Four Low-cost, Highly-effective Investing Tips

Date: 05/15/2004

International Living Postcards-- Saturday Edition

Saturday, April 16, 2005
Paris, France

Dear International Living Reader,

It's true I've never lost money on an international real estate deal. Not because I use a secret system, or have access to information about hidden trends unavailable to you…but mostly because I have good contacts and I use common sense. Neither of which need cost you a lot of money. Here's how:

Use the Internet

Long before you visit the area you're considering for a real estate investment, sign on to a few bulletin boards based in the area. Read the current threads--they may answer some of your questions. Then ask some more. See which names come up the most and in what context. It will help you get a frame of reference if you don't have lots of time scheduled on the ground in the area.

Walk the Market

In most countries we, as global real estate investors, are interested in, there is no multiple-listing service. Visit as many properties as you can to get a good perspective of the market. If you're interested in a particular property, find out whether it is listed with more than one agent.

Get Connected

Ask for personal recommendations before you hire anybody. Ask other foreigners about their experiences with real estate agents, attorneys, notaries, builders, etc. Ask for recommendations. Always use the highest level of referral (i.e. ask your attorney at home if he has a recommendation for an attorney abroad before you use the business card you get from the guy in the gringo bar).

International Living's local offices and Global Real Estate Investor are also excellent sources. We recommend only agents, developers, and other resources that we know and trust. You can contact IL's local offices from here and subscribe to Global Real Estate Investor here (membership costs $205 per quarter).

Before you hire anyone--however highly recommended he may come--call and make sure he's responsive and gets back to you quickly. If English is your only language, determine that his English is strong enough for you to communicate easily. Discuss fees and services.

Talk to Tuey

Title insurance ensures that a) your new property will indeed belong to you, and b) you are protected against future claims on the property. It generally costs 0.5% of the purchase price or a minimum fee ($1,000 in Mexico, $750 elsewhere). You can purchase title insurance after a property is in your name, but I recommend you contact a title insurance company before you buy your home or land. We recommend First American Title Insurance. Contact Tuey Murdock: tmurdock@firstam.com.

Lief Simon
Real Estate Editor, International Living