Interested parties should always turn to a real estate specialist in the American market to point out the option that fits best
The last five years have been very promising for investments in the real estate sector in the United States, especially in states such as Texas and Florida. After overcoming the 2008 crisis that involved the two largest mortgage companies in the country - Fannie Mae and Freddie Mac - business today continues apace.
And the range of offers is interesting even for foreign investors. The options range from the acquisition of investment fund quotas to the construction of rental properties, the purchase of multi-family properties to obtain rental income, asset management of properties acquired in the United States, and even scenario analysis for the purchase and sale of properties.
IBC - International Business Consulting is a consulting company specialized in real estate business in the United States that advises foreign investors, especially Brazilians, who wish to acquire properties for income.
An attractive investment modality for people who have capital up to US$ 1.5 million is multifamily real estate. These are residential buildings bought by an investor or group of investors with the aim of renting out all the apartments. Some properties consist of up to two units and others can have dozens and even hundreds.
Raul Pereira, a partner at IBC, points out that multifamily buildings are typically seen by analysts as relatively low risk compared to other investments. According to him, the offer is quite varied and can have properties from a double residence, also known as a duplex with two units only, in the range of $300,000 to $350,000 to small buildings of 12 apartments between $1 million and $1.5 million.
According to Raul, multifamily real estate today presents a type of investment that is recession-proof. Besides the low default rate, he points out other advantages such as the tax benefits of declaring a higher rate of expenses in the Income Tax and as well as the appreciation of the property revolving around 3% to 5% a year.
Another advantage listed by the businessman is the possibility for the owner to refinance the property, giving the revenue from the rents as a guarantee for the loan payment. "The proponent can finance 100% of the property, leaving 40% with the bank and keep 60% to make new investments. It is a self-renewing product, because the investor can buy the land and build on it, or buy a used property that needs small renovations, or even opt for a ready and fully functional property that is generating income that is accepted by banks as a guarantee", he explains.
For Raul, the multi-family property is an interesting investment option because it generates legal security for the investor who doesn't have much experience in the American financial market, since the purchase of this type of enterprise generates the property title in the American territory. "If I want to sell at the price I bought it or if the way of managing it didn't work out, I can leave or change the administrator, that is, it generates a range of different opportunities", he concludes.
*Raul Pereira is a specialist in the area of international contracts. At IBC Consulting, he manages and organizes contracts so that companies can operate in the United States in accordance with local legislation.