Comments on: The Advantages and Disadvantages of Buying International Real Estate

By: Claudia Gonella

Claudia Gonella — Sun, 12 Apr 2009 00:39:27 +0000

Agreed an international listing model is what is needed. The problem though with targeting brokerages is the lack of exclusive listing arrangements in many Central American countries. Most brokers and agents work as buyer brokers rather than listing agents. Our way into the data gap is to start with real estate developments and put their prices online in a comparable format. Would love to collaborate to develop this out further.Claudia Gonella’s last blog post: Finding good value in international real estate - now that's a high value problem to solve.

By: Joshua Dorkin

Joshua Dorkin — Fri, 10 Apr 2009 00:33:17 +0000

I think the route to take, Gary, is to get some of the large international brokerages together to create one. They have the money, and it would be in their interest to make it happen.

By: Gary Coles

Gary Coles — Thu, 09 Apr 2009 18:19:57 +0000

Joshua – You are right on target with the idea for an international real estate listing service. We did a lot of research on a service for Mexico and considered building one for all of Latin America. Even had many of the contacts and some key people interested – but the start up costs are huge.

If anyone knows a deep pocket investor, we could definitely start phase one by building Latin America and even have some contacts who would be glad to help as it expands to the rest of the world.

By: Joshua Dorkin

Joshua Dorkin — Thu, 09 Apr 2009 18:08:21 +0000

Claudia – That’s great! Without good data, it is hard to know if you’re getting a buy or ripped off. Now, all someone has to come up with their own international listing service that is comprehensive. Not as easy as it sounds.

By: Claudia Gonella

Claudia Gonella — Thu, 09 Apr 2009 16:40:25 +0000

In many emerging markets there's no MLS and market data is not readily available from property institutes or central bank databases. It's hard to know if you're getting good value without reliable comps. We're trying to fill some of this gap in Central America - putting more data in the hands of consumers.Claudia Gonella’s last blog post: Finding good value in international real estate - now that's a high value problem to solve.

By: Joel

Joel — Wed, 08 Apr 2009 19:37:59 +0000

Buying foreign real estate sounds extremely risky, especially if you are looking at 3rd world economies where folks like Hugo Chavez like to nationalize everything. Be careful!

By: David K

David K — Wed, 08 Apr 2009 18:00:31 +0000

I’d add to your list of pitfalls, management. Running a property somewhere that you can’t readily access it is certainly a challenge, and can be quite costly.

By: FC

FC — Wed, 08 Apr 2009 07:52:59 +0000

I would also like to emphasize the pitfalls if a Buyer is not careful. Often I will see a Buyer purchase property with no idea of the laws and customs in the area. Your suggestion of using an attorney is good.

By: Gary Coles

Gary Coles — Tue, 07 Apr 2009 22:18:12 +0000

This is an excellent article. I would like to add another advantage: many of the foreign markets are seeing strong appreciation as they transition into the mainstream of the world’s economy and from the demand for retirement to warm and exciting and cheap locations. The Washington Post reports that over seven million US and Canadian citizens now live abroad.
I would also like to emphasize the pitfalls if a Buyer is not careful. Often I will see a Buyer purchase property with no idea of the laws and customs in the area. Your suggestion of using an attorney is good; however, it is not nearly enough. I have seen attorneys tell clients that properties are good values when they aren’t and even go so far as saying that title insurance is not necessary because they have looked at the documents.
Due to these problems, I have developed an approach which I feel is beneficial in Latin America. It should work anywhere, but I try not to overextend.
I spend time with my clients to find their preferences and expectations. Then I refer them to good professionals in the location where they plan on purchasing. I do the research and have the contacts to be able to select excellent real estate agents, lenders, attorneys and title companies throughout Latin America.
Throughout all the stages of the purchase: looking for the property, negotiation, financing and finally closing, I stay in touch with all parties and act as a consultant and oversee the parties. If someone does not really watch out for the client, I replace them (per my referral contract).

This has developed into an exciting and interesting business for me and I feel it is instrumental in saving many of the retirees and investors that I meet.