Considering Entering Thai Real Estate, Basic Questions.

[ski]

About Me:

I am thinking about buying property on Koh Samui (or if I can no longer find anything good there then Koh Lanta).

I am new to real estate. I have 100K USD which I am looking to invest that I can afford to lose (but would obviously rather not..) and make enough from my job that I should be able to pay off a 300Kish loan pretty easily.

I have no Thai wife/serious GF/kids.

My 4 questions were

1. How do you go about financing in Thailand? I do not have a corporation yet but this seems like the next step.

2. It seems to me (complete newbie) that given the new law that is being passed I could potentially own 48% of shares in a company and then give 26 Thais 2% each? OR maybe one semi trusted Thai 20% and 15 others 2% That way it would be very difficult for them to out vote me when I decide to not give them any money for the land ownership (they would of course know that they are not going to be a real part of the corporation up front).

3. How much of a pain is this entire process? I know it is dependant on a lot of factors, but I would appreiciate stories from farong that have done it before.

4. How is the construction process+ cost? I have heard that many construction companies rip you off and you can find guys to hammer nails for ~$1US per hour and that way you only need to pay a few skilled bosses. How much truth is there in this?

Thanks,

Ski

Edited February 1, 2007 by ski

[Dupont]

First and foremost.... forget it.

If reading this forum doesn't put you off, nothing will.

If you don't loose the 100k, you will loose peace of mind, and most of your hair. Buy an exising on, or better still rent one.

Dont ever tell anyone your budget as that is what the price will be. The actual cost could be ten percent of this, but you have basicaly told em they are going to get 100k.

Edited February 1, 2007 by Dupont

[londonthai]

with $100k and one house it's hardly real estate business.

maybe better will be to become a middle man between thai landlords and tourists coming for holidays. You won't need much to invest to slowly build up your business through the advertising in a travel related websites.

[billaaa777]

I am in the real estate business in Pattaya. You can make good money with very little risk if you know what you’re doing. Don’t listen to all the post your going to get telling you that you can’t, there WRONG!

1. How do you go about financing in Thailand? I do not have a corporation yet but this seems like the next step.

No financing, everything is cash. But thats OK, with 100K, you can easily make over a 100K. Not so bad in Thailand. It pays for all my ladies anyway.

2. It seems to me (complete newbie) that given the new law that is being passed I could potentially own 48% of shares in a company and then give 26 Thais 2% each? OR maybe one semi trusted Thai 20% and 15 others 2% That way it would be very difficult for them to out vote me when I decide to not give them any money for the land ownership (they would of course know that they are not going to be a real part of the corporation up front).

Don’t do it, you don’t need too. The demand now is for condos in foreign names. Houses are selling very poorly, at least in Pattaya. Where as I can’t keep a condo in inventory over a few months.

3. How much of a pain is this entire process? I know it is dependant on a lot of factors, but I would appreiciate stories from farong that have done it before.

It easy after you have done your homework and develop a comprehensive knowledge of the local market.

4. How is the construction process+ cost? I have heard that many construction companies rip you off and you can find guys to hammer nails for ~$1US per hour and that way you only need to pay a few skilled bosses. How much truth is there in this?

Hire good people that are professionals in their particular area, just like you would every place else. You will drive yourself crazy otherwise, it won’t cost you any less and it will take five times as long to build.

Good Luck

[TizMe]

I am in the real estate business in Pattaya.

and therefore have a vested interest in extracting money from unsuspecting investors.

[billaaa777]

and therefore have a vested interest in extracting money from unsuspecting investors.

Well that did not take long.

Every time I make a post or anybody else makes post on this site about investing or making money in Thailand guys like you come out with their negative BS comments.

I not playing that game anymore.

Just live on your 30,000 Baht a month pension, in your 3,000 a month rented condo, with your windows open getting bit by misquotes, eating 20 Baht Thai dishes from street vendors and keep your dump-ass, uniformed, poor, adverse to risk taking comments to yourself. I don’t want to hear your negative BS anymore.

Just because you’re poor and stupid, does not mean everybody is!

Before you make your next post, I want you to do one thing. Walk into the bathroom, look into the mirror and repeat over and over; “I am a LOSER!”

And for you information, if he was to follow my advice in Pattaya, he would be competition which could possibly hurt my earning potential.

[Eastender]

20 or 25 Baht is the standard rate for Thai food from a thai restaurant. WHAT'S WRONG WITH THAT????

[Lil_Jon]

and therefore have a vested interest in extracting money from unsuspecting investors.

Well that did not take long.

