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Carlos Bernardez
  • Rio Bonito
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Investing in Brazil

Carlos Bernardez
  • Rio Bonito
Posted Aug 3 2008, 11:00

If you are interested to invest in Brazil Real Estate and/or Brazil agribussiness, please contact us by email...

Brazil, the 10th economy in the world and a very stable democracy, is the land of the opportunity. Time to invest in a bottom market is now!

We dont even look for any investment with less than 50% ROI.

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Chris Moore
  • Rental Property Investor
  • Mountain View, CA
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Chris Moore
  • Rental Property Investor
  • Mountain View, CA
Replied Jul 14 2016, 12:12

are you still active?

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Blair Colsey
  • New to Real Estate
  • Broomfield, CO
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Blair Colsey
  • New to Real Estate
  • Broomfield, CO
Replied Sep 1 2019, 13:41

@Carlos Bernardez what are your thoughts on Salvador beach real estate?

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Max Filho
  • New to Real Estate
  • Boca Raton, FL
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Max Filho
  • New to Real Estate
  • Boca Raton, FL
Replied Dec 1 2019, 17:44
Originally posted by @Blair Colsey:

@Carlos Bernardez what are your thoughts on Salvador beach real estate?

Blair, check out Fortaleza, Ceará. It's somewhat close to Salvador but I think you could get better deals.

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Blair Colsey
  • New to Real Estate
  • Broomfield, CO
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Blair Colsey
  • New to Real Estate
  • Broomfield, CO
Replied Dec 10 2019, 05:29

@Max Filho thanks for the tip. I actually just got back from my honeymoon in Jericoacoara and passed through Fortaleza on my way. Do you own any property in Brazil? Can you let me know what the process would be to buy? My wife is Brazilian and I should be getting my CPF soon so I should be able to purchase something without too much hassle. Any thoughts on renting out the property or property management? I"m just at the early stages of researching so any info or resources you could pass along would be much appreciated!

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Max Filho
  • New to Real Estate
  • Boca Raton, FL
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Max Filho
  • New to Real Estate
  • Boca Raton, FL
Replied Dec 21 2019, 09:01

Hi Blair, I don't own any properties over there yet, but I lived and got my degree in civil engineering at the University of Fortaleza. You can buy properties in fortaleza by having a CPF, there's even a bank called "Caixa" which allows brazilians living abroad to buy properties showing the income from overseas. Property Management in Brazil it's relatively simple, you can use a broker (called "imobiliaria" in Brazil) which normally charge you 5% and take care of everything.

Good Luck on your purchase, Fortaleza is great!

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied Dec 21 2019, 09:24

Im not for sale 

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Ivan Figueiredo
Pro Member
  • Rental Property Investor
  • Atlanta, GA
15
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43
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Ivan Figueiredo
Pro Member
  • Rental Property Investor
  • Atlanta, GA
Replied Jan 25 2021, 16:37

@Blair Colsey How are you? I own a couple of rentals, one in Belo Horizonte and another in São Paulo. The latter has never been vacant in the past 6 years or so. Busy city! I want to expand my portfolio in São Paulo, I was wondering what cash flow and CoC ROI I should expect these days. Any insights?

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Ivan Figueiredo
Pro Member
  • Rental Property Investor
  • Atlanta, GA
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Ivan Figueiredo
Pro Member
  • Rental Property Investor
  • Atlanta, GA
Replied Jan 25 2021, 16:40

@Max Filho have you pulled the trigger yet? I would love to connect and chat about the RE market currently. It's been +6 years since I bought my last rental. What should I expect in terms of cash flow and CoC ROI these days?

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Blair Colsey
  • New to Real Estate
  • Broomfield, CO
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Blair Colsey
  • New to Real Estate
  • Broomfield, CO
Replied Jan 26 2021, 05:06

@Ivan Figueiredo, I never ended up buying anything in Brazil as I've been focused on building my portfolio in the US. However, since you already own property in SP, you should be able to apply some of those learnings to buying another property. I'm happy to help you model it out as I'm interested in what the analysis will tell us but I need some more info. Feel free to provide this info here or PM me if that's easier. Basically, we need to know the following:

  • - How much is a typical purchase price for a property in the area you'd like to buy in?
  • - What are the lending terms in Brail? How many years is the loan for and at what % interest?
  • - How much should we expect to pay for taxes and insurance?
  • - What are average rents for a property in similar condition with the same bedrooms and bathrooms in that area? 
  • - Based on your experience, what should we expect for maintenance expenses? My wife tells me that houses are built much differently in Brazil so what I usually expect for expenses could be much different from what you've seen if things break more or less often
  • - What other expenses should we factor in? Community fees? Security? Vacancy? I know you said you've had 0% but is that realistic long term? Utilities?
  • - Do you have a feel for what we should expect for appreciation in that area? 

Those are the pieces of info I'd need to get started. I'll probably have more questions once we get into it. 

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    Ivan Figueiredo
    Pro Member
    • Rental Property Investor
    • Atlanta, GA
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    Ivan Figueiredo
    Pro Member
    • Rental Property Investor
    • Atlanta, GA
    Replied Jan 26 2021, 15:16

    @Blair Colsey I was actually looking for some local market insights. Let me research a little bit with folks in Brazil. I'll let you know. Thanks

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    Mike Lambert
    Pro Member
    • Investor
    • The Americas and Europe
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    Mike Lambert
    Pro Member
    • Investor
    • The Americas and Europe
    Replied Jan 27 2021, 11:34

    @Blair Colsey

    You can't get a loan in Brazil as a non-resident. And even if you could, the interest rate would be way higher than it is in the US.

