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Florida has long been known as a great real estate market for foreign investors. Commercial and residential markets both represent favorable investment markets for foreign capital. While investing in real estate outside of a county or state may seem a daunting task, this week we talk with an investor who grew and a successful SFR portfolio out of another country!
Colin Murphy is Director and Co-founder of Torcana, Ltd. an investment firm specializing in single-family properties in Florida. With over ten years’ experience behind him, Colin has grown Torcana into a leading name in Florida SFR markets and he was able to do it all based out of Madrid, Spain. This episode, Colin shares with us some tips for building a successful foreign real estate investment portfolio.
5 Must-Haves for Foreign Investors:
- Standard Contracts
- Avoid unnecessary and overly complex contracts
- Standard Realtor’s Assn. contracts offer foreign investors easy-to-understand terms
- Title Companies
- Foreign investors new to U.S. and FL markets may be unfamiliar with title companies
- Title companies ensure a clean title transfer in a real estate transaction. They run a property’s title against any outstanding liens and unpaid fees.
- Closing Costs
- Closing costs on U.S. and FL real estate is comparatively less than that of markets outside of the U.S.
- Despite the relatively low closing costs, foreign investors still need to be aware of what they are paying for
- Follow-up is needed after purchasing a property
- Find the right insurance coverage for your investment as well as establishing a property management plan
- All U.S. real estate is subject to taxes and returns must be filed on them
- County tax collector searches can be an easy way for foreign investors to keep track of their portfolios’ taxes
For a more comprehensive approach for foreign investors, check out Colin’s list of 20 things to know for real estate investing:
Colin also suggests Rich Dad Poor Dad, by Robert Kiyosaki and Millionaire Real Estate Investor, by Gary Keller, Dave Jenks and Jay Papasan for beginning investors