sell

How to Manage Overseas Property

as someone who's owned real estate on

four different continents and someone

who maintains a portfolio property

across numerous different countries

today I'm often asked not only how do I

maintain my properties that I live in

when I'm not there

but from an investment point of view how

do you make sure that you're not getting

ripped off how do you make sure that

you're getting the best deal today I'm

going to share with you some of my best

tips for managing properties overseas

[Music]

hey guys I'm Andrew Henderson and what

we do here at Nomad countless is we help

people who are successful entrepreneurs

and investors diversify themselves

overseas we have a lot of content about

lowering your taxes legally through

offshore companies diversifying your

cash with offshore bank accounts getting

second passports and today I want to

talk about investing overseas there are

a lot of opportunities and what people

often ask me is how do I invest overseas

without getting ripped off how do I make

sure I'm getting the right person to

manage my property if it's an investment

or just someone to check on it if I'm

not there if it's my my second home do I

need to speak to local language people

speak English you know how do I make

sure that I'm getting a good deal and

what I found you know I've talked a lot

about maintaining empty homes I have a

portfolio of properties that I use and

that my friends and my team members can

use when they're in these places in

cities like Bogota Kuala Lumpur

Montenegro Tbilisi Georgia and more in

the pipeline these are places where I

personally live and what I haven't had

so many problems I've talked about how I

haven't had really any problems with

safety you know keeping people out

keeping things maintained and I've

talked about that in other videos about

maintaining empty homes it's a bit of

organizational work but it's relatively

straightforward and more so than it

would be in the United States or

Australia or anywhere else there's a lot

of different bills a lot of moving parts

there are a lot fewer moving parts in a

lot of other countries property markets

but let's talk about investors you want

to make an investment in one of these

markets or a different market it's a

good opportunity to potentially get a

second residence permit get a second

passport higher yields higher returns

some of these foreign markets that we

talked about have not gone down in years

even as markets Evan flow they have been

steady gainers and so there's a lot of

opportunities but the concern is you

know our foreigners charged more because

as we know you have to make really money

in real estate when you buy you can't

just rely on the goodwill of the market

to to skyrocket and to give you returns

on a bad buy if you do a bad buy you're

not going to do well with a property

investment okay and obviously once you

have that good buy you want to make sure

that you're not running into problems

where you have tenants you know screwing

the place up and basically you know

raising your cost of acquisition

substantially cuz you got to go and do a

bunch of renovations more

just normal wear and tear and so what I

found in my years of actually investing

in different property markets seeing a

lot of people talk about theory all

right I actually do this and there are

times that I've had some minor mistakes

I haven't really had any fatal mistakes

but you know what I found is investing

in property overseas is often like

investing in property at home

managing property overseas is often like

managing property at home let me explain

what I mean

a couple years ago I had some of our

non-american clients who we're looking

for high-yield investments and one of

the places that popped up in our

research was where I'm from in Cleveland

Ohio now not the suburbs where I was

from but some of the up-and-coming areas

sometimes you could get people who would

rent in these areas that had government

subsidies and so basically the

government was paying a good part of the

rent very low prices

pretty good yields and so as a test I

went in put a very not a lot of money

and bought two houses and very very

cheaply and it came with tenants it was

a turnkey kind of deal and I said I'm

gonna see what happens and if it works

then I'll tell people to do it it

doesn't work then I'll temple it didn't

work well fast forward the end didn't

work and now this is this is a country

that I'm from him from the United States

I'm from that particular area

now obviously the the people that I was

working with in this up-and-coming area

were different than people that if I was

if I was buying rental properties in the

most affluent suburb right you have a

different kind of ecosystem in this area

but what I learned is that you know

being able to communicate with people

being able to not be ripped off or taken

advantage of it's not a function of

where the property is it's a matter of

who the people are having the right

people is what you need and so I've

proven that I found great people in

countries all around the world the

country that I'm from I couldn't find

good people now some of you have invest

in the US and you found the good people

and that's good

I made the high yields for a while I

