Podcast Summary
International Real Estate Investing: Diversification and investing in developing markets before they become overly popular are potential benefits of international real estate investing, while unique challenges exist in each market.
International investing in real estate can offer diversification and the opportunity to "time travel" by investing in developing markets that are less popular and potentially offer better returns. Michael Cobb, a seasoned investor, explains that as a country becomes more popular, different opportunities and challenges arise. For instance, branded hotels may not be as profitable in less developed countries, while opportunities for growth may exist in countries that are not yet overly popular. Michael got started in international investing 32 years ago when he visited Belize with a friend and decided to invest there. He encourages those interested in international investing to consider the potential benefits, such as diversification and the ability to invest in markets before they become overly popular, but also be aware of the unique challenges each market presents.
International Real Estate Investing: Ensure North American standards in construction and delivery for customer expectations, popular areas offer high predictability and cash flow, and careful research and planning are essential for international real estate investing
International real estate investing can be complex, but it also offers significant opportunities for yield and appreciation. The speaker shared his personal experience of starting a mortgage company and a development company in Belize over 28 years ago, when developers faced challenges financing sales due to lack of lending from US and Belize banks to foreigners. He emphasized the importance of ensuring North American standards in construction and delivery of properties to meet customer expectations. For investors seeking high predictability and cash flow, popular areas like the Mayan Riviera or Cancun in Central America are recommended, despite higher property prices. Conversely, countries like Nicaragua may offer potential for appreciation but little cash flow. Belize, specifically Ambergris Key, is suggested as a sweet spot for strong cash flow and affordable prices. International investing can be complicated, but with careful research and planning, it could be worth the effort.
Real Estate Investment Opportunities: Explore 'Rent a Retirement' programs for zero down investment and consider international real estate for diversification, but be prepared for challenges. Hire a local expert to help navigate the process.
There are unique opportunities for real estate investment, even with zero money down, through programs like "Rent a Retirement" that offer incentives and discounts. Additionally, international investing can provide valuable diversification, but it comes with its own challenges such as navigating unfamiliar markets and finding reliable teams. To simplify the process, consider hiring a local realtor who is a Certified International Property Specialist and obtaining a local lawyer to ensure a smooth transaction. These steps can help mitigate the risks and make the most of international real estate investment opportunities.
International Investing: Hire professionals and maintain humility for a successful international investment experience, complying with tax and reporting requirements and avoiding potential issues.
When investing internationally, it's crucial to take a cautious and humble approach. Hiring professionals, such as real estate agents and lawyers, in both the investing and host countries, and being aware of potential tax and reporting requirements, can help ensure a smooth and successful transaction. Additionally, acknowledging the unfamiliarity of a new legal system and embracing humility by asking questions and assuming a beginner's mindset, can help uncover potential issues and make the most informed decisions. Ultimately, the extra effort and expense of working with professionals and maintaining a humble attitude can lead to a competitive advantage in markets with fewer investors willing to make the jump.
Real Estate Income Potential: Host Financial focuses on income potential for real estate investors, reducing paperwork and improving financing efficiency, while PropStream offers valuable data and tools to find motivated sellers and close deals efficiently. Overseas, resort areas and non-traditional product types offer highest yield and consistency of income.
Host Financial is revolutionizing real estate investing by focusing on the income potential of properties rather than traditional debt-to-income ratios. This means less paperwork and more efficient financing for investors. Meanwhile, PropStream provides valuable data and tools to help investors find motivated sellers and close deals efficiently. For those considering investing in real estate overseas, Michael Cobb suggests looking into resort areas for the highest yield and consistency of income, as many tourists seek out these types of locations. Additionally, there may be opportunities in non-traditional product types, like self-storage, which have not yet saturated overseas markets. Overall, these resources and strategies can help investors unlock the full potential of their real estate investments.
Self-storage investment in Central America: Pick a country, visit multiple times, find a reliable team, and provide excellent service for profitable self-storage investment in Central America.
Investing in self-storage in Central America can be a profitable venture due to the demand from both American expats and local Central Americans. To get started, it's crucial to pick a country and visit multiple times, including during the low season, to fully understand the market. Finding a reliable team is essential and can be achieved through in-person meetings and effective communication. The principles of providing excellent service and building strong relationships remain the same, regardless of the investing environment. Overall, investing in self-storage in Central America requires careful research and planning, but the potential rewards make it a worthwhile endeavor.
Overseas real estate questions: Asking specific questions, such as ensuring hot and cold running water in all bathrooms, helps mitigate potential issues and ensure a successful investment experience in overseas real estate.
Investing in real estate overseas comes with unique challenges that require careful consideration. Michael, an expert on international investing, emphasized the importance of asking specific questions, such as ensuring hot and cold running water in all bathrooms, before making a purchase. These questions help mitigate potential issues and ensure a successful investment experience. Michael's book, which covers 30 essential questions for overseas property buyers, is a valuable resource for those looking to expand their real estate portfolio internationally. For those interested in investing in the US, BiggerPockets offers an interactive tool that allows users to compare markets and find the best fit for their investment goals. By doing the research and utilizing available resources, investors can confidently navigate the complex world of international real estate investing.