Our number one recommendation as you begin your Sarasota property search? Find a local Realtor that is right for you, and you will immediately be ahead of the game. Working with a realtor that has extensive market knowledge, a track record for excellent customer service, and who has completed many transactions for foreign clients, will be key to the ease and success of your property investment.

Using a Realtor Delivers Exceptional Value

If you are a buyer, it does not cost you anything to work with a Realtor and choosing a professional that is singularly focused on your interests through every stage of the negotiation and transaction is, without question, the single most important decision you will make in the process.

Local market knowledge is imperative to making good buying decisions. Only a local, well-informed, and experienced Realtor can know the intricacies and nuances of any particular market, and how that will affect the outcome and lifestyle for the buyer. Even in our own home market of Sarasota, the variations in lifestyle offered, price, and rental potential vary neighborhood to neighborhood and even street to street in come cases.

What is a Realtor?

A Realtor is a licensed real estate agent who is a member of the National Association of Realtors. Only Realtors have access to the MLS, have signed up to the association’s code of ethics, and participate in regular training and continuing education.

What is the MLS?

A multiple listing service (MLS) is a comprehensive database of ALL the properties for sale in a given geography. The state of Florida is divided into nearly 35 areas, each one with a specific MLS (Multiple Listing Service). The local MLS, which is only accessible by Realtors, has the details of every property on the market, as well as historical data on each and every sale. What this means for you, is that once you find the Realtor to represent you, he or she will be able to advise and guide you on ANY property that’s available in the marketplace.

Transparency is On Your Side

Because of the MLS system, and the fact that all the details of any real estate sale are public record, buying real estate in Sarasota is a refreshingly easier process than in many other parts of the world.

A realtor’s work just begins with a skillful MLS search to present you will all the viable options given your criteria, budget, desired geography and living experience, etc. His or her expertise on neighborhoods, the local school system, taxes, insurance, and so on are key to helping find the right match for your needs. Once you decide on a property you would like to purchase, your Realtor will help to analyze the comparable sales, structure the offer, and negotiate the terms of the contract.

…And So is Your Realtor

Once you find a home that you like, your Realtor becomes your counsel on many more fronts. First, they are the point of contact for all price negotiations. They know how much other homes are selling for in the neighborhood and will negotiate for the fairest price. Once the buyer and seller enter into a
Contract for Sale and Purchase, the Realtor will arrange for a professional home inspection. Your Realtor will help you to work through any issues that may arise in the inspection process, advise you on possible solutions, and when necessary renegotiate the offer. Your Realtor will walk you through the closing process, preparing all of the documents to complete the transaction.

In our book we discuss in detail how to select the best Realtor as well as other professionals to work with.

At the end of 2014, President Obama announced a new Chinese visa rule allowing Chinese people wishing to visit or do business in the US to get extended tourist and business visas for up to ten years. This significantly eases the process for potential Chinese buyers looking to buy an investment property in Florida, as they would only need to apply once, in order to be able to visit the US freely with a 10-year American visa. Citizens of both nations will now be able to obtain 10-year multiple-entry visas, eradicating much of the hassle of travel to the US, particularly for Chinese investors and entrepreneurs.

According to statistics from the National Association of Realtors, Chinese people became the largest overseas purchasers of homes in the US homes by dollar value last year, replacing Canadians at the top of the list. In addition, 1.8 million Chinese people visit the US every year contributing hugely to the tourism economy. And according to a statement from the White House, this number is set to rise to 7.3 million by 2021, by which time Chinese visitors are predicted to be contributing nearly $85 billion a year to the US economy and supporting 440,000 jobs.

All this is good news indeed for the property market in Florida. According to a recent China Daily article “The housing market is apparently getting a boost from the new visa rules, which make it attractive to wealthy Chinese who want to relocate or send their children or families to the US.” From April 2013 to March 2014, Chinese purchasers bought properties in the US worth a combined $22 billion, accounting for about 25 percent of total international sales “That number is likely to surge in the coming years,” says Liu Jun, a Realtor in Florida who deals primarily with Chinese clients, in the same article.

A recent Florida Realtors article outlined how this will particularly affect the Florida market. In it they reference a survey by East-West Property Advisors, which helps Asians buy U.S. property, saying “25 percent of Chinese respondents said the visa extension would directly translate into speedier purchases, while 42 percent said it would help to a varying degree.” It will make a trip much easier,” says Tony Huang, managing director of Shanghai-based Maxview Realty. With a 10 year American visa “One just needs to buy a ticket and pack.”

