MINDSET
FOREIGN INVESTMENTS
by searching and paying someone to walk you through what it takes to invest in their country. It also helps to obtain U.S. legal advice from coun- sel well-versed in international business. Get a few opinions and make sure your paperwork is in order before you invest.
I have found this to be the most difficult step in the process. Just because you are able to make money in a foreign country through investments does not mean it will be easy to get that mon- ey back into the U.S. There are many friendly countries that will allow you to use them to move capital with a fee or taxation, but those are all questions you need to ask your legal team before the investment is made. You must understand howyouwill repatriate your investment capital.
Foreign-Market Investing
Whether Europe or the Caribbean, make sure you put your eyes on the properties. Many investors make the mistake of trusting someone else. Recently I was in Panama for that very purpose. I wanted to see the investment opportunity for myself. Go there and walk through your due diligence process just like you would with a U.S. investment. Travel to countries that interest you and see the investments for yourself.
I have learned that it is much easier to followpathways that have already been created in foreign investments.
INVESTING OVERSEAS IS A VALUABLE STRATEGY BUT MIGHT NOT BE FOR THE FAINT OF HEART.
Being a pioneer in this area is dangerous and frustrating. If it is your first investment outside of the U.S. I would invest where others are already investing and have plotted the course on the map.
by Eddie Wilson
W
ith inventory at an all-time low, I am sure many of you are scratching your heads trying to figure out where you should place your investment dollars next. Should you invest outside of your current market? Should you invest in a different category? Should you put your money in a fund or any other various vehicle? If you are like me, I have asked myself all of those same questions. As a matter of fact, I have diversified greatly over the past few years. One area that I have stepped into and maybe you have considered this also: Foreign-Market Investing. In recent years, I have “dipped my toe” into the interna- tional marketplace to see if there is opportunity and if it’s right for me. I now have investments in five differ- ent countries. As exciting as it has been, I have found
that I worry much more about these properties than I ever have with my U.S. investments. In a recent Presidents’ Circle meeting, a leadership meeting for Think Realty and the American Association of Private Lenders, I brought one of my investment partners over from Spain to explain to the group how to invest in non-performing notes in his country. We built a platform together for the purpose of aggregating non-performing loans from the bank and selling them to investors. Some in the room found it fascinating while others found it very intimidating. Investing over- seas is definitely not for the faint of heart. Here are some pointers to help you with your over- seas investment strategies:
Foreign investments can be very fascinating but also time consuming and frustrating. There is a reason why the United States is the largest recipient of FDI (foreign direct investments) in the world. In 2018 alone, the U.S. received 319 billion in FDI. There are plenty of opportuni- ties out there and great returns are possible, but be care- ful and follow pathways that have already been created. •
Make sure you understand their legal structure.
In many countries you can own property as a U.S. citizen while in others you can only own a company that owns the asset. Some countries you can only be 49 percent owner of an asset. In nearly every country, you can get legal advice
Eddie Wilson is CEO of Think Realty, and the American Association of Private Lenders. He is also a Think Realty Resident Expert. Learn more at ThinkRealty.com/Eddie.
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