Florida’s House Bill 87 and What it Means to YOU!

If you’re like me, you’re always thinking ahead of where you are now in your real estate investing business and where you expect to be 6 to 12 months from now.  You might be doing just fine rehabbing and flipping houses in your current location and suddenly, hedge funds swoop in and buy up all your inventory.  Or an Oil company will decide to start drilling in some remote location in North Dakota or Texas and suddenly there is a demand for housing.  Regardless, you must be aware of what is happening in this country and always be on the lookout for the next opportunities.

If you were lucky enough to be at my Miami Field Trip in February 2013, you experienced an avalanche of investor activity.  Not only hedge funds were buying up properties, so were the international investors.  Who would think, that in a few short months a market could change so suddenly?

The introduction of House Bill 87 covers many issues, but the one issue that reaches out to me is the timeline banks have to collect on their judgments, and what it means to the Florida market.

Previously, Florida allowed banks up to 5 years to collect on their judgments.  Currently, these banks now have only 1 year to collect.  This makes me wonder what that will mean to the Florida market?  What “shadow inventory” held by the banks will suddenly hit the Florida real estate market?  What will that mean to prices, inventory levels and how will that affect the real estate investing model?

There are many other issue that go along with Florida’s House Bill 87, but this is the one that peaked my attention as I see a market opportunity in Florida coming.  So much so that I’ve scheduled another “rehabbing remotely” field trip in Miami October 4-6, 2013.

I welcome your thoughts or insights on how this new law will affect the Florida market.