Town Homes in Serenity – Clermont For those who have never acquired a property abroad, especially in the US, the process may seem bureaucratic and complicated, however it is not. […]

August 19, 2017 // Uno Realty // No Comments // Posted in Blog

Town Homes in Serenity – Clermont

For those who have never acquired a property abroad, especially in the US, the process may seem bureaucratic and complicated, however it is not. It is easier than you think and if the purchase is in sight, it is not even necessary for the buyer to come to the US to make the purchase and sign the documents in the notary’s office. Presence is only necessary if the buyer is to finance the property. In the case of married couples legally it is necessary the presence of both on the day of “closing” in the notary’s office.

         

Let’s break the process down into parts:

1- Choose a broker for the real estate

2- Pre-approval with several banks (in the case of financed properties)

3- Registration with the company Money Corp (transfer of securities)

4- Property Search

5- Property found, choice of upgrades, contract signature and deposit payment.

6- Bank chosen begins the process of sending documents for the financing.

7- Open Company LLC (Limited Liability Company) and transfer the property to the LLC name.

8- Make contact with Design and Decoration company.

9- Insurance Research.

10- Research of companies of administration of real estate of seasonal rental.

11- Delivery of keys, payment of financing costs and notary.

12- Assembly of the house.

13- Signing of contract with leasing and administration company.

14- Marketing of the property.

         The cash purchase has fewer steps and costs cheaper.

1- Choose the broker

            This is a very important step. I have heard from several Brazilians that after receiving their commissions, some brokers simply disappear. So, the good broker, the ethical ones, who sells to the customer what is best for the customer and not what is best for him, is difficult to find. Your lucky is that you met me.

2- Pre-approval with the banks.

            All Brazilian documentation must be translated and prepared in the way that banks demand. This is the most important step in the process if the buyer chooses to finance the property. The pre-approval is achieved at no cost, and if the desire is to finance, it is no use going after real estate before receiving the banks’ responses with the amounts allowed for financing. Bank responses come in less than 3 days.

3- Registration with the company Money Corp

            Now, it is time to register with Money Corp. It is an English company, who has in their team Brazilian managers. Money Corp transfers funds ​​from Brazil in a fast, uncomplicated and non-taxing way amounts above US $ 10,000. With the registration approved, the client sends all funds needed and leaves in the account of Money Corp in expectation to find the property for them.

4- Property Search

            With pre-approval in hand, we can start to look for real estate. At this point, there are two differences. It can be a property for seasonal rental or a property to live. Many Brazilian families are moving to the US (for that, you need to consult an immigration lawyer). Anyway, we go behind the property based on a questionnaire sent to the customer, which many refuse to answer, believe me, but that is so that we can direct the customer to the best purchase. The better we know what you want, the better our suggestions.

The Coconut Palm has 6 bedrooms, 3 garages with heated pool.
It is sold in the condominium Solterra for $ 470,000
With 40% of entry and balance financed in 30 years.
The daily rates are around $ 220 to $ 350.

5- Property found, choice of upgrades, contract signature and making deposit payment.

            Once the property has been found and chosen, the upgrades (granite, tiles, professional appliances, etc.) are signed. The contract is signed and a deposit of 5-10 thousand dollars is paid (we request the transfer through Money Corp Which arrives on the same day). Within 30 days of signing the contract, you must send the 30 or 40% of the contract price of the property, less the 5 or 10 thousand deposit. At this point the builder sends the license application to the city hall (which takes 4-5 weeks) and when these arrive home begins to be built.

6- The chosen bank begins the process of sending documents for financing and the testament is made.

            In this case, the client, with the purchase and sale contract in hand, begins the process of collecting documents for the bank chosen to finalize the financing (US financing rates are between 4.5% and 10% interest “Simple” per year). Even financed, the property can be paid, without interest, at any time. The higher the interest rate, the easier and faster the funding approval. The lower the rate, the more demanding and bureaucratic the banks become and the assurance is not guaranteed, even the customer having been prequalified.

7- Open Company LLC (Limited Liability Company) and transfer the property to the LLC name.

           Today one can open the LLC before even heaving the financing and already buy the financed house in the name of the LLC. If the purchase is in sight, it is good to open the LLC before you even make the purchase and sale agreement and already buy in the name of the LLC. It saves the transfer rate that is 0.7% of the value of the property.

8- Contact with Design and Decoration company

            During construction, we recommend customers to contact a design and decoration company so that when the keys are delivered the house can be decorated in less than 15 days to start renting. If you select the company before construction you may save money in having the builder put in finishing touches.

Picture of one of the houses we have recently decorated.

9- Insurance Research

            The property will need insurance, so we have partners who can help in choosing the ideal coverage and the best it can be in Portuguese. The choice of company and insurance will be required by the bank in a few weeks before the delivery of the keys and signature of the financing. The insurance portion comes along with the portion of the financing to be paid every month, as well as the IPTU(taxes).

10- Research of companies of administration of real estate of seasonal rental.

            Now, it is also wise to contact at least two companies of advertisement of summer houses, in the case of the acquisition of this type of property. We can recommend a few companies in Orlando where most of my clients have gone. Usually there are no complaints from these companies, however you should interview them yourself. It is you who will have to work with them moving forward.

11- Delivery of keys, payment of financing costs and notary.

            If the purchase is in cash, the remainder is paid upon delivery of the keys which is usually done at a notary’s office. The cost of the registry is also paid, documents are signed and the house keys are taken. Happy day! The total costs can be of 3-8%, being 8% in the case of the financing. We never know for sure. Most of the time, for financing, it revolves around 5-6%, but there have been cases of 8%.

12- Assembly of the house

             With the keys in hand the owner has the option to assemble the house himself or deliver a copy of the keys to the chosen design and decoration company to enter and do the assembly of the house. At the completion pictures will be taken for advertisement. This is critical for success of renting.

13- Signing of contract with leasing and administration company.

            House assembled now we must start receiving the rents. Time to hire the leasing and administration company and see which one offers the best package. The company also takes care of the light connection, cable TV, internet, etc. (if the condo has not already included in the fee paid monthly).

14- Marketing of the property.

            Leaving the property in the hands of the company of administration and lease and forget about follow-up is not the best leasing strategy. Homeowners who have more than 90% of rental rate in the year make website for home, business cards, create a Facebook page and advertise on blogs. Those who buy with me get one year of free advertising on my blog. All blog clients with ads older than 1 year have more than 80% of lease, and one of the houses (which I will not say which is) has 96% rate and waits for 14 months for lease. Yes, it can be a very profitable business if done right.

              There are many other cases, and each customer has a different need. There are customers, as I mentioned they are moving to Orlando and the area. They often need to live in neighborhoods that have good schools because it is not allowed in the US for children to study in a school outside the neighborhood they live in (in the case of public schools). These clients need to live in residential areas. If you want your children to study in A grade schools, you should live in an A grade neighborhood. There is no way to get $ 100,000 worth of housing in a neighborhood that has A grade schools (because a large part of the property’s IPTU goes to the school). For these customers, the process is different. The schools are first sought, then the neighborhoods and then the houses. There are new communities in Windermere and Winter Garden with new homes in areas with A grade schools starting at $ 220K up to $ 800K.

The whole process since the signing of the contract, construction of the property, decoration until the house start to rent can be 6 months. There are builders who raise an 8-bedroom house, completed in 5 months. If the purchase is in sight, with the house already built or a resale, the whole process can be of unbelievable 3 weeks. Either way I am available to not only search and find the best property for your family, but also help in whatever it takes until the house starts to rent.
Contact us by email renato@unorealtygroup.com or 
Skype: rs_alves.


Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Reply