sell

How to Find Foreign Real Estate for Sale Online

probably the chapter that we get the

most compliments and most questions on

from the book Nomad capitalist is

investing overseas people love the idea

of being able to buy real estate

somewhere else oftentimes for really

cheap being able to earn a high yield

being able to have great growth

potential in some of the frontier

markets that we talk about but the next

question is how do I find that real

estate and that's a really good question

[Music]

hi I'm Andrew Henderson buying foreign

real estate is definitely a different

animal I like to talk a lot here at

nomad capitalists about the fact that

when you go to another country things

are going to be different and when you

want the results to change drastically

then the things that go along with that

are also going to be perhaps

substantially different now that's not

to say that you can't go overseas and

buy real estate it means that you're

gonna do it differently than you do in

your home country I came from the United

States where there's Zillow and

countless other sites where you can go

and figure out the exact value of your

house you can go and find anything it's

at your fingertips you have real estate

agents who will take your phone call

practically 24/7 they're there to serve

you when you go overseas that's not

entirely gonna be the case in fact I

would argue that there is in most cases

in inverse relationship between the

accessibility of data and the

availability of professionals and the

quality of the investment whenever I

watch a TV show and I see people talking

about investing in Los Angeles real

estate I cringe because it's not really

an investment it's a lifestyle purchase

perhaps there's just that very good

investment criteria there but you can

find a thousand real estate agents in

Los Angeles who will take your call day

or night not the case in Cambodia not

the case in Georgia not the case even in

Columbia or a lot of other places and so

let me give you a couple things that I

found over ten years of trying to and

actually buying dozens of pieces of real

estate overseas the first thing is

depending on where you're going you want

to avoid the expat bubble this is

especially prevalent in Latin America in

the countries where people from the US

and Canada go so you could end to

Columbia you go to Mexico you go to many

of these countries you've got these

expat organizations that are set up to

serve expats and you think oh it's so

easy surprisingly a lot of these

companies web sites don't even have that

good of data you can't even go on and

figure out the purchase price of a

specific property in some cases you can

but in many cases you can't nevertheless

these properties are often overpriced

turnkey investments and

set up for second residents investments

all these offshore conferences are often

always a bad deal and so you want to be

you want to be careful to avoid that you

want to go and you want to buy as a

local now let's take Malaysia for

example I bought a house in Malaysia I

spend time in Malaysia

I've lived in Malaysia as a renter in

years past and so I know how property is

is handle in Malaysia in Malaysia you

have websites like I property and there

is a relatively transparent market you

can find a lot of properties online the

challenge is that in Malaysia agents

don't work for the seller the seller

will go out and get multiple agents this

is common in a lot of countries they'll

go out and get multiple agents to

represent their property each of whom

has to try and find an edge they'll slap

up properties with extremely low prices

and when you call oh sorry that one's

sold they'll slap up prices or pictures

of a different property then you'll call

oh yeah we've got this property which

looks suspiciously not like the one you

saw in the pictures so there's a certain

amount of bait-and-switch going on in

some of these emerging markets where you

may have the ability to find properties

but those properties may not actually

exist in the world world and so if

you're sitting in Topeka looking at

properties in Kuala Lumpur you may say

wow look we can buy this for you know

two hundred thousand dollars and then

when you get there and you actually get

in the ground you're gonna find that the

experience is going to be different now

let's take it one step further to a

country like Georgia a lot of people ask

me about how do I invest in Georgia I've

invested in Georgia for a long time I've

probably done more real estate deals

there not only for myself but with other

people than anywhere else in the world

probably 50 or 60 total deals George is

an entirely different animal and I think

that Georgia is relevant because it's

like a lot of these small countries that

have potential what happens in Georgia I

know one good real estate agent in

Georgia period period one you can't find

her she doesn't have a website she

doesn't have anything

what is she she's the daughter law of a

famous Georgian movie star who gets

listings based on being well-known in

the community

then she goes out in shops to a small

book of business it's all by referral

now you can go on place dodgy and you

can find real estate and you will find

plenty of relatively transparent

listings for development property much

of which is overpriced or it's in areas

where you just don't to invest it's

