For many, the American dream includes a dream house abroad.

It's difficult to accurately measure foreign homeownership, according to the National Association of Realtors (NAR), because Americans can buy offshore property without having to file forms with any government entity. Still, the NAR reports the American dream increasingly includes a dream house abroad. Many buyers, like Smiley, stay close to home, investing in the Caribbean, Canada, Mexico and parts of Latin America where flights are relatively short, the dollar goes far and resorts are outfitted with the kinds of amenities Americans covet.

There are great deals in virtually every international market. "The world is full of amazing destinations, breathtaking beauty, huge values and opportunity," says Scott Cutter, owner/broker of 2Costa Rica Real Estate in Manuel Antonio, Costa Rica. The most successful international property investors are those who find a location that's in sync with their vision, financial goals and lifestyle requirements and then take a "very methodical approach to understanding the investment environment," he says. Costa Rica, for instance, attracts American investors for its natural beauty, climate and political stability. But Cutter says the perfect property in the wrong area could mean becoming captive in your own home.

Learn these 6 steps to navigate the often challenging process of foreign homeownership:

Step 1: Identify Your Long-Term Goals >>
Step 2: Research the Territory >>
Step 3: Assemble an Expert Team >>
Step 4: Understand Your Rights >>
Step 5: Determine the True Cost of Ownership >>
Step 6: Prepare for the Long Haul >>