FAQ — Real Hodge Group

Real Hodge Group specializes in luxury residential real estate across Homestead, Cutler Bay, Palmetto Bay, Pinecrest, Cutler Ridge, Goulds, and the broader South Miami-Dade County market. Real Hodge Group also handles properties throughout the City of Miami, Coral Gables, and Coconut Grove, and assists clients with international purchases through a global referral network.

Down payment requirements depend on loan type. Conventional loans typically require 5–20% down, FHA loans as little as 3.5% with a 580+ credit score, and VA loans 0% for eligible veterans. Jumbo loans for luxury properties usually require 10–20% minimum. Cash buyers — common in South Florida's luxury and international segments — can move with no financing contingency, often closing in 10–14 days.

Buyer closing costs in Miami-Dade County typically run 2–5% of the purchase price. They include lender fees, title insurance, survey, inspection, recording fees, and prepaid items like property tax and homeowner's insurance escrow. Miami-Dade is the only Florida county where the buyer customarily pays for the owner's title insurance policy — every other Florida county puts that cost on the seller. The seller still covers the documentary stamp tax on the deed in Miami-Dade.

As of August 17, 2024, every buyer must sign a written Buyer Representation Agreement before touring a home with a real estate agent. The agreement spells out the services Real Hodge Group will provide and the compensation the buyer is contractually responsible for. In practice, sellers in South Florida still frequently offer to cover all or part of buyer-agent compensation as part of the negotiation — we structure the offer to capture that whenever it's available, so out-of-pocket cost to the buyer is minimized.

A standard financed transaction in Miami-Dade closes in 30–45 days from contract acceptance. Cash deals can close in 10–14 days. The timeline includes inspection (typically 10–15 days), financing approval (typically 21–30 days), title search, survey, and HOA estoppel where applicable. Real Hodge Group keeps every transaction on a tracked timeline with weekly client updates and a single point of accountability.

Each South Miami-Dade market has a distinct price band and lifestyle profile. Homestead is the most accessible price point, with strong appreciation and proximity to Biscayne and Everglades National Parks. Cutler Bay offers waterfront access on Biscayne Bay and a mix of family neighborhoods and luxury estates. Pinecrest is the premier luxury market in South Miami-Dade, with large lots, top-ranked public schools, and consistently high resale values. Real Hodge Group works in all three, plus Palmetto Bay, Cutler Ridge, and Goulds.

Pre-qualification is an informal estimate based on self-reported income, debt, and credit — useful for early budgeting but carries little weight with sellers. Pre-approval is a formal underwriting review including verified income (W-2s, tax returns, bank statements), a credit pull, and a conditional commitment letter from the lender. In competitive South Florida markets, sellers expect pre-approval before considering an offer. Cash buyers provide Proof of Funds in place of a pre-approval letter.

Most lenders use a 28/36 rule: housing payment (principal, interest, taxes, insurance, HOA) shouldn't exceed 28% of gross monthly income, and total debt shouldn't exceed 36%. Some loan programs stretch the back-end ratio to 43–50%. In Miami-Dade, property tax, homeowner's insurance, wind/flood coverage, and HOA dues can run 2–4% of the property value annually, so the true monthly carrying cost is meaningfully higher than principal and interest alone. Real Hodge Group provides a full carrying-cost worksheet before recommending a price range.

The main loan types are Conventional (5–20% down, requires solid credit), FHA (3.5% down with 580+ credit, government-insured), VA (0% down for eligible veterans and active military), USDA (0% down in eligible rural areas, limited South Florida availability), Jumbo (above the conforming loan limit, typically 10–20% down for luxury properties), and Foreign National programs (30–40% down, no U.S. credit history required). DSCR loans are available for investors qualifying on rental income rather than personal income.

A reverse mortgage (HECM — Home Equity Conversion Mortgage, the federally-insured version) is a loan available to homeowners 62 and older that converts home equity into tax-free cash. The loan is repaid when the homeowner sells, moves out, or passes away — no monthly mortgage payments are required. The homeowner must continue paying property tax, insurance, and HOA. HECMs are not qualified by debt-to-income ratio in the traditional sense; lenders use a residual-income analysis. Real Hodge Group can refer qualified seniors to specialist HECM lenders.

The standard rule of thumb is to refinance when rates drop at least 0.75–1.0% below the current mortgage rate, and the homeowner plans to stay in the home long enough to recoup closing costs (typically 2–3% of the loan). Calculate the break-even by dividing closing costs by monthly savings — if the result is fewer months than the planned ownership window, refinancing pays off. Cash-out refinances also make sense to consolidate higher-rate debt or fund home improvement. Run the numbers with a lender before deciding.

Cap rates in Miami-Dade vary by asset class and submarket. As of late 2025/early 2026: multi-family 4.5–6%, retail 5.5–7.5%, industrial 5–6.5%, office 6.5–8.5%, hospitality varies widely. Trophy assets in core Miami submarkets trade tighter; secondary locations and value-add deals trade wider. Real Hodge Group provides current cap rate comps by asset class and submarket as part of every buyer or seller engagement.

Multi-family remains strong driven by population growth and a persistent housing shortage. Industrial is robust on logistics demand from the Port of Miami and last-mile e-commerce. Retail has bifurcated — grocery-anchored, neighborhood, and experiential retail performing well; commodity retail weaker. Office is the most challenged sector nationally, but Miami specifically has benefited from corporate relocations and remains stronger than most U.S. metros. Hospitality follows tourism cycles. Real Hodge Group tracks current absorption, vacancy, and rent-growth data across every submarket.

In a triple-net (NNN) lease, the tenant pays base rent plus property taxes, insurance, and maintenance (the three "nets") — common in retail and single-tenant industrial. In a gross lease, the landlord pays all operating expenses out of the base rent — common in office and some multi-tenant industrial. Modified gross splits some expenses between landlord and tenant. NNN structures shift operational risk to the tenant and produce more predictable owner cash flow, which is why most single-tenant investments trade as NNN.

A 1031 exchange (IRC Section 1031) lets an investor sell investment or business-use property and defer federal capital gains tax by reinvesting the proceeds into "like-kind" replacement property. Key rules: identify replacement property within 45 days of sale, close within 180 days, use a Qualified Intermediary to hold proceeds, and replace equal-or-greater debt and value to fully defer tax. 1031 exchanges are one of the most powerful wealth-building tools for commercial investors. Real Hodge Group coordinates with experienced 1031 QIs on every exchange transaction.

Yes — for owner-occupied commercial property only (the borrower's business must occupy at least 51% of the building for existing property, 60% for new construction). The SBA 504 program offers 10–15% down, fixed rates, and 25-year terms. The SBA 7(a) program offers more flexibility for working capital plus real estate. SBA financing is not available for pure investment property. Real Hodge Group has access to SBA-approved lenders and structures the transaction to meet occupancy and use requirements.

Gross rental yields in South Miami-Dade run roughly 5–8% on entry-level single-family and small multi-family properties, and 3–5% on luxury homes. Net yields (after taxes, insurance, vacancy, maintenance, and management) typically come in 1.5–3% below the gross figure. Cash flow improves materially with leverage in the right rate environment. Total return = rental cash flow + appreciation + principal paydown + tax benefits, which is why South Florida has historically been a top-performing real estate market on a total-return basis.

Long-term rentals (annual leases) offer stable cash flow, lower turnover cost, and minimal management overhead — suited to passive investors. Short-term rentals (Airbnb/VRBO) generate higher gross revenue in tourist markets but require active management, furnishing, cleaning, and compliance with city and HOA short-term rental rules. Miami Beach, Key Biscayne, and many condo associations restrict or prohibit short-term rentals. Homestead and parts of unincorporated Miami-Dade are generally more permissive. Real Hodge Group can identify properties where short-term rental is genuinely allowed.

Not legally, but most out-of-state and international investors use a professional property manager. Standard South Florida property management runs 8–12% of monthly rent, plus a leasing fee equal to roughly one month's rent on each new tenant placement. Manager responsibilities include tenant screening, rent collection, maintenance coordination, code compliance, and eviction handling if needed. Real Hodge Group can refer trusted local property managers and helps owners select the right structure for their portfolio.

