How to Manage Transactions AbroadMarch 15th, 2014 by The JetSetter Team | Comments Off on How to Manage Transactions Abroad
If the idea of international real estate investment seems overwhelming to you, you’re not alone. But a little education goes a long way—just ask Jason Hartman, whose first commandment of real estate suggests that we must enter into such decisions in an educated state of mind. Luckily, we’re here to help pave the road to closing.
First, acquire proof of liquid assets. Knowing what you or your clients will be willing to pay will make things go more smoothly, particularly in cases where you will seek financing. Make sure that you can demonstrate proof of such assets wherever you are buying, and not just in the home country.
Next, consider moving your funds into a FDIC-insured US bank in order to make your purchase if it currently resides in a foreign bank account. Check on possible restrictions on amounts of cash that can be wired internationally if this is a route you choose to go too—different institutions and countries have different rules.
If you’re going to need to move money into the United States, form a limited liability company (LLC) to ease the transfer. This will make the purchase and eventual sale of a property easier. If it is a possibility, go for it!
Remember that lenders will also need information about any spouse. This means you’ll need information about all marriages that are legally recognized in both your home country and the one you’re residing in. Gathering this information ahead of time will save you some troubles down the road.
Be sure that all documents are translated correctly—be skeptical and picky, and don’t trust just anyone who claims to be a translator. Mistranslations can cause a lot of problems, so go with someone you know to be reputable.
Also be aware that the acquisition of authorized signatures can be difficult. Make sure that the person you’re selling to or buying from is authorized to spend the funds. Double check to make sure that everything is on the up and up.
Finally, verify that electronic signatures will suffice. Know when an original signature is required and plan accordingly.
Ultimately, buying or selling a house abroad is doable for anyone willing to do the research. Read a little, plan on spending extra time completing your investment duties, and buy or sell your property with ease. (photo credit: cathyse97 via photopin cc)
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The Jetsetter Show Team