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Step By Step Guide to Purchase a Real Estate Property in Florida

Step By Step Guide to Purchase a Real Estate Property in Florida

Do you dream of owning a Real estate property in Florida but feel overwhelmed by the daunting process of getting one? Buying a home in Florida can be challenging, especially for first-time homebuyers. However, knowing the due steps to purchase a house in Florida will make the process relatively hassle-free and ensure you get the best value for your money legally. 

This comprehensive guide to buying a house in Florida will walk you through the entire purchasing process, from your finances to closing a house. 

5 Major Steps To Purchase A Real Estate Property In Florida

Buying a house in Florida can broadly be broken down into the following significant steps, and they are;

1. Finance and Budget

You must consider your budget and financial strength before buying a Florida home. You need to critically consider your credit score because you might probably need at least a credit score of about 620 to get a mortgage loan. The down payment is how much it will cost for an upfront payment for the house; usually, for most loans, you will need a down payment between 10% to 20%. Also, the closing cost of buying a home can be between 2% and 5% in Florida.

2. Find a Realtor

An excellent real estate agent is essential as they help you find a suitable property, make an offer, negotiate contracts, and close a deal on your behalf. Hence, you don’t have to rush in choosing an agent. Take your time when searching for one, and pay quality attention to some crucial factors like the agent’s years of experience, number of transactions done, reviews, and scores. 

3. Get a Mortgage Pre-approval for the Real Estate

Getting a mortgage pre-approval is a vital part of buying a Florida, except if you have enough money to make an outright payment, as sellers will only show you a house if you have a pre-approval letter.

A mortgage pre-approval letter is an offer to lend you a certain amount of money to purchase a home. It shows sellers that you are a severe buyer financially qualified to offer a home. A mortgage pre-approval letter is usually valid for 90 days.

4. Find your Location

After figuring out your budget, the next step is to find a suitable location and decide where you want to live. In Florida, home prices vary dramatically from city to city and even from neighborhood to neighborhood.

The location of your new home in Florida matters a lot for the home’s enjoyment and potential future profits. You may wish to sell your house in the future. Hence, you need to check the past home value trends, as this will give you an idea of how much your home’s value could go up over the next few years.

5. Make an Offer

Once you have found your suitable property, you will need to submit an offer containing offer terms, then you sign and send it to the listing agent with the proof of funds and a pre-approval letter. Real estate agents usually craft the offer letter. 

A seller who wishes to accept your offer countersigns the contract, at which point the property is officially under contract. You’ll then make a contract deposit according to the terms outlined in the contract. On the other hand, if the seller wants to negotiate, he will send back a reversed contract with the proposed terms.

Legal Ways to Make Money From Your Real Estate Property in Florida

Are you looking for legal ways to make money from a real estate property in Florida? First, remember there is no quick way to make money or get rich in real estate. However, investing in real estate can grow wealth gradually and consistently.

Real estate is one of the most effective ways to accumulate wealth. While traditional methods, like buying and selling properties, will yield money in real estate, other proven methods are lucrative.

There are basically four different ways to make money from a real estate property:

1.          Increase a property’s value

One of the common ways to make money from a real estate property is through appreciation. Properties appreciate with time, and that’s why real estate attracts investors. There’s a very high chance that your property will be worth more than what you bought it for when you buy and hold it.

Real estate properties, including land, residential, or commercial properties, can appreciate for several reasons. For land, it tends to appreciate with natural resources or development purposes. It will certainly increase its value if you discover gold, oil, or any natural resource on your land. Also, for development, Land may appreciate if you construct structures on it.

Likewise, residential and commercial properties tend to appreciate for three main reasons; Location, development, and improvements. Properties are more likely to increase in value if located in a conspicuous venue or by schools, commercial centers, scenic areas, or popular destinations.

Also, the property will appreciate if there are new developments or redevelopment in the surrounding neighborhood and if significant building improvements are done. This is the main idea behind fix-and-flip investing.

2.    Regular Income Through Rentage or Lease

A Real estate property can also generate a steady cash flow, unlike when you sell appreciated property, you can only earn a one-time profit. However, you can earn regular income through real estate properties.

