Small Business Resource: IRAs in Foreign Real Estate Potential Hazards

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November 28, 2006

IRAs in Foreign Real Estate Potential Hazards - Part II

Tip # 3 - Count on paying cash: The US is known for its impressive schlep of financing schemes, but in other countries, these schemes or mechanisms may not be as sophisticated. For instance, you won't have dozens of mortgage lenders begging you for your business. In countries like Mexico, Greece and Spain, Ms. Willis says that transferring of property has been historically paid out in cash.

Tip # 4 - Title check: Ensure the property is really yours. In the US, a title is as clear as day. You're the owner, no one else is. In some countries, the distinction may not be clear. For instance, Ms. Willis' article said that boundaries have changed in some continents in the last decade. It can happen that someone who is seven generations removed from the original owner could come and make a claim on your property (of course the burden of proof is on him). This phenomenon could happen in an Eastern European country as an example.

If you're beginning to get cold feet, don't. There's still a lot to be gained by investing overseas. While some may have been burned by the experience, the reason is usually because of a lack of due diligence.

Play it smart and engage the services of country experts and a battery of lawyers and accountants. There are numerous reliable organizations based in the US who know what they're doing. They make it their business to do the research and have helped thousands of clients find their niche abroad. If push comes to shove, contact the US Department of State who will no doubt have the intel on things like stability, currency fluctuations, etc.

For more information on how to purchase foreign IRA real estate visit the link...

International Real Estate IRA

Posted by David at November 28, 2006 5:28 AM