Mermelstein's multi-lingual partnership started after he graduated from law school, as he and his partner saw an influx of people coming from the former Soviet Union that had their sights on investing in the United States. "People that started to acquire wealth in a very short period of time because of privatization were coming into the United States without any relationships, without any connections, very different than what you would normally see when a high net worth individual is coming from Europe, or even in certain cases from South America," he says. "Most of them have some sort of contact or connection in the US that becomes their guide through our systems. So we, in effect, became that connection for someone who was coming to the States, and as time went by, what we started seeing was an expanding need for representing high net worth families from emerging markets that are looking to the US as a potential secondary base for either their business or their families."

Edward Mermelstein

Photo Credit: Courtesy of One & Only Holdings

The pitfalls for foreigners coming to a different country interested in investing are many, something that Mermelstein and his team at One & Only Holdings have specialized in preventing, evidenced by the word-of-mouth referrals that have driven the company to be a trusted advisor to over a hundred high net worth clients and their families.

"When they're coming into the United States, not having had any prior connections or relationships, typically what winds up happening is they get taken advantage of, so our job was to create an office that would allow these high net worth families to have connections and do business deals at the highest levels as though they have a long-standing relationship in the United States," he says. "We give them an opportunity basically to conduct business at a very high level without having the track record and the credit history of being in the United States, becoming their back office in a sense."

For a decade now, his private law firm expanded to become the "family office for the foreign family office". The relationship with the clients would begin with their legal services but quickly went beyond that. "Our clients started asking us to do things outside of the legal profession, though there was very little that I could do, simply because there are only so many hours in the day," he explains. "They were asking us to help them find real estate for their families as well as investment opportunities."

Mermelstein and his company thoroughly vet the individuals and companies that request their services in coming to the US to invest. "Before we even introduce clients to the bank, our job is to make sure that before someone even comes and crosses our borders that they're doing the right thing because there are certain people that when they come to the United States, they're going to have a problem," he says. "One of our jobs is to advise a potential client that this may not be the right place for them. That's also one of the reasons why many clients appreciate us: because we save them from even starting a headache."

In the past year, and more significantly in the last months as a result of the COVID-19 pandemic, new developments in New York have had difficulties in selling units as residents look towards more suburban living. One & Only Holdings developed its Bulk Purchase Program to offer clients these hush-hush deals.

"There has been a tremendous amount of new construction that has taken place over the last four or five years; much of it is unsold," he says. "The projects that have come to market within the last year are not selling. There are very few that are moving. So what we came up with about a year ago is a narrative for our client base letting them know that there is going to be an opportunity and they should get ready for it, where we can make a purchase of many of these unsold units, put them out into a rental pool, and then in five years, plus or minus, slowly start selling them back into the market, which at that point should be recovered. This is not a new concept by any means. This has been done going back to the 90s. We are not reinventing the wheel. We are just in a very good position because we know many of these developers, having had a relationship with them for the last 20 years. We know who can do this type of sale and which developments are quality developments. It's not just getting a major discount but also buying with the right developer because many projects that are being heavily discounted may not be of high quality."

With a deep understanding of the political and economic risks still present in the emerging economies where their clients originate from, One & Only Holdings' leaders assist the transferring of wealth for their clients. "Political risks lead to economic risks simply because they come hand in hand in Asia, the Middle East, and Eastern European countries. When they're still dealing with political and economic risks in their own country and they've made a substantial amount of money within a very short period of time, our job is always to take their investments and their assets that they're putting into the United States and remove any level of risk."

"Today, it goes both ways because the world has become so small due to travel and the internet," he says about One & Only Holdings' managing assets for US companies in emerging markets. "Investments have become very much globalized and people feel much more comfortable going outside of our borders. [However,] the more companies leave the US borders to go into emerging markets, the greater the risk. Many of them will not go into those markets unless there is a local partner or someone that they're comfortable with working that can lead them through the maze that most of these countries continue to have, and that is something that will take, in certain cases, generations to remove. In certain cases, it may never go away."

For more about Edward Mermelstein and One & Only Holdings, visit https://oneandonlyholdings.com/

The post Edward Mermelstein Of One & Only Holdings Talks International Real Estate Investment appeared first on Haute Residence by Haute Living.

“Fort Lauderdale is growing at a rapid rate,” said Caryn Botknecht, an esteemed realtor and broker in the area. “New companies have settled in Fort Lauderdale over the past year bringing lots of new job opportunities with them.”

Part of the city’s appeal stems from the revocation of the unwritten, long-standing tenet not to build new construction on the beach as well as from recent transportation enhancements like the Brightline Train, which connect Fort Lauderdale and West Palm Beach. Two additional lines – to Orlando and Miami – are expected to soon open as well.

These new developments coalesce with long sought-after local characteristics – think a prime waterfront destination that encourages the sprawl of new neighborhoods – to attract not only investors but also millennials.

