By Joseph E. Seagle, Esq.

👋 Happy Friday! Today is National 🗣️ Talk in an 🛗 Elevator Day. But … don’t. Just. Don’t.

1 big thing: New tax law locks in key tax breaks for Florida property investors

Florida real estate investors rely on tax deferrals, depreciation incentives and pass-through benefits to optimize deal structures. The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, cements and expands these cornerstones—offering long-term certainty for 1031 exchanges, bonus depreciation, and qualified business income deductions, among others. That means smoother cash flow, enhanced cost segregation strategies and more predictable estate planning for Floridians  .

What’s in the bill

• 1031 Like-Kind Exchanges Preserved: Tax-deferred treatment remains intact for real property swaps, crucial for rolling gains into new Florida developments or vacation rentals.

• Permanent Bonus Depreciation: 100% expensing on qualifying business property—equipment, leasehold/improvement costs, even cost-segregable building components—now without sunset.

• QBI Deduction Extended & Enhanced: Section 199A stays at 20% for eligible pass-through income, with favorable tweaks on wage and capital limits—key for LLCs, partnerships and REIT entrepreneurs.

• Interest Deduction Favorability: Restores EBITDA-based section 163(j) limit instead of EBIT, preserving the real-property trade exception—better mortgage interest write-offs on commercial and multifamily projects.

• SALT Cap Increase: State and local tax deduction doubled to $40K (individuals) through 2030—helpful for Florida investors paying heavy county property taxes.

• Opportunity Zones & LIHTC: Permanently extends qualified opportunity zones, boosts low-income housing credit cap by 12%, and lowers private activity bond threshold to 25% for bonds-financed projects after year-end 2025.

• Global Investor Appeal: Restores pre-TCJA downward attribution rules, easing CFC classification for non-U.S. buyers of Florida assets.

• Other Provisions: Enhanced farmland sale installment options, rural lender interest carve-outs, REIT TRS limits restored, and partnership distribution rules tweaked for service-fee arrangements.

What to watch

• Regulatory Guidance: Treasury’s interpretation of “foreign controlled foreign corporations” could reshape inbound capital flows into Florida real estate.

• State Responses: No Florida estate tax, but other states may adjust thresholds—Florida investors with out-of-state holdings should stay alert.

• Market Moves: With 1031 certainty and expanded expensing, look for increased cost-seg plays and opportunity zone fund activity in Tampa, Orlando and Miami.

By delivering clarity on these permanent extensions and enhancements, the OBBBA arms Florida real estate professionals with actionable strategies to optimize acquisitions, dispositions and estate planning across the Sunshine State.

2. 📉 Investor Activity and Market Impact

In early 2025, institutional investors accounted for nearly 6% of Florida’s home purchases, down from 6.8% the previous year. In Miami, their share dipped to 4.5% from 4.8% . Despite this decline, their influence remains significant, especially as they often outbid individual buyers with cash offers.

Why it matters: Nationally, investor purchases reached 27% of all home sales in Q1 2025, the highest in five years. This trend exacerbates inventory shortages, particularly in affordable housing segments, making it harder for first-time buyers to enter the market.

🏘️ Florida’s Housing Landscape

Florida’s housing market faces additional challenges:

• Rising Insurance Costs: Homeowners grapple with increasing insurance premiums, driven by heightened storm risks, making properties less affordable.

• Inventory Fluctuations: In Orlando, active listings rose by 26% year-over-year, yet sales declined by nearly 28%, indicating a cooling market.

• Investor Concentration: Cities like Jacksonville and Orlando see investor purchase rates exceeding 22%, intensifying competition for available homes.

🔍 Strategic Considerations for Real Estate Professionals

For those navigating Florida’s dynamic market:

• Realtors: Emphasize properties less targeted by institutional investors, such as higher-priced homes or unique listings, to attract traditional buyers.

• Investors: Monitor shifts in institutional activity to identify emerging opportunities or potential market saturations.

• Mortgage Brokers: Develop programs catering to first-time buyers, offering competitive financing solutions to counter cash-rich investor bids.

• Title Agents: Stay vigilant about ownership trends, as increased investor transactions may influence title complexities and insurance considerations.

🧭 Looking Ahead

While institutional investors contribute to rental housing availability, their dominance in certain markets may hinder homeownership accessibility. Balancing investment interests with community needs is crucial to ensure a healthy, inclusive housing market in Florida.

On this week’s “Ask Joe Anything” episode of the Trust This podcast, I answer the frequently asked question about whether a land trust needs its own bank account.

 Listen in or watch on your favorite streaming platform.

3. Catch up fast

1. MV Realty (finally), at the judge’s behest, clears Florida’s Official Records of its 40-year listing agreements recorded against over 9,000 properties. WTSP News

2. Condo owners push to sell all their units rather than pay for safety upgrades. Yahoo News

3. Florida’s condo reform could open floodgates of litigation. Newsweek

4. Rocket Mortgage acquires Redfin and lays off 2% of staff. HousingWire

5. US home listings hit 20-month low. MPA Mag

6. Trump weighs bill to remove capital gains tax on sale of personal residence. Bloomberg (gift link)

7. Florida’s Brightline railroad has investors fretting. Bloomberg (gift link)

8. SEC charges Georgia lender running $140 million Ponzi scheme. Fox 5 Atlanta News

9. NJ real estate investor and influencer charged in multi-million dollar scheme. NBC News New York

10. Single-family home sales drop below 1995 levels and more housing market bad news. Wolf Street

4. Closing Thought: 🧠 Mind Over Market

“The mind is its own place and in itself, can make a Heaven of Hell, a Hell of Heaven.”

— John Milton, Paradise Lost

💡 Why it matters:

In real estate, markets shift, deals collapse, partners flake, and inspectors always find “just one more thing.” But how you frame those moments can either derail you or become the fire that sharpens your edge.

📈 Zoom in:

We’ve all seen two investors face the same setback — one spirals into frustration, the other retools and levels up. The difference? Not the setback itself. It’s their internal narrative.

• One sees a failed flip as proof they’re in over their head.

• The other sees it as tuition for the next million-dollar lesson.

🧭 Flip that script:

Your environment may be uncertain, but your mindset doesn’t have to be.

• Reframe quickly: Ask: “What is this teaching me?” instead of “Why is this happening to me?”

• Own your narrative: Don’t let fear rent space in your head. Set boundaries around your focus and mental inputs.

• Train your lens: Gratitude and opportunity are muscles. Strengthen them daily.

🏗️ Bottom line:

Markets are external. Mindset is internal and ultimately more powerful. You can build wealth in any market… if your internal world is built on resilience, not reaction.

✅ Try this:

Next time you feel the pressure rising, pause, take a deep breath, and remind yourself: “The mind is its own place.” Choose to make it Heaven.

We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.

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Be on the lookout for our next issue! 👋