Posts by Master Account

Construction permits: what to learn from the industry

 

The construction industry is a great example of an indicator of what to look forward to. For example if there’s a boom in commercial construction, we can think of business growth and job opportunities. The same happens with warehouse constructions or residential constructions. Every change in the construction industry has to be read in order to predict certain impacts in the area we are studying or in the whole country.

 

However, when we look at the statistics of residential constructions, we are looking at specific changes not only in the industry but on the people itself. Of course these variances could be caused by employment rates or by new tax benefits and legislation. But in most cases, these reflections we can perceive, talk about variations on the culture, migratory patterns, people’s preferences, solvency or desirability of geographic locations. So let’s take a look at the last trends we have in our power.

 

Total Residential Building Permits by Metro Area 2018

 

“Building Permits refer to the approvals given by local jurisdictions before the construction of a new or existing building can legally occur”, according to TradingEconomics.com.

Giving the number of permits and percentage variances since 2017, we can see the locations that had shown growth in the last period (2017-2018), following.

 

Dallas-Fort Worth-Arlington, TX +1.43%

Houston-The Woodlands-Sugar Land, TX +34.5%

Atlanta-Sandy Springs-Roswell, GA +15.7%

Phoenix-Mesa-Scottsdale, AZ +6.9%

Austin-Round Rock, TX +11.3%

Orlando-Kissimmee-Sanford, FL +51.5%

Seattle-Tacoma-Bellevue, WA +2.3%

Charlotte-Concord-Gastonia, NC-SC +9.1%

Miami-Fort Lauderdale-West Palm Beach, FL +5.2%

San Francisco-Oakland-Hayward, CA +4.3%

Minneapolis-St. Paul-Bloomington, MN-WI +16.3%

Raleigh, NC +12.5%

Jacksonville FL +19.2%

 

Source: https://www.fixr.com/ 

 

The Orlando metro area registered an increase of 51.5 % compared to the number of construction permits in 2017. In this way, the Central Florida metro area took the 8th place in the country. Experts attribute the growth to an augmented demand from retirees, a better local tax environment and promising medical and tech sectors.

 

Following, the Houston metro area had an increase of 34.5 % in permits. This was fueled by rebuilding due to the Hurricane Harvey and to a fertile ground for the oil and gas industry.

 

¿But how does a construction permit work?

 

If you are about to request a building permit, you should know they are not always necessary. A building permit is intended to ensure that your plans for the project will comply with local regulations or policies, standards for land use, construction or zoning.

 

When you shouldn’t ask for a building permit

  • Simple repairs or replacements.
  • If you are hiring a contractor, most probably they will do it for you.

 

When you should ask

  • If the project involves additions or major changes to your home’s structure.

 

How to apply for a building permit

  • Contact your local building office and tell them the whole idea.
  • Besides preparing the building permit, prepare any other permit you may need for specific jobs, such as electrical.
  • Once you begin, tap the permit to a window or door next to the building.
  • At some points, call the designated inspector to verify everything is going well.
  • Once the inspector has approved the work, you no longer need to display the permit.

 

Lucrative opportunities are waiting for new investors in the growing zones in the US. If you have doubts or want to share your experience related to building permits, let us know.

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What there is to know about Opportunity Zones

The Federal Qualified Opportunity Zones program has turned South Florida into an even more interesting area for real estate investors. Aiming to incentive private investors, significant tax deferral opportunities are available all over the place in used-to-be economically disadvantaged areas that have already been revitalized. 

 

There are 123 opportunity zones, 67 just in Miami Dade, 56 between Broward and Palm Beach counties. That has allowed almost currently 16% of commercial assets to be located there. As we said before, most of the zones included in the program are already economically and commercially recovered, we are talking of neighborhoods like Miami’s Wynwood and Overtown. Another opportunity zones, that were already pointed out by investors prior to becoming part of the program are North Miami, Coconut Grove, Allapattah and some neighborhoods placed near Fort Lauderdale and West Palm Beach. But, how is that opportunity zones work?

