How Can I Sign Georgia Banking Word

How can i industry sign banking georgia word now

I've been investing in the country of Georgia for years now both just depositing money in the bank but also buying a lot of different properties and a lot of different types of properties and its really great every time I come to Tbilisi someone comes up to me and says hey Andrew I'm here investing because I heard about this place from you but the reality is it wasn't always easy and I've made mistakes along the way I'm gonna share a few of the most critical mistakes I've made about investing in Georgia right now [Music] hi I'm Andrew Henderson let's get right into it investing in the country of Georgia one of the things that I've really felt especially in Eastern Europe Western Asia a lot of emerging economies is I like to invest in the capital city so when people come to me and say what about batumi what about something in the wine region unless you're running an active business I would probably tend to stick to the capital city people in emerging economies generally want to move to the capital city it's whether it's the most demand if it's the seat of government there's gonna be that kind of basic demand if you look even at more developed economies like the United States in Ohio where I grew up Columbus Ohio the state capital has a certain amount of Brazilians that other cities don't have because it has that government behind it so lots of reasons to invest in the capital and with the exception of some agricultural land that I bought along the way all of my investing pretty much has been in the capital other than some minor deals one of the big mistakes that I made that seems rather basic is I didn't get started earlier and I didn't go big earlier now I understand the importance of dipping your toe in you want to learn how things work I didn't have anybody to guide me because I was the only guy coming who spoke English I had to really work with kind of substandard conditions when I first came here in 2014 and started doing deals and so I didn't want to dive full in however some of my first deals were I paid twenty two thousand dollars for a forty three square meter apartment maybe two or three hundred meters up the hill in the middle of the city center and I renovated it and we did a really beautiful job really made it a great place there aren't really any more of those deals any more $500 a square meter I'm ever actually passing on deals that were like six fifty seven hundred dollars a square meter just two and a half years ago because I was arguing with folks over you know a thousand dollars and those properties would have been a lot worth a lot more today I've seen prices steadily rise I've seen those deals really go by the wayside so what I would recommend is I'm starting investing in property and I have the money as I did I would try and find someone who has experience and I would try and dive in a little bit faster because you know in these markets where properties are under a thousand dollars a meter deals tend not to last for long the second mistake that I made was really not putting in place the right team right away what in Georgia they call a registered agent amok ler okay and what's funny is I've recently found really the second good McClure in the entire country there are hundreds of mock lers a lot of them do is a part-time thing very few of them are really that good at it and if you're from the Western world you're gonna see a huge drop and it's a vastly different experience than what you'd find in the West where you have professional real estate agents you can call them at any time of the day or night it's just a different experience here they show up late they're not dressed professionally and and that's changing again I found too I mean in all these years I've found two that really like what I found initially that initially turned me off to the market was I found the expat real estate agent this is the person who deals with locals who finished up their apartments and they want to rent them to wealthy expats people who work for embassies that kind of thing and as a result all the stuff that she showed me was what I felt was of a price so I would still say it was of a priced so I dealt with her she spoke at English but she was really she was kind of like the the English language website you know and a lot of these emerging economies where the prices are 30 or 40 percent higher just because the websites in English that was her and initially I said you know this is not a good place to invest in and so I didn't want to work with her the rest the people just weren't very good quality and so I think that the mistake maybe not be able to be avoid if you just come in on your own you might have the same problem because in a lot of these economies they're not developed you don't have the MLS in most cases and so you're gonna be dealing with people who just aren't as experienced you're not gonna have a real estate agent who has the experience you're not going to deal with people who really know the numbers you can have to know that information yourself so one of the things that I can recommend is get a lawyer get an accountant get someone who's a professional who can come in and be your guide if you're not working with someone like nomad capitalist who's shepherding you through the process have someone who's local who's on the ground who's in your corner one of the things that we do when we go in and R&D a new market is we'll hire someone and pay them to help us navigate that market what are the local customs well the local traditions you know how do things work one thing I didn't learn until I bought properties remember the first property I bought there like when you want us to leave I'm like well I just gave you money so why don't you just leave now and they're like no no no and I learned that the local tradition is you got to give people 30 days - because again there's not a whole escrow process in Georgia it doesn't have the level of development you'd find the United States you literally go to the closing table here's your cash or here's your proof of wire they sign you register it it becomes your property very quickly but you know they're saying well hey we didn't know if you're gonna pay or not so now we need 30 days to get out because you know we were just gonna leave and then you didn't close so those the things that that I'll often pay people to learn to understand what I'm going into a new market that's how we've developed a whole file of intelligence on investing all around the world I don't I don't often start with a real estate agent I start with someone that I'm paying so therefore they have my best interest in mind and I'm not going to start with someone who's just looking to make a commission mistake number three that I made which was actually a big one