International Real Estate Investor Transactions
Why You Need An Attorney For Your International Real Estate Transactions
Receiving Investments From Abroad
Risks to International Real Estate Investment
It is important to understand that there are some risks to investing in international real estate. Though this is true of all real estate, it is often more difficult to understand the economy in other countries if you don’t have direct experience. Be sure to consider concepts such as:
- Credit risk. If you need a line of credit for the project and international investors are involved, or the property is abroad, where will you find it? Will the terms be acceptable?
- Supply risk. In the United States, we are fortunate to have nearly immediate access to anything we want or need. This is not always the case in other countries. Make sure that you consider this when you invest in a project and understand that there could be delays or dead ends, especially on new construction projects, due only to supply shortages.
- Liquidity risk. Will you be able to sell your share in the project if you need to? Is the property in demand enough where you will be able to find a buyer?
- Asset-level risk. Are you investing in something like a home or an apartment building? If so, these are generally considered low-risk investments. If you are considering an office or commercial building, the risk could be greater. Are you prepared to lose money in foreign markets?