10/3/10: Caveats and Considerations of Cross-Border Real Estate Investing with Attorney Mauricio Rauld
“Go West, Young Man!” has given way to “Go Global, People!”
Back in the fledgling days of the American experience, young opportunity seekers often left the comfort and competition of the mature eastern states to seek their fortune in the emerging markets of the wild, wild West. Real estate was a big part of the opportunity then – and it’s a big part of the opportunity today.
In the covered wagon, trekking through radio no man’s land in search of real estate fortune:
- Global real estate pioneer and show host, Robert Helms
- Wagon maker, puller and repairman, Russell Gray
- Attorney Mauricio Rauld
Today’s investors, both stock and real estate, have a growing attraction to foreign markets. And not just developing markets, but thanks to currency fluctuations and an ever more global economy, investors are seeking to take advantage of shifting tides of capital, business and jobs into mature foreign markets as well.
So while there are many opportunities available around the globe, being an investor today requires more sophistication and attention than ever before. Some are happy to simply work hard, live below their means, save money and turn it over to Wall Street and the government to provide for their future.
Others have decided to take control of their financial future and invest the time, money and effort to find investments they can understand and manage themselves. For people like this, God created real estate.
But before you get dollar signs in your eyes and charge off to buy cheap, beautiful property in warm, affordable, tax favorable markets (which is SOOOO tempting), it’s smart to get some guidance from people who’ve gone before. Remember, pioneers are the guys who get arrows in their chests while they discover new opportunity. Settlers are the folks who learn from the pioneers and come in and develop the opportunity.
So, with that verbose prelude, this episode of The Real Estate Guys™ Radio Show features an interview with an attorney who serves as general counsel to an international real estate investor and developer. His job is to help his client avoid the arrows – and to extract them when one strikes.
Listen in and discover what things YOU should be thinking about as your take your real estate investing across the border.
Note: Attorney Mauricio Rauld will be one our esteemed faculty members for our 9th annual Investor Summit at Sea™
Do you remember the old “new” economy? That was the one where technology companies could go public without profit. In some cases, they didn’t even need revenue. Ahhhh, those were the days.
The new “new” economy (the Great Recession one) hasn’t been nearly as fun – unless you’re an old school entrepreneur. That’s the kind who looks at problems as opportunities. Guys (and gals) like that are having a lot of fun right now because there are opportunities galore coming out of the Great Recession.
The Real Estate Guys™ headed off to Freedom Fest in Las Vegas a few weeks back. We heard that money manager / economist / author / Senate candidate Peter Schiff would be there (among many other people with very strong opinions about the U.S. economy) and we wanted to do some interviews. We’re happy to report we got lots of great stuff, including Mr. Schiff and the CEO of Forbes Magazine, Steve Forbes. Watch for those interviews in future broadcasts.
So we fly into Las Vegas in our private jet (the one operated by Southwest Airlines), and get to the convention venue and start setting up our booth. Before the event had even started, a man stops by and sees our banner for Belize (we were promoting our upcoming field trip to Belize) and asks a few questions. The short of it is that we find out he’s working on a very exciting project in the Caribbean – one that solves a problem we’ve been trying to figure out too. Russ gets so excited that he hugs the guy. Very weird.
After the appropriate apologies and some follow up male bonding, our new friend agrees to do a radio interview. And that’s what this broadcast is all about.
Manning the microphones for this edition of The Real Estate Guys™ Radio Show:
- Your host, the Larry King of real estate radio, Robert Helms
- Co-host, our “I love you, man” booth babe, Russell Gray
- Special Guest, Investment Banker, Entrepreneur and assault victim, Jeff Villwock
Any time we get around smart people, we jump on the opportunity to talk with them. In this case, Russ literally jumped on Jeff. When Jeff recovered, we got him on the mic, so you can listen to what he’s doing, where he’s doing it and why. There’s lots of lessons to be gleaned!
Freedom Fest is an event that attracts people with strong political opinions. In many of the interviews we did there, those opinions come out. Great! We think the world works better when people respectfully debate important issues. Sharing ideas is among the most sacred of our freedoms, especially if you’re radio guys.
We also realize that the U.S. (the bulk of our audience) is pretty polarized right now. Now, we love our entire audience and our show isn’t political. However, policies affect economics and economics affects real estate. There shouldn’t be a serious student of real estate who can look at the last several years and deny that. So politics are going to get into the discourse from time to time, which is a very good thing.
We think these Freedom Fest interviews are great. If you disagree with the political views of our guests, don’t let that get in the way of hearing what’s being said. Here’s why: a big part of real estate investing is understanding demographics and human nature. How people think and believe affects where they (and their money) will be moving. Even if you disagree with them, if they believe it, it will affect their actions. So YOU need to understand them (even if you disagree) if you want to anticipate their behavior.
