Due to the dwindling availability of loan products and lenders for Foreign Nationals to purchase property in Florida, many Foreign National Real Estate Buyers in the US are having to change their focus… both in property and investment type.

Foreign Nationals will soon see the targets of their purchases changing from the traditional Second Home or Vacation Property to different investment grade properties and other ventures in Real Estate.

Foreign Nationals who want to purchase Commercial Real Estate will find Lenders more open to lending on these properties as Commercial Mortgages are based on the cash flow of the property.  If a property’s income surpasses its expenses, then a lender will be more likely to lend on the property. 

Foreign Buyers may have to join forces and form Syndicates in order to purchase commercial properties with higher price tags.  Higher prices coupled with higher cash flows will be attractive to Foreign Nationals who are investment minded.

Some Foreign National buyers will be interested in Multi-Family (apartments) and Hotels due to the ability to have the income stream and somewhere to stay on their vacations to the US.  These properties are good options for Foreign Nationals looking for that Vacation Property who can pool their funds and buy as a Real Estate Syndicate. 

Foreign Nationals that are simply looking for a rental property with a fair return on their investment might look to Office, Industrial or Retail Commercial Real Estate.  A group of investors might purchase a Neighborhood Strip Center, an Industrial Warehouse Park, a Triple Net (NNN) Major Retail building, or even an entire Office Building.

Another option that exists for Foreign Nationals that are simply focused on the returns they could achieve in Real Estate Investments in the US might look to get involved with a Real Estate Developer.

Providing Equity and Operational Funds for a Developer looking to get a Residential or Commercial Real Estate Development Project off the ground would provide Foreign Investors with an investment term of typically 2-5 years during which time interest would be earned and a portion of the profits of the project would be shared.

Foreign Nationals may also buy wholesale pre-construction units to help a developer achieve their vital pre-sale requirements for a lender.  These units would then be re-sold in the development’s inventory with a premium paid back to the original purchaser.

Other options for investing in Real Estate for Foreign National or Domestic Investors can be found at the Investment section of the Vertical Real Estate Logistics website.

For more information on alternative real estate investments for Foreign National Investors, please contact The Vertical Finance Team to discuss current and future projects and their investment criteria.

More Florida Real Estate Industry News You Can Use from
David A. Podgursky, MBA
Vertical Real Estate Logistics, LLC
Taking Real Estate Developments from Concept to Completion