Top 5 tips for foreign investors in South Florida

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.

 

 

1. 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.

 

2. 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.

 

3. 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.).

 

4. 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.

 

5. 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!

Governments change, economies shake and Miami remains solid

2017 is a year full of expectations for some, doubts for others, especially when it comes to investing in Real Estate. But as history has shown us, markets go up and down, but they ultimately stabilize. That’s not the case for South Florida; apparently, this region of America is somehow “bullet-proof”. Maybe we are exaggerating, but what we can say for sure is that all the employment policies and immigrant matters will not negatively affect the housing market in this region; governments change, economies shake and Miami remains solid.

In 2016, many experts predicted an implosion of the Real Estate market in Miami, and by the end of the year, it turned out to be just a slowdown. Of course, this might discourage some new investors, but after all the growth that this town has seen in the last years, a slowdown isn’t much of a problem for most investors. Experts suspect this slowdown happened because of the November elections, and it’s just the beginning of an upward cycle; in other words, the market took a deep breath last year.

 

On the other hand, 2017 is not going to be the year for constructors, since financing has become harder than in the past. Still, this is no reason to worry; there’s still plenty of choices for investors looking to put their money on Real Estate in Miami. Last year, many sellers paused their properties and decided to rent only, while investors held their breath until the election was over. Now, at the beginning of the second quarter of the year, the foggy expectations are starting to look bright once more.

Talking about immigrants, we all know South Florida has one of the highest immigrant populations in America, especially latinos. Illegal immigrants are quite a topic nowadays, and there’s a lot of speculation about this, but the truth is, this matters don’t apply (at least not directly) to the Real Estate market. Many investors in Miami and its surroundings come from Central and South America, but most of these people are buying their second home. This means they are looking for legal ways to get American Citizenship (if they actually want it at all). While immigrant policies might affect the economy in other ways, the Real Estate market doesn’t shake to this matter.

Communications from a business standpoint

When I started in the real estate business our main avenue to reach clients was word of mouth. At the beginning this was enough. We were able to sell real estate investments to most of the people we knew. This strategy worked up to the point where we had sold to everyone we knew because obviously family and friends are a limited resource. You can argue you can make friends fast, but earning their trust is way more complex and it takes time.

Trust is a very important factor in almost all businesses and especially in real estate. If people do not trust you, it is going to be extremely hard to close deals. When you start working in any business, the people who already trust you, usually family and friends, are the first ones to do business with you. But how do you do when you need to grow your business outside of your circle of family and friends?

In our case, we grew organically up to a point where we did not have time to speak to more clients but we still needed to keep growing. It reminds me of a friend of mine, owner of a pizza restaurant, who told me once that he was very frustrated with his business while we were having dinner and all the tables were full.  I was puzzled and did not understand. He explained that he could no longer grow his business; that he had reached his maximum and could not grow anymore.

One of the best ways to slowly earn people’s trust is to be in constant contact with them. Therefore, communication is essential to earning somebody’s trust, especially at the beginning of the business relationship. We try to be in touch with our clients frequently via either meetings or phone calls. This allows us to slowly earn their trust. This model does not scale, as time is a limited resource. I needed to talk to more people to be able to close more deals. Our rule of thumb is that you have to talk to 100 people so that 10 listen to you and you close 1 deal. Therefore, the challenge lies in reaching the maximum number of qualified prospects using channels that allow you to grab their attention while slowly building trust.

For these reasons we started experimenting with social networks because the entry cost was very low, almost zero, and more and more people use them everyday. We were able to attract a lot of followers but were not able to attract new qualified prospects. We realized we needed a well-defined communications strategy to maximize the number of qualified people we could reach and ultimately gain their trust. Consequently, it is more than just hiring a community manager; you need to hire somebody who can define a realistic communications strategy that allows you to grow.

