PRINCIPLE TWO: Keep an Open Mind. Assume Nothing.

Doing business in an emerging market means taking nothing for granted. I have a mantra for my own legal work in these countries that translates well to business world: "Assume nothing, but assume that you are assuming things without even realizing you are doing so."

Things will be different. Very different. Things you take for granted in your home country might not exist in emerging market country. Things you take for granted in your home country might be exact opposite in emerging market country. Things you think will be totally different in emerging market country may be exactly same. Things you thought you knew about emerging market countries based on what you know from another emerging market country may be completely different in a neighboring country, or even in another region within same country.

The principle, one more time: Keep an open mind, and assume nothing.

PRINCIPLE THREE: Participate in Everything.

In many emerging market countries, local businesses take advantage of corruption to avoid complying with laws. This may work for locals, but it won't work for you. The easiest way for a local rival to drive you out is for you to do something illegal. Neither you nor your government will have good grounds to complain if your rival gets your business closed down due to your illegal activity. It might even be your own partner who reports you so he can assume full ownership and control of your business.

You must have your own people on ground, leading, training, and instructing on business methods, business ethics, efficiency, and quality control, among other things.

We have a saying in our law office that one day of face-to-face meetings with local counsel is equivalent to one month of telephone calls and e-mails in terms of getting things done. This is equally true on business front.

PRINCIPLE FOUR: Exercise Extreme Patience.

This principle stems from maxim that everything takes twice as long as you think it will. If it takes twice as long in West, triple that in emerging market countries. You'll go in both as a businessperson and a teacher—and in both roles, learning curve of your partner will almost certainly take way more time to deal with than you think.

For example, many emerging market countries have a history where "bad business" meant "thinking long-term." A year or two after fall of Soviet communism, I was involved in a matter where an investor put $250,000 into a Russian joint venture. The business very quickly was making good money and all indicators pointed towards steadily increasing profitability. But, quite quickly, Russian company stole $250,000. Was it so irrational for him to think so short term in a country where government and tax systems had such a history of unpredictability?

Remember: It takes patience to encourage change of mindset. Extreme patience.

EMERGING MARKET SUCCESS

Emerging markets cannot be approached with a quick-kill mentality. Above all else, emerging market success demands a good partner, an open mind, a high degree of participation, and extreme patience.

It is certainly risky. It can also be very profitable.

Another nice thing about Lease Options is that you can usually get a longer lease. If option has a 3 year term, you can get a lease for same period. Renters, on other hand, will usually only give you a one year lease.

The longer lease better. I suggest that you get at least 1% lease option fee for every year of option. If they want to extend option, just charge them additional option money (which they can apply to their down payment)

If a tenant wants to move out before their lease is up, they still owe you balance of lease. This protects you and puts you into a strong negotiating position. Any concession you make for them is your decision. If someone wants to move out before their lease is up, here is what I suggest.

Make them continue to pay their rent until new tenant moves in. They can either make it available to show before they move out or wait for you to rent it after they move out. Either way, you won't lose money, plus you get to keep lease option money.

If you are in this situation with a tenant (not folks who are lease optioning), treat them same way and give them their deposit back if they leave home clean. Treat people fairly... just like golden rule says and it will benefit you in long run.

One last benefit of Lease Options is that when a tenant believes they are buying a home (rather than renting) they will treat it better. A homeowner is more likely to fix up a property and tries to protect their investment.

I cover this material in *exacting* step-by-step detail in my book.

*************************************** If you haven't checked out Joe Crump's "$0 Down Real Estate Investing With Bad Credit And No Job!" yet, go to his web site for full details. http://www.realrealestateexperts.com ***************************************