Typically, international buyers spend more per property too. The average price paid by international buyers was $315,000 compared with the overall U.S. average of $218,000.

Another interesting fact is that 62 percent of international purchases are reported as being all cash. This percentage is significantly higher than all-cash purchases for domestic buyers.

REALTORS participating in the survey furthermore reported that their clients often found them online or through their company’s system of international referrals. This is arguably the most important point in the survey for would-be sellers in the process of choosing a Real Estate Agent.

With international buyers so integral to our market, make sure to list your property with a true international Real Estate Company to achieve the best result. Contact us today if you are interested in selling your home.

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Most federal laws regarding short sale relief etc., only apply to primary residences and do not apply to investment properties.

No debt forgiveness

Therefore a partial or full debt forgiveness as generally anticipated in a residential short sale procedure should not be expected in a investment short sale. In some rare situations we see it happen, but it would be unethical expectation if I’d tell you to expect it. In other words, this may not be the target when proceeding with the investment short sale. There are ways at the end to accomplish a reduction of the burden at the end (see final paragraph of this article), but upfront, a debt relief should not be expected. We are not taking any short sale case where this is expected in an investment scenario. It would be our and your waste of time, and that is not the way we are working.

Foreclosures in Florida

Let me explain the situation:
Basically when you bought your investment properties you signed two important papers, a note and a mortgage. Here in Florida if you put it in a nutshell, the note sticks to the body of the borrower, the mortgage to the property. So the bank now has two collaterals (i.e. the borrowers “body” and his property). The banks are aware that property ownership might become costly over time, so they usually allow to have that mortgage paper released if the borrower can provide somebody taking over a place near what the banks consider market value (and in an arm’s length transaction) = short sale the property. At this point they get at least some money back and the debt is growing slower.

But remember? The bank still has that borrower’s body on the hook because he signed the other paper, the note.

The reason for that is simple: As most laws providing any mortgage relief do not apply to investment properties, they (i.e. the banks) do not have an incentive to leave the person off the hook. This is the case, as long as the bank expects the borrower to be able to contribute something to cover the loss, now or at a later point. By signing the note when the property was purchased, the person signed a personal guaranty for dollar amount X. Most borrowers didn’t read the contracts and weren’t clearly aware of that fact. Escpecially when the market was good. But let me tell you, there is no clause in this contract or in Florida law limiting or attaching a note’s value to the property value. So a borrower is always personally responsible for the amount of the note less any money a sale of the property brings in. The current value of the property does not matter. Of course, there is a clause in the contract, that attorney fees and interest come on top, so we should avoid that as much as possible.

So you might ask, “what does a borrower get out of the short sale of investment properties?”

Let me ask this QUESTION first: “Does the borrower have enough equity to pay his obligations (satisfy all loans when selling all properties and pay the difference to the bank eventually from other sources)?”

1.) If this is answered no, consult with a bankruptcy attorney. You’d probably better of filing for bankruptcy not a short sale!
2.) If this is answered yes, proceed reading, a short sale could help you getting back on track.

The alternative to a short sale would be a foreclosure. You should be aware, that here in Florida, lenders are now getting “deficiency judgments” against borrowers after a foreclosure in most cases. That means, even once your property is taken by the bank and sold at court auction, you are still personally responsible for the loss (= dollar amount on the note minus any proceeds from the sale, however costs like attorney, court fees and interest) of the bank. And because REO / Bank Owned properties are usually in distress and only sellable with great discount, the loss is bigger than if you took action yourself in advance and had the property sold long before a foreclosure is granted.

Analyse situation first, maximize income

In addition if you are having several rental properties, I strongly recommend talking to us, as experienced property manager with short sale experience to max. out the income you get out of the properties. Maybe some properties are just not rented at their best way. If this could improve your income, some properties might be profitable covering expenses for the other properties.

Now back to the short sale of investment properties.

Short sale of investment properties is not a “real” short sale. The difference is, especially in a declining market, that the first step is to get the loss limited by selling the property. In order to get the property sold, the mortgage needs to be released without paying off the loan, therefore the term “short sale”. However the sale is not really short, as the borrower is still on the hook with the note.

As the note is still active and the debt is not forgiven, this needs to be addressed at a later point, eventually by working with the bank and settling the debt. Banks like cash and sometimes settle for a fraction in negotiations.

In some cases, banks need to clean their balance sheets from bad performing loans in order to comply with capital rules of the SEC. These are the cases when debt might be forgiven in an investment short sale, but this is nothing which can be controlled from the outside, so just don’t expect it.