The Florida insurance market is stabilizing in 2026 after several difficult years. Citizens Property Insurance approved a statewide average 11.5% rate decrease effective June 2026, 17 new private insurers entered the Florida market following the 2022/2023 tort reforms, and wind mitigation credits of 20–88% on the windstorm portion of a policy remain available. Citizens introduced new flood-insurance mandates: required on homes valued at $400,000+ starting January 2026, expanding to all Citizens windstorm policyholders by January 2027. Investment-property premiums remain higher than owner-occupied; we recommend bidding insurance during the inspection period so the carrying cost is locked in before closing.

Investors have several non-conventional options beyond traditional 20–25% down conforming loans. DSCR loans (Debt Service Coverage Ratio) qualify on the property's rental income rather than the borrower's personal income — ideal for self-employed and portfolio investors. Portfolio loans let lenders hold loans on balance sheet for borrowers who don't fit conforming guidelines. HELOCs on existing primary residences fund down payments on the next purchase. Hard money covers short-term rehab/flip projects. Real Hodge Group connects investors with lenders specializing in each program.

Yes — Florida is one of the most foreign-buyer-friendly states in the U.S. Non-residents can purchase residential and commercial property without restrictions and without additional foreign-buyer taxes. There is no requirement to be a U.S. citizen or resident, and no minimum investment amount. Most international buyers use cash or foreign-national mortgage programs requiring 30–40% down. Real Hodge Group handles a meaningful share of international transactions and provides end-to-end support from offer through closing.

Foreign buyers do not need an ITIN (Individual Taxpayer Identification Number) to purchase property, but most will need one later for tax reporting, rental income filings, FIRPTA processing on resale, and to open U.S. bank accounts. The ITIN is issued by the IRS via Form W-7. Many international buyers apply through a Certifying Acceptance Agent so they don't need to mail original passports. Real Hodge Group can refer experienced cross-border CPAs and CAAs for ITIN processing.

FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer to withhold 15% of the gross sales price when purchasing U.S. real estate from a foreign person (10% if the sale price is $300,000–$1M and the buyer plans to use as a residence; 0% under $300K with residence intent). The withheld amount is sent to the IRS as a credit against the seller's eventual U.S. tax liability on the gain. Sellers can apply for a Withholding Certificate (Form 8288-B) to reduce the withholding to actual tax owed. Real Hodge Group coordinates with cross-border tax counsel on every FIRPTA transaction.

No. Buying U.S. real estate does not grant any U.S. visa, residency, work permit, or path to a green card. This is one of the most common misconceptions among international buyers. Real estate ownership and immigration status are entirely separate matters in U.S. law. Foreign nationals seeking U.S. residency need to qualify for a specific visa category (EB-5, E-2, L-1, O-1, etc.) through USCIS — ownership of property is not a factor. Always consult a U.S. immigration attorney for visa planning.

Wire transfers through traditional banks typically include exchange rate markups of 2–4% above the mid-market rate plus wire fees — on a $1,000,000 property, that's $20,000–$40,000 in hidden currency costs. Specialist FX providers like Moneycorp typically save 1.5–3% versus the bank rate, with transparent pricing and no hidden margins. Real Hodge Group refers international clients to Moneycorp for property purchases: register here to set up an account before making an offer.

Yes. Foreign owners can rent out U.S. property to generate income. Rental income is subject to U.S. federal income tax. By default it's taxed at a flat 30% on gross rent, but foreign owners can elect (under IRC Section 871(d) or 882(d)) to be taxed on net rental income at graduated rates — almost always more favorable. The election requires filing Form W-8ECI with the property manager or tenant, plus an annual U.S. tax return (Form 1040-NR for individuals, 1120-F for foreign corporations). Real Hodge Group connects international owners with cross-border CPAs and property managers experienced with foreign-owner taxation.