 

The basics of the Opportunity Zone Program

 

  • There are three kinds of tax incentives offered within the Opportunity Zone Program:
    • Deferral of capital gains invested until December 31, 2026.
    • Reduction of capital gains invested, leading to a 15 percent reduction in capital gains tax.
    • Exclusion of gain on QOZ property held for at least 10 years.
  • It’s not for every kind of investor. In order to access the tax deferral benefits you must prove gains from the sale of an asset.
  • The buyer needs to keep the property for, ideally, ten years (capital gains are tax-free at this point). At least they must hold it for five years (capital gains drop by 10%). The longer they keep the asset, the more they benefit. The goal of the program is to incentive long-term acquisitions, to economically change for better the community around.
  • Not only residential investors can be granted the benefits of the program, but also commercial ones. Multifamily rentals, office spaces, retail are the ones that currently more interested in these opportunities. Of course they have to meet some basic requirements to qualify, like: 

 

    • To provide at least half of the services within the area.
    • Make sure their workers spend at least half of their time in the area.
    • Business operation and management are based in the zone.

 

To qualify for the program, traditional limits on the kind of property or business investment are not so strict this time.

 

Now that we know the basics, we start thinking, which is the best opportunity zone to invest then?

 

Our highlighted opportunity zones

 

  • West Palm Beach
  • Boynton Beach
  • Delray Beach
  • Pompano Beach
  • Fort Lauderdale

 

Tax benefits are already generating value-building investments, bringing new jobs and business into the areas. This is really good news, both to investors and to existing local communities. Identifying resources and tools to help your real estate clients investing better and profiting more is part of your job as a realtor. Contact us if you want to partner and offer them not only your knowledge but also financing for their real estate investments.

 

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3 keys for realtors to sell more investments properties

Selling a house to a first-time buyer is not even close to what it takes selling an investment property. It seems the home-buying cycle is always the same, or at least similar. The buyer contacts you searching for a house to live in. Luckily, if you two have had a good experience together, they will contact you after two or three years to sell the first house and buy a bigger one. Of course, there’s always the word of mouth. But that’s it.

 

You won’t get any bigger profit from selling a residential property. On the other hand, selling an investment property could take you to a whole new level. An investor can buy several times from the same realtor and, of course, also recommend you to other investors. Helping them get the best benefit will turn you into an ally on who they can rely on. So how can you approach these kinds of buyers? Yes, in case you are wondering, you need to approach them, as with strategic planning.

 

Approaching real estate investors

 

In order to better know how to approach an investor you need to have a clear view of who they are. There are several kinds of commercial real estate investors. 

 

  • There are those who haven’t even think about investing yet. Your approach will be about why investing and what kind of properties they can invest in.
  • There are those who have given a thought to investing but they are afraid or haven’t decided yet. Your approach, in this case, will comfort them with security and providing answers to their doubts.
  • There are expert investors who you’ll be able to target directly by name. In this case, the approach should be focused on being an ally, take care of your investors budget and benefits, assessing them with a vast knowledge of the market.

 

Now that you have in mind which kind of investors could you target, what is the next step?

 

3 keys for realtors to sell more investments properties

 

  1. Start valuable conversations. Don’t just contact them to say happy birthday or happy 4th of July. Ask them about their concerns and listen. Listen and give proper, wise answers as a professional realtor. Advice them on the best moments for buying or selling, on the tax benefits, on the opportunities available for them.
  2. Help your investors defining a budget. Ask them about investment sizes, equity, main goals. Are they willing to expand their portfolio? Are they just looking for an extra income? Do they have other real estate holdings at the moment? Connect them with expert lenders so that they will gain more negotiation power and access to better investments.
  3. Provide an investment analysis. Most of all if your clients are those afraid of investing for the first time, show some initiative and check the previous rental price of the property, compare it with other similar, show them the math you’ve done.

 

Once your real estate investors are already trusted and willing to start, provide some extra added value by connecting them with the ones you recognize as the bests in the market. Your clients should have access to the best vendor, to the best lender, even maintenance person or taxes expert. Offer investors a premier service and you’ll be turning into a premier realtor while you grow your portfolio and your sales.

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Creating a realtor’s network: How to start doing better networking.

 

As a realtor, you can have tons of years in the market. But your experience will never make it alone, if you don’t assign time to do some networking. Allocating some hours in your agenda to do this kind of work, will assure you a better outcome in the real estate industry.

 

Most of the time, to be visible in your area is important. It turns out in the real estate market it’s inevitable. Our bet is, networking will be your chance to build a reputation, to work on your personal brand and finally, to get better and bigger real estate clients.