actually I actually did but then I had

property managers who just couldn't get

the job done they were having me fix

things and I just never had very good

communication you know then I had to get

rid of a tenant and

to mess it's just a lot of work and on

top of that you know the United States

there's so many different fees there's

some different taxes you know the the

lawn care police are coming around and

you know finding you a hundred dollars

because your grass is this much too high

just a lot of work on top of on top of

all the problems with the people so what

I've done when I've gone overseas

typically to avoid that problem and to

avoid being ripped off is I'll often

start with a good lawyer this is one of

the things we do here at Nomad caplets

we're always looking for good lawyers

and countries all around the world we've

got a database of people you know who

we've worked with who hasn't been able

to deliver who delivers but slowly who

delivers but poorly and it sometimes

takes a while to find the best lawyer

what I found those if you find a locally

based internationalized attorney in a

city in a country that can often be the

Gateway to finding a lot of the other

vendors that you need so I'm not going

into a city now a lot of the markets

that I'm going into they're not as

developed and you don't have a lot of

big international firms but you're

seeing some of the countries I mean even

Georgia for example has some of the big

international firms coming in you know

Deckard or the accounting side the big

four other law firms that are very

international I generally don't work

with them and what's been interesting is

I've had numerous people come to me who

are very successful business owners and

say I hired the big four and I was very

disappointed or they made a mistake

and it cost me a lot of money I have

avoided those big firms you know the

McKinsey type firms if you're doing

consulting I mean you pay a lot you

don't get a lot but what you don't want

obviously is just a guy who's got a

shingle hanging when you're walking down

the street who maybe doesn't speak your

language when I first went to Georgia I

was staying on AG motion to belly

streets as many years ago augmenta Belly

Street was renovated by the government

back in I think 2012 it looks like

Disneyland now basically and when the

government renovated all the local

Georgians sold their properties at low

prices and as he got renovated basically

the Turks started buying these

properties up and now the prices on that

street are very very high and so if you

walk down augmenta beli street in

central Tbilisi you will see a lot of

Turkish attorneys I remember

going in and talking to some of those

Turkish attorneys many of them didn't

know what they were talking about they

were largely serving people who were

coming from Turkey doing investments

becoming residents whatever and they

certainly didn't speak very good of

English so I had to go and I had to you

know double my efforts and find a couple

different attorneys who were very

international and focused but who were

local and they understood local things

and what I have done generally over the

years is I have found the attorneys that

are best for me and that understand what

I'm trying to accomplish and kind of

mold them to how I work it's very rare

that you're gonna find someone who

entirely gets it there are a few

countries where I have lawyers who are

members at the bar in let's say the

United States they don't live in the

United States maybe they were there for

university they just joined the bar

whatever so they maybe have a more

international perspective in terms of

you know work processes but you wanted

attorney with an international clientele

you may have to do some training of them

in terms of how you want things done you

know to use my Georgia example one thing

that you know it's sometimes frustrating

for folks from the West is everything

has always discussed multiple times in

Georgia and other countries where if you

have an appointment an attorney they're

gonna call oh maybe you want to change

it to two maybe you want to you know

come on Tuesday instead and and see if

you kind of train people how you want to

work but if you can have an attorney who

has a good relationship with different

vendors they will often turn you on to

good real estate agents I found two good

real estate agents in my entire time in

Georgia

how many seven years now two one does

not speak very good English she has very

good connections in the market in terms

of like locally because her husband is a

somewhat of a a famous person and so she

gets a lot of people with valuable city

center properties who will hire her and

pay her a good Commission and so then

the attorney and she worked together

they find the deals I have another agent

who is a very good English speaker and

very aggressive but was very hard to

find and so I had to get introduced

again I think that we we found locally

that was not through an attorney but

most of the connections you can find at

a place are through an attorney because

the attorney gets a lot of feedback and

who's good who's not people don't want

to mess with an attorney they don't want

to let an attorney down and so do you

