The Pros and Cons of Selling Real Estate to Foreign Investors

Posted on July 19, 2017

The U.S.’s dynamic economy and the strength of its commercial real estate market continues to attract foreign investors who are looking for places to park their money away from the economic chaos of their home nations.  In 2017, Latin American investment in U.S. real estate continues to flourish, although the countries from where those dollars flow and the properties being sought out are shifting.

 

Despite continued demand for U.S. real estate, property owners interested in selling to foreign investors must be aware of the potential difficulties they may face when closing these deals.

 

For starters, the tax responsibilities of foreign investors can vary from country to country, creating more complex deals that can impact both buyers and sellers, as well as their opinions about what each may consider to be a fair sales price. For example, investors who are not considered U.S. tax citizens can incur negative tax consequences when they own interests in U.S. property, depending on their home country. As a result, sellers must be prepared to wait a significant amount of time before these buyers can close and structure these deals.

 

Much of what develops in these investment trends are dictated by economic shifts. But the US marketplace will continue to be a draw for foreign investors. For sellers entering into an international deal, it is important to have guidance on getting the deal done and tax implications.

The professionals with Orion Real Estate Group work with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.