It is very challenging and costly for small businesses to hire a full-time communications expert, let alone a communications team. Therefore, most small businesses decide to hire an outside communications consultant or firm. This is a very important step, as this consultant must understand your business and your goals. They will not understand your goals –or it will be very difficult– if they have not worked in your line of business before.

After we hired an outside communications firm and defined a strategy, we started getting calls from qualified prospects. Moreover, we were able to train more salespeople to understand how to communicate the right message to prospects and how to slowly earn their trust. As a result, our team started to grow and our business started to expand. We meet regularly with our outside communications team to tweak our communications strategy and to learn from mistakes. The more they get involved to understand the intricacies of the business, the better the results. This is a very important point. I have heard a lot of people in the real estate business saying we hired a consultant who used to manage our communications and it did not work out so we stopped the service. And when you ask them how often you met to go over the strategy, most of the time they say we only met at the beginning.

Every business is different regarding communicating through social media. In some businesses you can produce a sale using social media directly. It is still really hard to sell real estate through social media, but you need a strong message to be able to catch the attention of qualified prospects and bring them knocking on your door.

It is still important to keep in touch with prospects and clients through phone calls and meetings, but if we had not hired an outside communications consultant, we would not have been able to grow our business and make more clients happy and satisfied with our service.

Carlos E. Rojas – Lic. Real Estate Broker, America Riches

IMAGO: “Art in Action” in Coral Gables

A city is not only a place to have a house and do your grocery shopping, it’s also about enjoying its surroundings and keeping yourself entertained. If you’re one of those who need art to keep life interesting, then IMAGO will definitely fit your lifestyle.

This is a new cultural space in Coral Gables that offers an artistic experience that overcomes the concept of a normal gallery. Here, you’ll be able to enjoy literature, visual arts and the fine arts. IMAGO is divided into four main areas: The Gallery, The Library, The Workshops, and The Designer-Objects Store.

There are permanent events for South Floridians to enjoy, such as art exhibitions, gallery talks, classes, cinema forums, and much more. Imago Art in Action opened on April 6, 2017, and its first exhibition was provided by a group of renowned Venezuelan artists, such as: Sigfredo Chacón, Isabel Cisneros, Rafael Rangel, Patricia Van Dalen, and so many others.

This amazing project allows citizens and visitors of Miami to expand their cultural experience and enjoy the city to its fullest. Not only is it a project for entertainment, but it’s a soul feeder. Art is always a plus in any city!

Brickell City Centre: The New Attraction

Photo: Courtesy of Brickell City Center

We thought Miami already had it all, but Brickell City Centre has proved us wrong. This mixed-use space is just what the city was missing. This project, which we can all enjoy now, is made up of two residential towers, two office buildings, and the Miami Hotel. So, either if you’re a tourist or a resident, BrickellCity Centre will suit your needs.

Moreover, at Brickell City Centre you’ll find the perfect combination of artistry and innovation. Its modern architecture will be a delight for your eyes. In its 4.9 million-square-feet, you’ll have a unique fashion and gastronomic experience distributed among three city blocks.

If you’re a shopping lover, then Brickell City Centre is the latest attraction for you. You’ll find world-class retails such as: Armani, Boss, Coach, Pandora, Saks Fifth Avenue, and so many more. Also, there are some upcoming stores that are soon to be opened, such as: 100% Capri, Apple Store, Bruno Magli, IRO, Nars Cosmetics, etc…

However, if you’re more into work than entertainment, the Brickell City Centre is also the right place for you. Its location at the center of the Financial District, and its two office buildings are the best choice for you if you’re looking for a more developing working place. Best of all: you get to enjoy Brickell City Centre on your breaks!

Doesn’t Miami sound like the greatest city in the world?

Real Estate Market on 2017-2018

The real estate market is the most stable one. It’s a fact that a real estate investment is a safe investment. But in order to make it safe, you have to make it right. From some time now there has been a lot of talk about a global economic recession estimated for 2017-2018. By that time, Miami Dade will be completing a lot of new buildings that are great investing opportunities.