Typically in the past, one of the main ways for Chinese buyers to get a long term visa to the US is by using the Eb-5 Investment Visa program, which allows those investing $500,000 in a US business and creating 10 jobs to apply for a Green Card or resident visa. In fact, in recent years 85% of these Eb-5visas have been given to Chinese investors, and the demand has been so great recently that there is a significant backlog in processing times. The new Chinese visa rule for tourists and business visitors will open up Florida property investment to those who, while not financially eligible for an EB-5 Visa, still have the capital to invest in Florida property.

As always, we recommend that you consult with an immigration expert to check your eligibility for any kind of US visa.

Learn How to Make a Great Investment in a Reunion Villa

At Investments In Sarasota we are continually working behind the scenes to bring our readers the best possible information and opportunities as we identify them. We are constantly communicating with our network of exceptional Realtors, and traveling across the state to find the best Florida property investment opportunities to share.

Recently, we’ve been hearing a lot from our respected colleagues about Reunion, a master planned community in Kissimmee, and we headed over there to check it out. We were really impressed with the resort, it has all that our international buyers are typically looking for, and the potential to tick a lot of buyers’ boxes. Watch our video below to learn more about the best way to invest in Reunion villas for sale.

What Reunion Offers in Terms of Holiday Lifestyle

Reunion is set up on over 2200 acres, they are expected to have roughly 6000 residential units, and 1500 hotel rooms. The resort also boasts three golf courses — designed by none other than golfing legends Arnold Palmer and Jack Nicklaus — its own water park, and award-winning tennis and spa facilities.

For investors, the best part about Reunion’s location is that it’s within 15 minutes of Disney World and other attractions which draw 19 million visitors annually, and 30 minutes from Orlando International Airport.

An important consideration when looking at buying a house in Reunion is that the community offers the opportunity to have short term rentals — which is critical for those looking to make cash flow returns. It’s worth noting that in some districts, such as Orange County in Orlando, short term rentals aren’t allowed, so Kissimmee’s flexible short term rental market is a major plus point since short term rentals offer the greatest cash flow. Overall, we think Reunion’s location, facilities, lifestyle, property values and return rates make it an excellent investment.

The Opportunity – What are Customers Looking For?

Typically most holiday makers are looking to rent 4-5 bedroom homes with at least 2-3 bathrooms so that most of the guests in each bedroom get their own private bathroom. They also want a property with its own private pool. According to our colleague in Reunion who is an excellent rental manager, there are currently properties being managed/rented that are offering up to a 10% return.

To achieve this, single-family homes should be purchased for about £230,000 or less, and rented out weekly. With about 35 weeks rented at the current market rates, it will offer about 10% per year return (£23,000) — and that leaves around 17 weeks open for friends and family to enjoy the home.

We think this is a great balance for most of our clients between making healthy returns, and really getting the personal benefit of a Florida holiday villa. Want to earn even more return? Raise the rents and use it less for personal use.

We always add the caveat that in any investment property it can take some time to build up presence/awareness on the market and thus income stream, so just be aware while cash flow returns can be steady, they’re not always instant. And returns may fluctuate from year-to-year depending on how much you need to invest for capital improvements to the property. As always, how well your property performs will come back to how good the marketing and reviews are, and how well you get the message out and attract customers.

Miami Beach is one of the most desirable locations in the greater Miami area, offering its 10 million visitors a year great beach and water lifestyle, as well as vibrant nightlife, a few minutes from downtown Miami and less than half an hour from Miami International Airport.

We are constantly on the lookout for excellent investments for our readers, and occasionally like to highlight exceptional properties that we believe would be a wonderful lifestyle and financial investment. Recently our team member in Miami alerted us to this unique condo development and we went to visit to assess its potential. We believe due to its location, sensitive development, high spec interior, and classic Art Deco charm, this is truly an exceptional investment opportunity.

Watch Lee’s video below to see take a look at the condo, neighborhood and characteristics which make it so special.

This brand-new development of renovated one-bedroom flats is in a great section of South Beach. With an enviable position, and slick interior detailing, this is a highly desirable Miami Beach condo for sale, offering a great investment opportunity. Comfortably sleeping four people, the finish on these flats is really excellent.

Priced around £275,000 (depending on floor plan) it is a comfortable price point both for someone looking for a personal pied-à-terre or an investment property. Residential properties that allow weekly rentals offer the highest potential return compared to monthly or annual rentals, and this is an excellent place to buy to let weekly.

An excellent location minutes from the beach

Nearly 10 million people visit Miami Beach every year, it is the number two gateway in the United States for international travelers and is in the top three destinations searched by international buyers on Realtor.com.

In this location, you are close to the three biggest attractions on South Beach, a 10-minute walk to South Beach itself, a five-minute walk to restaurants and coffee shops, and a 20-minute walk to Lincoln Road – one of Miami’s premier shopping destinations.

