A Summer of Rental Discontent

June 21, 2012

 A slow down in apartment construction, coupled with low vacancy rates and a rising millennial demographic will continue to fuel a rise in apartment rents this summer.

According to Trulia, a company that tracks rents and home prices, it now costs more to rent than to own a home in 98 of the top 100 U.S. metropolitan areas.

Moody Analytics reports that demographics has become a leading factor in more people renting then buying, and “demand for rent will remain solid over the next two years.”  While the overall rental rate is 35%, the renter rate for those between the ages of 25-29 is nearly 65%, and for those under 24 years old, it is 77 percent, according to the Census Bureau.

On the single-family home stage, the rental craze has made it frustrating for the homebuyer. Inventory of “decent” homes is being depleted as investors snatch up single-family homes for the purpose of renting them out. Those left on the market are receiving multiple offers, resulting in bidding wars.  And prospective buyers with FHA loans are finding out that their loans may require sellers to do more home repairs than other loans. Subsequently, if a seller receives multiple offers, they may avoid the ones with FHA loans.

Prospective buyers are also losing homes to cash buyers and bidders with bigger down payments.

This is all playing into the hands of investors who surmised a couple of years ago:  “Accumulate hundreds or thousands of homes, rent to the 99% and make a killing when they dump them back on a property-starved market in three to five years,” according to Personal Real Estate & Investor.

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Orlando Real Estate Investing Alive and Well

October 19, 2010

Orlando real estate investor eyes investment market growth

Lenny Layland, founder, and broker/owner of Investorlando Realty based in Longwood, Fla., was one of 45 professional investors invited to attend the Investment Provider Leadership Summit in Phoenix, Arizona last month. For the past 11 years Layland has also run his own private real estate investment fund, Investorlando, Limited.  Layland says, “Real estate is alive and well, regardless of the recessionary climate.  In fact, it is one of the best investment opportunities in years.

“People don’t realize how big this is,” he adds. “It’s even a larger market than I thought, even on the international stage. For example, New Zealand investors at this conference see our prices as dirt cheap and are actively investing in the U.S.”

Layland, who graduated from Miami University with a degree in finance and turned down offers from Wall Street to become an independent investor and broker, has real estate investing in his blood. His parents retired to Florida after years of home investing in the small town of Eaton, Ohio.

Investorlando Realty, and the related real estate investment fund formed in 1999, provides individuals multiple, simple and diversified ways to invest in real estate.   The newly launched brokerage also offers property management, buyer representation, marketing, and consulting for residential, investment and commercial buyers and sellers.

Investorlando offices are located in the historic Longwood Village Inn, which opened as the Waltham Hotel in 1887. It is one of the few remaining 19th century buildings remaining in Florida today and is listed on the National Register of Historic Places.