So, you might be wondering how to act knowing about this possible recession. Well, prices are going down in all of Miami Dade County, so there will probably be a lot of good opportunities for investors by 2018 in the high-end market as the prices start to adjust and it’s prudent to wait and buy then. However, for 2017, we recommend investors to make small investments and buy $150K units, which they should rent with a long-term mindset.

A low income unit is a wise investment if there is a recession since these cheaper units may not go down in demand. In case of a recession, there may be more demand for rental if people are making less money in the next 3 years, which is why they’ll look for cheaper residences to live and renting is always more accessible than buying with a lower salary.

Therefore, be wise and invest wisely. The real estate market is a safe one if you play your cards well. Gables Riches offers all kind of assessment in this kind of matters. Don’t hesitate to contact us if you’re looking forward to go ahead on time and make right decisions for your money.

Monarc: Luxury and Comfort

Downtown Miami offers the most luxurious tower in the city: Monarc at Met3. These high-rise apartments are located in the heart of the downtown area, where you’ll find everything you need without having to travel long distances. Monarc at Met3 offers residential luxury and unprecedented access to Miami’s vibrant lifestyle. The tower is within walking distance of Miami River Lake, Bayfront Park, and American Airlines Arena. Also, you can enjoy an invaluable ocean view from your own apartment.

Some amenities that come with each unit are: island kitchens with stainless steel appliances, washer/dryer in the unit, air conditioning, balcony, patio, deck, new and renovated interior, oversized closets, and amazing view. Also, Monarc at Met3 is pet-friendly!

The community features business center, clubhouse, fitness center, full concierge service, gated access, media center, pool, recreation room, and trail for: biking, hiking, or jogging. It’s the perfect place to enjoy life, or to vacation, without having to leave the building.

Start enjoying Miami, Monarc at Met3 is the perfect option if you’re looking for luxury and comfort. You won’t be disappointed with the lifestyle it has to offer. Contact America Riches if you’re looking forward to give yourself the lifestyle you deserve!

Top 7 Properties to Invest

Choosing the right property to invest on is not an easy task. There are so many details we have to take into consideration before deciding which one we should buy. If you are looking forward to investing on real estate, America Riches will help you make the right choice. We want your happiness and your money to be safe. So, if you are thinking on real estate investments, here’s a list of the top 7 properties you should consider.

Student housing

1.     Senior housing: this kind of property is experiencing an upward demand. Its renting rate is increasing daily. This type of property offers the best risk and return profile right now.

2.     Student housing: at the beginning of 2016, the pre-tax yield for student housing properties was 7.6%. An investment on student housing is generally in line with long-term trend, it is the best performing sector year-to-date in the REIT space.

3.     Suburban office: office vacancy has dropped 20 basis points in 2016. This means job growth and therefore economic stability. Investors should consider suburban offices, since they are one of the few property types that are showing recovering growth.

4.     Flex big-box warehouse: this is one of the healthiest industrial sub-sectors, driven by demand for e-commerce tenants.

5.     Self-storage: this sector is becoming more accepted as an institutional asset class. Right now, it’s showing higher cap rates, solid NOI growth, and low cap-ex. Self-storage is pleasing great income expectations.

6.     Neighborhood Community Centers: this type of property, just as fortress malls, is very powerful since it’s carrying the retail asset class. The firm rated neighborhood community centers with 6.4 out of 10.

7.     Street retail: this type of property has been a very trending one on the past few years, with cap rates in gateway markets dropping below 3%. There has been a recent uptick demand on street retail spaces.

Street retail

Flex big-box warehouse

Investing in Miami is Still a Safe Decision

When looking for a new home or a place where to spend your vacations, Miami always comes to mind. Not only will Miami offer you an excellent lifestyle, but it also comes with a great environment, amazing weather, excellent schooling zones, beaches, infinite recreational areas, great job offers, and best of all, economic stability. Miami is still one of the safest places to put your money in, and real estate is one of the most stable markets of all. If you are thinking about investing on a new property, here are some reasons why Miami should be your first choice.

