Buying Florida Real Estate
Florida Real Estate Investments
There are dozens of ways to buy or profit from real estate in Florida. A family could of course purchase a new home or vacation home or retirement home in this sunny state so they can enjoy the year round warm weather, beaches, fishing and outside activities. This could be done with a cash purchase, bank financing, and many other forms of purchase. One real advantage to living or investing in Florida is that there are no Personal Property Taxes whatsoever!
Profiting From Florida Real Estate –
Of course, whether or not you plan on moving to Florida, there are many additional ways to participate and profit in this valuable real estate
Investment Properties –
Purchasing an Apartment, Duplex, Four Plex, or commercial property as an investment. Lots, Tax Certificates, Tax Deeds, Foreclosures and more.
Bank Foreclosures – Buying residential properties which have gone into default by the previous owners for personal reasons and have been re-titled to the bank or lending institution that held the mortgage. These can often be purchased for 50%-70% of true market value, renovated and either rented or resold by you to new buyers, profiting in both rental income and long term capitol gains
Buying Tax Certificates –
This is not for ownership, but more for the interest income that you will realize in purchasing these unpaid property tax certificates from the county and holding them for up to 2 years at up to 18% interest, and then cashing out and receiving your money in a Tax Deed Sale.
Buying Tax Deeds –
Each year, Florida counties hold Tax Deed Auctions for Tax Certificates that have been held for 2 or more years that have not been redeemed by the original owners. The opening bid will be for the amount of the delinquent tax certificates PLUS the accrued interest for the tax certificate holder, and a full DEED of Trust is issued to the successful bidder. The only exception is that for property that is homesteaded, the initial opening bid will be for 50% of the just value of the property, plus the unpaid tax certificates and interest.
Buy Land to hold for appreciation, or to build on and sell later –
Although prices vary widely, there are thousands of buildable dry lots that can be purchased for as little as $3,000 each (even less in a foreclosure or tax deed sale), and waterfront lots with access to the ocean or harbor as low as $30,000. With larger numbers of the general population becoming older and retirees tending to move to warmer climates, holding buildable lots in key areas is always a great option
Ways To Hold Title To Florida Property –
In the case of a personal home, you can hold title in your personal name or husband/wife’s name (as tenants in the entireties which protects the property from lawsuits), OR in a Family Living Trust (OR a Florida Land Trust owned by the Family Living Trust) which would reduce estate taxes to your children after your death. In the case of the both trusts, you can still enjoy the Florida Homestead Exemption on a portion of property taxes and tax increases
In the case of everything other than your personal home, you can use the cash WITHIN your 401K or IRA (without IRS early withdrawal penalties) to make investment purchases and allow all profits to go in it tax deferred and accumulate until you actually withdraw your funds. In this case your 401k/IRA would be held in a self-directed account managed by the trustee, and each of your individual investments could be held directly in the name of your 401K/IRS, or in a separate Florida Land Trust whose beneficial owner is the 401K/IRA.
