Commercial Property in Florida
8% to 10% per annum of rental income.
Unlike Brazil, in Florida, vacant lots, medium and large properties for lease and residential buildings of the same owner with more than 5 apartments are considered Commercial Real Estate. In commercial real estate, there are other expenses at the time of acquisition which cause them to incur higher costs.
Environmental and zoning reports (master plan) are some examples. Commercial real estate costs relatively more than the residential ones. On average, they start over US $ 1 million, but they are highly valued, and because they are commercial, they have differentiated taxation. It is very important the presence of a lawyer in the business transactions, due diligence, which will allow the investor to inspect the property and to analyze if it is adequate with the zoning laws and due licenses.
Here are some types of commercial real estate:
Shopping Center: It can be a shopping center with from 4 stores. Investors can either buy land and build a Shopping Center in a place that is in need of one, or buy one that is being mismanaged or even buy one that is already well managed. There is not much mystery, it's like it's in Brazil itself. The return on this investment is between 4% and 12% per year and the contract time is usually 1 year with multiple tenants.
Storage Sheds: It is an easily manageable rental and the structure of the property is usually sturdier to last longer. The owner has no responsibility with what is inside the rented property. They are contracts of 1 year and yields around 5% to 9% per year.
Residential Buildings (Multifamily): They are nothing less than several apartments together of the same owner. To be in the commercial category, the building must have more than 5 units. The contracts between the tenants are individuals and only 1 year, yielding around 6% to 12% per year.
I left the best type of commercial property to be analyzed separately !!!
Let's go to it:
Triple Net Properties
5% to 7% per annum of Rent in rent with 20 years of Contract.
It's a totally different type of rental property. It is a mini mall with a LONG lease made with large companies. But what does the term Triple Net mean?
It means that the owner of the property is free from the responsibility of: Property tax Property Insurance Maintenance of the property. In addition to these freedoms, the contracts are usually for 20 years and above all with no possibility of fine termination to terminate the contract before, ie the tenant has to terminate the contract in any way.
In the contract is already pre-defined the rent increase and the renewal option. But then you ask, who would sign this type of contract? It's not even the franchisee of a small shop that will sign the contract with you. Who will guarantee the contract will be the Master Franchiser or the Master Corporation or the owner of the brand, the company itself.
Incredible, is not it? Here, the ideal is to choose a tenant just to sign and this will be responsible for everything. And the most interesting of all this is that there is no real estate administration and let alone commission to pay, because the administration is the company that signed the contract, ie the tenant. He's responsible for everything, not you.
Sensational, is not it?
Examples of companies that rent TRIPLE NET: Burger King, KFC, Walgreens, CVC, Pep Boys and others.
Since this investment is extremely safe, the Banks love to finance this type of property.
If you are interested in receiving more information about THIS OPPORTUNITY and already start the process of transferring your assets to a more secure country like USA, buy real estate and rent with an income of 8% per annum , please contact our team.
We'll be happy to help you start PROTECTING YOUR PATROMOMY.
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