For residential property, you can rent it out to tenants and collect monthly rent. However, you need enough rent to cover the property costs, like mortgage, taxes, etc. Likewise, you can also rent out commercial properties to businesses.

You can generate regular income from raw land, as well. You can rent out your land to harvest resources, in which case they’ll pay you royalties on their profits. Most rented land is majorly used for agriculture.

3.    Fix-and-Flip a Real Estate Property

A fix-and-flip investment is when you purchase a low-valued property, renovate it quickly to increase its value, and then sell it for a profit. A successful house flip can give significant revenue.

You need to have an overview of the renovation cost before venturing into house flipping because the higher the renovation cost, the lower the profit margin and vice versa, and how much the renovations will affect the property’s value.

4.    Other Real Estate Property Income

There are other ways to make money in real estate, even if you don’t have the resources to buy a property. You can invest your money in real estate projects as a lender and receive profits. Some of these ways include:

Five Types of Deeds to Transfer Real Estate Properties in Florida

In Florida, a Deed is a real estate document used to transfer the title and ownership of real estate properties from one party to another or from an existing owner to a new owner. There are five basic types of deeds used in Florida for real estate transactions, and their differences are the level of warranties they provide. 

These warranties are certain guarantees that make the seller liable if a particular title defect could be a problem for the new owner. Also, these differences can affect the ownership status if the wrong Deed is employed. Thus, you must contact an experienced real estate attorney to assist you in selecting the best Deed when transferring a real estate property in Florida.

The five types of Deed to transfer real estate properties in Florida includes;

1. General Warranty Deed

The General Warranty Deed is the most common type of Deed to transfer residential property in Florida, and it is considered the top tier Deed for ownership of a property. It affords the most guarantees and protection for buyers, and it provides a full warranty of title not only for the period that the current title holder owned the property but also for the entire period stretching back to the property’s originations.

2. Special Warranty Deed

A Special Warranty Deed in Florida is often used to transfer commercial real estate properties. It transfers a limited warranty of title to the Grantee; that is, it guarantees a title for the period that the current Grantor owned the property. A Special Warranty deed makes no promises about the condition of the title before the seller owns the property because the seller or Grantor might need to be more familiar with the property’s history before they take ownership. Hence, they can’t guarantee that there were no title defects before they took possession. 

3. Quitclaim Deed

A Quitclaim Deed is the least desirable Deed to accept ownership of real estate properties in Florida. It passes the ownership interest in real estate to the new owner but makes no warranties regarding any defects or problems with the title. The Grantee is buying the property ” as-is,” with up-front knowledge that someone else may claim ownership of the property or that there may be liens or debts of former owners requiring a pay-off. It often creates exceptions to title policies and is used to clear title defects. 

4. Life Estate Deed

In Florida, a Life Estate Deed is a grant of an ownership interest in a property. The Grantor gives away actual legal title and ownership to another person while retaining the ability to use the property for the rest of their lifetime. It is often used for estate planning purposes, and it bypasses the probate process and passes to the remainderman in fee simple at the death of the life tenant, and 

5. Enhanced Life Estate Deed

Enhanced Life Estate Deed is also known as a Lady Bird Deed, and it is a unique form of Deed that allows the Grantor to retain all rights over their real estate properties while they are alive. Once the Grantor passes away, the property bypasses probate and automatically transfers to the relatives listed on the Deed. However, it allows the Grantor to revoke the Deed before their death, create a new Deed, sell the property, take out a mortgage, or any other activities conveying or encumbering title to the property. 

Mortgage Vs. Outright Purchase of Real Estate Property In Florida

Mortgage and outright purchase are two legal options for acquiring a real estate property in Florida. Debt is often considered a bad idea in our present-day society, and debtors are classified as people of a low standard, and paying in full cash can be burdensome. 

Consequently, many people are usually confused about the best way to acquire real estate properties. Below is a quick overview of what you get when you mortgage Vs. Buy off real estate property in Florida

The benefit of Outright Purchase of Real Estate Property

One of the benefits of buying a property outrightly is that there will not be a need to pay any form of interest on any loan in purchasing such property.

