The Little Black Book of Global Real Estate

Date: 05/18/2006

* REMINDER: Membership applications to The Ultimate Real Estate Buyer's Club must be filed within the next 3 days. Benefits include insider access to some of the world's top land experts, and deeply discounted real estate. More details at the end of today's Postcard.

International Living Postcards--your daily escape

Friday, May 19, 2006
Puerto Plata, Dominican Republic

Dear International Living Reader,

Day two of the Global Real Estate Forum dawned clear and warm on Cofresi Bay outside Puerto Plata on the north coast of the Dominican Republic. An 8 a.m. start time meant that a few attendees came in late after sampling Dominican hospitality, food, and drink the night before, but an early start was necessary to get through everything we had planned on this final day.

Now, it's all over. But for the 30 attendees at the Forum, it's all about to begin.

I'm writing to you from the business center of the Sun Village Resort and Spa beside a stretch of white-sand beach that is among the best on the island. For the past 48 hours we've all been working hard (myself, fellow speakers, and the attendees most of all) to help everyone toward their goal to become successful in the world of international real estate.

We've covered a lot of ground these past two days, but here are a few of the highlights (plus a few nuggets from my personal arsenal):

* If you're buying real estate in a foreign currency, use a currency broker. He can often undercut the high street bank exchange rate by about 1%. Plus, he can lock in today's rate for an exchange in the future (up to two years). Useful if you're making installment payments or mortgage repayments abroad and need to know exactly how much you'll be spending in U.S. dollars. I recommend HIFX, a currency exchange house. My contact there is Doug Johnson (e-mail: doug.johnson@hifx.com).

* Sometimes, a failing area of a city attracts artists en masse. These painters, musicians, poets, sculptors, and writers move into the area because of low rents (and, sometimes, no rents). Once the number of artists in residence reaches a critical mass, the neighborhood becomes trendy, and the money follows. I've told you before about these types of areas (Viterbo near Rome, Barracas in Buenos Aires, and Batignolles in Paris). But it happens all over the world. Time it right, and you might be able to get in on the right side of the gentrification.

* Gone is the time when an emerging real estate market took several years to develop. These days, you've got maybe 18 months to stake your claim in an emerging real estate market before the best deals are snapped up. This has given rise to the Mezzo Markets: not quite emerging; not quite fully developed. Here you'll discover opportunity, if you know where to look, with a risk/reward profile that will make your accountant happy. Panama City is my favorite mezzo market right now.

* Tourists are returning to Croatia (specifically Dubrovnik and the Dalmatian Riviera) in force. The thing to note here is that these tourists are not coming because of a low-fares air route which may close at any time (as has happened in some remote parts of Europe). Croatia is a popular destination among Italians, who come by car from the north and by ferry across the Adriatic. Germans, Austrians, Czechs, Hungarians, and Slovenians have easy access by car. I'm invested here myself, through a recent acquisition in Istria. For real estate in Croatia I recommend Iva Zaja of Croatian Sun: info@croatiansun.com. Iva's English is perfect.

* When establishing yourself in a new market, ask for personal recommendations before you hire anybody. Ask other foreigners about their experiences with real estate agents, attorneys, notaries, builders, etc. 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.) Before you hire anyone--however highly recommended they may come--call and make sure they're responsive and get back to you quickly. If English is your only language, determine that their English is strong enough for you to communicate easily. Discuss fees and services.

* 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.

After an intense day of meetings on how to securely take advantage of global real estate opportunities, we all had a great payoff waiting at the end--a beach buffet and dance show hosted by Sun Village Resorts, followed by a relaxing evening next to the pristine beaches of Puerto Plata…where I have to get back to before the sun goes down. It's good to catch up on work at the business center…but it's more fun to experience first-hand the appeal of this country.

Lief Simon
Real Estate Editor, International Living

Editor's note: It's all over. As you read this, every attendee at the Global Real Estate Forum in the Dominican Republic now has the tools he needs to help him on his way to an international property portfolio. But if you couldn't make it to the Sun Village Resorts, don't worry--you can still get access to the same knowledge and ideas shared by International Living's international real estate guru Lief Simon, and his land expert pals.

For the first time ever--and only for the duration of the Forum in the D.R.--membership is now open to TheUltimate Real Estate Buyers Club.

Members of this club will have access to the tips and techniques that have already made thousands of international property buyers rich…including VIP discounts not available to the general public when buying certain types of real estate.

This is serious, insider advice and research from Lief Simon and his team of experts. Membership is now open…but hurry--it closes in 3 days.