At the push of a button, you can instantly connect and interact with people and companies all over the world. That’s the beauty of technology – an opportunity to go beyond borders! There’s no need to let your dreams stay dreams, and Investing Across Borders might just be the key to make that happen.
The ability to Invest Across Borders is just one step away, and here’s how you can invest, live, work, and play – whenever and wherever!
What Exactly is Investing Across Borders?
In case you’re uncertain, Investing Across Borders means exactly what it sounds like. When you Invest Across Borders, you use your capital (or borrowed capital) to purchase assets in a country that is beyond the border of the country in which you currently reside. Another means of Investing Across Borders could involve investing in growing your own business enterprise on a global scale in another country.
Eventually – if things go right – you’ll be able to generate increased income from a broader base, grow your business, achieve passive revenue and eventually sell the asset or business for a much higher price than what you paid or invested in its growth.
Investing Across Borders can take on a variety of forms. These may include:
- Real Estate
- Tangible assets
- Stocks
- Options
- Bonds
- Your own business
- Joint Ventures
- Other businesses
Some Benefits of Investing Across Borders
Investing Across Borders offers a plethora of benefits that can elevate your personal and/or business life and opportunities to new levels! Here are just some of the more relevant benefits that are often realized when Investing Across Borders:
- Profits — Profit is the most obvious benefit, and that’s why we’re listing it first. If you invest wisely, you’ll be able to reap lucrative benefits. This could put you in a financially secure spot so that you can do the things you’ve always put off or dreamed of doing.
- Less competition — Especially if you live somewhere like the United States, it is virtually impossible to compete with the big-box, billion-dollar companies. By Investing Across Borders, you can achieve a bigger stake in the marketplace that can often be secured at reasonable prices. With less money, catch a bigger fish in a smaller pond!
- More opportunities — By accessing an entirely new country, not only are there more investment opportunities — but amazing potential strategic partner connections and networking possibilities as well.
- A chance at a Visa — This is actually a surprise for many people, but citizenship-by-investment programs are available for nearly 100 amazing countries! That includes the likes of the United States, Canada, Australia and Portugal. Additionally, you may have access to a non-immigrant visa, which, although not a direct path to citizenship, can offer you amazing opportunities to live, work and build your portfolio, business and wealth in a new land. If the visa factor appeals to you, make sure to work with a team of professional experts to ensure that the process goes smoothly.
- Market diversification — In a new country, the market(place) is bound to be different — posing both challenges and opportunities. In a nutshell, you’ll have access to diverse investment portfolio options and increased chances of making a profit.
The Different Types of Foreign Investments
There are four primary types of foreign investments that you will need to consider. Each carries its own pros and cons and can all be lucrative if used right. The 4 primary types of foreign investments include:
- Direct foreign investment
- Indirect foreign investment
- Commercial loans
- Official flows
Direct Foreign Investment
These investments are physical purchases made by a company (or sometimes an individual) in a foreign country.
The purchase of real estate, buildings and land are generally considered as direct foreign investment which in turn yield long-term investments. As a rule of thumb, e-Council Global considers this to be the “best” type of foreign investment for all levels of investors.
Indirect Foreign Investment
More often, investors and especially individuals are purchasing indirect foreign investments. This form of investing occurs when corporations and private investors buy stakes and positions in foreign companies. An example of this would be buying and selling stocks.
Commercial Loans
At one time the largest source of foreign investment, commercial loans are less popular now but can still generate excellent outcomes. How do commercial loans work? Banks and private lenders offer financing through loans. You’ll be required to submit a down payment of roughly 20-30% of the investment purchase price. Then, the bank or other lender will issue you a loan to cover the balance of the investment price — but payments will be due with interest.
Official Flows
The last type of foreign investment comes in the form of official flows. These official flows refer to the different forms of developmental assistance that a nation is offered. You or your business would be investing your resources to help a nation and eventually get a return on investment. This is admittedly not a very common form of foreign investment, although that may well change in the post-COVID world.
How to be Safe When Investing Across Borders
Along with the many benefits to foreign-based investing, it is reasonable to anticipate that certain risks must be considered as well. Challenges such as currency volatility and lack of transparency are threats. However, there are safety mechanisms that can be adopted in an effort to minimize your risks and maximize your rewards.
The most common safety mechanism is just to do your research. The research should primarily focus on the economic background of your foreign country — but should not neglect the other facets either.
These facets include cultural, social, political, and legal aspects of the subject country. Knowing these facets can ensure that your investment is secure and that potential far exceeds any potential risk. The more research and consultation you have done prior to taking the plunge — the better off and more sound and “safe” your investment will likely be.
The Push of a Button: A Professional Team
Understandably, it is impossible to simply sit in front of a computer and do as much research as necessary. People are busy, and there are simply not enough hours in a day to get everything done. That’s where the e-Council Global professional team comes into the picture.
While you’ll still have to put in the effort, having a team to guide and answer any of your questions – that’s vital to success. But, more than that, doing every aspect of your investments can be overwhelming and an impossible hurdle to overcome.
The hardest part is your first foreign-based investment, but you don’t have to face the challenge alone. From lawyers to tax experts to capital advisors, having a diverse team of experts goes a tremendous way.
When working with a cross-border advisory company, make sure that you’ll have access to all these professionals:
- Banking and currency exchange experts
- Legal team
- Due diligence or deal analysis
- Tax, financial, and accounting
- Logistics experts
- Financing and capital advisors
- Real estate professionals (or whatever investment you are attempting)
- Cross-border experts
To Wrap Up
Opportunities to Invest Across Borders really are just a step away. Even though foreign investment is a multifaceted and daunting process, you no longer have to learn everything by yourself. There are experienced professionals available, such as the e-Council Global harmonized team of experts, to navigate your path and guide you every step of the way.
You deserve to have the freedom to invest, live, work, and play across borders – so do yourself a huge favor and work with a professional team that is truly ready to help make your dreams come true!
The experts at e-Council Global are experts at INVESTING ACROSS BORDERS. To find out about our range of services, please contact us at founder@ecouncilglobal.com or by phone at 1-866-724-0085.
e-Council Global’s website, newsletter and other forms of communication contain general information about legal matters. The information is not legal advice, and should not be treated as such. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider. If you have any specific questions about any legal matter, you should consult your attorney or other professional legal services provider.
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