Another advantage is that you don’t get to pay other fees like the mortgage origination fee, any form of lender fee payable, such as insurance charges from a mortgage lender, appraisal fee, or any closing cost associated with the close of the purchase.

Usually, outright payments are more attractive to sellers since they won’t be bothered with the risk of not eventually recovering their funds or worry that their application to receive financing will be denied. 

Hence, outright purchase deals can close faster than property purchases with a mortgage since you don’t have to apply for a mortgage or paperwork. Also, you don’t have to wait for the lender to approve or process your loan.

When buying property outrightly, the buyer has an edge in bargaining. They have more leverage in negotiating the purchase price since the seller is assured of the transaction’s closing. Generally, they buy at a lower price and receive a cash discount.

The benefit of Mortgage Purchase of Real Estate Property 

Conversely, financing a real estate property through a mortgage also has significant benefits. It provides a more relaxed purchase option than dumping huge funds by buying real estate property outright. 

Buying a property outright has some tax implications; on the other hand, mortgage interest payments are often tax-deductible, and it reduces the tax burden. A buyer might be worse off paying outrightly for a real estate property than if the purchase was financed when the tax deduction is considered, together with the possibility of getting greater interest and dividends if those funds were invested.

Making A Decision

Are you considering buying real estate outright or financing the purchase through a mortgage? Do not hesitate to seek the advice of an experienced real estate attorney today to help you make the best decision and walk you through the processes. 

Basic Laws and Rights You Should Know If You Own a Commercial Property in Florida

Owning a commercial property in Florida can be quite interesting because Florida ranks as one of the best states in the U.S. to own such assets. However, it is important to note that some specific laws and rights guide owning commercial properties in Florida. Here is a list of the rights you have as a commercial property owner in Florida.

1.   Right To Possession

This is the right that gives you the ultimate power over a property. Possessing a property entails making full payment for buying the property, compliance with the sales conditions, and documentation of the transaction details. Once you meet these conditions, you have the ultimate right to possess such property in Florida under the law.

2.   Right To Derive Income

Once an individual acquires a commercial property, he/she has the right to derive income from it. Deriving an income from a commercial property often happens when the owner rents it out. However, certain limitations can affect this right, such as Zoning. A major example is renting out a place to be a club in a relatively quiet residential area. Such an act can result in noise pollution, which can end up distressing someone.

3.   Right To Exclusion

A person has the right to exclude every other person from their commercial property. This is the right that helps to ensure that specific individuals do not come close to such a property. However, there are limitations to this right, and an example is a warrant search by law enforcement agencies.

4.   Right To Control a Commercial Property in Florida

The ownership of this type of asset in Florida includes having the utmost control over such a property. An individual can choose to design and manage it just as he or she wants it as long as he/she remains the legal owner of the commercial property in Florida.

5.   Right To Disposition of Property

This right allows the owners of commercial properties to sell or give off their properties, whether as a gift or a will. When a person still owes a mortgage, his property can also be used to pay the debt.

Conclusively, it is important to have full knowledge of these rights and their limitations before choosing to own a commercial property in Florida. This idea will guide you on how well to manage and get the best out of being an owner of a commercial property in Florida.

South Florida Commercial Real Estate: What You Need To Know

The commercial real estate market in South Florida is expected to grow steadily in 2023 continuing to rebound after the pandemic. The market has been fluctuating but the market is looking good with increased investment and construction activity. This includes the popular Foundry which broke ground in Coral Springs Industrial Park this month as well as Lincoln grabbing a construction loan for $103M for their Doral apartment project.

Construction In South Florida

Construction activity is expected to increase, as developers begin to build new projects and expand existing ones. Office construction is projected to increase 30% in 2023, while industrial construction is projected to increase 20%. Retail and hotel construction are also expected to increase, although at a slower pace.

Looking to break ground on commercial real estate or launch retail?

