There are two very distinct takes on remote investments within the real estate industry: there is the half that absolutely believes that it is the way to go since it gives you more opportunities to make profit in different markets. Joe McCall and Rick Otton come to mind. Then there is the other half that believes this business model is way too risky and that there are too many moving parts to make the entire venture worthwhile.
On which side of the divide you lie will greatly depend on your sense of adventure as well as how good you are at spotting an opportunity. Personally, I believe that deciding to invest remotely is one the best decisions I ever made as a property investor. But that is because it has been good to me. If you are seriously thinking about taking this route with your real estate career, then here are a few things you need to know when it comes to finding the best way to narrow down where to invest remotely.
Dispensing with the unknown
The biggest source of fear in this market is the fact that remote investors generally deal with a lot of unknowns. For the most part, they do not know:
- How the destination localities work
- How the locals take to foreign investors
- The hidden charges such as taxes and so on
- Whether or not they are being taken for a ride by unscrupulous estate agents and sellers
These unknowns make most investors nervous; property investment, after all, is big money business. The best way to get rid of these unknowns is to carry out a thorough investigation of the chosen destination.
If you have decided to take on this avenue of property investment, then you will need to set up a network of people you trust to run the business well on your behalf and in your absence. We are talking about:
- Trusted real estate solicitors from your home country
- Trusted estate agents who deal with international property sales
- Local sources of information from the target location
For the most part, however, you might have to go to the target destination personally to see and experience exactly how things work. While taking a look at the financial numbers and how that economy, as well as property market, has been performing is a good way to get an indication of how you might fare if you bought property there, you will not gain much if you cannot find a legitimate piece of property in which to invest.
You need to find remote property locations that are receptive to foreign investors. You also need to find the property itself and the financing to buy it. Your solicitor and estate agents will make sure that you do not get scammed and will do a lot to dispel all the possible ‘unknowns’ that might keep you from taking the plunge.