Tuesday, August 24, 2010
Keeping an eye open...
-The newest crime modality on countries which are being very attractive for offer incredible opportunities on Real Estate business markets, are scaring out many investors nowadays, specially on South American Countries.
Be careful to don't be the next one to fell down on the web of the criminal gangs.
How it works?!
-Some criminal gangs are very organized to try to fool, innocent investors, especially investors who don’t know how the government works on real estate business.
Investors who are making the first investment overseas must to be very careful, in every step before close a business, especially on Real Estate purchase; many countries as Brazil for example don't have a policy to financing a Real Estate business.
-Here in Brazil for a foreigner make a financing he will need offer to the bank some warranty. For in case of, interruption with the payment or something similar the bank will have a property to execute for the open debit.
So keep an eye open with easy financing terms.
-But in the other hand many builders has their own way to make the investment overseas easier.
They offer their own credit lines, and they financing for foreigners investors in a contractual clauses terms, like:
-The investor can buy the property in terms of he will receive the registrations and the transference only after the complete payment.
And this has been working very well and also is very secure to both sides.
The other problem for an investor is the language, if you buy a property in a foreign country that doesn't have your mother language, and if you also are not a speaker of the this language, it can built a wall between you and salesperson. And behind this wall you don't know exactly what is going on... In this case you will need of assistance, of a translator, but not any one, you will need help of someone who can understand of this kind of negotiation.
And don't hesitate of ask for a second opinion, before make the business ask for your agent, for some eBook of how to make invest in the country that you are.
Ask how to proceed in this business, how to make the payment, and if he's able to inform all the details, he really knows what his doing with you.
And after this, ask him for his credentials, or registration ID. And keep it with you in case of some problem; this numbers will help you a lot.
The Other big Mistake:
Many brokers from other countries, and sometimes from your country works as Real Estate Brokers, in the country you decided to make your investment, and you may think that is great for you.
Because will make a negotiation with someone who speaks your language.
-Well the dark side of this is, usually this kind of broker works illegally on the country especially on Brazil where the supervision are very deficient. And if you have some problem, none authority will be able to help you with a possible problem.
And this "Broker" can disappear, and you may never more hear about him again.
Make some negotiation with someone without references is always a bad thing to do. So try to search for a native broker with registration. Is always the better choice to do in this case.
You can search for someone who can speak your language or other language you have some familiarization as English or Spanish, for example.
Every documents, of business that you will do will be on native language, so if you cannot understand, you will need to have a deep trust on your broker that, can make a copy of the same document translated in your language but this document don't will have any value, for the local law, only will accept only documents on native language as Brazil for example.
Never forget to search for serious brokers, in many countries you will find criminal ones; they are applying coups all over the world.
Some weeks ago I met an American guy who was desperate with a bad negotiation he did. A group of criminal guys rented a huge mansion, and created fake documents and sold the house for this poor man.
When he was doing a recycling in the house the real owner appeared to ask what those guys were doing on his house, on this time all the mess started.
The American man, discovered, by the worse way, that had fallen in a coup.
The criminals created many fake documents and his without know any word on that papers paid more than U$D 400k in a house that never will be him.
I don't know if he will get his money back, but sincerely, I don’t think so…
So before something like this happens into your life. Ask for some help, if you need so. Over here you will find many decent people who are able to work and help you for sure.
So keep an eye open is never too much.
Bye bye, and have good investments