Investing in Florida real estate from Canada or Latin America offers excellent opportunities for capital preservation and passive income. However, international buyers face unique requirements. This step-by-step guide explains how to structure your investment safely and efficiently.
Step 1: Secure Foreign National Financing
You do not need to pay in all cash to invest in the U.S. market. Foreign investors can access U.S. mortgages through programs known as Foreign National Loans. The main requirements include:
- Down Payment: Typically requires 25% to 30% of the purchase price.
- No U.S. Credit Score Needed: Lenders will use alternative credit reference letters from your home country.
- Liquidity Reserves: Proof of funds to cover 6 to 12 months of mortgage payments, taxes, and insurance.
Step 2: Remote Closing via RON
You do not need to travel to the United States to close the transaction. Florida law permits Remote Online Notarization (RON), making the buying process 100% remote.
Step 3: Asset Protection & Corporate LLC Setup
Buying property in your personal name as a foreign national can trigger significant tax liabilities, including the FIRPTA withholding tax and U.S. estate taxes. We strongly recommend structuring your purchase through a U.S. corporate entity (LLC).
- Creates a liability shield between the property and your personal assets.
- Simplifies the process of deducting expenses and reporting rental income.
Step 4: Turnkey Property Management
Once the acquisition is closed and structured properly, the final step is generating revenue. Through our in-house operating division, Invest South Dream Vacations, we take over the day-to-day management, guest relations, and platform marketing, ensuring your asset performs optimally without requiring your constant supervision.