The differences in language and mentality, the geographical distance and the distance from the property, along with the lack of knowledge of the laws and characteristics unique to each country, create a real gap between the desire to invest and crippling insecurity for fear of failure. Abroad
The real estate market in Israel makes it difficult for many Israelis to buy an apartment, due to high prices, rising purchase taxes and interest rates, the need for significant equity and more. “Countries like Portugal, Greece, Spain and others are desperate for investment and are doing everything to attract foreign money. In some of these countries you can find 4-room apartments for 100,000 euros and attractive financing terms. However, the first experience in buying real estate or doing business abroad Is not a simple process, and is naturally accompanied by great apprehension.
Accompanying real estate investors abroad are usually people who have gained many years of experience in making real estate transactions for themselves, and thus have formed relationships with local bodies and professionals that are necessary to make the transaction. They also often live in it part of the time or regularly know the laws, culture and mentality. Their role, among other things, is to bridge the gaps between the parties. The lines also what is not said.These subtleties may prevent a deal from falling.
The manner and duration of escorting are determined by the buyer’s preferences, and they can assist in various stages of the transaction. From locating the property and choosing the local lawyer, making the information accessible to the buyer through translating the information and submitting the required documents in the procedure, monitoring and controlling the moves and actions in real time, until the transaction is completed.
Mediation of expectations
A stable professional escort from the very first call shows a realistic face in the face of overly pink scripts and unrealistic expectations of buyers. For the investor it is right to examine in the same conversation what is the scope of knowledge and how much work and footwork he has the power to save and help in achieving an optimal deal for your desire.
Understanding the local business language and interpersonal skills that the lender has developed over the years with local actors, and making them accessible to the investor can help advance procedures and create a harmonious work environment with multiple factors: attorneys, appraisers, mortgage advisers, local suppliers and brokers.
How does the service actually work?
The way to formulate the right process in front of a lender of real estate investors abroad, begins with clarifying expectations and areas of responsibility, and with the understanding that our chemistry and basic instinct also have importance and a place in the decision. Similar to building a business plan, here too you need to lay out all the cards together – understanding the financial situation, equity, leverage capabilities, real mortgage repayment, investment profile and objectives, and accordingly the direction of investment area, property size, yield, population composition, and associated costs. . Only then take off and go out into the field for a tour of the properties that are found to fit the profile being built. On the other hand, some investors prefer to go abroad only at later stages of the transaction or at the time of signing. In such cases, the investor lender is the representative in the field who conducts the negotiations and leads the process, while constantly updating the buyer.
The costs of the service are a derivative of the type of property, its price, the nature of the escort, whether the apartment was found through the lender of the investors or the realtor, etc. But this is usually 2.5-3 percent of the deal.
Although a real estate investor lender will make an extensive needs assessment, select the apartment and accompany all dealings with local suppliers, it is important to remember that it would be a mistake on the part of investors to remove liability. Attorney, Contractors). Only in this way, in case a problem is discovered in a few years, will he be able to deal with it on his own, and independently.
Because real estate investor lending is a relatively new field, it is important to exercise caution in the face of unprofessional and inexperienced parties, and those who present themselves as familiar with the investment characteristics in each region, or promise unrealistic returns. Each country has its own unique characteristics. Professionally, a real estate investor lender must know practically (and not just through computer data) the right investment area and the unique components of the population, and understand what the potential is alongside the risks. When it comes to choosing an investment lender, demand to see a practical record that includes a large number of transactions.
Adv. Itai Moore is the founder of the Portuguese Investors Club, a consultant and mentor to real estate investors abroad.