Investing Smarter: Insights into Real Estate Success in Florida with Karen Evans

As a realtor, especially in competitive markets like Florida, mastering the art of working with investors and managing properties can make all the difference. The real estate market is ever-changing, but one thing remains constant: the importance of building relationships with clients and being there every step of the way.

Recently, I had the pleasure of sitting down with Karen Evans, a veteran real estate professional and broker associate in Winter Park on my podcast. Karen shared her story and provided invaluable insights into her work with investors and how she transitioned into real estate after two decades in the travel industry.

Watch the full podcast episode here.

In today’s post, I’ll break down some of the key takeaways from our conversation. Let’s dive in!

Karen’s Journey into Real Estate

Karen didn’t start her career in real estate. In fact, for over 20 years, she owned and operated travel companies in two states before selling her last business to a public company.

After relocating to Florida, Karen found herself in a situation where her work required a real estate license. This unexpected twist led her to take a real estate course, and in 2002, she obtained her license.

What started as a business brokerage focus eventually led Karen to work in both residential and commercial real estate. With over 22 years of experience in the industry, she has developed a deep understanding of Florida’s market, particularly in working with investors.

Her adaptability and continuous learning are key to her success, and it’s something we all can learn from in this ever-evolving business.

Key Investment Strategies and Property Management Tips from Karen

Karen’s experience in working with both residential and commercial investors provides a solid foundation for anyone looking to enter or grow in the Florida real estate market. Here are her insights!

Working with Investors

One of the most remarkable aspects of Karen’s business is her focus on investors.

About 60% of her clients are investors looking to buy or sell properties. This type of clientele requires a different approach, and Karen excels at guiding them through every step of the process. From helping them find the best mortgage brokers to negotiating with sellers, she ensures that her clients are supported at every turn.

One of Karen’s key strategies is to focus on evaluating major property features. She ensures that her clients understand the importance of assessing aspects, like the roof, air conditioning, and overall structural integrity. These evaluations aren’t just about making a sale—they’re about ensuring the property is a solid investment!

Cap Rate and ROI: Understanding Real Estate Profitability

Investors need to know how profitable a property will be in both the short and long term. The Florida market has shifted in recent years, with cap rates changing from time to time. This requires investors to adjust their expectations and strategies to remain profitable.

Cap rates are calculated by dividing the property’s net operating income by its purchase price. Karen helps her clients understand these numbers, ensuring they make smart investment decisions that align with their financial goals.

The Fix-and-Flip Reality in Orlando

In the past, many investors flocked to fix-and-flip opportunities in markets, like Orlando.

However, Karen points out that traditional profit margins have become harder to achieve in high-demand areas. The days of buying properties for a song, putting in a few repairs, and making a significant profit are fading in areas like Orlando.

For investors considering this strategy, Karen advises caution and thorough market research.

Leveraging 1031 Exchange for Tax Advantages

1031 Exchanges allow investors to defer capital gains taxes when selling a property by reinvesting the profits into a similar property.

Karen strongly encourages her clients to explore this option, but she emphasizes the importance of consulting with a CPA or attorney to ensure everything is done properly.

This strategy can be a game-changer for investors looking to grow their portfolios without taking a hit from taxes.

Realtor Compensation and Buyer-Broker Agreements: What’s Changing?

The real estate industry is experiencing some significant shifts, particularly when it comes to realtor compensation.

The recent National Association of Realtors (NAR) settlement has introduced the need for buyer-broker agreements, which require buyers to sign an agreement outlining the realtor’s compensation before viewing properties. This change has added complexity to transactions, especially for buyers and sellers unfamiliar with the new rules.

For both buyers and sellers, it’s essential to understand these changes to avoid any surprises during the transaction process.

Karen has been navigating these updates with ease, ensuring her clients are informed and well-prepared.

Property Management: A Stress-Free Approach to Investment Success

For investors managing multiple properties, hiring a property manager can be a game-changer.

As a property manager, Karen takes on these responsibilities, allowing her clients to focus on growing their portfolios. For a typical fee of around 10% of the monthly rent, this is a small price to pay for peace of mind. You can maintain a professional distance while still ensuring your properties are well-maintained and profitable.

Building Your Authority as a Real Estate Professional

Karen’s journey also highlights the importance of building authority in the real estate world.

From my own experience, podcasting has been a fantastic way to connect with both industry experts and potential clients. That’s why I’ve been working with a great real estate podcast production company.

Sharing insights through a podcast allows me to build trust and showcase my expertise, much like Karen does with her investors.

Tune Into Real Estate on the Up for More Inspiring Stories and Industry Insights from the Experts!

Karen’s insights are invaluable for anyone navigating the Florida real estate market, whether you’re a realtor or an investor.

To hear more great stories, like Karen’s, please tune into the Real Estate on the Up Podcast. We bring in top industry experts to share their knowledge and help you stay ahead in the real estate market.

And, if you’re thinking of buying or selling a home in Orlando, don’t hesitate to contact us here at Upwell Realty. We’re here to provide expert advice and concierge-level services to make your real estate journey smooth and successful!