The South Florida commercial real estate market is expected to continue to thrive in 2023, with increased investment, construction activity, and sales volume. Leah Mayersohn is a South Florida real estate attorney who can help you navigate the market and guide your investment in the right direction. Contact Leah Mayersohn today.

You have a bundle of legal rights if you own a property in Florida. They’re called a bundle of rights because it is a collection of different rights exercised by the owner as pleased. These rights include:

Each right within the bundle can operate differently, and property owners may choose to give up an individual right for specific reasons. For instance, the owner could decide to rent out a portion of land to a farmer to plant crops and give up the right to exclude others in favor of tenancy. 

However, there are exceptional cases where property owners cannot exercise specific rights. Operating an automobile repair shop may not be allowed if a property lies within a zoning district that only permits residences. Inability to meet their obligations, such as paying taxes, could also lead to losing ownership rights.

1.     The Right of Possession

Anyone has the legal right to own the property once they have purchased it. Once the buyer makes the full payment, they have the title to it because there’s no mortgage or other form of lien that may threaten the buyer’s right. 

2.     The Right of Control

A property owner can exercise the right to control how the property is managed. But this right is subject to other regulations like property owners adhering to homeowners’ association (HOA) and zoning regulations. 

3.     The Right of Exclusion

Property owners can decide to prevent others from invading their property. However, this right has several exceptions, such as law enforcement officers with a warrant or common easements for utility companies. 

4.     The Right to Derive Income

You can generate income on properties by renting them out to a person or a business if you own a property in Florida.

5.     The Right to Disposition

Property owners can transfer property ownership to another as a gift or included in their will after death. If the property still has a mortgage, the proceedings, when sold, must be used to pay the remaining balance.

Fewer common rights are granted to the property owner, such as surface rights, mineral rights, and air rights.

Industrial Real Estate On The Rise

In recent years, South Florida has become a hotbed for industrial real estate development. Thanks to its proximity to major markets and its favorable business climate, the region has attracted a growing number of companies in industries such as logistics, manufacturing, and healthcare.

As a result, industrial real estate values in South Florida have been on the rise. In fact, according to CBRE’s Industrial & Logistics MarketView report, the average asking rent for industrial space in the region increased by 5.6% in 2018 alone.

Most Popular Industrial Real Estate Projects in South Florida

1. Amazon Distribution Center in Doral

2. FedEx Ground Facility in Pembroke Pines

3. UPS Distribution Center in Miami Lakes

4. Duke Energy Data Center in Deerfield Beach

5. Southeast Regional Distribution Center for PepsiCo in Medley

What’s Driving South Florida’s Industrial Real Estate Boom?

There are a number of factors that have contributed to South Florida’s industrial real estate boom. First and foremost, the region’s proximity to major markets such as Latin America, the Caribbean, and North America makes it an ideal location for businesses involved in international trade. Additionally, South Florida has a well-developed infrastructure of highways, seaports, and airports, which further enhances its appeal to logistics and transportation companies.

Favorable Business Climate In South Florida

Another key driver of South Florida’s industrial real estate boom is the region’s favorable business climate. In recent years, the state of Florida has implemented a number of pro-business policies that have made it an increasingly attractive destination for businesses of all types. For example, Florida does not have a state income tax, which makes it an appealing location for companies looking to reduce their tax liability. Additionally, the state offers a number of incentives for businesses that create new jobs, such as job training programs and tax breaks.

With its strategic location and favorable business climate, it’s no wonder that South Florida’s industrial real estate market is booming. Thanks to these factors, the region is well-positioned to continue attracting new businesses and driving economic growth in the years to come.

Original sources:

https://www.cbre.com/us-en/research-and-insights/industrial-logistics/south-florida-industrial-real-estate

https://therealdeal.com/miami/2018/10/22/heres-a-look-at-some-of-south-floras-most-popular-industrial-real estate/#new_tab=1

Looking Forward

Looking ahead, the demand for industrial real estate in South Florida is expected to continue to grow. Companies are drawn to the region for its skilled workforce, infrastructure, and quality of life. Additionally, with e-commerce sales continuing to rise, the need for warehouses and distribution centers is expected to increase.