    I've been a big supporter of international investing on BP and elsewhere but long term rentals outside North America generally make no sense, financially or otherwise. And I'm not even talking about the logistics issues, having people on the ground, having knowledge of the laws. The risk/return generally just isn't there.

    Short-term rentals are another story and can be a good investment in Brazil.

    @Ivan Figueiredo Can you share your figures? Having no vacancy is great but it doesn't mean you're making (much) money though.

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    Blair Colsey
    • New to Real Estate
    • Broomfield, CO
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    Blair Colsey
    • New to Real Estate
    • Broomfield, CO
    Replied Jan 27 2021, 11:58

    @Mike Lambert my wife is Brazilian so I can get a CPF and should be able to take out a loan. I like your idea of short term rentals as I'd love to buy a place that I can use from time to time while having the mortgage covered with the rental income. 

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    Mike Lambert
    Pro Member
    • Investor
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    Mike Lambert
    Pro Member
    • Investor
    • The Americas and Europe
    Replied Jan 27 2021, 12:16

    @Blair Colsey

    It's not the nationality that determines whether you can get a mortgage or not. You need to be a resident and/or earn enough income in the country (and the income earned overseas won't be taken into account in the qualification). Also, having a CPF, which is basically a tax number, doesn't qualify you for a loan. Anybody who buys real estate has to have a CPF.

    Does your wife has a CPF because she earns income in Brazil? That would be another story.

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    Ivan Figueiredo
    Pro Member
    • Rental Property Investor
    • Atlanta, GA
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    Ivan Figueiredo
    Pro Member
    • Rental Property Investor
    • Atlanta, GA
    Replied Jan 27 2021, 12:20

    @Mike Lambert I bought my 2/1 condo in Sao Paulo for R$240k back in 2010. It is worth R$480k nowadays and the rent is R$2,400 /mo. Tenant pays for almost everything, including HOA, property taxes, ordinary R&M. I only pay for 8% Property Management and R$50 /mo towards a kind of HOA's CAPEX allowance.

    I don't recall a single full month of vacancy in the past years, due to the location I believe. And I have never had any major CAPEX expense, like we usually have here in the USA (HVAC, water heater or Roof). I had to replace the kitchen countertop and renovate the bathroom once.

    Anyways, the BRL/USD exchange rate is very favorable for international investors now. You just need good knowledge of the market and a great local team to support you.

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    Mike Lambert
    Pro Member
    • Investor
    • The Americas and Europe
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    Mike Lambert
    Pro Member
    • Investor
    • The Americas and Europe
    Replied Jan 27 2021, 13:08

    @Ivan Figueiredo

    You double your investment in R$ over the last 11 years but you actually lost money when converted in USD due to the dramatic fall of the R$ against the USD.

    Let's assume I buy your condo today. So I invest R$480,000. Property management is 2,400 * 8% = R$192. So, I'll net 2,400 - 192 - 50 = $2,158 per month or 2,158 * 12 = R$25,896 per year.

    So my ROI will only be 25,896/480,000 = 5.4%! I could get a much better ROI so easily in the US so why would you take the risk of investing in Brazil for that kind of return. It makes no sense to me.

    So, even if @Blair Colsey's wife can get a mortgage at 6.99%, a historic low for Brazil, she'd be deeply cash flow negative on that investment, unless she uses a large downpayment. Interest rates in Brazil are maintained artificially low because of the pandemic but Brazil's central bank is forecasting that it'll increase rates back by 4% by 2023, which would be bringing mortgage rates back to 11%, making the use of leverage even less profitable.

    So, again, short-term rentals can make sense because you can get a much higher rental income.

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    Replied Feb 1 2024, 16:56

    Hey! Anyone from Brazil here? 
    I’m from Rio. I owe 6 studios and I’m currently renovating them to do short term rental. 
    I’d love to connect with other investors in Brazil! 

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    Mike Lambert
    Pro Member
    • Investor
    • The Americas and Europe
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    Mike Lambert
    Pro Member
    • Investor
    • The Americas and Europe
    Replied Feb 2 2024, 06:03

    @Amanda Restom just sent you a direct message.

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    Alex F.
    • Investor
    • Plymouth, MN
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    Alex F.
    • Investor
    • Plymouth, MN
    Replied Mar 19 2024, 16:09

    Hi All,

    I'll chime in a bit.  I'm originally from Brazil but have lived most of my life in the USA.  The STRs my wife and I own are all in the USA and 1 in Mexico, but we assist with two STRs that my family owns in Brazil.  The first is in Copacabana, Rio de Janeiro - a small 2 bedroom oceanfront condo.  The other is a  3 bedroom in a small city called Cabo Frio about 2 hours north of Rio de Janeiro.  The one in Rio does very well and always with a mix of locals and international travelers from all over.  The one in Cabo Frio does well in weekends and holidays - it is rented mainly to nationals. 

    Being fluent in Portuguese helps a lot.  Brazil loves bureaucracy.  

    There are many areas where STRs are doing very well.  Excluding the covid years, tourism in Brazil has been growing at a steady rate year over year.