need to speak the local language

generally no

what I found so when you have a good

relationship with again not an

international firm but a local attorney

with international outlook with

international clients they will often be

willing to help you for a rather

reasonable price work with other vendors

and so you know I even had attorneys

helping me with like cabinets for my

home in Tbilisi and they would help me

negotiate and translate for that and so

they're often willing to help you some

of the vendors they will connect you

with will speak English and so that is

certainly something that you you can

just you know work with him directly I'm

not entirely sure that speaking English

is necessarily the best factor for for

success I've got someone right now in

Colombia who's doing a renovation of my

apartment this is probably the best

person to do renovations I've ever seen

in my life I mean I'm getting excellent

details I mean them the quality of the

work the measurements I mean everything

is really outstanding the person's

English is is marginal right and so

sometimes we communicate directly other

times we're communicating through

someone locally and they're helping me

manage that project and they're making

sure the persons on their toes and

they're doing the job so I think an

issue of presence having a good attorney

is important here's what I found right I

have not had so many problems on the

renovation side the property management

side some countries just don't have a

lot of property management but generally

in some of these emerging countries if

you find a good real estate agent they

made it offer property management but

they will offer it to you as something

if you ask they made an offer because

nobody locally wants it you know if you

live in one of these emerging countries

and you own rental property you may just

say I'll manage it myself there may not

be much demand but if you ask the the

agent that was referred to you to help

they might do it for you and I've seen

cases like that before so really the

areas where I see people struggling the

most are on the buy side not on the

management side not on the on the

renovations or any of that stuff buying

and selling is the biggest challenge

selling because a lot of agents just

aren't that good all they can do is sell

you stuff and they're gonna always try

and lowball you when they sell you so

you want to make sure you're getting in

at a good number so you can sell the

property with some level of e

when you want to exit on the buy side is

the biggest issue if you just go on that

line in Google properties in a lot of

markets you're gonna overpay I just

talked to someone there today saying you

know he was looking at apartments in

Lisbon on an english-language website

for 3,000 euros a month and he said I

thought I heard there's plenty of stuff

for like a thousand euros a month and lo

and behold yes our real estate team has

just literally the week before rented

someone something of similar qualities

what this guy is looking for for a

thousand euros a month so if you're

going online looking at stuff in English

that's when you're often gonna pay more

if you're doing stuff remotely that's

when you're gonna pay more that works in

the u.s. it works in the UK and

Australia and all these developed

countries probably in Germany and some

of those too but even in some of those

markets you know I get offers all the

time from you know people who develop

ski properties in Austria it's expensive

and get I know people in Austria who say

answer that's like 25% too expensive so

you know a lot of these things that you

see in line are turnkey

they're marketed to foreigners when I

bought my property in Bogota certainly I

got a deal because we worked with local

spanish-speaking agents that requires a

cultural adjustment and again it

requires often that connection to a

lawyer who has vetted people for you

sometimes I'll go in an event people

myself and then we'll share that with

people that we're helping but you know

there is some vetting required I think

local vendors are often better to you

know the American or the the Brit who

goes into a market it opens up a shop

you're gonna pay more for that and so

it's a matter of do you want to pay more

on the buy side do you want to pay a

premium for a website with nice pictures

for someone who's from your culture or

do you want to work with an attorney and

make that investment or work with

someone like Nomad capitalist who does

all the groundwork and then says hey

here's the guy that delivers the

property to deal either approach could

be good some people just say you know

what I want to invest in Colombia if I

pay 20% too much so be it I want it to

be easy

I personally when it comes to buying a

$200,000 property don't want to waste 40

grand and so especially if you're buying

property for citizenship or residents

buy investment you may be buying

something if it's turnkey that has a 10

to 30 percent commission baked-in I

would much rather rely on my attorneys

to connect me with people who have good

deals and who can manage the entire

process

that's what I've done to keep any

property investment deals running

smoothly

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