As the demand for industrial real estate in South Florida grows, so too will the values of these properties. So, if you’re thinking about investing in industrial real estate in the region, now is the time to do it.

If you’re looking for information on buying or selling in South Florida’s industrial real estate market, be sure to reach out to Leah Mayersohn for legal advice.

South Florida Commercial Real Estate Investments

As a commercial real estate investor in South Florida, you have a unique opportunity to tap into one of the most bustling and vibrant markets in the country. But with that opportunity comes risk – and it’s important to know what you’re getting into before making any investment decisions.

Here are a few things to keep in mind when considering investing in South Florida commercial real estate:

1. The Miami metropolitan area is one of the fastest-growing in the country, which means there is always a high demand for office, retail, and industrial space.

2. Property values in South Florida have been on the rise in recent years, so you’ll need to be prepared to pay more for properties than you might have a few years ago.

3. Hurricane season is a reality in South Florida, so you’ll need to factor in the possibility of damage to your property when making your investment decisions.

4. The South Florida commercial real estate market is extremely competitive, so you’ll need to be prepared to move quickly and decisively when you find a property that meets your investment criteria.

5. There are a number of experienced and reputable commercial real estate investors in South Florida, so it’s important to do your homework and choose an experienced partner who you can trust.

If you keep these things in mind, you’ll be well on your way to a successful South Florida Commercial Investment.

Speak To A Top South Florida Commercial Real Estate Attorney Leah Mayersohn

When it comes to making a commercial real estate investment in South Florida, it’s important to have an experienced and knowledgeable attorney on your side. Leah Mayersohn is a top South Florida commercial real estate attorney who has represented investors, developers, landlords, and tenants in a wide variety of transactions.

If you’re considering making a commercial real estate investment in South Florida, contact Leah Mayersohn today to schedule a consultation. He can help you navigate the complexities of the market and ensure that you make a smart and sound investment.

Negotiating Your Commercial Lease 

As a potential renter of South Florida commercial real estate, negotiating most commercial real estate leases is usually a good idea rather than accepting the first terms offered. Given that the lease is one of the most important expenses for any company, any effort invested in negotiating more favorable terms or lower costs will pay off.

Here are some negotiating strategies for your next lease, which is typically simpler with the help of a commercial real estate lawyer in Florida:

Tip #1 – Look at comparable rents

It may appear to be self-evident, but it’s critical to look at comparable space rental prices in the city you’re thinking about moving to. This will assist you in obtaining the greatest bargain possible.

You’ll also want to consider any other expenses, such as your share of insurance and maintenance, as well as property taxes if applicable. If it’s a single, double, or triple net lease, you’ll need to think about your other expenditures as well: HOA fees and so on.

Your real estate attorney can assist you in determining exactly what costs you’ll be responsible for so that you know whether it’s a good deal or not.

Tip #2 – Consider the length of the lease

When it comes to their ideal lease term and the potential changes to their space that may occur in the next 1-3 years, each business will have unique goals. It’s critical to create a long-term strategy before entering negotiations so that you can choose the best terms and flexibility options.

Established firms may prefer a longer lease term, which can frequently result in lower negotiated expenses, whereas start-ups or high-growth companies may want more flexibility and thus shorter leases.

Tip #3 – Determine the ideal lease structure

Commercial real estate lease structures might vary significantly depending on the many different business situations that come up. Choosing among a single, double, triple, gross, or percentage lease may be difficult; each has several advantages and drawbacks.

Triple net leases pass maintenance, taxes, and insurance costs on to the tenant. Although this sort of contract is popular in certain sectors, tenant discussions are still suggested. Among other things, tenant negotiations can limit monthly expenses.

A double or single net lease may save money on some of these expenditures, but it will charge a higher monthly rent. A gross lease does not include any of these costs in the rental and is, therefore, more expensive.

Contact South Florida Commercial Real Estate Lawyer Leah Mayersohn

The wide range of scenarios that can be encountered during lease negotiations often necessitates a meeting with a Florida commercial real estate lawyer. If you are currently negotiating a lease, contact Mayersohn Law Group today.