Please contact us for a free evaluation!

Axel Weiss, Broker
Weiss International Realty
(941) 866 1666

“Despite extraordinarily tight credit conditions for purchasing a second home, the market share for vacation and investment homes held steady,” says NAR Chief Economist Lawrence Yun. “A sizeable number of buyers made deals with all-cash offerings.”

All-cash purchases have become prevalent in the second-home market in recent years: 59 percent of investment buyers paid cash in 2010, as did 36 percent of vacation-home buyers.

Especially international buyers tend to pay cash for their vacation or investment homes.

If you are interested in selling your home, make sure to use a Real Estate Brokerage who knows how to market your home to out of state and international buyers.

Call us today @ 941.866.1666.

 While in the past the majority of international buyers were retirees, the current buyers from overseas are getting younger and younger. Many of them are trying to secure a piece in paradise with a clear investment strategy. Use the home for a couple of weeks each year for themselves and rent it out to vacationers in order to cover the expenses like insurance and taxes. Just a combination of 2^nd home and investment.

However they have to keep an eye on one thing: Long term rentals don’t work, as they want to use the home or condo several times per year for themselves. They could rent it to snowbirds, but many homes are just too high priced in order to rent for 3 months or more. And many retirees are locked with their pension portfolios right now and have to scale back on their winter plans.

So these foreigners are advertising their homes as extended vacation places for other people who prefer the amenities of living in a community against staying at hotels for stay between a few weeks to several months.  Many communities in the Bradenton/Sarasota area however show relatively tight rental restrictions regulating the number of times per year a property can be rented out and/or minimum leases terms. Some restrictions are manageable, but if you are limited to a minimum of 6 months or just once per year, or even no rentals at all, it’s a “No-Go” for every investor.

Recent calculations show a loss in usability of about 25% – 33% for an identical property with or without rental restrictions. That’s about $100,000 on a $300,000 property in usability loss. The stricter the restriction the higher the loss. Because not everybody is planning to rent at this point the loss in property value might be a little less dramatic. As – however – in future more and more people are living on tight budgets, condos and homes with higher restrictions will have a lower potential of possible gain in value.

 For the homeowner it’s a disaster, just imagine: If somebody from your neighborhood knocks on your door and asks for support of new rental restrictions, ask yourself why they want to take $100,000 from your money? And if your association already has strict rental restrictions in place, ask yourself what you would do with the $100,000 if they get rid of them.

And the community is suffering, too: You have foreclosures or unpaid dues in your community? Maybe the owners are just not able to rent / sell their place as fast as possible. By time, they get late in the HOA dues and the community is suffering.

A well-off investor from overseas with cash in a property will probably be the best add-on for your community. So watch out and make sure you stay attractive for this clientele!

For more information on how to market your property locally and internationally please contact:

Axel Weiss, Broker
Weiss International Realty
Bradenton, FL 34205
(941) 866 1666

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Here are some highlights of this article:

In the Sarasota-Bradenton market, 239 condos changed hands, a 130 percent increase from the 104 sales that took place during the same month a year earlier.

Realtors and analysts attribute the uptick to both the first-time buyer tax incentive, which was recently extended, and to the return of investors to the market.

All over the region and across the state, investors are snapping up condos that either came out of the ground or were converted from apartments during the boom.

In Sarasota-Bradenton, the median condo price was down 20 percent to $141,100 in November from the same month a year ago.

If your are interested in buying or selling a condo in the Bradenton/Sarasota are, please call the experts @ 941.866.1666.

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Current use is Bed & Breakfast or use it as a great Old Florida Style Pool Home with in law quarters.

Large 4 Bedroom / 3.5 Bathroom home on quiet street in West Bradenton offers huge caged deck and heated pool with auto cleaner. The oversized, fenced in lot offers two lush, landscaped backyard areas, one on each side of the pool area, offering various fruit trees as well as large old oaks.

Relax by the pool and enjoy the private setting. Lots of parking space availabe for RV/Boat. Features updated kitchen and baths, skylights, beautiful oak floors, wood burning fireplace front porch and an additional enclosed upper veranda.

Amazing combination of old Florida Lifestyle and modern convenience. Great income opportunity if desired.

More information: click here

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Buyers often are taking money out of stocks and retirement plans and sinking it into real estate.

Many are in search of retirement properties and are grabbing the bargains. Others want to buy a home for vacation and investment and are buying without even having seen the home in person.