 

Why and how can a real estate agent do networking?

 

Almost every real estate agent knows that, by networking, no matter if it’s a big gala or a small affair, they will be achieving some goals:

 

  • More involvement in the community.
  • Better lasting relationships.
  • An increase in their referrals.

 

Nevertheless, there are two things worth noting here:

 

  • Relationships don’t necessarily have to be made with people belonging to the real-estate market. You can build trust with lenders, tax attorneys, or home inspectors. Any professional you believe that could ever help you serve your clients will be worthy of your time. 
  • If you are the only or one in the few real estate agents in the room, for sure you’ll get everybody’s eyes on you. It will be a great opportunity to exchange cards with possible future investors. So, don’t just pick events in the real estate industry.

 

Get your name out there

 

Not only can you search among the existing events the ones that adjust to your expectations, but you can create one of your own. What about designing an event to attract just the people you need and creating the database of your dreams? Let’s see some key points when it’s time to be the host:

 

  • Think about topics in which you can add value. Invite proper speakers or industry referents that can also provide their own points of view, enriching your speech.
  • Bring in different kinds of prospects. Design an ideal network that can help you reach your prospects. Make yourself a question: who could you work with as an associate? 
  • Prepare impactful presentation resources (images, videos, performance) and a personal story to share, that will help you create engagement. Most important, don’t forget to be honest with your audience, what are you expecting of them? Why are they investing their time on your event?

 

At last, but not least, don’t forget people want to have fun. Don’t make it all about business, get some entertainment to amuse your audience. The more family-friendly it gets, the more they will love your event.

 

Finally out there

 

When you finally make the time, hopefully the habit of creating or attending an event, be sure you get the most of it. Squeeze out your scheduled events to get, not the more connections you could, but the best ones. This is not about a figure, but about the quality of your network. This means you should try to make real conversations, to engage with people on a more profound level, introducing yourself in a memorable way and being reachable at a later time when they try to reconnect with you.

 

What do you think about networking? How do you do it yourself?

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Why Brickell is a great place to live in the US.

United States, Florida, Miami, Downtown Miami, Brickell. You’ve found the major financial district in Miami. Go beyond and you’ll find Brickell key, an island that provides the best views of the neighborhood.

 

Its look & feel, gastronomy, connectivity plus convenience and its creative culture, are the key items turning Brickell into a massive new construction center. Everybody wants to live in this Florida area, that has tripled its population since 2000. Some of us know that Florida gets 900 new inhabitants per day, being the second fastest growing destination in the US, after Texas. Brickell is now the hot spot in the whole place.

 

In just a couple of years more, Brickell, that is the downtown of Miami, is projected to have 109.000 residents. Today, it has 92.000, just do the maths. What is that makes Brickell especially appealing? Let’s see.

 

The 7 more appealing reasons to live in Brickell

 

  • There’s fluency of visitors that choose Brickell instead of the beach. It’s a mecca for brands that search interaction with millennials. Business opportunities, art installations, international cuisine. New restaurants, bars and hotels, as well as almost perfect weather, ideal for South American people, are just some of the first reasons to choose Brickell.

 

  • In Brickell corridor and Brickell key there’s an explosion of investments in new construction. Condos, office buildings, mixed-use developments and apartments, are just some of the types of properties about to be born in the neighborhood.

 

  • 85% of real estate buyers in the area are from countries like Argentina, Mexico, Brasil, Colombia, Venezuela, Spain and Italy, choosing among great condos like Brickell Flatiron or 1010 Brickell. Brickell City Center.

 

  • If you are looking for an urban core New-York stylish, Brickell could be your place. Its financial district feels more new yorker, rather than Miami. The Metromover will take you to different spots like Bayside Marketplace, American Airlines Arena, Miami-Dade County School Board or Miami-Dade College, for free. 21 stations to different destinations, 5:00 a.m. to midnight, seven days a week, as its website states. You’ll also find the best European brands like Le Roy René, Mirto or Acqua di Parma. 

 

  • If shopping or doing business is not your thing, we are sure you’ll be dragged into the interactive science museum (Phillip and Patricia Frost Museum of Science) or the Pérez Art Museum Miami, two of the youngest museums in Miami. You’ll also find plenty of international exhibits or Miami-based artists.

