In the short term rental riches will discuss investing in real estate with a specific focus on short term rentals quick actionable items to wire. Scale your portfolio I’m your host Tim Hubbard.

Welcome back to the short-term rental riches podcast happy you guys are here again hopefully you’re doing well wherever you are in the world today we’ve got a really exciting topic we’re talking about investing internationally and I know it’s something that a lot of us want to do it’s different everywhere but I want to give you my experiences I have bought property in Colombia and I’m actually in Brazil right now and I’m looking again to buy property in a totally new country for me so I want to break down the things that I look for how I go about the whole process because it is different from the USA and it is different very likely from whatever country you’re listening to and from so I’m gonna give you my tips the things I’ve learned and just what I’m doing I’m here today in a city called ball in the audio for Cambodia kind of a mouthful right this is in the southern part of Brazil in the state of Santa Catarina and it’s north of Florida novelists a lot of you may have heard of the floor NAMBLA some couple reasons why I like this city for one it’s it’s got a really good reputation for being really safe there are no like favelas it you hear about and a lot of their places even like Rio they have great medical here but also I think the real estate market has a lot of room to grow its sort of just catching on and it’s probably place the G. a lot of you haven’t heard about and for those of you that have or those of you that have been here you’re probably blown away it kinda looks like Miami huge tall buildings that has some of the tallest apartment buildings and all of South America they’re calling it did you buy a Brazil so I think it’s a really exciting place and I was actually. We able to do a lot of research before I came down here so let’s just break it down so this week we’re gonna talk about buying property in a different country and now this is sort of in a not show because of course every country’s gonna be totally different but this is what I’ve found in this is what I’m finding again here’s a look in Brazil will break it down into 4 steps you know what we do and a brand new market how do we find our property so the property search I am in the process of actually buying it and then lastly just some considerations and things that you guys should be looking out for and the some side benefits to buying property in a different country so number one the property search well it depends on what you’re searching for right is this an investment or is this just a personal property that you want to live and spend time and vacation too so that’s totally going to change the property search because if we’re looking for returns well then we’re gonna do a lot of the same things that we do in the USA or whichever country you listen and then from we want to have a good rental value ratio so whatever the purchase prices we want to have a high percentage of rent to that purchase price a lot of times we want to be in a market that’s landlord friendly so if you’re buying an investment can you even rent in that area where you are my my property in Colombia is in a condominium association like a lot of the properties and managing and they’re very strict to short term rentals so it’s not exactly the easiest place to rent there so that’s something that you can find out before you know if it’s an investment we’re basically looking at the numbers we’ve talked about that and number episodes before but we also want to be in a place it’s a landlord friendly or has easy regulations also in Colombia of someone that lives in your apartment for over 2 years it could be very hard to get them out like it can be an K.. California we want to look for basically similar things we would in the U. S. good returns place that has good population growth that seems to be on the up right so that’s going to be harder to do in other countries obviously because a lot of the information is probably not going to be as readily available so that’s if you’re looking for an investment if you’re looking for personal property well then the whole thing changes right it doesn’t matter if you have the easy ability to rent it out because if you’re not gonna be running now well then that doesn’t really matter that happens to be the case for me right now I’m not necessarily looking to rent this property now although I can and they’re very friendly towards renting here they’re really big on tourism they’re trying to build that their name up and so they’re open to things like that and I think you’ll find the places that are doing a lot for tourism or probably can be a little easier with your short term rental regulations now a lot of times you might need a permanent so of course you get check into that but the property search depends on your goals as a personal property is an investment property and you really need to decide that before hand now actually finding the property. This can be really challenging and I’ll tell you from my experience it is not like looking for a property in the USA at all there is no MLS there may be some listing brokerage sites that have lots of properties on them but a lot of those properties might be from 6 months ago I just wrote on one yesterday for example the agent wrote back and said oh yeah