-2881 (fax)

(an associate of London Realty Corp)

9000 Sheridan Street
Suite 90
Pembroke Pines, FL 33024