 

  • In Brickell you can find the top spot for sushi in Miami, NAOE. If you are more fan of the Italian food, you’ll have options like Casa Tua or La Centrale. For South Americans missing their local food, La Mar or Quinto La Huella are options that will suit them.

 

  • Brickell is located, by car, 15 minutes away from Miami Airport, 15 minutes away from South Beach (5th and Ocean), 6 minutes away from the American Airlines Arena and 30 minutes away from the Bal Harbour Shops. The neighborhood is surrounded by  Little Havana, Allapattah, Coral Way, Coconut Grove and Downtown Miami neighborhoods.

 

Gyms, salons, spas, like the premier one at Mandarin Oriental, will provide facial and body treatments. For your mental health, relaxation at a terrace with an amazing view or at a docked yacht will both be good options. Brickell is not only a financial center, but also a place to enjoy. Since those times when it was only a patch of office buildings, it has developed into a place to really check out, a best-kept secret in Miami.

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Everything you need to know before investing in pre-construction condos in the US.

pre construction

When you think of buying a pre-construction condo in the US, you are approaching the idea of investing almost in a dream. If you are lucky, you will count on floor plans, renders, or blueprints that will help you make an idea of the possible outcome. On the other hand, you’ll have a stronger vote when it comes to choices on the future building, and for sure you’ll be offered a great discount, as you’re in some way, financing the whole construction. So, what is there to take into account? How can you reduce the risks and make the most of the advantages? When it comes to buying a pre-construction condo in the US, you should consider the pros and cons, and be alert on some items following.

 

What you should know before investing in pre-construction condos in the US.

 

You’ll find out a pre-construction building has different stages in a very visible timeline. Those are:

 

  • Reservation. The developer is still making plans. There are only blueprints and renders available, all of them can change a lot before the completion of the project. First-tier pricing is available for you if you sign up early to the project. Thus, one of our stronger suggestions is that you enter as soon as possible. You’ll not only be getting the deepest discounts but also be able, in most cases, to place a deposit without even buying the whole unit at this point. Work with a well-known broker so that you can rest on him. For sure deposit requirements will not be hard to achieve and, if you cancel during the first stages, most probably it will be with no penalties. Also, if you get in early, you’ll have a wider selection of units to pick. Whether you are an investor buying multiple units or if you are buying your house, this is a convenient stage to get in.

 

  • Contract. This stage of the projects begins with approval. The government will release the purchase agreement to those who already made a reservation. After this agreement, you’ll get 15 more days to go over everything before penalties for canceling start to be in force. For sure you’ll have to make another deposit and prices have increased since reservation phase. On the good side, if you enter at this point, you’ll have more certainty the project will be completed.

 

  • Breaking ground. 18-24 months is the average lasting of the construction phase for luxury buildings. Your capital will be multiplied at this point, although you’ll be requested new payments at certain milestones. If these are too surprising or come at a moment you have an adjusted budget, you can rely on a mortgage loan.

 

  • Completion. After construction come inspections. And after inspections, you can close on your condo. You’ll realize you’ve saved tens of thousands of dollars because of getting in early. You can now take ownership and if you want to, reselling at a lucrative price.

 

Search for the experts

 

Buying a pre-construction condo in the US is not hard. Only, if you are not an experienced buyer or investor, you should look for advice. Realtors on trend will help you choosing the best options, entering the project at the right timing and asses you with mortgage loan options if you are in need of.

 

If you also need assessment or advice on your finance to invest in this project, or if you’re not resident, you can contact us. We are experienced lenders when it comes to foreign national mortgages, knowing very well the Miami, Orlando, Texas and Colorado real estate markets, each of them with their particularities, and we can also assess you on the locations, neighborhoods, developers, and some other factors that may affect your future property.

 

When you choose to invest in a pre-construction condo in the US, you’re getting into an exciting proposition and you need to plan diligently and work with the best advisors you can get. In the end, your vision and your encouragement, but also your network, will drive you to success.

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5 steps to become a starship luxury real estate agent

In this blog, we’ll tell you how to show your clients you are not just a real estate agent, but an expert market analyst. You understand real estate cycles and economics, you know where is everything moving to. You can take care of your client’s financial well-being. In the luxury real estate market you need all of that, you need to show some skills. This guide is your key to achieve better real estate clients.

