Beware of those unprofessional sellers/marketers who do not know all the details and try to come across as knowing the country in which they are trying to sell you a property/investment, but in practice are either inexperienced or charlatans. Beware of those who tell you half-truths, and on the way to selling you will “cut corners”, be imprecise, offer illogical benefits, or promises that have no chance of materializing.
I like to learn. I am constantly learning. Over the years I have understood that when you work in the international real estate field, the more deeply you learn and the better you know the country in which you operate and the regulation in the real estate field and related fields in each and every country (although we know deeply every country/area in which we operate, we will always act in cooperation with a local office), the more in-depth the accompaniment, and the clients' confidence in the deal grows. That is also the reason that we have clients who have been working with us for years.
As part of my wish to learn, to know and to understand, I took part in two webinars on investing abroad in countries where we operate. One was delivered by a development company that raises investors; the other was delivered by a real estate marketer marketing a residential project under construction. Both webinars were built so that first information was given about the country in which the company/marketer operates, including financial and economic data, details of the advantages for an investor in the country, next details about the city in which the company/marketer operates or is about to offer the investment, and right after that a description of the project and the investment and their analysis.
Wow. The differences between the two webinars screamed to high heaven. The ultimate goal of both webinars was to attract investors to invest in company A's project or to buy an apartment in company B's project, but the way it was done was so different. No, I am not moved by broadcast glitches (that can happen to anyone), or by a less polished presentation (that is not the essence), and not even by the use of this or that terminology, but this is not the first time I have encountered marketers who are not versed in the material and/or mislead the public (whether from ignorance or from a need to “cut corners” in order to bring as many people as possible to the table/to the deal).
On the one hand, the marketer's presentation was much more elaborate than the company's presentation, much more colorful, much more pyrotechnics. On the other hand, the company's slides were all based on official sources and included a reference to the source (the state statistics bureau, the tourism ministry, etc.) and the company hosted in the webinar a CPA dealing in international taxation to explain the tax matters relating to the country in question, the tax treaty with Israel and inter-state taxation. It was much more professional and credible.
The company's presentation and webinar were devoted to giving value to the participants, so that they would get to know better the country in which they work, and only the last part of the webinar was devoted to describing the company's activity in the country and a call to any participants interested in receiving an offer to invest in the said country to contact the company's representatives.
The marketer's presentation and webinar were devoted mainly to an attempt to sell a property in the said country, with a lot of missing or inaccurate information (as someone who knows the country and knows a detail or two about how business, and certainly legal matters, are conducted there), and the ending was aggressive and included a commitment to benefits of about 20-25% of the property's value for any participant who would begin the purchase process as soon as the webinar ended.
Do not be tempted by “one-time offers” or “phenomenal” ones - check. Learn. Get to know. And only then invest. Even if it is a small sum.
Tips for identifying an unprofessional international real estate marketer:
- Lack of experience: Pay attention to the marketer's experience in international real estate and in the specific country in which he makes you an offer.
- False promises: Beware of marketers who promise unrealistically high returns or who present unsubstantiated data.
- Lack of transparency: Make sure the marketer provides you with full and transparent information about the project, the investment and the risks involved.
- Sales pressure: Beware of marketers who put pressure on you to buy immediately.
Additional recommendations:
1. Do research: Before investing in a property, do in-depth research on the country, the city and the project.
2. Consult a lawyer: It is recommended to consult a lawyer who practices in international real estate before making the investment.
3. Don't rush: Take your time to make an informed decision.
In summary, investing in international real estate can be an excellent opportunity, but it is important to do so carefully and wisely. Be sure to choose a professional and well-known intermediary, do in-depth research, consult professionals and diversify your investments.
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית