All Forum Posts by: Mike Lambert

@Nathan Asher Robson

The numbers you're mentioning are not necessarily impossible. Let me see if I can find something or some contacts for you.

Have you been there? Obviously, that's the best way to make yourself your own opinion!

@Giancarlo Chaux

I'll be going sooner rather than later so yes sharing notes would be great.

Yes, Medellin is a great market, especially when it comes to potential capital gains and currency appreciation.

Interestingly, you mention the lack of leverage as a positive because it reduces competition. I'm not afraid of competition (there is little anyway) and I want higher cash flow returns for my investors and myself. So, I want leverage and this is why I have invested in other international destinations before Colombia. But I'm starting closer to finding leverage there.

@Caleb Heimsoth

Are we going to succumb to media sensationalism? Are we not above that on BiggerPockets? Do you know how many US tourists go to the Dominican Republic each year? Do you know what percentage those 10 people represent? By the way, these deaths are over a period of a few months. Do you know what's the murder rate in New York or Los Angeles? Are you not going to visit or invest in those cities because of that? Don't you think you have higher odds of getting shot by doing your groceries almost anywhere in the US than being poisoned in the Dominican Republic?

While the cause of the death is still being investigated on the US side, the Dominican government says the death are from natural causes (obviously they have a vested interest in saying so). But the fact is we don't know for sure yet. It is a problem in that it results in some US tourists redirecting their holidays to some other places as long as the issue isn't fully resolved.

Regardless, the Dominican government has proven times and times again in the past that they will do whathever they have to to guarantee the security of the tourists in the country.

@Jim K.

If that was your experience, I can understand your initial reaction. I went to Santo Domingo and stayed in the Zona Colonial and I had absolutely no issues and actually didn't see any police anywhere. I went to meetings to places where tourists don't go and I had no issues there either, apart from the fact that the traffic was crazy at rush hours. I went to some beach towns and was walking alone in the middle of the night (even in places that were not too busy) and I never feel threatened. I'm met many girls traveling alone saying the same thing. So please don't generalize.

Just look at the impressive statistics of the tourism growth in the Dominican Republic over the last 20 years. Do you think US tourists would go there in droves if it was that dangerous or unpleasant.

Don't take my word for it though. The US government issues travel advisories when it could be dangerous for US citizens to travel somewhere. Even after the deaths mentioned by Caleb, the Dominican Republic is still at level 2, which is the same level as the UK, Germany or France!!

It's thanks to frightened people that people like me are still able to find incredible deals in the Dominican Republic after 20 years of uninterrupted tourism growth. It's like in the US in 2008, you could get unbelievable deals because most people were frightened. Maybe the same people who have been waiting to buy high in 2019 and will sell low in the next downturn.

Don't get me wrong, when I heard first about the deaths and when I hear stories like Jim K's, I get this visceral reaction of doubt. But then I get the facts right, go over my fears and stay the course. Like everywhere, this makes the difference between taking action and watch others making money while on the sidelines.

@Giancarlo Chaux

Nice! Medellin is on my places to invest as well. Was thinking of visiting in July but I'm not sure yet I'll be able to make it.

Are you looking for a place to retire, use part time or as a pure investment?

How much do you have to pay and how much are you expecting to make?

I'm busy arranging a deal to buy brand new penthouses in the Dominican Republic in a growing beach town with investors. Thanks to my local partners on the ground and the fact that I use to lend money to Latin American banks when I was a banker, I have access to financing and leverage, which my investors can take advantage of. That way, they have to put much less cash down and get much higher returns. And also they have less risk because we personally know the developer. And we will do the short-term renting for the investors, unless they insist to do it themselves.

Depending on the figures and the risks, it could be a great investment. Tourism is booming in the Dominican Republic and some ares grow even more than the average. Make sure you know what you're doing or do it with people who do know. As the saying goes, the return of your money is more important than the returns on your money.

Awesome. I've been buying properties in the Riviera Maya with financing and investors over the last years but if a cash purchase could work out if you get great cash flow and capital appreciation. While you can make great money buying pre-sales, you can also make money buying land and developing, given the low construction costs. The only issue is that you're probably too late to the party as land prices have become very expensive. An alternative could be to look at land outside of the town, as the price difference could be massive.

I'm Australian and lived in Sydney for 7 years and Sydney is more overpriced than practically the whole US. Also, the Australian dollar might not significantly go up against the US dollar anytime soon.

It makes sense to invest internationally to avoid overpriced markets and this is what I'm doing. But then I invest in areas that are not overpriced and more profitable like Mexico, the Caribbean, Central America, South America and Southern Europe.

You see very little on international investing here because this is a US-centric website and also very few people are investing internationally. This is most likely because they don't have the necessary knowledge, infrastructure and, most importantly, contacts.

I started by investing overseas because I wanted to invest in short-term rentals and I figured out that it's much more profitable overseas and I wouldn't have the law against me, as in so many places in Canada and the US. Also, I have hardly any competition instead of being in an overcrowded market. I had the necessary contacts and I got myself the knowledge and education. You really have to know what you do. This is why I now have investors investing with me to take advantage of my knowledge, infrastructure and connections and make better and safer returns than they would get by themselves.

A lot of people's advice on here is to do the same as what they do because that's what they know (best), of course, it's the best thing to do, right? I won't fall into that trap. You can invest in  short-term rentals in the US because it's easier (you might want to make sure it's legal though). I'm not going to discourage you to start by investing internationally since I've done it but make sure you acquire the right knowledge and connections or at least have connections with people who do have that. It also depends on where do you sit in the return vs. risk spectrum. Remember, the lower the risk, the lower the return and the higher the risk, the higher the return. So the question becomes what level of risk are you comfortable with in order to get higher returns.

If you decide to invest internationally, feel free to reach out. I'm happy to help if I can.

PS: What Paul Sandhu does is not what you are thinking of doing, which is renting to vacationers. Thankfully, you shouldn't encounter the kind of problems he's mentioning.

@Lisette S. That's great and yes San Miguel de Allende is an awesome place. However, buyers shouldn't avoid the "forbidden zone" if they'd like to invest there as using a trust or a Mexican corporation is not an obstacle.

@DJ Cespedes

Investing in those countries is a great idea and I'm doing that. Costa Rica, Panama and Mexico are great options. I'd personally avoid Nicaragua and Ecuador.

However, the multifamily investment model as we know it in the US and Canada doesn't exist anywhere else, with the exception of maybe Europe. What makes sense to buy in these countries are condos or villas that you rent short term to visitors.

I get financing from banks or developers through my connections. In many countries, it's impossible to get mortgages because they don't exist or are only available to locals. In other countries, the terms are very unfavourable and they are prohibitively expensive. They are often hard to get in most place but it's not impossible if you have the right connections. In certain places, the returns can be so high that you don't necessarily care having a mortgage.