Starting a Business--Advice Needed

[expat]

I've been thinking about what would happen if my company folded (a distinct possibility) and I was out of a job. It's very difficult to find work with a decent salary outside of Bangkok in my field (and I don't want to move back there), so I'm thinking I need to go a different direction.

 

My current feeling is that I would be best off if I used some of the capital I have saved up to start a low-risk business. One possibility is to buy an apartment building using a company structure. As an American, I believe I can own the company 100%, though the company can't own land, but there are various ways around that too--a 30-year lease is just one example.

 

I recently saw a building that looked pretty good--while I didn't investigate the books fully, it seemed to be giving about a 7% annual return. It was in a company controlled by the western owner, but with 51% Thai ownership. The owner seemed to have no qualms about such a structure, in fact it turns out he has several such businesses, and buys and sells such businesses as part of what he does to make money.

 

Up until now I have been leery of such structures--worried that if the Thai government decided to crack down, you could really take a bath. Well, my feeling has shifted now seeing so many people with confidence in doing business in this manner.

 

So, after all of this, here are my questions. What kinds of things do I need to know in order to get into this kind of thing--in other words how can I educate myself to be able to get into running a business and minimize the risks involved. In the west, it would seem easy to hire a building inspector to check things out--is that possible here? How can I go about finding a competent, honest accountant to check the books of companies I'm interested in? How can I find a decent lawyer to protect my interests and educate me about the things I need to know about the law?

 

Thanks in advance for any advice.

 

 

[rookie]

FWIW...

I've not been down the road you're contemplating, but you might consider contacting Sunbelt for legal advice, to look over the accounting books and possibly help finding someone reliable to evaluate the soundness of the structure.

 

Such may cost you a few Baht, and the results may support purchasing the building or save you from a possible financial catastrophe.

 

[expat]

FWIW...

I've not been down the road you're contemplating, but you might consider contacting Sunbelt for legal advice, to look over the accounting books and possibly help finding someone reliable to evaluate the soundness of the structure.

 

Such may cost you a few Baht, and the results may support purchasing the building or save you from a possible financial catastrophe.

 

Thanks for the advice; I agree completely. I'm more in the feeling out stage, rather than the buying stage. I don't expect my work situation to collapse overnight, so at this point I'm just looking at what opportunities are available.

 

When I get to the actual buying stage, I fully intend to get competent professionals to vet things in every way that I can. However, finding competent professionals may not be so easy and is part of what this thread is about. I've heard a lot, both good and bad, about Sunbelt Asia.

 

[buffalo_bill]

Sir ,

 

I have been researching the Thai property market for a while and though I am still not a big expert in this field I may say that I have been buzy in Southern Europe buying and selling properties and did accumulate some basic knowledge . My advice : before I would buy an apartment building in Siam I would definitely prefer to build one . Buying means you might probably be hit by a pile of unsolved legal worries which nobody has told you about and , more important , it takes ages to solve those in the kingdom . Building is cheap and a lot of fun . Make sure you have local assistance .

 

Just my 5 Euros

[expat]

Thanks, Bubi, I had actually felt that was the way to go, but many warned me that building is a huge hassle here--finding qualified contractors and workers, that is.

[buffalo_bill]

Building is a huge hassle anywhere though I admit it is much more colourful to build in Siam . On the other hand , building cost is ridiculously low . Typically resident falangs build their house with the help of tilac's uncle and so forth . It just needs one paid prefessional to keep trouble on low level . Pay the right people .

 

Stay cool , prepare your budget and allow extra expenses .

 

Remember BuBi's law of life : Everything works after the principle of a balance sheet : lowering one side means lifting the other .

 

Depending final closure of a land purchase I will build a small motel further North East . Adavantage : many small simple Isaan type house instead of a single huge one which might collapse or show signs of water entering from unknown sources within the building .

 

First thing I do is installing 2 webcams on the site and if they sleep under the truck I pick up the telephone . This system velly goos .

[The_Munchmaster]

You're a farang, you're not allowed to buy a building.

[ozpharlap]

When I get to the actual buying stage, I fully intend to get competent professionals to vet things in every way that I can. However, finding competent professionals may not be so easy and is part of what this thread is about. I've heard a lot, both good and bad, about Sunbelt Asia.

 

My $0.02 worth, get cheap local legal advice, and then back that advice up with a local lawyer in your jurisdiction, that legal firm having offices in the LOS but you can rely on their western insurances if the shite hits the fan.

 

I do, and pay for it (on serious or expensive outlays) even if I am very confident the local advice seems correct - legal insurance is the cheapest insurance you can get

[ThaiHome]

Rather then Sunbelt, I would recommend contacting Steve at Indo-Siam. IMHO you will get much better advice. Steve is stand up guy that is incapable of misleading a customer into a bad deal without giving a full warning of the red flags.

 

TH

 

[Nervous God]

2nd that