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Investing outside your home country

Matt Malouf , CA

December 10, 2018

If you were going to invest in an STR, what is your biggest concern when looking outside your home country?

Comments

Matt M. , CA

Dec 13 2018, 03:15 PM

That's my biggest concern as well, always has been and always will be. To be quite honest it's a constant battle to adequate pricing for work as the gringo/a tax is often applied. What tends to work well for me is to focus on finding and hiring a local manager to run your business through and have everything run through them to get the most optimum pricing. For example, I usually pay a small premium on services above the "average" rate but also require guarantees on their work and installation. Often times in foreign countries, especially in smaller cities and towns (my specialty) your on the ground network gets you the best results. You;ll NEVER find them on facebook, whatsapp and the internet, it's a boots on the ground down and dirty business. 

The more absentee and hands off the investment the higher the price, generally speaking.

So I try to get that one essential reliable honest loyal business partner to me first and then expand the network from there as everyone else from agents, to workers to cleaners will change around. 



Matt Malouf

Author-Adventurepreneur


Erica M. Orlando, FL

Dec 10 2018, 02:25 AM

Mine is that once I acquire the property, that I won't be able to source people with for renovations and/or because I'm a foreigner they might try and over chargeme for work. I think if I knew I had a reliable and honest rehab team lined up, I would feel more comfortable with it. 

heather b. Huntsville, ON

Jan 24 2019, 12:44 AM

I was a UK resident when I started investing in Canada.  I learned early on that finding a realtor who understood the vacation rental market was essential.  I bought vacant land in the Bahamas and didn't do due diligence into the regulations around building a house - a good realtor would have known those as well.