Seven People to Make You a Wealthy International Real Estate Investor

Date: 07/31/2007

International Living Postcards-- Saturday Edition

Saturday January 8, 2005
Paris, France

Dear International Living Reader,

The first half of 2005, my schedule has me traveling at least two weeks of every month. Fifteen destinations on four continents are on my itinerary before Bastille day--five of these are new markets; the others are places with new activity. I have asked colleagues to check out another half dozen markets that I won't be able to get to.

The world of international real estate is a big place, full of--at first glance--limitless opportunity. But look a little closer and the truly good opportunities aren't so obvious. Members of my Global Real Estate Investor group rely on me to tell them about only the great opportunities.

If you want to go it alone, however, here are the seven people you need to be a successful international real estate investor:

* The lawyer. You want someone experienced working with foreigners…preferably one who speaks English if you aren't fluent in the local language. The lawyer (or notaire) is the one making sure you get what you pay for: property as described in the contract with clean title. This is the key player on your team.

* The accountant. You'll need two. Your tax burden--both at home and abroad--gets complicated once you leave the U.S. The type of planning you do and when you do it will either save you money or cost you money. Sometimes a lot of money. Know your exposure before you buy.

* The banker. I've written to you before about financing overseas (see Other People's Money) so you already know you may have to get creative. But finding the right banker (either yourself or through an introduction) will determine how much leverage you can use--more leverage can equal more profit.

* The developer (if you are buying in a development). He has to be capable of fulfilling his promises. So get to know him. You don't have to like him…although that helps. But, you do want to understand him. If he has a vision and his eyes gleam as he talks about his project, then you probably have someone who will complete what he starts.

* The real estate agent. In many markets, you will find the best deals by asking around in local bars if anyone knows of a property for sale. However, this only works if you are fluent in the local language…and it helps if you don't have too much

of a foreign accent. Otherwise, the guy sitting at the end of the bar--who speaks perfect English and knows about a great piece of land his cousin owns--is probably two steps from fleecing you.

This means you will most likely need a local real estate agent, easy to find these days with the Internet. Finding an English-speaking agent, though, will be more difficult. For emerging countries, your real estate agent may be a part-time schoolteacher as well.

No matter who you find, don't become too comfortable with them just because they speak English. Always ask the difficult questions and expect a proper response.

* The property manager. Who can you trust to look after your property when you aren't there? For a lot in a development, maybe this is the developer…at least until he sells out and moves on. For a large piece of raw land, you might have to hire a full time caretaker. But usually, you are looking for someone to rent out your property and pay your bills. In emerging markets this can be a difficult part of your team to find, but there are usually options.

* The local. You read about one side of the world in your daily paper, you see it on TV newscasts…but you find another side once you get off the plane. If you know someone who is connected locally, you'll learn what most of the world will never know until it's too late. Possibly the most valuable guy on your team, probably the one whose intelligence will cost you the least.

You'll need other people, of course--travel agent, insurer, builder, etc.--but these seven will have the biggest impact on your profits.

Until next week,

Lief Simon
Real Estate Editor, International Living