Prospective investors in Florida foreclosures need more than a buy low, sell high philosophy. They have to buy fast, too.

A local banker told me cash buyers in the marketplace have rose from three to 24 percent. Cash buyers have a distinct advantage because some homes need to sell before a foreclosure sale appears. This means that more savvy investors with cash are here already picking up the best properties, the cream of the crop. By the time everyone else figures out that this is the time to buy, the best properties will be gone.

A few years ago, even a few months ago, this was less of an issue. In addition to a smaller proportion of cash buyers, supply skyrocketed. In September 2006, Florida had the country’s highest foreclosure activity - more than four times higher than the national average – and accounted for 27 percent of the nation’s total.

By the start of July 2007, the Sunshine State had fallen to number two behind California but its foreclosure listing filing rate still grew 23 percent from earlier in the year. In February of this year, filings increased from January while it dipped four percent nationwide.

According to the latest research report from RealtyTrac Inc., however, the tide is changing. The number of Florida homes in some stage of foreclosure dropped seven percent from February to March as the national amount rose five percent.

Judging when the market will rebound for sure and property values will once again begin to climb is difficult. We probably have not hit bottom yet, despite the most recent swerve, but the surge in cash buyers is already a factor. If the savvy buyers are here with their cash, we should all pay attention!

For anyone looking to get in at a very low cost, and set themselves up for either reselling properties or renting them out for a substantial profit, the time to buy is now.