International Real Estate

International Real Estate
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International Real Estate

Aaron B.
Global · Member since 2019 · 48 posts · 52 votes

I love BiggerPockets. It is full of great information, stories, and has a great community. I have learned much through the podcast and by reading. I'd say about 99.9% of the content is geared towards the USA, however, much of the knowledge, wisdom, tools, rules, etc. are applicable in foreign markets where I have been using them.

I would love to share my success stories, lessons learned, etc. from investing in international real estate, but the platform does not really provide a way to do that. For example, if I try to add my investments to my profile, the dropdown menu assumes my property is a state within the United States. 

I want to open up the discussion to something atypical and talk about my adventures in doing what we do in the USA and applying it in South America and Southeast Asia.

I am curious what the founders of this site, moderators/admin, etc. think about this and if they could add a feature to list "Other" locations outside the USA. 

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Maya McCoy
Singapore · Member since 2019 · 5 posts · 9 votes
6y

I would be interested in an international meet up or site. Perhaps there could be a virtual meet up? I'd love to hear what some of you are doing. My husband and live in Singapore and own here as well as Costa Rica, Puerto Rico, the US and Canada. But I'm always interested in hearing what works for others and what strategies can be taken from Bigger Pockets and used elsewhere. 

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  • Benjamin A Ersing
    Kansas City · Member since 2019 · 162 posts · 54 votes
    6y

    @Aaron Bryson

    There are a handful of us here interested in non US markets, but we’re by far the minority.

    I’ve also inquired about opening up a specific international forum within the community, but didn’t get anywhere with it.

    Best options I’ve found are tracking certain key words. 

    4Reply
  • Erik Noordam
    Amsterdam, Noord-Holland · Member since 2013 · 75 posts · 26 votes
    6y

    @Aaron B. and @Benjamin A Ersing. I love Bigger Pockets ánd International Real Estate and have posted in various random fora and chats. However, when I point members to the communities in e.g. The Netherlands (investor associations, meetups, community groups and such) my posts are deleted by moderators. Although I have no interest in the discussion groups other than discussing (international) property investments and management. So I stopped, but did meet some members of Bigger Pockets in real life in the meantime. It's a great tool! Best from Amsterdam, The Netherlands ;-)

    5Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Aaron B., I totally agree with you. While the site is US-centric, I agree with you that the site is very useful in terms of knowledge, wisdom, tools, rules, etc.

    Yes, some of the techniques and strategies can be applied in certain countries but many cannot. Also, the best strategy in North America might be a bad strategy or at least not the best strategy in another country. Also the laws and tax systems are different, as are the cultures and the ways to do business. Investing is international real estate is awesome and a great opportunity to diversify outside of the US and invest in higher growth areas of the world. Yet, you need to know what you're doing or invest with somebody who does.

    I know there's no place to feature international deals here but I've still been able to contribute to this forum by answering questions and sharing my knowledge on the subject in many threads. I just saw on my computer that I'm again the top contributor in this forum so I guess I'm helping some folks out here.

    @Aaron B. and @Benjamin A Ersing. If I had the time, I'd definitely start a site for international. Who knows maybe a few people together could do that if there is demand for it of course.

    @Erik Noordam I used to live in beautiful Amsterdam. Nice to read that there are BiggerPockets people there too!

    @Aaron B., you're investing in South East Asia? I'm limiting myself to Latin America and Europe. I won't invest in any country where I cannot hold the land freehold as a matter of principle and for economical reasons as well. Also, the rental income is generally way too low for my taste (or the properties are overpriced) but that would be an interesting debate (and there are exceptions everywhere).

    5Reply
  • Aaron B.
    OP
    Global · Member since 2019 · 48 posts · 52 votes
    6y

    @Mike Lambert I invest anywhere that makes sense. I also agree with you regarding the land rights, I don't like the idea of having to give the land back with whatever property is on it in 20-99 years, on principal. Bali is an example. Currently, it is not a good time to invest in Vietnam, Thailand, or Indonesia or many other areas there because the numbers are simply not there. However, if you were looking to set up a really sweet life in a villa by the water or surrounded by palm trees, it could make sense for yourself but not as a straight rental property. It depends on your goal, because land is not getting cheaper. If you are looking to retire abroad to a dream property that you don't want to rent, it has its appeal.

