Let Us Help You Invest in Central Florida

Learn to invest in real estate from other countries

Here’s a description of the process for a foreign investor in real estate, including the 1031 exchange for capital gains

Firstly, it’s important to note for foreign buyers, the bank primarily verifies the the client has sufficient funds to cover the down payment, closing costs, and reserves. The down payment required is typically between 30% to 35% of the purchase price.

Additionally, the client must have a valid passport and visa and provide a legible, scanned copy or clear photo of both. The bank also requires the last two months of bank statements to certify available funds for the down payment, closing costs, and reserves.

To complete the application, the client must provide one reference letter from their bank. The letter must state the type and length of the client’s relationship with the bank, which should be more than two years, and certify that the client has no derogatory history. The reference letter can be from the client’s bank in their country of origin

Finally, the client must already own a property (primary residence) and provide documentation certifying that the property is free of debts and liens to fulfill the homeownership history requirement

1. Initial Consultation

The process begins with an initial consultation to understand the foreign investor’s goals, preferences, and investment criteria. This includes discussing their desired location, budget, property type, and investment strategy.

2. Financing and Pre-Approval:

 If the foreign investor requires financing, the realtor can provide guidance on securing a mortgage or exploring other financing options. Pre-approval is sought to determine the investor’s purchasing power and ensure a smoother transaction.

3. Property Search

Based on the investor’s criteria, the realtor conducts a thorough property search, considering factors such as location, market conditions, rental potential, and potential for capital appreciation. They provide a curated list of suitable properties for the investor’s review.

4. Property Viewing and Due Diligence

The realtor arranges property viewings for the investor, either in person or remotely through virtual tours. The investor conducts due diligence, including property inspections, verifying legal documentation, and assessing any potential risks or liabilities.

5. Offer and Negotiation

Once the investor identifies a property of interest, the realtor assists in preparing and submitting an offer on their behalf. Negotiations with the seller are conducted to secure favorable terms and conditions for the investor.

6. Purchase Agreement and Escrow

When the offer is accepted, the realtor helps prepare the purchase agreement, outlining the terms and conditions of the transaction. The investor typically places the funds into an escrow account, demonstrating their commitment to the purchase.

7. 1031 Exchange (Optional)

The realtor arranges property viewings for the investor, either in person or remotely through virtual tours. The investor conducts due diligence, including property inspections, verifying legal documentation, and assessing any potential risks or liabilities.

8. Closing and Title Transfer

Once the investor identifies a property of interest, the realtor assists in preparing and submitting an offer on their behalf. Negotiations with the seller are conducted to secure favorable terms and conditions for the investor.

9. Property Management (Optional)

When the offer is accepted, the realtor helps prepare the purchase agreement, outlining the terms and conditions of the transaction. The investor typically places the funds into an escrow account, demonstrating their commitment to the purchase.

10. Ongoing Support

Even after the transaction is complete, the realtor provides ongoing support to the foreign investor. This includes providing market updates, recommending property management services, and assisting with future real estate transactions or investment opportunities.

It’s important to note that specific details and steps may vary depending on the location, regulations, and individual circumstances of the foreign investor. Working with a knowledgeable realtor can help ensure a smooth and successful investment process while considering the benefits of a 1031 exchange for capital gains deferral

 

As a dedicated realtor, I am committed to guiding my foreign clients through the entire process and ensuring all documentation is in order. Please note that any documentation in Spanish or any language other than English must be translated by a certified translator.

 

Compare Listings