Foreign investors are opting for the opportunities of a lifetime in the US at record levels. Not only are the opportunities great but the currency exchange is another huge opportunity as the US dollar is very weak and much below historical averages. Just like investing in your homeland, foreign investors must be smart and do their due diligence, in the case of investing abroad they must do more due diligence. Here are 5 things to avoid.
1. Avoid the wrong market – This is very important. Tons of investors flock to the hyped markets without doing any due diligence. Everyone is doing it so they follow the herd. Well, everyone is wrong. The popular markets right now are the worst markets in terms of returns and risk. Let everyone else take high risks for low returns. Simply do your research to find markets where you can minimize risk and maximize return. You will find the under the radar markets are the best markets to invest in.
2. Never Speculate for appreciation – Plan and simple, speculation is foolish. Can you make money? Sure. Can you lose money? Sure. Will you lose money? More often than not. The market is out of our control, find deals with tremendous cash flow and tremendous equity and control your success. Appreciation is an extra bonus, do not gamble.
3. Never Decide without justification – Always do your due diligence and justify your decisions. Savvy investors do not make uninformed decisions, fall for sales tricks or become a follower. They gather information and make the best informed business decisions. They are investors who are accountable for their decisions so they understand the risk.
4. Don’t be a sucker – Like any business, there are good services and bad services. There are shady, unethical services that use slimy sales techniques to trick suckers into poor decisions. These services usually do not last but the fact that they exist makes me sick. If it sounds too good to be true, do some due diligence and avoid being a sucker.
5. Don’t make it complicated – Avoid over doing it by trying to invest everywhere, with every strategy and as fast as possible. Keep it simple. Focus on 1 market, 1 strategy, build a team of experts, systems and duplicate over and over.
Also, Learn what is a great cash flow deal and read our guide on foreign and out of state investing in the US.