you know we’ve got thousands of properties on that site but a lot of them are most of them aren’t active anymore so they’ll just put them up there but then they don’t take them down and so there is no central MLS in my experience in anywhere that I’ve looked not like the U. S. you can get a general ballpark from looking at some of these websites and some of them current of course and you might not even find any listing sites if you’re searching in English but it’s in the country it’s in a different language so just Google around you you can find someone ma’am sure in that can give you a ball park but just remember that those properties are likely not up to date I’ve even seen where there’s you know multiple brokers that put the same property up and they charge different prices so the search is totally different when it when I bought my property in Colombia I was working really with as many realtors as I could because each real litter had only a handful of properties that they knew about where they had the ability to sell those for the owner keep that in mind when you’re in a new market most of the time when you’re in a new international market there’s not going to be some MLS or sum listing site where you can just get a perfect picture everything going on a lot of times you know I just walk around the area where I want to be and that’s the other thing we’ve talked about that in investing in our kinda newbie steps from Baskin is you need to know exactly what you want you decide. Whether it’s gonna be a a personal property personal investment or if you’re looking for cash flow but you need to know exactly where you’re interested what size what price range all of those things because that’s going to help you narrow it down and that’s going to make it easier for anyone you find to help you in your search. Hey just want to ask you guys real quick favor if you haven’t already left this review if you wouldn’t mind heading over to iTunes or Spotify wherever you’re listening to the podcast and just leave us a quick review we really really appreciate it and if you know someone that you think would find value in any of the episodes that you’ve listened to you could just take a screen shot send it over to that’ll help them but it’s also going to help us grow a little bit too and lastly we’re on YouTube so if you prefer you to you can head over to short term rental riches and you can find us there as well thanks for listening in and thanks for all your great. Let’s jump back in. Once you’ve decided on a market and on the city and on a neighborhood or on several neighborhoods where you want to be in exactly what you want then you really got to just start looking at properties to compare to get an idea of what the prices are going to be like it this is much harder to do in a foreign country for sure especially if if you don’t speak the language right and now a lot of times what happens is occasionally these brokers will pop up that only work with foreigners and I’ve got to say just from my personal experience you’re probably gonna get a foreigner price they’re probably gonna Jack it up now that may be worth it to you just for peace of mind and comfort working with someone that’s worked with other foreigners speaks a language but they do mark those things up they’re offering an additional service and I’ve seen some of those properties go much higher than what they would have if you are working with the local or she you spoke the language that definitely definitely help so keep that in mind a lot of these agencies that are geared towards international investment their prices are marked up quite a bit but it might it might be worth it to you you know it it did totally depends some. When you’ve decided what you want if you decided where you want to be you can use local listing sites by willing in that country’s language to find those local sites and that’s going to be a better idea of realistic prices now the process for actually buying a property when you find one this can be totally different but in general most places have sort of a deposit that you’re going to put down so you need to open a bank account or you need to have a way to transfer funds into this country and it’s gonna be a foreign currency you have to keep that in mind these banks will charge you to convert your currency into a new one. And it’s not always super easy to open an account in a new country that you really got a got a look into as well and that’s going to change country by country one thing you’ll probably encounter is that it’s very unlikely that you’re gonna be able to get financing for this property if your investing outside of your home country in a place where you don’t have residency or citizenship the banks just like in the US they want to see that you have income and so if you open a bank account in a foreign country but you have no income coming in well done then it’s very likely they’re not going to give you a loan an option I’m exploring hearing this is the first time that I’ve seen in his power to transfer enough money here at the bank would loan against the money that I hold in their account so that gives me a little more leverage but it’s still not the same as taking out a loan like in the US with amazing rates so keep that in mind you you’re it’s very unlikely that you’re gonna get financing in this foreign country where you don’t have residency or citizenship and that’s really