New Construction Loans are in High Demand for Investors in Sarasota
Most investors know that Florida real estate investments are a great opportunity for profit. But when you’re thinking about the best place in Florida to invest in real estate, your mind likely turns to big cities like Miami, Fort Lauderdale, Orlando, Tampa, or even Jacksonville, and not immediately to Sarasota and the southwest corner of the state. This area includes North Port and Bradenton as well as Sarasota.
The stats tell us that Sarasota, Florida real estate is a great place for real estate investors to profit. If you’re looking for a Florida investment property, a Sarasota investment in real estate may be just what you’re looking for.
Here are the two biggest reasons that Sarasota is one of the best cities to invest in real estate in Florida, and why the Southwest Florida region is a great place for your next investment:
Rents are Growing Faster in Sarasota Than Anywhere in The Country
The Sarasota MSA ranked No. 1 in terms of rent growth out of 98 national markets, according to Yardi. Rents are up an average of $499 year over year, which is 36% year over year. This is remarkable, considering that the two previous years saw an increase of just $69 on average.
Why is this rent growth in Sarasota happening? One reason is that an outsized percentage of renters in the area (44.5%) reside in single-family homes. With a major push toward renting homes, rents have spiked. And construction is on the way, but for now, the limited stock of homes to rent in Sarasota means that investors in single-family rental portfolios have a chance for major profits.
Construction Is Booming
Given the demand for rentals, as well as new home sales, it’s no surprise that new construction permits are spiking too. Permits for single-family homes are up 46% year over year (the national average increase is 16%). Multifamily construction permits are up a remarkable 196% year over year, as investors try to capture increased rents with multiple doors.
In this builder-friendly atmosphere, investors looking for profit need construction loan lenders in Florida like Lima One Capital who will close quickly and certainly, and then make the construction draw process simple and quick throughout the life of the loan.
The Solution for Real Estate Investors in Florida:
If you’re looking for new construction loans in Sarasota and Florida, turn to Lima One. We offer:
- Interest-only construction loans
- An in-house construction management team makes the budget approval and construction draw process easy throughout the process
- Rental loans give investors a great deal on construction to permanent loans if they decide to hold new builds in their portfolios to capture the rent growth available in Sarasota right now.
Lima One Capital is simply the best choice for Sarasota, Florida real estate investment hard money loans. Contact us today or start your application now to finance your next Florida build or rental purchase.
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