Invest in American real estate – overseas. Post 173

Asia-Pacific Real Estate Expected to Provide Best Total Returns in Coming Years

Bryan Ellis Real Estate Letter by Carole VanSickle July 27th 2011

Based on the Global Real Estate Investment Outlook and Market Perspective 2011, growth in the Asia-Pacific region is not only expected to exceed that in the U.S. and Europe over the next five years, but it is expected to “provide the best total returns for global real estate investors” as far in the future as 2015[1]. In fact, some analysts are predicting 10 percent annual regional total return in the area. U.S. annual regional returns are predicted to log in around nine percent and Europe around 8.

Do you think that now is the time to invest abroad? Where are you putting your real estate investment dollars?


Coach Mitch’s REFLECTIONS™


The “grass is greener” syndrome

Do you think marketing doesn’t work? See the numbers of people who watch the travel channel and the vacation real estate shows. Have you seen the enormous price tags for property in Costa Rica, Nicaragua, Bermuda, Bahamas, even Eastern European countries?  Especially in Eastern Europe, many of the rural properties do not enjoy indoor plumbing.

Everything is different

It’s not just language and culture that are different – it’s the customs. Excepting most of Western Europe and Israel, in the rest of the world, bribery is the way that things get done. Baksheesh (Turkish) or bribe, is not just common, it is expected, and officials and professionals have no qualms about putting out a number that they expect to receive.

Everyone looks the other way

Bribery is so common – that it is the culture. Bribery is the way goods and services move through the economy.

The police ignore the bribery laws because they are some of the worst participants. An American tourist is stopped, given a ticket, and told, “I’ll take your passport. You can’t leave without taking care of this. I’m sorry but the Judge can’t see you for three weeks. But, I know of a way to help. My cousin knows the clerk in the court and he may be able to put your case in the front – he just needs some incentive. Sometimes the paperwork is lost, but that requires more incentive.” And so it goes.

Get real

Investing overseas is like leasing a car or buying a timeshare, it is mostly glitz and dreams. Why pay some overpriced amount when you can use those monies to go on elaborate vacations. Ask any of those who gave into their emotion and purchased a timeshare; see if they would not love to be out of the “investment?” Even if you rent out the property, the day will come when some tenant will trash the property and your overseas legal costs will be more than the rehab.

Do due diligence with yourself

Below was my comment to the blog.

Investing overseas may seem attractive until you ask yourself some very obvious questions:

  1. Do I know the language?
  2. Do I know the customs?
  3. Am I comfortable with the legal system?
  4. How is construction/maintenance work going to be done?
  5. Who/how will the property be managed?
  6. Who/how will my everyday interests be managed?
  7. Are all those professionals that I pay to keep me safe, trustworthy?
  8. After the glitz of owning overseas wears off, what then?
  9. What is my end game? How will I extricate myself, with a profit?
  10. Are there any real estate investments in the US that I can now get at a big discount which overwhelms any idea of going overseas to earn a profit?

Answer: #10 YES, of course there are great US investments, especially now.

I deal in tax delinquent property and teach others how to do it well.

If you like visiting foreign cultures, go to Miami or East LA. Right now, condos in southern Florida are very well priced.

Tax Delinquent Property investing overseas

If you insist on going overseas, consider as your first choices the US Virgin Islands or Puerto Rico or any of the other US protectorates.You can also consider some former British colonies.

At least in areas that were colonized under US and British influence, you have a large segment of the population who speaks English and the legal systems are mostly based on English common law. In these areas it will be a little harder to take advantage of you.

But, best of all, in the US colonized areas, you will find similar property tax systems as part of the US legal system that they copied. These countries all tax property, and auction off tax delinquent property, just like in the US. You can use all the tax delinquent property investing techniques that you learned from Coach Mitch in the US Virgin Islands, the Marshall Islands, etc.  At the least, you have the potential of getting a great deal and having the ability to sell at a profit.  That is a good exit strategy.

See Coach Mitch’s “Ridiculously Simple System…” ™ for details.

Hasta La Vista – baby!

Mitchell Goldstein - Coach Mitch
518-439-6100 until midnight EST

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