All Forum Posts by: Mike Lambert

@Aaron Logan

Generally speaking, I only buy pre-construction if I can rent by myself so I can do the management myself, as those who do the management charge way too much. If I didn't have the time to do the management myself, I at least would want to have the opportunity of choosing my manager so as to not be overcharged. I looked at many of these deals in which you are forced to surrender your unit for the developer to manage. They get paid first and, in my opinion, they will make the bulk of the money, not the investor. Generally, the rentals number they show to demonstrate the profitability to investors are unrealistic and overinflated.

I have been investing for a few years in the Riviera Maya and was recently presented with a private condo deal in Tulum, the best possible deal I've ever seen over there. However, I turned it down as I believe it is now too late to invest in Tulum. There is a huge number of condo projects under construction and planned and, in my opinion, the growth in tourism will not be enough to absorb the rental offer (which renders the rental numbers I mentioned above even more unrealistic and overinflated. Not the mention the prices that have reached levels where they make no sense. Many of these condos are sold to uninformed investors on the basis of Tulum's stellar past performance. However, conditions have changed and, as the saying goes, past performance is no predictor of future performance. Trees don't grow forever. Investors need to do their homework so kudos to you for asking!

Hi Melissa,

It'll always amazes me that Americans would invest in real estate in Canada when so many Canadians invest in US real estate because they find out it's more profitable. And kudos to your brother for finding a condo under market in my beautiful city of Montreal. It's not easy.

When it comes to tax issues, if you want to make sure you're doing the right, you might want to consult with a tax specialists who has knowledge on both sides of the border, whatever advice you get here. There are plenty of those in Montreal given that so many Canadians invest in US real estate. One of them is David Altro (altrolaw.com). I'm not connected to and I haven't used them so this is not a recommendation.

@Christopher H.

I'm concentrating on Las Terrenas for the time being. It's on a path of progress trajectory but still at an earlier stage so there are more opportunity to profit. Most importantly, my local partners are over there.

@Christopher H.

Yes you should listen to people who know what they're talking about and you should do your homework before investing, especially if it's in the foreign country. I'm comfortable investing in the DR and select other countries today because I visited, acquired the necessary knowledge and most importantly, have the right local connections I can trust.

The thing is that most investors will never have the time, knowledge or connections to be comfortable investing on their own. This is why I started to invest with investors as my knowledge and connections have allowed me to create win-win relationships. While I always provide a lot of information and knowledge, I always advise potential investors to visit if they can. Some people don't even have the time to visit or they realize that one short visit won't make a huge difference.

Also, the simple fact that that more and more people vacation and invest in real estate in the DR indicate that it's probably not as bas as some people seem to suggest. As I always say, people are entitled to their own opinions but they're not entitled to their own statistics. At the end of the day, figures talk!

Given the above, it is incumbent to people like me to find the best opportunities and structured them in such a way that investors can feel comfortable investing, whatever level of due diligence they're about to carry on their own. It's all about getting a great return while limiting and mitigating risks. As they saying goes, the return of your money is more important than the return on your money.

So either get the knowledge. If you can't, find people who have it and maybe they'll let you invest in them. Doing that doesn't remove the necessity for you to know what you're doing, at least to a reasonable extent.

@Jesse Sheeran

Congrats for your crypto profits. It might be a good idea to sell after the recent epic run up indeed!

Sending you a PM about Colombia

Toronto has become extremely expensive as a result of decades of super low interest rates and the increasing number of investors who are competing in the market. The same applies to pretty much any large city in Canada and the US.

The way I found to avoid those issues is to invest outside of North America and it ends up being far more profitable and fun!

@Anthony Rosa

You comments make total sense. Access to lending and being part of the US are huge advantages, although in some respects it's almost like an independent country.

The problem is that Puerto Rico is in huge economic trouble, with a crushing debt load and a decreasing population (not sure if that's still the case).

The Dominican Republic, on the other hand, has put on a consistent stellar economic performance over more than 20 years. Since 1992, its GDP has grown by an average of 5.5% per year and, in the whole world, maybe only China and India have beaten that and only Panama comes close in the Americas (but Panama is not the best market for short-term rentals, as I've mentioned in a previous rely above). The last time I saw the statistics, they were expected to grow by 7.3% this year, so well above China. Moreover, tourism has been growing very fast with tourism revenues being multiplied by 43 over 17 years. Hotel occupancy reached 83% in 2017 and the country accounts for more than a quarter of the Caribbean's entire tourism numbers.

I'd love to invest in Puerto Rico one day when it makes sense. In the meantime though, the choice was easy to make for me!

@Linda D.

@Nathan Asher Robson

We don't know yet if the authorities tried to cover up. Time will tell. Shall we not presume that they're innocent until proven guilty like with everybody else? If your risk aversion is high, it might makes sense for you to wait for the final results of the investigation though.

Panama is awesome. Properties are more expensive and revenue is lower though, as beach tourism is much more limited. Panama City is great but again properties are more expensive and short-term rentals aren't allowed, whereby the profitability is much lower. However, you might perceive it as less risky and like that option better. There won't be anything interesting at Nathan's price point though.

@Storm S.

Properties worth buying in the Dominican Republic are bought and rented in US dollars. No need for foreign currency hedging.

@Jim K.

Yes this forum is to learn from each other indeed!

To answer your question maybe it's because, in the Dominican Republic, unlike in the US, you are not allowed to carry guns on you so you need professional personnel for security? I spent a while in Las Terrenas this year. This is not a gated community or a ghetto for tourists. It is a place where Europeans and North Americans live in harmony with the local population. I went to the touristy places and off the beaten track. I don't remember seeing a single of those guards. as to the police, I saw them much less in the street than in Canada or the US.

As you rightfully mentioned, let's not generalize.

In most developing countries or in places where there is a great disparity with rich and poor people for that matter, there will generally be security left and right. It's a fact of life. Don't forget there are poor areas in North America that have issues as well.