largely a Georgian focused market

development is and so you're gonna find

properties in areas that just wouldn't

appeal to you as a foreigner and

probably don't have this much much

growth growth potential

now place GE also has a lot of outdated

listings I went on recent Landers to

this study I talked to one of my lawyers

and said let's call one hundred listings

I went through I found the a hundred

listings that seemed halfway decent I

said let's call hundred of those about

fifteen were still for sale the 85 a

Tobin's old sorry it's old sorry sold

Tsar's old of the fifteen about five

we're willing to show us the property

the other ten had problems why do you

want to see it just send me the money of

the five one of those suddenly changed

the price when they saw a foreigner so

we went to the five one of them changed

the price the other four the deals could

be done okay so four percent of the

total listings and I'd be off by one or

two there but that's about what it was

actually we're available and so there is

this great myth that real estate in

these emerging countries works the same

way it does in the US or the UK or

Australia but that's absolutely not the

case the thing that you want in any of

these emerging countries is you want

relationships and again the greater the

potential in the market the more you

need a relationship because that's part

of why there's so much potential if you

could just go on a website in Cambodia

and find every property and sort them by

price and just okay here's the yield and

and figure it all out and this has a

tenant at it it would yield to be lower

and you know what as Cambodia for

example is developing yields are going

lower because prices are going up and

therefore yields are being squeezed and

so part of that is using more investment

from foreigners come in partially

because it's easier for them to buy so

you want to have a relationship

ship and this is why I like countries

that aren't being overrun by lots of

foreign investment because I like to buy

in very cheap and then rive ride the

wave up if you would have taken my

advice five or six years ago and go into

Cambodia you would have seen great

increases in your property values thanks

to the Chinese now coming in and so the

number one thing that you want is you

want someone on the ground these

countries you cannot buy property in any

emerging or frontier country without

having someone on the ground ideally

that person should be you or you need to

hire someone who speaks your language

and understands what you want to do to

go and handle it for you because in

every market people have their own way

of doing things again in Georgia people

are rarely going to negotiate on price

with you if it's a hundred thousand

dollar house they might go to ninety

eight thousand dollars meanwhile in

Cambodia if they're asking a hundred

thousand dollars and you don't offer in

some cases sixty thousand dollars

they'll think you're the biggest sucker

in the world and so if you don't know

that then you're gonna go in okay well

in the United States we do a hundred

thousand we take eight percent off

that's fair here's ninety two thousand

they'll take your money and laugh all

the way to the bank

they'll think you're the stupidest

person ever meanwhile in a place like

Georgia that deal is never gonna get

done and so the key is how do you find

that real estate expert again there

aren't that many of them in some of

these countries it took me in some cases

a couple of years of searching around

going through all the duds panning for

gold and finally funding that one nugget

that I can now use again and again and

again the person who finds the good

properties the person who finds the

stuff that's a reasonably priced so a

lot of this stuff overseas it's insanely

priced and they're just hoping someone's

dumb enough to buy it that's a common

thing that again you don't find in the

US people don't list their

million-dollar home for two million

because nobody would even take them

seriously but in Cambodia they think hey

maybe some sucker will come and pay us

double what it's worth because nobody

exactly knows what it's worth there is

no Zillow you need to find an agent now

in a lot of countries you can go and you

can talk to an attorney maybe an

accountant that's the easiest way to

find them in other cases you just need

to find someone who's kind of sorted

through everybody

sometimes it literally takes just going

there and just panning for gold so if

this is a topic you are interested in

I'd like to consider talking about this

more leave a comment below leave your

experiences if you have done this

yourself maybe you've gone to one of

these countries maybe you've bought

something maybe you've tried to and

failed I want to know your experience I

want to know is this of interest to you

are you looking to buy real estate

overseas and what are your expectations

leave a comment below hi I'm Andrew

Henderson from nomad capitalists I wrote

this book which you can find on Amazon

to distill a lot of the stuff we talked

about in these videos and a lot of the

stuff I've learned over the last decade

plus traveling all around the world

teaching you about how to legally reduce

your taxes build your personal freedom

and create wealth faster definitely get

a copy of this book if you want to learn

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