Since 2006, the fluctuations in the United States real estate market have
been focusing around South Florida, transforming it into one of the top
investment opportunities in the US. Taking this into consideration, many
foreign investors have seen this area and its surroundings as the perfect
opportunity to secure their assets and produce an extra income. However, the
investment process involves some steps that might become a little more complex
for non-native property owners. That is why, if you’re a foreigner, we want to
share 5 tips for you, to help you start your journey in South Florida’s real
estate business.
- Be
realistic: some marketing
professionals might try to sell the luxury + bargain image (90,000$
beachfront apartments, for example), when in reality those expectations
are far apart from the actual projection of the market. To develop a
successful business in Miami, foreign investors must be aware of the fact
that any contract that is worth the cash, will be closed within a week or
so. To see results in terms of 5 to 10 years, being willing to invest
realistically (however obvious it might seem) is essential.
- If
possible, work with corporations: investing under the name of a Limited Liability Company (LLC) or a
Corporation simplifies the tax payment process and the inheritance
procedures in a long-term period. Otherwise, the tax rate for a non-native
owner, in case of any extraordinary event, would be too high. These
corporations can be foreign, domestic, or might even be presented in the
form of a trust fund.
- Be
aware of the bureaucratic proceedings: even though the process in the United States has proven to be
pretty simple, there are certain requirements for foreigners and
non-residents. Some of them, like the TIN (Taxpayer Identification
Number), imply a bit of a procedure (filing an application and providing all
the ID specifications: passport, driver’s license, birth certificate, then
sending it to the respective offices, etc.).
- Find
the best professionals: for
the completion of the previous step it is necessary to have experts, such
as US Tax attorneys, Real Estate attorneys, accountants, brokers, and
buyers who are committed to your business and watch over your safety.
- Ask
Questions: once you have found
the best possible team, be prepared to ask some of the following
questions: What if I carry out other businesses in the US? Is there some
type of tax alliance between my country of origin and the US? These might
be very helpful for you and the professionals that guide you.
In South Florida, we keep these 5 tips at the top of our heads. We are
prepared to receive you, answer all of your questions and guide you through
your investing process! Contact us!
