Licensed Real Estate Consultant

The International Investor’s Guide

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Owning real estate anywhere in the world gives the feeling of pride, accomplishment and achievement. Owning real estate in the U.S is a viable alternative for potential investors looking to put their moneys to work for them and for persons desiring to own a home. It is important to understand the laws affecting transfer of real estate and the process that will enable a smooth transition in acquiring your most valued investment. I have written this guide to help International Investors understand more clearly what to expect when purchasing real estate in the U.S. Whether you are planning to purchase land, commercial property, or a home, my job is to ensure a stress free, smooth transition into owning your next real estate investment. And I hope to do this with professionalism and sensitivity to your every need. Featured in this guide are answers to frequently asked questions such as:

1. What are the advantages of using a real estate agent to aid in the purchase of real estate investments? 2. What should a buyer consider when looking for a lender? 3. What are the laws affecting International Investors in the purchase & sale of U.S. real estate? 4. What is the typical information required by lenders for loan processing? 5. Is a lawyer required in the process of purchase and title transfer of real estate? 6. How can a buyer go about finding the right real estate investment? 7. What is involved in the preparation for Closing?

One interesting observation I have been able to make whilst comparing the purchase of property in the US versus buying real estate in Jamaica was that it can take as long as 6 months and more to secure a real estate purchase in Jamaica. By contrast, it can take as little as 1 week from offer - to securing financing - to closing on a real estate purchase in the USA. I purchased my first single family home in the US two years ago and remembered being very excited about the idea of owning property in the U.S. We had many questions and lots of uncertainties along the way. A guide like this would have proven extremely useful at that time. I hope you find helpful information within and take the bold step to explore new territories and invest profitably in real estate in Florida and beyond.

What are the advantages of using a real estate agent to aid in the purchase of real estate investments? Three good reasons to use a real estate agent are that they are: Experienced in the preparation and execution of real estate contracts and able to negotiate on behalf of the client. Trained to understand the laws affecting the transfer of real estate. Professional and understanding of the needs of real estate investors and able to represent the client in a comprehensive way.

What should a buyer consider when looking for a good lender? To obtain a distinct advantage over most buyers, consider being pre-approved/ pre-qualified before looking for real estate investment. Also, many sellers will not accept an offer without pre- approval.

Three useful things to consider when shopping for a good lender are: Finding a lender who does business in an upfront and fully transparent way. Ensuring that the lender discloses their fees to you and discloses the wholesale prices (rates and points). Ensure that you are comfortable with the loan and that the package meets your needs. Your Brokers interests should be aligned with yours.

Generally, when borrowing money toward the purchase of a home, the buyer may be required by the lender to pay a minimum down payment deposit in order to qualify for the loan. For US residents that may be anywhere from 0% - 30% or higher; for International Investors it may be anywhere from 10% to 50% or higher. As your real estate agent, I am able to recommend a list of qualified mortgage consultants for you to choose from.

What are the laws affecting International Investors in the purchase & sale of U.S. real estate? An International (foreign) borrower is defined as a citizen of a country other than the United States who: Has a valid visa to live or visit in the U.S. May visit the U.S. periodically, or live in the U.S. for a limited amount of time.

International Investors Purchasing Real Estate in the U.S. There are no laws restricting International Investors from legally purchasing and owning real estate property in the USA providing they have a valid visa to live or visit in the US.

International Investors Selling Real Estate in the U.S. To prevent International sellers from avoiding the payment of taxes due on the sale of real estate property, the IRS requires that buyers withhold 10 percent of the gross sale price (including cash paid and any debt assumed by the buyers). The buyer must report the purchase and pay the IRS the amount withheld.

What is the typical information required by lenders for loan processing? Listed in the next column are International investors legally required documentations that would be required by potential lenders to consider a loan application:  Certificate of Foreign Status (Form W-8) is required if the borrower does not have a Tax Identification Number (TIN).  A form disclosing foreign borrower’s U.S. income (W-(9), if applicable, and a (TIN).  Letters from the borrower’s employer(s) which must include: o Annual income from the proceeding two years. o Amount of guaranteed monthly income. o Current employment status. o Name and title of the person providing the information on the employer’s behalf. o Job title and terms of employment Letter must be fully translated into English All income must be fully converted to U.S. currency by the underwriter. Once converted to U.S. currency, 100% of the converted dollar amount may be used to qualify the borrower.

Is a lawyer required in the purchase of real estate in Florida? Legal representation is not a mandatory requirement in the transfer of real estate property in the U.S. Legal representation is optional. If you are not familiar with real estate transactions or do not have a complete understanding of all of the paperwork involved in buying or selling a house, you may choose to retain a lawyer. Much of the legal documentation required for property transfer is handled by licensed real estate agents and title companies. A title company is a professional third party that acts between the lender and the borrower, who makes sure the paperwork is properly filled out, in preparation for closing. Title companies are responsible for the handling of such documentation like preliminary title reports, title insurance, deed of conveyance, loan payoffs, settlement charges, etc. The title company is paid a small fee at closing. Clear communication among all parties and their representatives is the key to a trouble-free real estate transaction. Complete sharing of all information and pertinent documents will help your Realtor, the Title Company and your lawyer (if you choose to hire one) to do a better job for you and help you avoid later disputes. How can a buyer go about finding the right real estate investment? Real estate property listings can be found from a variety of sources such as magazines, newspapers and websites, but the most comprehensive listings are to be found on the MLS (Multiple Listing Service). An MLS serves as a clearing house for listings obtained by realtor member brokers and then shared with other MLS member brokers through a published list of properties for sale. The MLS is a very powerful tool in terms of the information it provides. Information on real estate available, sold, withdrawn and pending are just a few of the resources accessible to serve the clients needs. After sourcing available property listings from the MLS, the next step in most instances is to physically see the properties. Once the ideal investment has been discovered, make an offer through the drafting of a contract. Most properties don’t stay on the market for very long so it is important to act quickly in order to secure a bidding chance on the purchase. Once the contract is drafted, the buyer signs the various documents before it is presented to the seller. Once both parties agree to the terms of the offer, the document becomes a binding contract with full legal protection and ramifications.

What is involved in the preparation for the Closing? In the days leading up to the Closing, several tasks must be taken care of. These include: Property Appraisal, Property Survey, Title Search, Homeowner’s/Hazard Insurance, Home Inspection, Termite Inspection, Final Walkthrough inspection, Certified Check to cover Closing costs. The Closing day is the day the homebuyers and the seller complete the legal transfer of the property. Once the closing process has been completed, the keys to the property are given to the buyer and the seller receives his compensation.

If you are using the services of a real estate agent, many of these tasks can be arranged by your agent. Be prepared to have enough money set aside to cover the expenses. The steps leading to the purchase of real estate are interesting and need not be an overwhelming experience. With the help of a knowledgeable, professional real estate agent you can get the desired results of purchasing your real estate investment without the hassle and unnecessary complications. Purchasing real estate is perhaps one of the most costly yet rewarding experiences you may achieve. You deserve the very best in customer representation, service, dedication, and commitment. Allow me to meet your real estate investment needs. I have developed an excellent package for seeing the process through from start to finish, and I believe you will be very satisfied. As an International Investor myself, I understand the needs of the International consumer. As Keller Williams Classic Realty’s Jamaica representative, I am well qualified to meet your real estate needs. I can be reach at 876-877-6959. Looking forward to hearing from you.

Bringing Your Real Estate Dreams to Life!