Looking to do International Real Estate in Mexico and other foreign markets
For people who have done international real estate: what project or property did you purchase? How did it go? What are the most important things to understand when investing in a foreign country?
[{"id": "h2q5cq8", "text": "I live in Puerto Vallarta. I work for a top high end realtor here. What are you looking for?", "replies": [{"id": "h2qi52n", "text": "I\u2019m looking specifically for a project breakdown in Mexico from the standpoint of foreign Capital or an investor. What\u2019s required, important, helpful to know, etc", "replies": [{"id": "h2qqz11", "text": "CBRE colliers, or JLL can help you", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "h2qeodc", "text": "I\u2019ve done several international deals in developed markets on behalf of a PE fund (onshore-offshore and offshore-offshore) and honestly the most complicated part I\u2019ve found is the deal structuring. Underwriting the actual asset is the same but you spend a TON of money on legal on both local counsel to navigate the foreign countries statutory stuff as well as your firms tax and structuring counsel to minimize tax loss on both non ECI countries as well as additional leakage on stupid stuff related to the way the structure is construed in the local jurisdiction. It\u2019s a lot of fun if you\u2019re into the legal side of the business, takes time to figure it out with your attorneys and is an interesting legal puzzle to put together. Anyways good luck!\n\nETA - another \u201cfun\u201d thing is if you\u2019re doing it in a smaller country that has currency controls it can take some time to get your operating cash into the country and then repatriated. Not like a huge deal but always thought it was funny that my transaction would have an impact on their currency trading.", "replies": [{"id": "h2qi9x8", "text": "How would you recommend the proccess of finding a local and foreign attorneys who specialize in this particular field of real estate? Is their a firm or area of law that is focused on this particular nuance in corporate business?", "replies": [{"id": "h2qqwpk", "text": "The local embassy or OBO in DC can give you a list of people they work with.", "replies": [], "depth": 3}, {"id": "h2rb8rp", "text": "Everything has gone through our corporate counsel to source local - I am not a practicing attorney so I rely on the guys at GDC / Sidley / ropes / whoever is deal lead to source and do DD on local. They know a lot more about who to use and have the wherewithal to figure out who\u2019s best in a particular situation. Note too that you could use multiple firms for local counsel - you could hire local transaction counsel and local structuring counsel.", "replies": [], "depth": 3}, {"id": "h2slrcf", "text": "If you have to ask this, you don't have enough money or experience.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "h2qqzu0", "text": "Look up the Lomelins", "replies": [], "depth": 1}, {"id": "h2tyzej", "text": "How about dubai ? Anybody invested there.", "replies": [{"id": "h2x51h0", "text": "My understanding is that most of the development in ME is funded by the ME LPs (sovereigns, endowments, crazy rich people); not really a play for western PE (or the big LPs for that matter). Unless someone on this board is with ADIA / ADIC / Mubadala / KFH / whatever unlikely you\u2019ll find someone who\u2019s done work", "replies": [], "depth": 2}], "depth": 1}]