“There are a number of millennials that have come to Fort Lauderdale for job opportunities or to live in one of the most gorgeous and fun places with the best weather,” said Botknecht. “A number of them are renting at the moment but should turn into buyers within the next few years.”

As more and more home-seekers and investors are moving in the expanding real estate market in Fort Lauderdale, price levels and sales volumes are still readjusting to the new reality of spiked demand, which appears unlikely to slow down, Botknecht said.

“Fort Lauderdale is a hot place to live right now and for the foreseeable future,” she said.

Top Image: 3018 NE 22nd St, Fort Lauderdale, FL 33305 is offered at 10,900,000 by Caryn Botknecht.

The post Caryn Botknecht: Fort Lauderdale Is Hot A Destination With No Signs Of Slowing Down appeared first on Haute Residence by Haute Living.

Luis R. Fernandez, who heads the LRF Group at Brown Harris Stevens, is among those realtors who regularly assist foreign nationals in their real estate transactions in South Florida. Haute Residence talked to Fernandez about what it takes to represent international buyers and investors, about the slew of considerations that make up a real estate decision, as well as about the domestic and foreign political and economic circumstances that impact deals.

Where do international buyers in Miami come from?  

The top five groups are Venezuela, Brazil, Columbia, Argentina, and Canada.

Have nationalities shifted throughout the years? 

Yes. The cyclical political and economic swings may vary, year to year, our main feeder markets, which are still primarily Latin America.

How many foreign nationals have purchased properties in South Florida last year? 

Foreign buyers purchased $6.2 billion of South Florida residential properties in 2016, up from $6.1 billion a year ago, according to the MIAMI and NAR report.

Recent data shows that the number of tourists to the US has fallen in 2017 and some attribute it to the new administration. How has the current political climate affected the number of foreigners who are seeking to purchase or invest in properties?

I believe in the beginning there was a backlash due to the perceived anti-immigration rhetoric coming from the White House. However, over time the world is seeing that this administration is pro-business and the passing of the tax bill, and the massive deregulation of many of our industries is convincing the globalist investors that the US is open for business. The caveat is finding an amical resolution to NAFTA.

What are some of the intricacies of real estate in Miami metro area that foreigners are not necessarily familiar with but need to know? 

Foreigners can borrow when purchasing property in the US as much as 50% of the sale price. Transparency is a prerequisite when purchasing specifically if it’s a cash transaction. Financial Enforcement Network requires title insurance firms to identify the person behind shell corporations when purchasing cash in Florida for homes more than $1 million. Foreigners are also subject to property taxes as US citizens.

When foreigners are looking to invest in Miami’s real estate, what laws and regulations should they definitely consider? 

I would advise the client to consult a Certified Public Accountant to instruct and guide them on the latest federal laws affecting foreign nationals. One main thing to consider is the Capital Gain Tax. The IRS requires foreign nationals to file a tax return on the sale of the property. Utilizing 1031 Exchange may be an option to defer capital gain. Investors must comply with FIRPTA requirements. Knowing your residency status for tax purposes is important. One can be taxed for US income tax purposes either as a resident or non-resident. Residents are required to report their worldwide income to the US taxing authorities. Non-residents are required to report only income arising in the US.

You have worked with international buyers/investors in Miami for a long time. How is this different from working with a local or a US citizen/resident? 

Foreign buyers, for the most part, purchase properties in cash and more of them than local US consumers per dollar basis in South Florida. They prefer condominiums and localities catering to vacation destinations such as Miami, the beaches and the Orlando area.

In your experience, what are the usual cultural misunderstanding that arise when working with people from disparate backgrounds? 

Simply, it boils down to enlighten them that the way they are accustomed to doing things in their native country is not the same here in the United States. The steps and process are more complicated and the protocols cannot be disregarded.

How do you see 2018 in terms of foreigners’ real estate transactions in South Florida?

I see this trend improving although our traditional feeder (Central  and Latin America) markets may change.

Luis R. Fernandez is the exclusive agent representing the Pinecreast and South Miami, Florida real estate market as a member of the Haute Residence Real Estate Network. View all of his listings here.

The post Luis R. Fernandez: A Guide To Florida’s Real Estate For Foreign Buyers And Investors appeared first on Haute Residence by Haute Living.

The kicker? Maisel bought the nondescript six-story building and converted it into a home for his family 42 years ago for a comparatively paltry $102,000.

The historic Germania Bank Building, famously covered in an outer layer of graffiti, is already up for sale by Cushman & Wakefield and comes in at about 6,260 square feet a floor with both a basement and roof terrace. The first two floors feature an 18-foot ceiling height (ideal for retail, RFR notes) and the rest have 11-foot ceilings.

While the inside gives off a "very artists live here" vibe, the 1898 building still holds a few relics from its days as a bank—including the original vault in the basement.

Take a tour through the residence to check out all of its quirky features:

190 Bowery from Digital Destinations on Vimeo

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