Did we mention that Jeff’s project is in St. Kitts? It just so happens that St. Kitts is one of the stops on our upcoming 9th Annual Summit at Sea! So we ask Jeff if we can visit his project as part of our already planned real estate shore excursion in St. Kitts. Not only does Jeff agree to allow us to visit, he says he’ll meet us there and show us around. Awesome!
Once again, we’re reminded of the importance of getting out of our cubicles and into the world where real people are. No doubt that virtual networking is powerful, but just as phones did not replace face to face meetings, neither will social media replace conventions as a great place to make important connections. This is one of the reasons we attend trade shows and promote our field trips and the Summit at Sea™. It’s a great way to get to know great people in the real world. We hope to see YOU at one very soon!
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Feeling undersized when going up against your lender in a loan mod negotiation? It’s a big problem to wrestle with, but you’re not alone! Recent developments are tipping the scales back toward the borrower – and none to soon! To get up to speed on the latest and greatest, we invited back to the show one of the most prolific commentators on the topic.
- Your larger than life host, Robert Helms
- Co-host and sand pit groomer, Russell Gray
- The Godfather of Real Estate, Bob Helms
- Special Guest, Mortgage Industry Pundit, Martin Andelman
Even though we see lots of opportunities in all the crushing problems facing today’s real estate market, that isn’t much consolation to people still grappling with mortgages that don’t make sense. No wonder our special report, What You MUST Know Before Attempting a Loan Workout (available in our Resource Center) has been our most requested publication for the last 18 months. And when you consider that the number of modifications actually getting done are dwarfed by the huge number of mortgages currently in default, there’s no way to take this problem lightly. When it all shakes out, we know there’s still a LOT of work to do before the balance sheets of banks and borrowers are stabilized. It’s a sizable task.
Enter Martin Andelman. Martin reminds us of Don Quixote from Man of La Mancha. We almost went there with this blog, but the Sumo thing was way too much fun. Still, Don Quixote was a crusader pursuing an impossible dream (the theme song from the movie), so it seemed to match. It was hard to combine “impossible dream” with Sumo, unless there was a Speedo involved, and we didn’t think that was a good fit, if you know what we mean.
Anyway, Martin’s been an observer, commentator and outspoken critic of the banks and lenders who claim to care about the borrowers, but can’t seem to do anything substantial to help. Do you remember the Bible verse in James, where it basically says “talk is cheap” (our paraphrase)? That is, what good does it do to say you care, if you don’t really do anything real to help?
Please don’t misunderstand. We’re not advocates for, or supporters of, bailouts for borrowers or for banks. Philosophically, we think things would get better a whole lot faster if the government would get out of the way and let the banks and borrowers negotiate. After all, these are contracts between private parties. But the government has had its nose in the mortgage business for decades, so it’s a threesome, like it or not. (We’re sorry. Is our opinion showing? We’ll tuck it away.)
So we start this show with an update from Martin on the state of the government’s HAMP program. Can you feel it yet? Is it working? Is it getting better? Martin gives us the scoop. His answer surprised us.
And while the Executive Branch is trying get its HAMP fired up, what about the Legislature and the Judiciary? Martin briefs us on a couple of interesting court cases which affect loan modifications. Of course, we can’t help but talk about California’s SB94, which now “protects” consumers from all the “greedy” loan mod attorneys who selfishly want to be paid for the work they do. Why wouldn’t the attorney just do the work first and then send a bill? It’s so unreasonable to think that a client who isn’t making their mortgage payment would be a bad credit risk. We’re sure all the underwater borrowers are sleeping much better now that now that most of the loan mod companies have shut their doors. Yeah, that helped. Unless….do you think maybe it wasn’t the borrower the law was intended to help? Hmmmm….? Sorry. That pesky opinion keeps popping out. These Sumo shorts don’t give you much room to hide.
But lest you think this episode is just a rant about what isn’t working, the real highlight of the show comes when Martin tells us about a new “secret weapon” that’s now available to borrowers. And he says it IS working! He says borrowers armed with this powerful new tool find themselves no longer getting squashed in their negotiations with the lender. That’s right! The little guy is starting to win. We like it.
Off mic, we impose upon Martin to write a special report on this topic, which he generously commits to do. He calls it The Underwater Borrower’s Secret Weapon: How to Make Modifying Your Loan Your Lender’s Idea. Wow. That’s a mouthful. But if you know Martin, it’s not surprising. You can bet he’ll have a lot to say – and it will be fun to read!
The bottom line (that’s a Sumo pun in case you missed it) is we got so jazzed about the whole thing, we’re working on adding the company which supplies this “secret weapon” to our resource network. Meanwhile, if you or someone you know has been wrestling with a lender that seems immovable, be sure to request Martin’s report. Maybe his secret weapon will work for you and your friends. We want to help get the secret out, so everyone has access. Not just because we like to root for the underdog. But because the sooner all these bad loans get re-done, the faster the world can get back to focusing on more productive things. And that’s good for everyone.
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