Market Moves of Major Players

When big companies like Costco, Walmart, Home Depot and McDonald’s start moving into a residential real estate market it’s because they expect growth.

And they’re usually right.  After all, they have the budgets to buy the best data and hire the smartest analysts.

Some of the data the consider includes migration trends, infrastructure plans and demographic shifts.

Do people want to move there?  Are they Major corporations like Southwest and Hilton carefully analyze market data before making moves into places like Belize.the RIGHT demographic?  Are there freeways, airports, and other key pieces of infrastructure to support a growing population?

When everything checks out, these big organizations begin to move in… to get in ahead of growth.

Savvy residential real estate investors watch these moves … and then start to investigate.  It’s a way to piggy-back on the hard work paid for by the big players.

For those interested in resort property investing … and there are some compelling reasons to consider it right now … the principle is the same, but the players are different.

Resort properties make their money renting to tourists, not tenants.  The migration patterns aren’t gleaned from U-Haul statistics, but from airlines.

The companies moving in aren’t big box retailers, but rather big brand hotels.

So when you see a major airline adding flights to a resort destination, it’s in response to growing demand.

That’s a clue.Major airlines like Southwest Airlines, Delta and American Airlines are adding flights into Belize

Ditto for when a major hotel brand plants it’s first flag in an emerging resort market.  They have strong reasons to believe the tourists and occupancy are there or soon will be.

When those things are happening at the same time, in the same market …. SOMETHING must be happening to attract this attention.  And it is …

Tourism to Belize continues to boom.  And major players are making moves to take advantage of Belize’s growing popularity.

Of course, there’s a LOT more to this story than can be told in a few hundred words.

That’s why we’re heading to Belize for a fun-filled, educational field trip … and YOU are invited to join us!

Come see what makes this tropical paradise one of the most exciting resort property market in the Western Hemisphere … and why major players are making their moves.

Ambergris Caye Belize is one of the most exciting resort property markets in the Western HemisphereMany investors use low-end residential properties as a vehicle to build wealth so some day they can own and enjoy a beautiful resort property.

Imagine buying a resort property as an investment and still enjoy some personal use.

It’s possible.  And it starts with picking the right market, meeting the right team, and finding the right property.

The timing’s never been better.  Tens of thousands of baby boomers are retiring every day.  Studies say many wish to travel … maybe even retire … abroad.

Belize is a popular destination because it’s close the U.S., English-speaking, friendly to Americans … and REALLY beautiful!

You’re going to LOVE it.

Click here now to discover enchanting Belize!

12/8/13: Perking Up Your Portfolio with Profit Producing Properties

Call us paranoid (we’ve been called worse), but all the worldwide currency and credit expansion makes us a little nervous.  Sure, we like it when asset prices rise.  But they’re supposed to go up because of fundamentals…things like supply and demand, cash flow, a strong labor market.

But right now, asset values…especially stocks…are going up like there’s no tomorrow.  That’s great if you own stocks, real estate, collectibles, etc.  But last time we looked, your tenants don’t own those things.  What they get instead is rising prices on food, energy…and now healthcare.

Meanwhile (notwithstanding minimum wage workers in Washington State), labor and wages are soft.  Hence, landlords aren’t pushing through rental increases, even when supply and demand says they should be able to.

All this to say, while you’ve been busy working your day job, as your erstwhile surrogates, we’ve been traveling the globe looking for solutions.

How can you perk up your portfolio with more profit producing properties?  After all, we want to own all the real estate we can.  And we want to borrow heavily (short the falling dollar) to do it.  But that means we need solid cash flows to control everything.  And a soft labor market and real world inflation (the CPI is a joke) makes that “challenging”.Coffee farmland investing provide high cash flows and international diversification through a renewable resource.

Then one day, sipping a cup of coffee in an exotic location, it hit us!  When if you could create cash flow from the very commodities that are going up because of all the easy money in the system?  Brilliant!

But how?

Well, because we’re us, it didn’t take long for us to find the guy with the answer.  After a little chit chat, we put a microphone in front of his face and did a short segment as part of our show from the floor of Freedom Fest last summer.

Then a funny thing happened.  Our feedback page lit up and our audience wanted more!

Always eager to please, we checked out jet set calendars and noticed we’d be in Scottsdale, Arizona where our pal Robert Kiyosaki has a very nice studio.  So we snuck in, set up shop, and called our newest answer man (who happened to be in Colombia at the time) to talk cash flow from coffee farmland.

Percolating powerful pontifications in this fresh brewed episode of The Real Estate Guys™ Radio Show:

  • Your bold (with a hint of sweetness, but no room for cream) host, Robert Helms
  • His caffeinated co-host, Russell Gray
  • Our dark roasted special guest, David Sewell

When you think about it, the term “real estate” means “the King’s property”.  That’s why they call rental property owners land lords.  The serfs just got to work the land (farming and ranching) and keep 75% of the profits.  They paid the other 25% to the King.

Hmmmm….the serfs got to keep 75%?!?  Someone should tell Uncle Sam about that system.  Ironic that in the country that pioneered the concept of private property rights for the little guy, US citizens don’t get to to keep as much of their “produce” (income) as the serfs of old.  Are we the only ones who think that’s weird?  But we digress…

The point is that basic real estate was farming.  The tenants were farmers.  The income came from the produce and was shared between the farmer and the landlord.

So David didn’t come up with this idea. He simply brought it into the 21st century and we think it’s brilliant…and timely.

But as David explains, it’s also a socially responsible endeavor.  In their model, they buy coffee farmland from a poor farmer.  They retain and retrain the farmer to improve the product and production efficiency.

Cima Coffee Farms provide investors high cash flow from coffee farmlandBy getting more yield from the land, the poor farmer is now making more money than he’s ever made.  He’s happy.

The investor (that’s you) gets really attractive double digit cash flows.  You’re happy.

And the world gets more and better coffee. We’re happy.

And aside from our coffee addiction, we’re also attracted to profits.  And we love the idea of diversifying our holdings in various countries.  Of course, owning land offshore provides some asset protection and privacy benefits.  You can even use your self-directed retirement account to tack on some tax advantages.

Plus, creating income off shore income denominated in something other than dollars has some interesting possibilities.  Just ask Google, GE or Apple.

But while all those things are great, the thing we like best is that we can create cash flows from a commodity that is in demand worldwide.

See, when we buy residential real estate (which we love…we get to use leverage and we get tax advantages), we need to be careful to pick a good local economy.  “Good” means it creates the kind of jobs that our tenants need to pay the rent.  This is important because all your rental income is derived from the local economy.  That’s why we like locations where there are industries that pull money in from outside the area.

But when you own land that produces a commodity like energy or food that can be sold ANYWHERE in the world, it’s less important where the land is.  So in some cases the land is cheap, but the commodity is popular.  That’s a recipe for high ROI.  We like it. 🙂

So grab a cup of Joe, and sit back and listen in as we consider how YOU can create cash flow from coffee farmland as part of your real asset investing strategy.

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