    As an example, right now in Bangkok there are an estimated 100,000 empty condos, many of them are really nice. They are overpriced and the market is saturated. Now is not a good time to buy, but I think the opportunity to get nice properties at a steep discount is around the corner. I am keeping an eye on Thailand and Vietnam. For the last few years, it has made more sense to simply rent luxury because the cost to buy vs the rental rates didn't make sense.

    I'll make some separate posts regarding properties, everything from investing in favelas of Brazil to Penthouses and beach-front properties.

    3Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Aaron B.

    Exactly! That's what I meant by not investing in South-East Asia for economical reasons. The rent vs buy is so favorable to renting that buying doesn't make sense. You'd only speculate on capital gains but those will always be capped by the already super low rental yields. Any fire sale should be very deep to correct the imbalance and then, you still have the land rights issue.

    0Reply
  • Aaron B.
    OP
    Global · Member since 2019 · 48 posts · 52 votes
    6y

    South America is outperforming my USA properties. Each property is such a different story that they deserve their own post.

    2Reply
  • Scott Morris
    Investor · Tampa, FL · Member since 2015 · 183 posts · 83 votes
    6y

    Where in South America are you investing?

    1Reply
  • Aaron B.
    OP
    Global · Member since 2019 · 48 posts · 52 votes
    6y

    Colombia and Brazil

    0Reply
  • Maya McCoy
    Singapore · Member since 2019 · 5 posts · 9 votes
    6y

    I would be interested in an international meet up or site. Perhaps there could be a virtual meet up? I'd love to hear what some of you are doing. My husband and live in Singapore and own here as well as Costa Rica, Puerto Rico, the US and Canada. But I'm always interested in hearing what works for others and what strategies can be taken from Bigger Pockets and used elsewhere. 

    7Reply
  • Luke Hadden
    Rental Property Investor · Member since 2019 · 72 posts · 33 votes
    6y

    Hi Maya

    Shoot me a message and I’ll get you added to the group here in Singapore. Meetup is on the 25th in Rob Quay. Thanks!

    Luke

    2Reply
  • Gregory Polinger
    Rental Property Investor · Amsterdam Zuidoost, NH · Member since 2019 · 6 posts · 3 votes
    6y

    I would love to be part of an international real estate meet up!

    2Reply
  • Ronsted Yuag
    Investor · Kalamazoo, MI · Member since 2019 · 66 posts · 10 votes
    5y

    @Aaron Bryson hi there! I have investments in the Philippines and is looking forward to this idea you are embarking.

    1Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    A few of us are creating an International real estate educational resource. We'll update when we get live.

    4Reply
  • Minka Sha
    Investor · San Diego, CA · Member since 2014 · 79 posts · 17 votes
    5y

    Please let me know and keep me posted on the real estate international investing resources, as i am interested as well. 

    1Reply
  • Mark Jones
    Rental Property Investor · Rockford, MI · Member since 2014 · 7 posts · 4 votes
    5y

    @Mike Lambert  I've read most of the posts on this site regarding international investing.  I followed your posts to find most of them.  Still looking for the right investment in Mexico.

    1Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Mark Jones

    That's a lot of reading. Hopefully it's helpful.

    And yes, it's not always easy to find the right property if you don't have the right knowledge or contacts. Feel free to message me if you think I can help.

    0Reply
  • Kit E.
    Farmington, UT · Member since 2017 · 24 posts · 5 votes
    5y

    Hey all I have been following the Nomad Capitialist on youtube:  Not all of his advice is good for every net worth individual.   Still plenty of ideas to think about.   https://www.youtube.com/user/n...

    1Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Kit E.

    Nomad Capitalist isn't about real estate investing and because of that his advice can be counterproductive. It's great to find ideas to think about as long as you apply the ideas and make more money. Successful people focus. The main obstacle to success for most people is that they're always ruining after the latest shining object and don't focus. The last thing they need is plenty of additional ideas to think about, most of which won't be actionable for them. In my opinion, Nomad Capitalist is a total waste of time.

    0Reply
  • Kit E.
    Farmington, UT · Member since 2017 · 24 posts · 5 votes
    5y

    @Mike Lambert  Thanks for your opinion, it's always good to hear from self-appointed experts.

    1Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    I have read and watched a decent amount of that content. I think some of the information can be applied for sure but it doesn't necessarily focus on the real estate part, mostly the lifestyle aspect of investing internationally. @Kit E.

    [email protected]614-963-3340
    1Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Kit E.