Every time I make a post or anybody else makes post on this site about investing or making money in Thailand guys like you come out with their negative BS comments.

I not playing that game anymore.

Just live on your 30,000 Baht a month pension, in your 3,000 a month rented condo, with your windows open getting bit by misquotes, eating 20 Baht Thai dishes from street vendors and keep your dump-ass, uniformed, poor, adverse to risk taking comments to yourself. I don’t want to hear your negative BS anymore.

Just because you’re poor and stupid, does not mean everybody is!

Before you make your next post, I want you to do one thing. Walk into the bathroom, look into the mirror and repeat over and over; “I am a LOSER!”

And for you information, if he was to follow my advice in Pattaya, he would be competition which could possibly hurt my earning potential.

LISTEN CAREFULLY WHEN THE DONALD SPEAKS,

and btw , what would be your style of living mate , just got me curious

[DragonQuest]

ROFLMFAO

[Totster]

Keep it nice guys !

totster

[maccaroni man]

the op said he wants to make money in Koh Samui buying land and house with approx 4million baht :D

[TizMe]

and therefore have a vested interest in extracting money from unsuspecting investors.

guys like you come out with their negative BS comments.

Just live on your 30,000 Baht a month pension, in your 3,000 a month rented condo, blah blah blah

Before you make your next post, I want you to do one thing. Walk into the bathroom, look into the mirror and repeat over and over; “I am a LOSER!”

I had missed your reply.... Did I hit a little nerve in a little man.

1) Not a "negative BS comment" . Just a simple factual statement that you DO have a vested interest.

2) You don't know me so <deleted> do you know.

3) I have invested in Pattaya real estate, but not because it is a good investment. I did it because my wife wanted me to buy it for her, 3 properties in fact.

I would not invest anything in Thailand that I am not prepared to walk away from.

I would advise anybody to invest in their own homeland, somewhere that will provide the same returns as Thailand without all the rip offs and risks that Thailand provides, both legal and illegal.

[billaaa777]

Not a "negative BS comment" . Just a simple factual statement that you DO have a vested interest.

Your a fool!!! If you don't know, have never met me, please explain how you know my interest.

You don't know me so <deleted> do you know.

You such an idiot. You answer your on post. If you don't know me, then why would you post about my interest? In the very next sentence you’re using your own argument against yourself. Why are you allowed to even have a keyboard?

[TizMe]

You Stated the fact. " I am in the real estate business in Pattaya."

It therefore doesn't take Sherlock Holmes to deduct that you have a vested interest in blah blah blah.

You assume that anybody that doesn't agree with you must be both an idiot and a poor under funded pensioner. You are wrong on both accounts.

Pull your head back under your rock...

Edited February 4, 2007 by TizMe

[englishoak]

[Paul MBMG]

1. How do you go about financing in Thailand? I do not have a corporation yet but this seems like the next step.

At teh moment there are 2 entities offering leasepurchase - our associates at Hamptons International Mortgages Thailand Limited and the Thailand Longstay Programme. The latter is positive on Koh Samui but seemingly not keen to actually lend money without cash security. The former is keen to do business but negative on Koh Samui

2. It seems to me (complete newbie) that given the new law that is being passed I could potentially own 48% of shares in a company and then give 26 Thais 2% each? OR maybe one semi trusted Thai 20% and 15 others 2% That way it would be very difficult for them to out vote me when I decide to not give them any money for the land ownership (they would of course know that they are not going to be a real part of the corporation up front).

Actually it's slightly more contrived but possible to do it in a totally robust way - you need to use corporate local shareholders and you can protect your investment. Any decent specialist organisation can arrange this for you (mind you there aren't that many who satisfy both criteria!)

[backflip]

As the previous poster noted, there are companies that are ready to provide a cimplete service for you. I used Sunbelt Asia, and there are others. The company will provide the Thais required for incorporation. Two, the company can also set up your corporation so that there are tow classes of shares, with the preferred class - owned by you - having the majority of the voting power. So, even if all of the Thais conspired against you, you won't lose control of the company.

[Paul MBMG]

As the previous poster noted, there are companies that are ready to provide a cimplete service for you. I used Sunbelt Asia, and there are others. The company will provide the Thais required for incorporation. Two, the company can also set up your corporation so that there are tow classes of shares, with the preferred class - owned by you - having the majority of the voting power. So, even if all of the Thais conspired against you, you won't lose control of the company.

agreed backflip, although you need to accomoadte the proposed FBA changes if they are passed into law, which is why the Thai shareholders need to be corporate