Fairview, OR · Member since 2017 · 10 posts · 4 votes
Does anyone one have any experience or thoughts investing in real estate outside of this country? Maybe a country were the American dollars goes further. I'm curious if anyone here as done any off shore investing.
Investor · Pearl City, HI · Member since 2017 · 30 posts · 10 votes
9y
Would love to hear about this as well!
I was curious about the market in the UK with the dollar gaining some strength (comparatively to history) but I really have no idea about taxes and other rules about investing and financing abroad, or how Brexit will come into play.
My wife and I recently purchased a property down in Playa del Carmen, Mexico. First of all, you have to look into local laws as far as out of country investors. In Mexico, there's certain laws in place that make it hard for foreigners to invest, so it would have taken a lot of legal fees to purchase there (up front and yearly). Because of this, it can get expensive quick, even if the American dollar goes further. Fortunately, my wife is originally from Mexico, so we were able to avoid all of that hassle.
The biggest hurdle was finding financing. There's a bank that has branches both here and in Mexico that would finance 90% on 20 year fixed, but interest rates were super high, and the process would have taken longer than we wanted. We ended up getting a 7 year personal loan, which still has a high interest rate (although lower than the other bank), but we received the funds quickly, and didn't have to come out of pocket. I do plan on looking into refinancing into a longer term in the future, so as to increase cash flow.
Evelyn, I know you mentioned the UK, but where were you thinking about investing Mike?
I’m investing in Playa del Carmen. Luckily I got exclusive cheap developer financing through my connections. What interest rate did the bank offer? Was the loan going to be in $ or pesos?
Investor · . · Member since 2017 · 173 posts · 84 votes
8y
Hey @Mike Lambert, it's in USD at 9%. What kind of terms do you work with there? And how did you make those connections there, if you don't mind me asking?
Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
8y
Hey @Allan Rosso I'm getting 6% but the LTV is only 50% and the term is only 5 years. A friend of mine has personal connections with some developers, whereby I get substantial discount on properties under market value and that financing as part of the package.
The bank's deal is actually a good deal for Mexico, especially given the 90% LTV, the 20-year term and the fixed nature of the interest rate. The yield on 10-year Mexican government is above 10%!
Could you tell me which bank it is and give me the contact details?
Investor · . · Member since 2017 · 173 posts · 84 votes
8y
@Mike Lambert that's pretty awesome. What types of projects do you guys work on? I'm actually going to be in Playa del Carmen for a week here pretty soon, and it would be awesome to check out them out
Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
8y
@Allan Rosso Generally we get access to blocks of condos within a project from a local developer. I get some regularly so I can let you know when I get the next one. Also, I'm starting with my own projects, potentially together with some other investors. I'm working on two other types of deals currently but they are still in negotiation so I can tell you about them if and when I get them. Feel free to let me know when you will be going because I will have to go soon too so who knows we might be in town at the same time.