Making Money In Thailand: Live and Work In Thailand

2017

Chapter One

Before You Leave Home

If you want the best of both worlds, live in Thailand on a Western income. If you've retired, you'll need at least a $1200/month pension – just enough to live in modest comfort in pretty country town like Chiang Rai. And, since you'll have time on your hands, why not take advantage of Thailand's abundant opportunities and its thriving economy? You're not swinging for the fences. All you're doing is making a modest addition to your existing income.

Before you leave home see if you can find a local partner or associate. You're going to need a friend to send you with stuff that you can't find here, so a local 'anchor' is invaluable if you find a business idea that requires someone back home to help make it work in Thailand. Having such a person would also be part of your defense against competition in Thailand.

Reader Gordon Moss suggests: "For at least one of your bank accounts, get someone back home to be a co-signer. That way, if you have a crisis, your trusted-one back home can walk into the bank and do whatever it takes to get a card reissued, get a check cleared, or whatever!

Needless to say, you must choose someone who is trustworthy! And someone who is settled. I would also strongly suggest choosing someone who has enough of their own personal wealth that they will never be tempted to borrow" a few dollars out of your account.

In my case I chose my daughter. (For me, the perfect choice.) All she had to do was go with me one time to my bank branch to sign a form. Now my account statement shows both our names at the top as the account holders. If I have an emergency anywhere in the world, I call her and she fixes it!

Start by approaching your most reliable relatives and friends and discussing your ideas in general terms. Set them and yourself up on Skype, Google+, or FaceTime (all three is best, so you have redundancy) and test it thoroughly before leaving home. I use mine with US clients all the time. Finally, update everyone's phone numbers, emails, Skype and postal addresses of friends, relations and contacts.

Then ask yourself what companies in your area might benefit from either exporting to, or importing from, Thailand. Being an agent, intermediary or broker is pleasant work. Thailand's economy is growing at 5%, and its 65 million people are open to new ideas and products. Your home economy is also looking for novel ideas and products. Being an enabler is fun and many people have grown wealthy doing nothing but being middlemen or middlewomen.

Finally, review your life. What was your education? Your training? Career? Experience? Your most valuable contacts? Your keenest interests, hobbies, and passions? Draw up a list while you have the time. It will be very handy when you get here. Once you get here things will look very, very different. You'll be able to stop worrying about money and soon you'll notice opportunities everywhere.

Video: Here's a video of John and Linda, who planned their move to Thailand really well...

Questions? Suggestions? godfree@thailandretirementhelpers.com

Check the website: http://www.thailandretirementhelpers.com

Chapter Two

Losing Money in Thailand

Though this book is about helping you make money, lets's first look at the most common ways expats lose money when they come to Thailand – because expats commonly lose more money in Thailand than they make.

1. AFFINITY FRAUD. In 2011 I received a message on Facebook from a man I had met in the '80s, inviting me to be his guest in Thailand. My business had just collapsed, my home was in foreclosure and all I had was my monthly Social Security check, so Thailand seemed perfect. I remembered the man warmly: charming, funny and articulate, a great raconteur, he had married a Thai and settled down. A few weeks later I was on the plane to Chiang Mai. My charming friend involved me in his Thai business, even left me in charge while he flew home for a visit and, when he returned, offered me a share in the company at a very attractive price. Talk about a lucky break.

Then things started to come unglued. His staff asked me why they hadn't been paid, creditors started coming out of the woodwork, he failed to pay me for my time and, when I confronted him, flew into a rage and threatened to kill me. Talk about a bummer. Eventually he fled Thailand – pursued by creditors, the courts, and the Thai police – leaving behind him damaged lives and bank accounts. We subsequently discovered that he had been involved in a series of incidents including arrests for fraud and violence. It was deeply disturbing and everyone still feels the repercussions. But none of us wanted to advertise our gullibility so we kept our mistake to ourselves and the expat community was none the wiser.

Then, earlier this year, our local community discovered that a man who had been president of our expats' club had used his knowledge of members personal affairs to sell them 'investments'. The man had apparently been selling insurance and unregistered securities to British newcomers arriving with their life's savings – usually his countrymen – and receiving big commissions for 'investing' them in bogus corporations. It took years to come to light and only after he skipped town did someone raise the alarm.

Both cases are 'affinity frauds', perpetrated by people with whom their victims have (or think they have) a relationship. Church groups are notoriously vulnerable to affinity frauds.

Back home you knew your financial advisor, she was registered with appropriate government agencies, had passed various exams, and was a member of recognized professional bodies. Even if things had gone wrong you could have sought redress in court. Now you're in Chiang Mai, Thailand. You've made it through the GFC with your nest egg almost intact, the sun is warm, the beer is cold, the girls are friendly. What could possibly go wrong?

There are scavengers waiting to win your confidence through their manners, dress, lifestyle, and (fictitious) records of success. If you're an Australian, you'll be approached by a personable Aussie who follows the Magpies – just like you. A Brit? You'll meet a blazer-wearing Englishman who's a volunteer in Royal British Legion. American? An 'ex-Marine' who's happily retired and has just invested in a local development which has one more spot left... You have no recourse in such situations. Your money is gone and there is no way to get it back. Read this article to see for yourself. Eventually they'll let you in on a sure-fire 'opportunity'. Check out investigator Andrew Drummond's website and watch his video so you're prepared.