·     Miami is the eighth largest growing city in the United States, and it’s growing daily. Thousands of people are moving to Florida every day.

·      85% of Greater Downtown Miami is under construction. Products to be delivered in 2016 are pre-sold.

·        Over the next 3 years, 100% of the inventory under construction in Greater Downtown (about 7,200 units) will be delivered.

·     More than 80% of the new condos sold over the past three years were obtained allcash, without bank financing. This means a tremendous amount of equity and very little bank exposure or default risk.

·       The most important worldwide city for high worth individuals is New York City. On a 10 year projection, Miami and New York will be the only two U.S. cities for high worth investors.

So, Miami is still one of the safest cities to invest. Whether it’s to purchase a vacation home, a primary residence, or just as an investment, Miami is an excellent choice. This city has everything to offer in terms of quality of life. And numbers don’t lie; your money will be safe in Miami.

Little Havana: the best of Miami but with lower prices

Since prices have been rising around Downtown Miami and the surroundings of Brickell, investors have decided to revitalize and redevelop Little Havana. Rents are being pushed up while keeping a high level of demand due to limited affordable rental inventory. The upside to this market trend is that a potential buyer could replace the current Section 8 tenants and replace them with tenants who pay market rate. The units in the complex measure about 651 square feet, with a mix of three studio/one-bath condo, 48 one-bedroom/one-bath units, and 28 two-bedroom/one-bath apartments.

In fact, Key International places low-rise apartment buildings in Little Havana on the market. They are asking for $12million for all the units. The portfolio includes: 10 two-story rental properties at 931 Southwest 3rd Street and 910 Southwest 2nd Street in Miami, 79 units, and 51,774 square feet of rental space. Each unit costs about $152,000 and $231 per foot.

Little Havana has become a potentially commercial and it’s a magnet for multi-family investments. For residents, rental and sale property prices are significantly lower than in Downtown Miami or Brickell. Still, its location is pretty good, since it’s very close to Brickell. Little Havana has everything that Miami has to offer, but with lower prices. Investors see it as a great opportunity and they have their hopes high in the potential of Little Havana.

Multifamily Project

A multifamily project is a mine of benefits. It is the perfect way to invest in a personal home that can produce a certain income. When buying a multifamily project, either if it’s a duplex, triplex, or quad, you will always have the open possibility of living in one of them and renting the other(s). This would give you a monthly income that could help you pay your bills and offset a part of your mortgage payment. So, as an investment, a multifamily project is a very safe one, especially for first-time buyers.

Also, the American Council for anEnergy-Efficient Economy (ACEEE) is engaged in a project that is dedicated to saving between 15% and 30% of energy in multifamily projects. Regarding water, there’s an estimation of a 6% savings. So, living in one of these properties would be a smart decision. They have lots of economic benefits and offer the perfect means to reunite with your family.

This project over here consists of a main house with three bedrooms and one bathroom, and a separate two-story building with two units, each with two bedrooms and one bathroom. This means: seven bedrooms total! It is a perfect place for a big family that is looking forward to more quality time together.

The main house features many original details. It also has an amazing front yard where your kids can play or where you can organize a get-together with friends or other family members. The house also has a very charming porch with fruit trees.

This family project is located at 4727 NE 1 Ct, Miami, Florida, an area where prices are continuously rising. The main house is currently occupied by owners and its rent price is $3000 a month. As for the two-story units, each can be rented for $1000 a month. If you are looking forward to buying, the whole project has a price of $699,000. A great deal!

This structure has lots of potential and economic benefits. It is well located; very near Biscayne Boulevard, where you can find anything you need: Publix Super Market, Bank of America, CVS Pharmacy, restaurants, and much more. Don’t miss the opportunity of sharing with your family in this beautiful place!