5 basic steps to become a starship luxury real estate agent

  • Don’t be stuck and get out there. Exchange by attending to different events related to your target. Study the market, taking good care of trends and patterns. If you don’t have time to do everything, hire an assistant. If you don’t have money enough to pay an assistant, get one anyway, on a commission basis. Warning! Don’t you ever run open houses. In the luxury market this is not considered as classy.
  • Time managing is a fundamental thing. First, you cannot leave emails unread. Then check how’s every listing performing. After that, focus only on the tasks that you can consider as monetizable. The rest of them, leave them to your assistant. Delegate the operative and repetitive stuff. Make the most of your best skills. Never remain all day behind your computer.
  • Get your own website. It will be an essential part of your business. Your possible clients can access frequently asked questions there, verify your knowledge and experience, and get to see referrals from other buyers/sellers. It will be a good tool when it’s time to build your reputation in the field.
  • Get on the phone with information. You can’t call someone without having at least a minimum knowledge about them or about their needs. Nowadays everyone is receiving tons of phone calls and messages, so try to make it memorable. Build trust for a lasting relationship, get personal with your clients.
  • Be collaborative with other realtors. Competition is a thing from the last century. Work in teams, gaining assets and knowledge about the market. Co-listing or co-marketing is better than never selling anything.

After checking all the previous basic steps, go further. If you are focused on the luxury real estate market, then we are talking about substantial investments, homes or commercial real estate worth millions of dollars. In this case, sellers want things to be done in the right and exact way they are expecting. Read below.

3 keys to achieving your goals in the luxury market

  • Price the property correctly. Never use a price per square foot. Look out at comparable sold properties to avoid pricing wrongly.
  • Get a psychological profile of the target buyer. It will be a high-end clientele, so your work will not be the same as other previous times.
  • Do your marketing with luxury media. Photography and video should be upclass, providing video tours and attractive pictures of the property. In this case a professional photo shooter is a must.

Working with lenders

Networking with private lenders will allow you the opportunity to access different markets you couldn’t just by yourself. For instance, a foreign buyer that is not capable of access a regular bank mortgage, could buy your luxury property if you offer them a private lender solution. Also, private lenders could also better know your possible clients and help you marketing your luxury properties working side by side.

Don’t forget in the end, the final key to getting volume in the luxury real estate market, is offering value to your clients. If you do a great targeting, you get to know who your clients are and what it will possibly provide them value. Luxury realtors spend a lot of time living as their clients do. Work on your image reading what they read, attending the events your clients attend, getting in the right circles, learning the specific language of your possible buyers, educating yourself. That will be your main advantage when you go out in the luxury market.

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The best neighborhoods to invest in Miami

best neighborhoods to invest in Miami

Miami continues to be a paradise for foreign investors. Being used to their countries, where economics and politics paint a landscape that is not very safe, Brazilians, Venezuelans, Mexicans, Colombians and Argentines are just some of those who decide to trust in long-term investing in construction or properties in Miami.

 

On the other hand, the advantages of financial leverage often make it not only more profitable to invest in a property acquisition rather than paying rent, but also end up making the mortgage monthly payment cheaper than monthly rent. Those are all the reasons why regular tourists in Miami decide to invest their capital in the city.

 

What drives the choice of a real estate investor when picking a certain area in Miami? Well, there are several variables to take into account. In the first place, life-quality, then the strategic location and the valuation of the properties. But let’s see some of the most chosen and best neighborhoods to invest in Miami.

 

The best neighborhoods to invest in Miami with a mortgage loan

 

The best investment areas in Miami are divided according to the objective that the investor has. On one side, we have neighborhoods that are better for housing, then there are other ones better for businesses or offices. Let’s dig a little deeper about both cases.

 

  • Best neighborhoods to invest in Miami for housing

 

  • Surfside is ideal for those looking for a quiet, peaceful sea view. It is a residential area, ideal for taking daily walks.

 

  • Coconut Grove is known for its large amount of vegetation. It is located near Coral Gables, south of Miami, and also provides peace for its neighbors.

 

  • Brickell, the former financial center of Miami, is the perfect place for those looking for an exclusive area, near the river and downtown. Quality and distinction for those who want to stand out or to later take advantage of a higher income if they decide to rent to someone.

 

  • Aventura is an urban area with great family and cultural life, which has been developing firmly since 1995. It is quiet and offers many commercial and gastronomic options.