going to affect your returns right and for borrowing 80 percent of the money to buy a property in the USA and we borrow 0 in a foreign country we’ve got to make up for those returns we have 5 to one leverage in the USA we’ve got no leverage outside of the USA so keep that in mind that that’ll really affect your returns if you’re looking for an investment so once you found a property highly highly highly suggest working with a lawyer right a real estate lawyer someone that does transactions we do it in our home countries why would we do it in a foreign country it’s even more important to do it in a foreign country so please please make sure that you’re working with a lawyer for for a Billy one that’s already done foreign transactions because there’s some different steps you gotta take you know it might be worth it for you to hire a translator to you know if you’re enough. Foreign country and let’s say there are there are no brokers or agencies geared towards foreign investment where you’re looking and you don’t speak the language well you might be forced to hire a translator right and that could be very helpful could help you save on costs you know you just have them do the up front calling on the properties before you’re even involved in the picture and then you can get a real ideas of pricing he thought mine and if you’re in a foreign country a lot of times you know labors much cheaper than it is in the USA you could hire someone very inexpensively I would imagine that’s another option so we found a property we found a lawyer that can help us with all this hopefully the lawyer can help us set up a bank account if they can’t then you have to deal directly with banks and there’s usually you can find information about that online as well with all of that said in a property another country this is super exciting it’s fun it’s a it’s a new market a lot of the things are pretty similar to what we do back home it’s just that it’s not as easy but there are some really good side benefits to this and this the main one for me has been a hedge against the US dollar at this moment if I buy a property today in Brazil I’m getting almost a 25 percent discount which is fantastic and that’s just because the strength of our dollars so that could be a whole series of episodes on currency it’s difficult topic but that is a side benefit to. Sign in different country gets a diverse file little bit more another side benefit is that a lot of times if you invest a certain amount of money in another country can get residency this is also a whole nother side topic because it depends on which country you’re in check on that as well because you don’t want to buy a property that you plan on living in and you don’t have the ability to live in the country for over a certain length of time to keep that in mind. Lastly is this place where you’re looking to buy foreign investment does it fit you I mean cultures are different everywhere have you been there before if you spend a lot of time there hopefully you have if you’re planning on investing money there because some cultures are much harder to fit into than others now that might not be important for a lot of people but for me I kind of want to feel like I can fit in and I can actually live in a place and here in Brazil and Colombia and a lot a lot American countries I feel that way I love their cultures in the energy they have so buying of foreign investment buying a property internationally is super exciting I think it offers great diversification for portfolio if you already have a lot of properties in the US there can be really good returns but keep in mind that you’re probably not going to be able to finance there’s obviously a lot that goes into this and it’s different every country but hopefully this gave you just kinda an overall picture and if you’re looking for a property jump and go stay there the more you research and the more you look into it the better the chances are of it actually happening so until next time I hope you guys have a wonderful day. There’s so much money to be made the short term rentals but it all starts by having the right property if you guys haven’t yet seen my free ebook on our website rest methods.com head over there and get a copy it’s going to break down what I look for in a property in some great short cuts so that you don’t have to spend hours and hours researching at over rest methods.com and you can grab your free copy there if you want a crash course in everything I’ve really learned to short term rentals in over 5 years managing over 15000 Gasol recorded on our last live event and I’m happy to say we broke it down really nicely into a bunch of different modules that you can watch at your own pace it takes you from start to finish from finding a property we talk about analyzing the property but then also some of the more important pieces how to find your team and how to set up everything so that you can run your operation is passively as possible and free up your time you can find that it rests methods.com forward slash virtual.

RELATED PODCAST EPISODES

• Episode 59: 6 Steps to Get Started as a New Investor
• Episode 47: What Keeps Us From Purchasing Investment Properties Remotely? (F**R‪)‬
• Episode 38: Is a Short Term Rental the Best Use for Your Real Estate‪?‬‬
• Episode 27: Building Your Remote Team (Essential Steps‪)‬‬
• Episode 09: Searching for a Property? Use a Broker or Real Estate Agent