All Forum Posts by: Mike Lambert

@Henry Clark I can reassure you my account hasn't been hacked. One thing I've learned is that we can never been too diplomatic. This, especially considering that, for all of us that are here to genuinely help fellow (would-be) investors, what brings us together is bigger than what sets us apart. Also, different points of view and different objectives make for a healthy market (and an interesting discussion).

@Michael Baum thanks for thinking about me. I do know quite a bit about Belize because I looked at possibly of investing there and did a thorough due diligence a long time ago and I know quite a few people who have invested there. Since we had successfully invested close by in neighboring Mexico, it made sense to at lease have a look at it. After doing so, I decided not to invest, one of the easiest decisions of my investing life. Actually I'd never touch that country with a 10-foot pole unless somebody pays me to invest there. I explained why in detail in a reply to a post years ago on this very forum. This conclusion shouldn't have surprised me. Indeed, as a previous international banker covering the Americas ex-US and Canada, I was warned that merely suggesting that we might do something in Belize would get me fired. That wasn't surprising since the country's credit rating is B-, deep into junk territory.

After writing that reply, I decided to forever hold my peace on the topic in this forum (so you're making me make an exception ;-)). Indeed, I don't want to get into an argument with Henry Clark mainly because he invests there and I don't but also because I don't like being negative, wasting energy on arguing and I highly respect and appreciate Henry and his many contributions to this very forum. Also, people should draw their own conclusions, especially since not everybody has the same risk appetite.

Hi Jeffrey, horrendously expensive for what it is. Surcharge market They have issues with the cost of housing for locals. What’s your plan B if they ban or regulate STRs like they’ve done in other European capitals. Try the numbers with a LT rental but don’t hold your breath.

Hi Melissa, sure. I know that market very well but it would be easier to help you if you have more precise questions and also if we know what your objectives are. Feel free to DM me if you rather not share those publicly.

@Francisco Leal

To add to what @Erwin Groenendijk mentioned, we indeed know that squatters exist but the issue is indeed likely way overblown. Also, it generally exists only because some landlords keep their property empty or if long-term tenants become delinquent, don't pay and turn into squatters. Astute investors will make sure their properties are rented to the right tenants so this is a non-issue for most.

Anyway, I'd never invest in long-term rentals in Spain regardless since, as Erwin and I mentioned, there are much better alternatives in your country.

Also, if you're going to invest following the population pyramid, you can pretty much forget about Europe, North America, Japan or China and should probably focus on places like India. People should really pay attention to the kind of content they consume, especially the mostly negative and scary news that is oftentimes biased and ultimately leads people to not take action and miss out.

@Eric Ticas

Hi Eric,

No bank from one country will take a mortgage in another country so you're limited to Mexico when it comes to banks. Beware that 1) some lenders might not lend in Tulum because they deem it too risky given the oversupply situation and 2) other lenders won't lend if the purchase price is below $750k because you can't get title insurance in Tulum specifically.

Finally, beware also that there's a huge difference between a lifestyle purchase and a (profitable) investment purchase, the latter being all about numbers. I'm sure you can still buy in Tulum and cover your costs if you rent when you're not using the property provided that 1) you don't use the property too much of the time and 2) you pay 100% in cash so you don't have a mortgage payment to cover. In that case, my advice is to try to find a property as unique as possible as the competition for rentals is going to get even more intense given the huge amount of supply that's going to hit the market in the coming years.

When it comes to Mexico, I'm first and foremost an investor. However, even if I wanted to spend time in Tulum, I'd buy a property in a more profitable area (of Mexico) and use the cash flow to rent for cheap in Tulum to get money and lifestyle together.

I'm not sure where you can make 10% gross yields in Miami or any gross yield close to that unless you go for short-term rentals but I'll leave people who know that market to comment on that part.

I love investing in Spain, especially in the Costa del Sol, which I call the Florida of Europe although most call it the California of Europe, alongside Portugal's Algarve. The area is booming, it's internationalized, much cheaper than Florida, higher yields, lower interest rates, less short-term regulations. I'm not affected by any of the things you mentioned.

Real estate is local. There are good and bad areas to invest in any country (and even in Madrid, I've heard of people making much higher yields than those you mentioned).

@Carlos O.

Buying as a citizen or as a foreigner doesn't mean anything. You buy either in your own name or through a fideicomiso (or a Mexican corporation). The only benefit you'd get from a fideicomiso is asset protection so you have to decide if it's worth the cost. Just to be clear for other readers, if a non-citizen wants to buy in the forbidden/registered zone, they cannot buy in their own name so they have to use the fideicomiso (or a Mexican corporation).

@Christian Romano

You're welcome. I'm not sure what you mean by the best deal possible and why it'd matter. There will always be people getting a better deal than you and others getting a worse deal than you. Also, what could appear as a better deal might not be as a lower price might mean a higher risk in certain cases.

I guess what matters is to find a good deal by yourself or get a better one by working with other people. That's already hard enough so why look for perfection (which doesn't exist anyway) and often leads to inaction.

Hi Francis, welcome to BP. I just sent you a DM because I think we have a few things in common. Mike