1. AFFINITY FRAUD. In 2011 I received a message on Facebook from a man I had met in the '80s, inviting me to be his guest in Thailand. My business had just collapsed, my home was in foreclosure and all I had was my monthly Social Security check, so Thailand seemed perfect. I remembered the man warmly: charming, funny and articulate, a great raconteur, he had married a Thai and settled down. A few weeks later I was on the plane to Chiang Mai. My charming friend involved me in his Thai business, even left me in charge while he flew home for a visit and, when he returned, offered me a share in the company at a very attractive price. Talk about a lucky break.

Then things started to come unglued. His staff asked me why they hadn't been paid, creditors started coming out of the woodwork, he failed to pay me for my time and, when I confronted him, flew into a rage and threatened to kill me. Talk about a bummer. Eventually he fled Thailand – pursued by creditors, the courts, and the Thai police – leaving damaged lives bank accounts. We subsequently discovered that he had been involved in a series of incidents including arrests for fraud and violence. It was deeply disturbing and everyone involved still feels the repercussions. But none of us wanted to advertise our gullibility so we kept our mistake to ourselves and the expat community was none the wiser.

Three Scenarios

—Pensioner on $1240 Non business background with pension + $250K Business background: cautions? Differences

Don't expect help from Thai police, lawyers or courts. They have neither time nor expertise for complex financial crimes perpetrated by farangs against farangs where the money long ago left Thailand. Online expat forums shut down discussions of local scam artists – citing Thailand's libel laws – so you will rarely hear victims' voices. Companies here often operate without proper Thai registration and. When this is overlooked, they continue to suck money from unsuspecting newcomers.

2. HOBBY BUSINESSES A 'Hobby business' is how people describe their business after it fails, since that's what hobby businesses invariably do. If you or your wife need something to do, for God's sake don't set up a business! Take up bungee jumping or ballroom dancing, because 'business' and 'hobby' don't mix. Business is a tough game anywhere and even tougher in a new culture. You must devote yourself wholeheartedly to any business for at least 2 years to have any hope of success. If you can't commit to that, leave your money in the bank.

3. LANDLORDS. Thais have a pungent expression, Landlords will suck blood from a turd. Landlords are a particularly vicious breed here. They wait for your lease to expire (or find an excuse to break it), refuse to renew, then clone your business, often taking your business name and using your fixtures and fittings. Unless you buy the premises or your business is something they cannot copy, you are at the mercy to these vultures.

4. CLONES. As soon as your business begins to take off, sharp-eyed neighbors will clone it. The practice is so extreme here that even 7-11 will do it to you. I often point out to clients two 7-11 stores literally on the same block in Chiang Mai. So don't be surprised to find several businesses like yours appear on your block within six months of your reaching break-even. They may not be as good as yours, but they'll siphon off some of your traffic. The result is that you must trade for 80 hours a week just to survive.

5. SUCCESS. I love Thailand so I want to believe that all Thais practice the Noble Eightfold Way. But, whatever their virtues, jealousy and envy are common vices here. If you do succeed, keep it to yourself. Instead, complain about your landlord, the weather, vendors, and say you're going bankrupt. Even then, jealous neighbors are likely to set the Immigration Bureau on you, telling them that you're working illegally. They'll take snapshots of you doing something to prove that you're working without a visa, etc. Be prepared for this reaction.

6. PILFERAGE. It's difficult to find competent, trustworthy staff anywhere. Finding them in a country with 1% unemployment is almost impossible. Winning their loyalty when you are a rich faring who's never around? Forget it! Thai employees require your full time presence and vigilance. Full time. Did you come to Thailand to watch over a bunch of working class Thai kids for 80 hours a week? One foreign retailer shut down their Thai stores recently. They could not control the rampant pilferage.

7. HOME COOKING. If you're Latvian and go into business in Texas, expect little mercy from the courts. Your local adversaries will benefit from what Texas lawyers call 'home cooking'. Same-same in Thailand – only more so. Thai judges who find in favor of farangs are accused of disloyalty to their country. All the more reason to be careful in choosing a Thai partner and thorough in setting up the legal side of your business.

8. ILLITERACY. If you can't speak, read, and write Thai you'll be functionally illiterate and at the mercy of those who can – just as you would be at home. The most successful faring business owners I know in Thailand speak Thai so well that Thai friends are impressed. Stop by Chiang Mai's hugely successful Riverside Restaurant some time, listen to the owner chatting with her staff in Thai and you'll see what I mean.

9. ANY OF THESE BUSINESS MISTAKES

Experience: Do you have real experience in the line of business you want to start? If you want to open a bar and you've run a pub in Perth, you're halfway there. If you haven't, look out. Pubs and bars are a tough game anywhere and there are 1,000 of them in Bangkok alone. And that's only the 'official' ones.

Capital: Thailand's economy is seasonal, since most visitors come in the Thai winter. Do you have $50,000 - $150,000 you can afford to gamble with? Can you survive the 6 low-season months for 2-3 years while you build profitability? The bills will keep coming in even though the customers won't.

Effort: Did you come to Thailand to work 7 days a week 'til 10 o'clock at night? That's what your competitors will be doing.

Partners: You