 

  • In South Beach we can find the famous Ocean Drive. Iconic, this area houses the best hotels, restaurants, cafes and delicacies, as well as artistic activities. Previously known as the American Riviera, South Beach stands out for its elegance.

 

  • Bay Harbor / North Village is an area composed of three islands in Miami Dade: North Bay Island, Harbor Island and Treasure Island. The triad is connected by the Kennedy Bridge to Miami and Miami Beach. It offers some amazing views of Biscayne Bay. Bay Village is also renowned for the nightlife. It is very interesting for investors because it is also located in a strategic location close to Downtown and Miami Beach.

 

  • Hollywood Beach has an atmosphere that could remind you of the 1930s. It is one of the few areas of Miami where we cannot hear everyone talking in Spanish, with most of its tourists being European. The landscape shows as small houses and buildings.

 

  • Fisher Island is the place where luxury reaches the impossible. Mansions of politics, artists and celebrities are blessed with private beaches, golf camps, spas, etc. It is an island surrounded by the Atlantic Ocean and by South Miami Beach in its northern part.

 

  • The best neighborhoods to invest in Miami for offices

 

  • Coral Gables and West Palm Beach have seen an appetite for Class A offices. A lot of companies are looking for full floors in both areas.

 

  • Fort Lauderdale. Here, new buildings designed with open floor plans, big amenity spaces and wider windows will attract business landing in Miami.

 

  • Brickell continues to be an ideal destination to invest in offices as it has traditionally always been. As the opposite we find an emerging area, Wynwood, with a large number of offices where we can find already installed coworking spaces. A domino effect is expected soon. Coconut Grove is also joining as a destination for these kinds of companies.

 

Finally, it is good to take into account the differences between an average monthly payment of a mortgage loan and an average monthly rent. There are neighborhoods in Miami where the mortgage payments are cheaper than rents, and when looking at different areas of investment in the city, those neighborhoods are usually chosen over others for that reason.

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Mortgage loans for foreign nationals buying in Miami.

mortgage loans for foreign nationals

Even with a fluctuating economy and always in disadvantage with the US currency, Latin Americans continue to invest in properties in Miami. Among the foreigners who buy in the city, we can say that there are 15% of Argentines, 11% of Venezuelans, 9% of Colombians and 8% of Brazilians. Mexicans and Peruvians complete the landscape. The real estate market in Miami is promising and, for that reason, it attracts investors from all over the world and especially from Latin America. Mortgage loans for foreign nationals are everywhere.

 

How and why do foreigners invest in Miami?

 

Investing an average of US $340,000 on a property, foreigners buy in Miami because they know that the rentability of a transaction there ends up being between 3% and 6%, according to the Miami Association of Realtors. In most cases, investments are made to protect people’s capital. Given the fluctuating economic situation in Latin American countries, even with some of them going through a political crisis, foreigners opt for this safer option: investing in Miami feels safer than in their own countries. With an initial percentage of the final value plus a mortgage loan, they can access a property that will allow them to safeguard the original investment, achieve some savings and bet on a better future.

 

The types of investments foreigners make in properties in Miami vary according to their purpose. 80% of foreigners invest in luxury residential assets. The rest is distributed among homes for rent, offices, or franchises. Being Miami a multicultural city, with amazing beaches, the best nightlife and ultimately becoming the hub of many technology companies and commercial ventures, the range of investment options is vast.

 

How to invest in Miami being a foreigner?

 

Generally, many foreigners invest cash. But if liquidity does not help and they need to apply for mortgage loans for foreign nationals, they should take into account that financial institutions analyze the following variables of credits for foreigners to define interest and terms:

 

  • Nationality
  • Type of property being purchased
  • Source of income
  • Source of liquidity

 

The mortgage loans rates for foreigners are usually low, ranging between 4.5% and 5% The minimum requirements are not too many. Let’s take a look below:

 

  • Visa, based on their nationality (at least a valid tourist visa), and a copy of the passport.
  • In the case of condominiums or townhouses, it is usually requested between 30% and 35% of the value of the property as initial payment.
  • Proof of income and liquidity (for example movements in bank accounts, reference letters, salary receipts, etc.)

 

Which option is more convenient when applying for mortgage loans for foreign nationals?

