Frequently Asked Questions

Do you have a question about the Florida real estate market? Count on us

Foreigners buying property

The real estate market in the US is uncomplicated, and completely open to foreigners. As a result of attractive property prices, particularly in Florida, it is increasingly getting the attention of investors from around the world.

Purchase Procedure

The process of buying real estate in the USA is totally simple and fast. The only job will be to find the property that best suits your needs, and for that you can count on all the support of Selecta Realty to find the ideal property.

You can check on our website HOW TO BUY the procedure and steps for conducting your business.

Payment

Payment may be cash or financed. If the option is a cash payment, the time of operation until closing will be around 15 days. In case of financing, the operation time will be at least 45 days. In this case, an initial deposit of about 30% of the value of the property should be made. The remaining balance may be financed as follows: 30 years with fixed installments and an interest rate of 5.6% per year, or 30 years with a variable rate, having the first 5 years with a fixed interest rate of 4% per year. If you wish to settle the financing before the stipulated deadlines, it can be done without any trouble, with the Banks.

Financing

The purchase may be in cash or financed. In cash, the transaction will take about 15 days to complete. The advantage is that the buyer will not need to be physically present to sign the documentation. Everything can be done via the Internet. If the payment is funded, the transaction will be completed at least 45 days.
In this case, the buyer will have to give at least 30% of the value of the property as
input and the rest:

* 30 years fixed with average interest rate of 5 - 6% per year
* 15 years fixed with average interest rate of 5% per year
* 30 years variable, where the first 5 years will be with a fixed interest rate and much lower, around 3-4.25% in the first 5 years.
* Buyer must be present on closing day to sign documentation if payment is financed.

Required Documentation: Cash Payment

* Copy of passport and visa
* Copy of bank statement or financial statement proving the
availability of the value of the property to be purchased.

Required Documentation: Payment Funded

1. Copy of passport and visa
2. US Bank Account
3. Employer Letter indicating last 2 years income
4. Copy of last 2 years of personal and company income tax, if any
5. Copy of the last 3 most recent bank statements
6. 2 Letters of Credit Reference
7. Negative Debit Certificate - SERASA
8. Proof of amounts, ie the amount of the down payment plus 6 months corresponding to the installment of the bank account or bank loan application here in the United States.

Note: Documents will vary by bank.

 

Transfer of Values

The transfer of values Brazil x USA is super easy and the amoount may be available on the same day. There are several companies that provide this currency exchange service, such as local banks themselves.
But we always recommend sending in agreement with the Central Bank. When the amount is sent from individuals to individuals, there is an IOF of 1.1% of the amount sent. If the amount is sent from individual to corporate, the IOF is only 0.38%.

 

Costs for closing the property

The deed and title registration costs are inherent to all property closures.
However, depending on the type of closure performed, costs may vary.
If the property is paid in cash, the costs of closing, or deed is on average 2-3%.
If the property is financed, the closing value is on average 5 to 6% of the financed value.

Broker Commission Costs

The commission payment to the broker, is always who is representing the seller.

If you buy a property from a homebuilder, they pay the broker's commission.

The responsibility of the consultant representing the buyer is to represent the buyer, getting the best deals, checking all documentation before completion.

Property Insurance Costs

In the case of purchase of a property with cash payment, there is no obligation to carry insurance, however it is recommended if the intention is to lease the property to third parties and or to protect the property in case of any environmental damage.
In cases of financed payment of the property, banks will require the insurance policy to prevent loss and damage to the property.

Buy under an individual or legal entity

Acquiring on behalf of a legal entity has its tax advantages as well as asset protection. Therefore, it is advisable to start a company, because in addition to not having bureaucracies to do so, the maintenance of the company is very low cost and its assets are more protected.

Post acquisition of the property | Decoration

If the acquisition of the property is new, kitchen appliances will most often be part of it. In addition, we recommend companies specialized in decoration to assist you in the acquisition and decoration of all environments.

If the property is purchased for season rental, decoration is one of the most important items for a good return.

Choosing a good professional in this area will make your investment profitable and secure.

 

Post acquisition of the property | Maintenance and administration

Regardless of the purpose of the acquisition, administrators will assist you in managing your property for basic and necessary payments such as: property tax,
HOA, electricity, telephone, water. Gardening maintenance, cleaning, swimming pool and others, as well as advice to renters of needs that may have. Therefore,
even while you are far, you can count on our services, so that your property is always valued and in perfect condition.

If the property is for season rental, there are companies that specialize in this type of management, because besides all care with the house, the manager will have to rent your house, check in and check out, maintenance, cleaning, etc.

We have excellent partners in all areas of investment to assist you with the best professionals.

Lease

The types of tenants who rent your investment will differ depending on the purpose of your property.

If it's meant to be a season rental, there's not much of an analysis of who your guests are. But if it is long term leasing, there is a whole criminal and financial background check to make sure you have a good tenant.

In this case deposits are required to cover damages, or non-payment if any on the
property.