From sports cars, tans, and an influx of spring breakers to high-end fashion, art, and fine dining, Miami is experiencing a cultural revolution, which is also greatly contributing to real estate investing. The Magic City is listed among world’s top 10 luxury property markets due to its excellent location, bi-lingual workforce, and high concentration of international banks. However, what sets this city apart from other top-ranked cities, such as New York, Sydney, London, and Paris, is the relative property value it offers, especially to foreign buyers. Investing isn’t necessarily a difficult trade, in fact, it is all about good timing, and Miami is currently a real estate goldmine.
Real estate investing as a business
If you are absolutely sure you want to start a career in investing in Miami property, you need to treat it like a business. Gathering sufficient and relevant information to create a sound business plan is the first thing that should be on your to-do list. Detail all of the nuances, check out your competition and their previous successes, assess your advantages and disadvantages, and create realistic short-term, mid-term, and long-term goals. Remember, a megalomaniacal approach won’t get you anywhere, especially if you are new on the scene, so it’s better to take calculated baby steps first, rather than to rush into everything immediately.
Relationship with local bank or mortgage broker
Planning finances with expert help is extremely important and beneficial. You need to find a reliable person or group willing to lend you money when good opportunities arise, so establishing a strong professional relationship with a local bank or mortgage broker will do you wonders.
Creditors and keeping tab on the score
Keeping a credit score of at least 700 or better is what can keep you in the game because no real estate investor will cooperate with you if your credit is shot. The better you score, the higher the chance you are going to successfully borrow money for investing in your properties and the less interest you are going to have to pay. Trans Union, Equifax, and Experian are excellent credit card reporting agencies to keep tabs, or use the services on Credit Karma website free of charge.
Scan for Miami properties
Scanning neighborhoods for attractive properties is something everyone should do thoroughly, especially international investors who aren’t entirely familiar with Miami. Determine what type of real estate speaks to you, what you feel can make you good money. A word of advice, stick to residential areas, since these properties are currently the best thing available on the market.
Speak with local Miami investors
If you are fresh on the Miami real estate market, there is absolutely no reason for you to do go through the entire process completely alone. Plenty of investors are doing the exact same thing as you are and they understand the struggles which need to be endured. Feel free to connect with such people and ask them for information about the landscape, hot properties, interesting facts and happenings in Miami’s realtor world. Asking for help and letting experienced people guide you will certainly pave a smoother road to success.
A few more tips
- Since every transaction is done under different circumstances, consult your attorney and accountant to create an optimal structure under which you acquire property.
- US tax laws need to be greatly considered, so it’s best to find a skilled American tax advisor who understands how the national tax code system works.
- Similar to social security number, you should also apply for an ITIN, or International Tax Identification Number.
- File an annual US tax return so you can have more insight on your property’s activity and preserve your tax losses.
The real estate investment process tends to be slow at the beginning and just like everything else it takes time to get the hand of things and start noticing progress. Miami is currently a fertile ground for realtor businesses, so follow these instructions, study every aspect of it from additional reliable sources, and when you finally feel ready, weigh your options and seize your opportunities.