and it speaks to those local traditions was not understanding the local culture of neighbors one thing that you see in Georgia is by law neighbors have a lot of power over let's say you want to move your front door in your apartment and you need to get the neighbors to sign off well in some cases you'll see people who have lived together for you know 40 years no problem in other cases if you're the new guy some of these neighbors especially in the central locations who may be you know living in older buildings older people people who live to the Soviet era you know oh here's a guy with money right I remember one time I was doing a deal and we had a problem with a neighbor and my developer my renovation guy said do you want to go talk to her I said like she's on a pension right I'm like he's like yeah I said like my scarf costs more than her like now I'm not talking to her she'll hate me like you know she'll hate you too but she'll hate me even more so you know it's like you've got to know that going in so one thing that I ask now is hey what's the deal with the neighbors right what is you know are they agreeable if there's something that like you need to register an extra room that was built and it's not registered and you're able to register it legally but you need the neighbors to sign off make the seller do that you know don't don't oh yeah it can't be done yeah they don't want to talk to the neighbors and so that's how it works okay this is kind of libertarianism and action to a certain extent where you know the government is not enforcing everything but they're leaving it to the local communities they're living it to the people who live in your building live in your yard but sometimes if you're going in is the new guy in a place where other people have been living for a long time that's a problem buying in a new building generally leaves the alleviates that issue not as many new buildings in great city center locations okay mistake number four that I made it was when I sold that first property that I bought for $22,000 I put a lot of money into renovating it did a great job was really easy actually we were able to knock out window knock out a brick wall put in a beautiful window bring more light in change the bathroom I mean we did a ton of stuff and the municipality was very easy to deal with didn't take very long at all quite frankly to get approval for for all those things the challenge that I get into with that property was when I sold it for $45,000 I think and what I didn't realize is if you have property in a company which I did at the time I was a US citizen and I just I wanted to use the money am I in my active business company to move it into a subsidiary was investing through that company oh if you trigger the v80 threshold which is a hundred thousand Lari now you've got to pay v80 in all your sales and I thought like it's impossible that that selling like a piece of real estate would be that's like that's not like selling a bag of chips it's the real estate it's different maybe it's v80 on the done that on the profit no no no I went to like not only my accountant but I hired like three other accountants just to make sure and they said yeah you got to pay v80 in the whole amount and so I actually lost like six thousand dollars in change in profit because I had to go back and pay the eighty and that sailin actually at the time when the lawyer was a bit stronger I was actually very close so I just barely triggered the v80 threshold which was a pretty basic filing the v80 itself wasn't an issue but it ate into my profits and so that's why you see fixing and flipping isn't as big of a thing here as it might be and say the United States where you just have very low costs in terms of buying and selling the properties you know that also means that you want to look at how you structure your properties when you buy them here because there's not only different tax considerations on an income level but also v80 and capital gains so structuring properties is important and I really learned the value of that the last thing that I learned is you really to focus on on who you're renting to and what your goal is now some people come and do Airbnb deals and they've been very successful working with us in in having us connecting with the right people to do that personally for me I've become more interested in long-term rentals recently and so you know we have an agent who does that but what I've really realized is I want to focus on higher-end rentals if that's what I'm doing because what I don't want to do is get into those little tiny properties and be collecting a rent that people local tenants want to put underneath a rock I bought a property down the street from here in a great part of town right near the new fabric a complex amazing area paid next to nothing for it and it actually came with tenants built in I was making like 16 percent yield for a while but the challenge well I eventually just gave up and sold the property not only did it not fit into my portfolio anymore was an experiment and I never planned to hold it forever but what the tenants wanted to did their low-rent tenant they paid a low price the yield was high but the rent was still very low they were not doing online banking they said hey you know swing by in the first or there abouts you know maybe it's the sixth maybe I was in my village and it's the eighth and who knows you know we'll just kind of work it out hit up with I'm like listen you know I'm not swinging by and collecting money from underneath a rock you know under any circumstances so you really want to make sure that you're going into it understanding who the tenants can be how you're gonna get paid how the money's gonna get deposited to you and if you want it to be more passive than you need to make sure that you're dealing with the right kind of people so those are five things that I've run into definitely would love to hear your comments below what are some of the things that you would want to know if you were investing in Georgia hi I'm Andrew Henderson from nomad capitalists I wrote this book which you can find on Amazon to distill a lot of the stuff we talked about in these videos and a lot of the stuff I've learned over the last decade plus traveling all around the world teaching you about how to legally reduce your taxes build your personal freedom and create wealth faster definitely get a copy of this book if you want to learn more now if you want to watch more videos make sure you subscribe to our Channel and make sure you click the notifications bell so you never miss one of our new videos with more tips on how to go where you're treated best and if you're already a six or seven figure entrepreneur and you'd like to put these strategies in place for yourself go to Nomad capitalist comm and learn about how I can help you