If you are interested in selling your home, contact a Real Estate Company which specializes in working with International and out-of-state buyers – contact Weiss & Weiss International Realty.

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Slightly more than half of foreign buyers (52 percent) purchased a detached single-family home, compared to 78 percent among all buyers nationally. Approximately one third (34 percent) of foreign buyers purchased a condo, 7 percent purchased a townhouse or row house, and the remaining 7 percent purchased some other type of home.

According to the 2008 Profile of Home Buyers and Sellers, 93 percent of all home buyers used mortgage financing to purchase their home. Among recent foreign buyers in Florida, use of mortgage financing was less frequent. Overall, 32 percent of foreign buyers financed their home with a mortgage while 67 percent paid cash with no mortgage financing.

Many foreign buyers (16 percent) purchased a property to use exclusively as a vacation home. Fourteen percent purchased a home to be used as a rental property. Given the
limitations on the length of time that foreign buyers may be able to personally use their property, 24 percent of sales were for a dual use – as a vacation home for the buyer’s
family and friends and as a rental property at other times.

The Miami-Fort Lauderdale area was the most frequently reported location of a home purchased by a foreign buyer in Florida. More than one in four (27 percent) foreign buyers purchased a home in the area, followed by 11 percent who purchased a home in each the Sarasota and Orlando areas.

If you are interested in selling your home, contact a Real Estate Company which specializes in working with International Buyers – contact Weiss & Weiss International Realty.

Source: Florida Association of Realtors

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Our beautiful area is definitely a great place to be all year round.  We admit it – we´re crazy about this region, from the blue-green Gulf and wild rivers to buzzling Sarasota Downtown  and a word-class cultural and restaurant scene.

Unlike many beach communities, things don´t come to a halt in the off season. Rather the off season allows locals to enjoy our serene white sandy beaches all to themselves.

There is plenty of activity all year round: boaters, golfers and sun-seekers all find happiness in the Bradenton/Sarasota region!

Wheather you have your eye on a condo on the island, a home on the golf course or an expansive rural home, the Bradenton/Sarasota offers lots of choices for all budgets and tastes.

From an investment standpoint, you may be nervous about the current housing market. But especially this market offers lots of opportunities for buyers. Low interest rates and a large market favor anybody who is looking to invest.

Take advantage of the buyer´s market by checking out the local real estate. The variety of homes makes sure thateveryone can find their personal paradise. Enjoy the lifestyle you deserve – make your vacation last a lifetime!

No, no, don’t laugh. I’m serious. Of course, I don’t mean property that is overpriced or overvalued. The kind of real estate that is only available at these times and at these prices.  Realistic sellers, short sales and foreclosures mean opportunities for buyers.

Look ahead of the crowd

Today, you can find some great bargains on real estate in the Florida, if you know where to look. Look ahead now and you won’t have missed the boat like you did before. I mean these people from overseas saying, if we knew the market would go like this, we should have bought something here in 1995. The 2nd chance is just around the corner waiting.

Sure, the US Real Estate and mortgage market is desparate now. Have we already seen the bottom of the real estate market and the US-Dollar vs. the other important currencies of the world? I don’t believe so, but nobody knows for sure. Besides that election year is coming, what I know for sure is that the US Real Estate market is not Florida. Why?

Sail, surf and beaches! Period!

Espcially the Sarasota / Bradenton market was ahead of the rest when the prices began to skyrocket and it was ahead when they began to drop. So this is the market where you should starting looking now. Don’t wait to long and try to chase prices better catch them in advance.

More money to buy real estate

The falling dollar and the mortgage crisis make up a perfect storm that has left overseas investors in U.S. stocks and bonds facing unattractively low interest rates and unattractively low (or negative) returns on stocks. The dollar’s fall will cause them to lose money in their home currencies even if U.S. stocks hold steady.

An increasing number of overseas investors are joining the global search for alternatives.  The number one alternative is real estate.

 Do you think real estate is a smart investment now?

At some point, though, those same overseas investors will realize that U.S. real estate is a great hedge against what they fear most: an attack of runaway inflation in the United States. A physical asset such as real estate goes up in value when inflation soars. At some point, those overseas investors will notice that real estate in the U.S. is cheap enough that any recovery in the American economy will produce windfall profits.

And besides all profits, don’t forget: Surf, sail and beaches and this can be the source for: More profits…

Axel Weiss, MBA
Lic. Real Estate Pro, Lic. Mortgage Broker
with material from Matt Augustyniak, Horizon RealtyBradenton, Florida

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