Miami Beach is the most popular place to stay in Miami and outnumbers the next closest area by more than double. It’s these numbers that show both the popularity and investment potential of this location.

What Could I Be Making with This Property?

One potential scenario would be using the property 15 to 20 weeks a year yourself while renting it out the other 30-25 weeks per year. Rented by the week like this it may be possible to achieve an estimated annual return of about £27,000, which is around 8%.

Florida’s lifestyle is, quite simply, exceptional – with 300 days of sunshine a year, some of the best beaches in the US, crystal clear warm waters, and spectacular natural flora and fauna. It is also one of the best investments you can make; not only providing you access to the vacation lifestyle but giving you solid financial returns on top.

Did you know Florida holiday homes can offer as much as 7-10% cash flow returns while keeping 17 weeks a year free for family and friends? The key to this type of opportunity is to invest in a place that allows for short term rental periods and has strong demand due to great visitor traffic.

For example, if you are drawn to the attractions of the Orlando area, you could own a property that would allow your friends and family several weeks of vacation time per year, and have a management company rent it out for you the rest of the year. We just reviewed an opportunity in a Kissimmee resort complex, for example, that allows buyers a 4-5 bedroom house with a private pool for $350,000.

This property was set to return around $24,000 cash flow — renting 35 weeks of the year. And all within 15 minutes of the famous theme parks that draw millions of visitors each year. It’s worth remembering that in most areas as the market recovers, properties are also appreciating steadily, so you conservatively stand to make 3-4% capital appreciation on top of your cash flow return too.

Our Tips to Choosing a Vacation Home as Investment in Florida:

1) Location, Location, Location

When you’re considering to buy a Florida vacation property as an investment, the location of your property is the most important factor which will determine both the long-term financial potential of your property purchase, as well as your personal enjoyment when using the property. In other words, it is first critical that you choose a place that you really enjoy going to. If that is a beach town, we suggest you go for the best you can possibly afford in terms of proximity to the beach and it will pay off long-term through better occupancy rates, long term appreciation, and your own personal vacation lifestyle. If it’s an inland resort town, make sure the location is a good one for proximity to the major attractions, and in an area that has proven good rental demand. Desirable commands a premium in rental rates.

2) Choose an excellent Realtor

Your Realtor will perhaps be the most important decision you make, other than the home itself. In the U.S., Realtors are compensated from the proceeds of the seller, so it doesn’t cost buyers to have an agent to work for them. However, if that person has the right know-how and experience, they will make sure you have the best protection, information, and outcome.

So, for us, hiring an excellent Realtor is a no-brainer. The right Realtor will help you find your ideal property and do everything in their professional power to get the deal done once you’ve found it. Their expertise, experience, and efficiency will likely define your experience of buying a Florida vacation home.

For example, their knowledge of the micro-markets, rental incomes, and market costs within your chosen area is critical to your decision-making process. Additionally, their advice on how to proceed in every stage of the process, skills in negotiating to your advantage, and responsibility to steward the entire process until the deal closes, are all factors in optimizing a positive buying experience here in Florida.

Finding people you trust is critical to the process. Do your due diligence on them thoroughly, and then follow their advice or guidance. Once you find people you trust, you have to be prepared to defer to their expertise and experience. You need to place your trust in the experts you hire to get the best outcome.

3) Do Your Research

Knowledge of the market, rental markets, communities, and sales data can make all the difference between an investment that works, and one that doesn’t. It is critical that your Realtor is well versed in the areas and opportunities available to you and has all the data on hand to help you make the best choice. They can help you learn about the differences between different zip codes, communities, and even streets.

When you begin looking for holiday homes in Florida to buy you should have this knowledge to hand, so you know if what you’re looking at is over-priced, under-valued, or un-rentable. Your Realtor should provide you with a Competitive Market Analysis (CMA) to make sure you understand the market. You should also be aware of the most desirable properties for rental in the area – typically, we’ve found 4-5 bedroom homes, with private pools and at least 3 baths are at the top of vacationers’ wish lists.

However, one caveat: always remember to trust your gut, too. Even if all the numbers add up if you just feel something’s not right about a home, trust that instinct. No matter the deal or price incentive offered, if it isn’t right for you, it isn’t right. Period!

4) Spend a Bit Up Front for Protection

In our eyes, it’s better to spend a bit of money up front to make sure you are protected in all aspects according to your unique financial situation. A few hundred dollars with a tax accountant and financial adviser you trust — who is impartial — can mean that you know your exact financial, tax, and estate situation, and exactly what you can afford and may be liable for.

We say that with the additional note that Florida has some very favorable income tax laws, and good estate planning can mean your estate remains intact down the road.

Schedule a free 20 minute video conference with Lee to talk about real estate investment opportunities. Just select a day that fits you on the sidebar.