Do’s and Don’ts of Investment Real EstateTerry Riffe | April 11, 2016
Do’s and Don’ts For Foreign Investors in Orlando Real Estate
It’s not uncommon, An Flamand noted, for British investors to get advice about the real estate market in the United States, and even about how the purchase of a home there can help them secure permanent residency.
There’s just one problem, noted An, Owner/Broker of Orlando Vacation Realty. The advice isn’t coming from someone like An herself, a Real Estate Expert who specializes in foreign investment purchases. It often comes from attorney solicitors with a fundamental misunderstanding of how the U.S. real estate market works – particularly for foreign investors.
“They will tell them that if they own and manage two or three homes here, they can become citizens,” An noted. But often times those buyers have found out, the hard way that their investment didn’t quite work out that way.
“After three years,” An noted, “they have to go back to England for their E2 visa.” And that’s when they find out that in addition to owning the properties, they also needed to create jobs in the community, demonstrate growth in their investment, and prove other economic factors. For many, not being able to demonstrate that means they are suddenly packing their bags, forced to return to the United Kingdom.
“That’s the wrong advice,” An said. “People can’t just trust someone because they are an attorney or an accountant.”
What they really need, she added, is the expertise of someone who fully understands the market, particularly as it applies to investors.
“They need someone that knows this market,” she said, “particularly the market outside their country.”
To assist buyers, Orlando Vacation Realty just released a new advisory report for investment buyers, on knowing what to avoid once they’ve made a decision to purchase an investment property.
Having an expert in the real estate market guide them, An said, will make all the difference between a highly successful investment – and a potentially risky one.
The advisory report notes that the top three things to keep in mind when investing in real estate are, first, to avoid the kinds of “get rich quick” schemes that are sadly all too often pitched at investors.
As An noted, if a deal sounds too good to be true, the chances are it definitely is. This is particularly true for small investors, she said.
“The large investors are more experienced,” she said. “But the ones who buy two to three properties, it’s those kinds of small investors who sometimes go with people who don’t really know the market.” And it’s those agents, she added, who frequently attempt to mask their lack of knowledge and experience with those all-too-familiar get rich quick schemes.
“They hear from them, ‘If you do this and that, you’ll make this much money’ – but it doesn’t happen,” An said.
That’s why all investors should specifically look for an Investment Real Estate Broker like An Flamand, someone who is specializes in the investment market. They have a much greater opportunity there than with a real estate agent that primarily sells to residential clients, but who are not specifically trained to assist investors.
“If you want to buy real estate, go with a real estate agent who is specialized in real estate investment,” An said. “They can compare the markets for you. They can show you the different options you have. That Realtor will be able to show you which markets you’ll want to go with.”
Lastly, look for the Real Estate Investment Broker that wants to help you find the best possible investment – and not simply a purchase that amounts to the best sale for the Realtor. Look for a broker, An said, that wants to establish a long term relationship with the investor. The ones that do, she added, will be the ones that buyers can most solidly rely on.
An noted, she has spent years guiding foreign investors to appealing properties in Central Florida’s fast-growing housing market.