Vaster Funded Case Study: Investing in the Florida Keys

Florida isn’t just known for sandy beaches, active nightlife, and thriving arts scene — it’s also one of the most profitable states for investors.

As one of the hottest investment markets in the country due to its excellent year-round weather, proximity to major resorts, and overall desirability, investors have to choose their developments and purchases carefully, plus take out the right financing solutions for their needs.

Recently, one investor looking to develop land in Key Largo found themselves in trouble with their financing solution. They needed a new loan with better terms to accomplish their goals. They turned to Vaster, who helped them get a new loan with favorable terms in no time.

Let’s take a look at this case study in more detail and review why investments in Key Largo can be so attractive.

Investments in Key Largo: The Basics

Investing in the Florida Keys overall has always been popular. This unique area offers seaside living conditions and excellent development opportunities for retirement communities, luxury resorts, multifamily homes, and everything in between. But Key Largo itself is a special case.

The northernmost key in the titular Florida Keys chain of coral islands — 32 miles long in total. But it’s desirable for a more important reason: mild weather. While the Florida Keys can be home to major tropical storms, Key Largo typically experiences very agreeable weather in comparison to some of the other major islands. On top of that, Key Largo residents have very easy access to the Florida mainland via ferries and the overseas highway.

Naturally, Key Largo includes desirable scenery and very attractive properties. Its residents tend to enjoy outdoor activities such as diving, swimming, surfing, parasailing, and much more.

Meanwhile, Key Largo’s neighboring island, Islamorada, is home to a variety of eco-tours for the Everglades, plus four state parks overall. Key Largo is popular among families thanks to its boat tours, heritage trails, history and discovery centers, and so on.

Bottom line: Key Largo is attractive to families, retirees, working professionals, and everyone else. That makes it a desirable investment area for multiple reasons.

What Are the Advantages of Investing in Key Largo?

Compared to other states, the Florida Keys (and Key Largo, by extension) offer several distinct advantages.

For one, property values are always strong, even in times of economic flux or crisis. Real estate agents in this area find that properties move very quickly, whether they deal in commercial properties or residential properties. This is partially due to resident and business habits but also because of overall high demand.

Indeed, the Florida Keys ensure high property values all year round due to the weather and quality of life. On top of that, Monroe County has a unique Rate of Growth Ordinance.

In a nutshell, this Rate of Growth Ordinance limits how much the population can grow by artificially imposing limits on the real estate market. Since the Florida Keys only stretch 100 miles from north to south in total, and because each individual island is only a few miles wide, there is limited real estate development space at any one time.

The ROGO, therefore, ensures that space on Key Largo and throughout the Florida Keys stays at a premium. This influences the price and guarantees excellent investment opportunities for savvy investors.

Most of the prospective buyers for Florida Keys real estate properties are individuals with money. They aren’t looking for single-family homes as their primary residence. Instead, they are oftentimes looking for new businesses to invest in or second or third homes. It’s no surprise that the Florida Keys are home to a high number of retirees who have the capital necessary to put down payment on pricy real estate properties in this area.

That said, investors of all stripes can find deals and opportunities in the Florida Keys. The real estate market offers something of everything, no matter one’s price points or limitations.

What About Housing?

Commercial investors aren’t the only ones who benefit from the unique real estate market in Key Largo and the Florida Keys overall.

Residential real estate investment is also a booming market in this area for a variety of reasons:

Florida’s population overall has grown by nearly three million people since 2010. To date, this makes Florida the third most populous state in the country.
According to US News & World Report, all ten of the fastest-growing places in the US for the next year are located in Florida. That means lots of opportunities for investment and development both in the Florida Keys and beyond.
Key Largo is an immensely popular vacation destination, and many investors rent out properties on Airbnb. The daily rate of a Key Largo AirBnB is over $300 and continues to rise as the pandemic wanes and vacationers seek sunnier skies.
Since October 2021, single-family home prices specifically are up by approximately 17.7%. Despite the economic uncertainty currently affecting the country, people are looking to buy homes in Florida more than almost ever before.
Further compounding this price boost are lower numbers of active listings for single-family homes. Compared to October 2020, the end of October 2021 saw single-family home active listings down by approximately 30%.

As this data indicates, the Florida Keys should remain very valuable places to invest in for the foreseeable future. Even if the economy enters a full recession, and even if other events impact the worldwide economy, the Florida Keys real estate market will stay pricy.

How Vaster Helped Secure a New Land Deal in Key Largo

As Key Largo investments continue to rise, Vaster also continues to play a major role in securing financing for developers and investors of all types.

Let’s take a look at a recent case in which Vaster helped secure financing for a client who wanted to fund a new development project.

The Deal

Initially, Vaster’s client wanted to fund the soft costs of an upcoming development in Key Largo. The development is projected to include 25 townhomes or similar residential real estate properties, plus a dedicated marina area along with a new restaurant and bar. The marina could help to drive further economic activity in the future, should it be completed on time.

The client wished to build on approximately 3.2 acres of usable land while purchasing nearly 4 acres of land for added flexibility.

However, our client ran into a problem: They needed a better deal compared to their current financing situation. Their original loan did not have favorable terms when compared to the projected costs and timeline for the upcoming development.

To solve this, our client used the current appreciated property value to cash more proceeds. Then they contacted Vaster to refinance their loan.

The Vaster Advantage

This was the right choice for all parties involved. With our reliable and professional closing process, Vaster was able to refinance our client’s loan very quickly and efficiently and to their satisfaction. We were responsive, strong with our negotiations, and produced very favorable terms for the then-current cost of debt relative to overall market conditions.

We helped our client refinance their loan through Vanguard Companies and Irca Capital. The entire process took approximately one month.

Ultimately, this series of events is far from unique. Every month, Key Largo is the site of many new investment opportunities and successful deals. Investors who want to take advantage of this unique area and its opportunities should consider contacting Vaster for loan refinancing or other lending solutions right away.

Contact Vaster for Loan Assistance Today

Investing in Key Largo or throughout the Florida Keys can be risky given the high prices involved and the ever-evolving property landscape. When you spot an investment opportunity you want to pounce on, you need financing you can rely on.

That’s where we come in. As a private lender that finances residential and commercial properties, as well as land deals, Vaster is the go-to choice for investors just like you throughout Florida. Not only do we have access to important market data and analytics, but we also have decades of experience we can bring to bear on your investment ideas.

We’re confident we can meet your investment needs quickly, capably, and efficiently no matter what they may be. When the time comes to fund your investment opportunity, contact Vaster and get the financing solution that’s right for your needs exactly when you need it.