Florida is the #1 state for international real estate investors in the U.S., with Canadian investors buying Florida investment properties for many years. So in this article, we want to share our experience as to why Canadian investors continue to invest in Florida.
Who’s Investing in Florida?
Over 20% of all foreign investors choose to purchase Florida investment property. More foreign real estate investors buy investment property in Florida than any other U.S. state, with California as the next closest with 16%.
Florida cities like Miami, Tampa, and Ft. Lauderdale are seeing investors from nations such as the United Kingdom, Canada, Brazil, China, and Europe buy properties.
Although the reasons for buying investment property in Florida varies from investor to investor, the most common reasons for these buyers to choose Florida include:
- Florida is a great place to retire and attracts a significant population of affluent retirees. Some international investors also choose to relocate and retire in Florida.
- Properties are affordable.
- There is a significant potential for equity.
How Canadian Real Estate Investors Find Great Investment Properties
Finding a good investment property is a challenge for all international investors, including those in Canada. These investors are not familiar with individual neighborhoods in Florida, so finding an investment property to generate passive income and generate profits is problematic.
Furthermore, it’s not always possible or convenient for Canadian real estate investors to repeatedly travel to Florida in search of a property, so many buy their investment properties from an experienced wholesaler like Graystone Investment Group.
Graystone has vast experience working with Canadian clients, and Brooks Armstrong has nothing but good things to say about the company.
Four of the hottest markets in Florida for foreign real estate investors are:
- Miami, Florida: Miami is one of the most famous and picturesque cities in the world. Add in the fact that it’s in close proximity to Latin America, and you get a real estate market that is in high demand.
- Jacksonville, Florida: Although Jacksonville receives a bit less tourism traffic than other major cities in the state, there is still plenty that makes it an attractive market. Jacksonville features the perfect Floridian climate, while featuring a diverse and strong economy.
- Orlando, Florida: As a top tourist destination in the world, Orlando has one of the most stable economies in the state, with a high demand for a variety of rental choices.
- Tampa, Florida: Tampa continues to be ranked a top city for national and international investors for numerous reasons. At the top of the list, Tampa has the second largest economy in Florida, while also offering great real estate value to investors and competitive rents.
Funding for Canadian Investors
One of the biggest concerns of Canadian real estate investors revolves around financing when buying Florida properties.
Like many U.S. investors, Canadian investors may rely on private lenders and hard money to fund purchases of Florida investment real estate. But once they own several properties that are generating cash profits, leverage makes it much easier to finance purchases in the future.
Canadians are also able to obtain commercial lending for bulk purchases of five properties or more. And, Canadians may opt to finance Florida investment properties through different Canadian institutions such as the Royal Bank of Canada, Toronto-Dominion Bank, and Bank of Montreal.
Amina Mohamed, who is a Mortgage Broker in Canada, purchased an investment property from us and was kind enough to write a guest blog for our website in 2016. Amina shares her experience with purchasing investment property in Florida as a Canadian, while also telling readers about her financing options. She also shares her financial analysis of the property, which is very interesting.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay. We serve clients who flip homes in as little as 30 days, as well as clients who hold high cash flowing rental properties.
Unlike other wholesaling groups, we provide clients with a turnkey process at no extra charge. We find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years.