By Ronan McMahon
I’m in Brazil with 20 of your fellow members. As usual, places on our scouting trip went fast. I’ll send you a full briefing of what we find when I get back to the office. But meantime, there’s a way you can “ride along” with us…
Crisis investing means buying when everyone else wants or needs out. At an aggregate level, markets overreact and overshoot both on the up and downside. Assets become mispriced. Mispriced assets = profit opportunity.
True rental guarantees–that accurately reflect the market–are rare. So rare, that I think of them as a unique type of program for savvy investors–it’s a type of resort rental, but I call them “Gilt Resort Programs” because of the guaranteed fixed payments. I know of a few programs like this in France…and one in Mexico, which is the opportunity I’m writing to you about today.
As you know, the short-term rental market in Fortaleza, Brazil is growing at an astonishing pace. Recommendations I’ve made to you that take advantage of this trend include the developments at Beach Class Colonial and Landscape. (The units at both these development are sold out, but some previously reserved units at Beach Class have come back on the market)
Diversification is one of the most powerful reasons you need to be invested in international real estate today. You don’t need me to tell you that in these turbulent times you need diversification from the dollar and financial markets–you need a safe haven. I’ve told you before about the French Leaseback Program, an opportunity that offers such diversification.
Last July I recommended a project in Brazil called Beach Class. Today, 80 units that were reserved by a European group have come back on the market.
There’s money to be made in real estate development along the north-east coast of Brazil. One of your fellow RETA members recognized this on our first scouting trip last year. On our most recent trip last month we visited the site and saw plans for his project called Sol Y Mar.
As we all know, there’s more to buying property than simply handing over the asking price–additional costs such as attorney fees, notary fees, and registration fees must be factored into the deal. When buying property overseas, things can get even more confusing…particularly if you’re not sure of what you should or should not be paying.
Last year I was joined by a small group of your fellow members for a scouting trip to Manta, Ecuador. This country has my attention because it offers some of the cheapest property values in the world today. For example, you can a buy high-end 1,000-square-foot condo on the beach for less than $100,000…or a comfortable mountain retreat for less than $50,000.
“The unprecedented transfer of wealth roughly from West to East now under way will continue for the foreseeable future…”