 

When applying for mortgage loans for foreign nationals there are two main options:

  • The first one is related to bank mortgage loans, that with lower interest rates are likely to be obtained. The disadvantage in this case is that banks offer less flexibility in customizing credits according to the investor’s conditions or goals.
  • On the other hand, there are mortgage loans for foreigners from private investors. This second option is very common, it offers a range of options for each special need. These are operations that are mostly closed in less than 7 days, without bureaucracy in between. This type of loans is very useful since the real estate market in Miami usually moves very fast, the investor must act quickly in order to not losing the opportunity.

 

Miami, a magnet for foreigners

 

Being Miami totally multicultural, we can say it’s a cosmopolitan city, and this can be noticed in almost every aspect: art, gastronomy, music, and the events that take place every day in the place. That is one of the reasons why foreigners are attracted to Miami. Besides, there are regular tourists who are tired of paying high rents in the area for each holiday or vacation. Then, they decide to invest in new constructions or already built properties thinking in a long term, dreaming with ideal vacations. Miami will continue to be a first chosen destination by foreigners who seek a better life-quality or a safer place for their business investments.

 

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How does bridge lending work for foreign investors? What they are and its advantages.

When an investor is looking up for business opportunities in Miami real estate, the range of possibilities is vast. But sometimes, if we don’t have enough liquidity, we could end up with our hands tied up. This is the moment when bridge lending comes to be the star in this game.

 

Bridge lending is related to short-term loans, that aim to solve a special kind of needs that traditional bank mortgages couldn’t. Every now and then, a delay of one month could imply the loss of a great opportunity. This average mortgage bureaucracy can be skipped if we choose a bridge loan. Easily and quickly, the real estate investor can access the amount in need, and this will allow him or her to grab the opportunity, avoiding the loss of time due to paperwork or terms.

 

The lack of funds doesn’t necessarily imply that we have to let go of great business opportunities, or the house you’ve always dreamt. Maybe there’s simply a gap, a period in which you need to solve some matters in order to gain liquidity. In that instant, an opportunity shows up. ¿What would you do? ¿Would you let it pass? Bridge loans can save this gap for you to jump, to bridge that gap from one point to another one. They can afford your investments for a short-term period when you don’t have money enough in your account, or if you’re waiting to close another delayed transaction. If this is not enough, this kind of mortgages offers a lot of advantages among other kinds of financing. Following, let’s dig in deeper on each of them.

 

The 8 most important advantages of bridge lending

 

Bridge loans are not like any kind of known mortgage, they offer more flexibility and customization according to the investor’s needs and taking into account the transaction about to perform.

 

  • When an investor can’t access a mortgage because of times, it’s common to immediately think in other financing options. Bridge loans rates are a little higher than mortgage rates but, at the same time, lower than personal loans rates, or rates of other kinds of loans.

 

  • The investors can choose between options with variable or fixed rates. According to the length of the bridge loan, if the cancellation is in the short-term, it will be better a variable rate. If it’s a long-term bridge-loan, we suggest choosing fixed rates.

 

  • A bridge-loan lender, knows everything related to business investments and the real estate market. For this reason, the loan can be personalized and approved faster, according to the investors business strategic plans. For example, the investor could cancel the loan with another property, with other businesses incomes, or refinancing the loan with a traditional mortgage.

 

  • Bridge loans can be canceled at any point, anticipating its maturity, without any fee or penalty.

 

  • It can be accorded for bridge loans, the possibility of making monthly interest payments (small payments), and cancel the initial amount when the loan expires.

 

  • Bridge loans can be backed up by other assets, instead of being tied to the credit score or job incomes.

 

  • This kind of mortgage loan is an excellent choice for foreign investors, when there’s no possible way of ascertaining funds or applying to local banks in Miami.

 

  • The bridge loans are usually provided for periods from one to three years, with a possibility of renewal. It’s an excellent option if the investors don’t have exact dates of other related businesses in motion.

 

Bridge lending offers the last advantages we’ve mentioned, and some other ones. If you wish to calculate different possibilities you can try our loan calculator. If you prefer, you can also contact our agents to know different financing options, by clicking here.

 

Bridge loans are the most convenient loans for foreign investors in Miami real estate. The customization of terms, rates and cancellation, are the best option when it’s time to request a loan in the Florida area.

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