The EB-5 program grants U.S. permanent residency (green card) in exchange for a qualifying investment that creates 10+ U.S. jobs. As of the 2022 EB-5 Reform Act, the minimum investment is $1,050,000 standard or $800,000 in a Targeted Employment Area (TEA), Rural Area, or designated infrastructure project. Investors can invest through a Regional Center pool or a direct business investment. EB-5 is one of the most popular routes to U.S. residency for high-net-worth international buyers and is administered by USCIS. Always work with a qualified U.S. immigration attorney.

The E-2 visa is a non-immigrant work visa available to nationals of treaty countries who invest a "substantial amount" of capital in a U.S. business they will actively direct. There is no formal minimum, but in practice $100,000–$200,000+ is typical. E-2 is renewable indefinitely as long as the business operates, and spouses can apply for work authorization. E-2 does not lead directly to a green card. Common E-2 nationalities include UK, Canada, Mexico, Germany, France, Italy, Spain, Japan, and many Latin American and Asian countries. Confirm treaty status with a U.S. immigration attorney.

The L-1 visa allows a multinational company to transfer executives (L-1A) or specialized-knowledge employees (L-1B) from a foreign office to a related U.S. office. Requires the employee to have worked for the foreign entity for at least one year in the prior three years. L-1A is renewable up to 7 years and is a common stepping stone to an EB-1C green card. L-1B is renewable up to 5 years. New-office L-1 visas (for setting up a U.S. branch) are common but face higher USCIS scrutiny.

You can visit your property, but you cannot live in it permanently on a visitor status. ESTA (Visa Waiver Program) allows stays up to 90 days at a time. B-1/B-2 visitor visas typically allow stays up to 6 months. Repeatedly entering on visitor status with extended stays can trigger CBP scrutiny and entry denial. International owners who want to spend more than 4–6 months a year in the U.S. should consult an immigration attorney about appropriate long-term visa options (E-2, L-1, EB-5, O-1, etc.).

No. Purchasing real estate in Florida (or anywhere in the U.S.) confers no immigration benefit — not a visa, not a green card, not citizenship. U.S. residency requires qualifying for a specific visa category through USCIS, completely separate from real estate ownership. Foreign nationals seeking U.S. residency typically pursue EB-5, E-2, L-1, EB-1, O-1, or family-sponsored routes depending on their circumstances. Real Hodge Group refers clients to qualified U.S. immigration attorneys for any visa or residency planning.

Real Hodge Group is a Miami-based boutique luxury real estate brokerage led by broker-owner Norman Hodge (Florida license #BK3534305). The firm holds the Certified International Property Specialist (CIPS) designation, reflecting deep expertise in cross-border transactions, and the Seller Representative Specialist (SRS) designation, recognizing advanced seller-representation skills including probate, divorce, distressed, and complex transaction handling. Real Hodge Group serves South Miami-Dade (Homestead, Cutler Bay, Palmetto Bay, Pinecrest, Cutler Ridge, Goulds), greater Miami, Coral Gables, Coconut Grove, and a global referral network for international buyers and sellers.

The fastest way to reach Real Hodge Group is through the contact form on RealHodge.com, the Home Value Estimator at /whats-my-home-worth/, or by saving Favorites on a listing page (we follow up on every save). We respond within a few business hours. For property tours, we coordinate routes that show 4–6 properties in a single afternoon. International clients can request a virtual tour with live video Q&A before flying in.

Real Hodge Group serves clients in English, and coordinates referrals to bilingual partners for Spanish, Portuguese, French, Italian, and other languages as needed. South Florida's international buyer base is concentrated in Latin America and Europe, so multilingual service is core to the business — not a niche offering. Cross-border transactions also draw on the firm's CIPS network for in-country agents in 40+ countries.

Three things differentiate Real Hodge Group. (1) Local depth — rooted in Homestead, Cutler Bay, and South Miami-Dade with relationships, off-market access, and submarket data that national agents don't have. (2) Custom technology — the search platform, home value estimator, and lead system are built directly on the Miami MLS for South Florida inventory and South Florida buyers, not a one-size-fits-all national template. (3) Direct accountability — clients work with the broker, not a rotating cast of associates. Every transaction has a single point of contact and weekly written updates.