Traveling for fun, leisure, and holiday is the number one reason most black travelers save up for international travel.  However, simple steps to investing abroad can turn a vacation into an investment.

For a small group of people who can think long-term and see advantages to building wealth, there are simple steps to investing abroad which can lay the foundation to building long-term wealth as expressed in our previous article Building Wealth While Traveling.

Although investing abroad can be a rather daunting task if you are approaching it as a solo investor, here are some steps to getting started.

1. Have an investment goal – Why do you want to invest outside of your existing country?  Is it for short or long-term returns?  Do you love the destination so much that you would like to own a vacation home you can visit regularly? Is it easier for you to invest in a foreign market, rather than investing at home? These are all questions you should ask yourself to lead you towards an investment goal.

2. Have an investment strategy – The manner in which you choose to invest should support your investment goal.  Deciding on whether or not you want to invest in a project solo or with a partner is critical. 

So much of real estate investing abroad involves having the financial wherewithal to purchase and maintain your investment.  For most people who are interested in investing abroad, having partners for the first deal may be a great strategy. 

Also, having an understanding of the short term vs long-term market as well as the possibilities for growth can help in managing expectations regarding reasonable ROI.

3. Gain an understanding of local regulations – Investing abroad can comes with guidelines that can be very different than what you will find in your country.  While some countries may offer special incentives to foreign investors, other countries may charge more or even tax foreign investors at a higher level than their local citizen.  So become familiar with the rules and regulations that will govern your investment.

4. Conduct On the Ground Research – When investing abroad, you must visit the city you are looking to invest in.  Your visit should be treated as a visit where you are conducting on the ground research.  The research you gather should inform you as to how people live, the local economy, the layout, development, and future plans for the destination. 

This will allow you to have a better understanding of the attractiveness of your investment and it’s income producing longevity. 

5. Meet with Key Players – When investing abroad, there’s a whole team of people you will need to assemble in order to market and manage your property investment. 

While on the ground, you will want to meet with key marketing and management players to ask specific questions regarding the management and upkeep of your potential investment.  This will give you a greater understanding of the process, costs, and possible challenges that come with managing and maintaining your investment so that it is constantly producing income.

If you are interested in learning more about real estate investing abroad, contact us, so we can add you to our mailing list.

It’s a question filled with curiosity about how far the Dollar, Euro, or Pound Sterling goes in a foreign country.  Can it secure you a high-end property at an affordable price?   If it does, is it possible to buy a beautiful piece of real estate abroad, enjoy it, and build wealth all at the same time?

The answer is yes.

Today, travelers now have an abundance of lodging options to choose from when vacationing.  Rather than being limited to staying in traditional hotels or hostels, travelers have the option to stay in vacation rental properties that are offered through companies like Airbnb.  These lodging alternatives generate billions of dollars annually, with Airbnb alone generating close to $3 billion.

For people who want to earn money from vacation rentals, there are several different income producing strategies. Two of the most common methods are:  Managing properties and owning properties.

From a managing perspective, property managers assist in handling property upkeep and marketing to recruit both new and long-term renters.  But it’s the owners of these lodging rentals who are the real wealth builders.

5 Reasons to Build Real Estate Wealth Abroad

• Credit is NOT the Determining Factor – When you invest abroad, unless you are seeking financing, credit does NOT matter.  You are heavily judged in the US based on your credit rating and your ability to secure funding.  Abroad, we have seen deals that not only ignore your credit rating, but credit doesn’t enter the equation because there are payment plans.
  
  
• Cash is KING –  If you have the cash, as an individual or as a group, that’s really all it takes to make moves abroad.  Real Estate companies want you to invest, so they make things as easy as possible.  We are talking VIP services from touch down to take off and special incentives to get deals done.  
  
  
• Marketing & Management Support – Foreign real estate buyers, depending on the country, receive turnkey services that allow you to manage your investment abroad.  This means management, maintenance, and marketing support for your property in order to keep it occupied.

This is how you are able to Airbnb all over the world.  It’s because of the property managers that real estate investors from all over the world invest in the countries that make the most sense for them to see a return.

• American Dollars Have Value – When you look at the US dollar against other currencies in the world, it is one the strongest, most stable currencies.  This leads to markets around the world having a preference for the dollar.  So, US investment dollars in foreign markets are attractive to real estate markets.

• Attractive ROIs – Let’s be honest, the main reason people invest is for the returns. We’ve all been trained to buy low and sale high as a mantra and a goal.  Investing abroad tends to be attractive because with a strong dollar, you can get great deals on high-end properties that may be out of reach if you were investing in your home country.  There are a number of markets abroad that will allow for your investment dollars to go further than at home.

It’s important to keep in mind that although travel is considered to be a luxury, it creates wealth building opportunities for those who have the vision to invest in markets where assets are undervalued.  These are the places where you may find attractive returns both short-term and long-term.

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