Recently I had some clients asking me about strategies for international real estate.

Well, here is a well-tested strategy for doubling your money on pre-construction real estate projects in a foreign country.

But...

It's not a guarantee, and that's because not all projects are created equally.

We have to understand the market, the country's economics, the builder and developer, the politics (both local and international), the laws of where the project is located, and many, many other things.

I actually have a full-time research department helping me look at the above things and much more, and I personally work from a 40-point checklist of critical things I am looking for when I select real estate projects; I do an amazing amount of due diligence and detailed work when selecting a deal BEFORE I bring it to my community.

And no, you can not have a copy of the checklist :)

...it's part of my proprietary work, and I have spent a lifetime refining what I look for in an investment.

However, once you are presented with a solid opportunity, I can share with you a well-tested strategy for doubling your money.

By the way, I try to present deals for our community a few times a year and even more often for my Private Clients and Hub Members.

Here are the basics you need to understand:

In preconstruction, you are often required to put down 10% of the property's value at the signing of the real estate contract, with another 20% to be paid during construction.

Let's assume a 2-year build cycle, as that is pretty common; let's further assume a property of $400k USD for something really nice.

So that's $120,000 USD that needs to be paid over 2-years. It might work out something like this:

• $40k at the signing of the contract (day one)
• $40k one year later
• $40k six months after that

Now, here is where the magic happens...

We can never say exactly what will happen with the market or how much it will increase in value; there are so many factors.

But what we do know is that it's almost guaranteed that with quality deals, the developer will raise the prices of the project roughly between 30 and 40% as they go through the development phase and hit their milestones, for example:

1. Infrastructure goes in (roads, septic, electrical lines, etc.)
2. they break ground on the property
3. foundation is poured
4. walls go up
5. roof goes on
6. interior is completed
7. etc.

These are some common milestones for developers to raise prices, and that's because, at each of these phases, the risk of the property not being completed goes down, and people's confidence in the project goes up.

Another big risk we need to mitigate is the chance that the project will not sell enough and that the developer will not get enough money to fund it.

From my side, this is super easy to mitigate as we always sell out the projects I bring to our community, often in only 1 day (it's why you need to watch our presentations live!)

So, as I was saying, to make it very simple, if you purchase the property for 30% down (in this example, $120k) and the total property value goes up by 30 to 40% during construction (property valued at between $520k and $560k), that means a 100% return on your money in 2 years.

It's why you see lots of clients on my webinars buying 3, 4, or 5 units at once: they have faith in the project (and know my work and excellent reputation) and know they can flip the deal with very little work from their side and pocket $300k, $400k, or $500k in cash.

Personally, I think with the environment we are in today, it's much better to have your wealth in tangible assets like quality real estate as opposed to risky commercial banks back home or overbought and manipulated stock markets.

Hope this helps,

Mikkel

PS. Did you want to get in on the special deal I presented last Saturday morning but missed out? We started a waiting list for interested investors. Send us a message and include your phone number for a callback. Contact my colleagues at: expat@PuntaPacificaRealty.com

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