    I don't consider myself an expert. I was just mentioning that Nomad Capitalist is about tax and lifestyle, which is the way they describe themselves. Then, I mentioned that successful people focus and that too many ideas could be an unwelcome distraction. I was sharing from my own experience but mostly barely repeating what the show hosts and podcast guests keep repeating on the BiggerPockets podcast episode after episode: you have to focus to be successful.

    This being said, you are right. While I was careful to write "In my opinion" in front of "Nomad Capitalist" is a total waste of time, I should have been even more careful and write "Don't you think that..." or I shouldn't have written anything at all. So, thanks to your comment, I was reminded why I generally don't like to make negative comments: some people could take it the wrong way.

    I'm not sure that this was worth a personal attack but that's the risk one takes when expressing a strong opinion. Therefore, I'll have to take this one on the chin. :)

    @Brandon Goldsmith

    I think your description is quite accurate in that it could be helpful if you're looking at a lifestyle purchase rather than an investment purchase. My comment was in relation to an investment purchase since this is an investment website. 

    0Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Kit E.

    While I was way too quick to take the blame, I forgot to mention something important for everyone to know. When explaining why Nomad Capitalist is a waste of time in my opinion, I wrote that getting ideas is great but useless if they're not applicable. I didn't mention why they aren't applicable to most here as I thought it was obviously but I subsequently realized it might not be obvious to everyone.

    The idea that people can move to idyllic places part or full time and reduce or eliminate their tax burden could potentially work from pretty one, except for the citizens of the US and Eritrea. Indeed, Americans are taxed by on their citizenship or US residency status by the IRS and they're still liable to pay taxes in the US on their worldwide income wherever they happen to live outside of the country. So moving overseas could pretty much only result in an increase in their tax burden rather than a decrease (as they become liable for taxes in their new country of residence as well). The only way for them to follow that idea would be to renounce their US citizenship, which very few Americans have been willing to do, for understandable reasons.

    Most of the BiggerPockets readership is made up of Americans who most likely won't want to give up their US citizenship. Therefore, spending time to dream about and planning for a tax-advantaged lifestyle only to find out later that it can't work is, in my humble opinion, a waste of time.

    While I don't claim to be an expert, if you read my numerous replies to posts and the reactions thereon in this international forum, you'll find out that the content is pretty darn accurate and has helped many people.

    2Reply
  • Nino G.
    Member since 2021 · 33 posts · 20 votes
    5y

    @Aaron Bryson I would love to hear any international RE experiences and knowledge, especially anything related to European and South American markets

    1Reply
  • Aaron B.
    OP
    Global · Member since 2019 · 48 posts · 52 votes
    5y

    @Nino G. I am actively investing and just put an offer down on about 30 acres of beautiful land. I have a few properties now with a minimum personal goal of acquiring one asset per year, internationally. 

    I have done the grunt work myself. That is finding the local deals, assessing them, and having a strategy and vision on what I envision for each property. I am to the point where I don't have enough capital anymore to execute on the deals that are worth executing on. I have never sought hard money before but if I want to keep growing, I think I will have to soon. 

    So far, all of my properties in South America have outperformed and continue to outperform any USA-based property I have owned, and that includes the pandemic in 2020 when the borders were closed. My best performing property earns $6,400/month (yes, that is USD) on a property that costs $315,000 to buy. With furniture, decor, etc added in...it was about a $350,000 purchase to get into the nice rental that it is today. I will save the details for a dedicated post.

    On another note, there is definitely a lifestyle aspect that comes into play. But it is loosely correlated to real estate investment. For the most part, to save big on taxes, you should establish a legal residency outside the USA. To do that, one of the easiest paths to get residency in another country is by purchasing a property. However, you don't have to buy a whole house or something expensive. The thresholds to obtain legal residency in a foreign country vary, so you essentially just need to invest a minimum to get started. For example, here in Colombia, you can invest around $35,000 into a property, share of a hotel, etc. and it would be enough to qualify you for the 2-year resident VISA. That is enough to get you the awesome tax benefits for the next couple of years, which would more than pay for the initial investment. I should probably make a separate post about this and how it works and why it is beneficial for many. 


    2Reply
  • André Rairan Zacchi Pereira
    Rental Property Investor · Munich, Germany · Member since 2018 · 54 posts · 22 votes
    5y

    Hi @Aaron B., where in South America are you investing in and which kind of properties?

    0Reply
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