What kind of investor are you?
I started thinking about how to answer that question in early 2018. At the time, my wife and I owned several properties in California. The cumulative valuation of those income properties ranged between $3.2 and $3.5 million. We were pleased to control the assets, especially because we could rely upon the income they generated to pay down the debt we used to acquire the assets.
But owning income-producing properties wasn’t the only type of investment available to us. In 2018, I realized that I would need to change my investment strategy.
Investing Outside the US
I decided to begin looking outside of the United States for a number of reasons, including the following:
- Political turmoil in the United States posed a threat to the U.S. economy, from my perspective. Leaders of our country kept pouring on massive amounts of debt. We could service those debt levels as long as our economy kept expanding. But if the economy were to slow, those debt levels could prove problematic. Inflation levels could rise. Interest rates could rise. The cyclical nature of our economy suggested that it made sense to look plant some assets outside fo the United States.
- Major index averages have been rising for several years. At the lowest point of the recession, the Down Jones Industrial Average was trading at less than 7,000 points. In 2018, those levels surged passed 26,000 points. Volatility in the stock market concerned me, especially since my wife and I were in our mid 50s. If there was a major market correction, I didn’t want to be waiting around for a recovery that could require several years.
- The income properties that I owned in the United States kept me rather busy, and I didn’t want to take on any more properties at 2018 valuations. Although the properties I owned were performing, the economics would not be as favorable with new acquisitions.
The three reasons above convinced me that I should look elsewhere. As stated in the article below, first I went to Belize, then to Costa Rica:
Besides income-producing properties, I found investments that could result in significant capital appreciation. Indeed, I anticipate the equity investment I made in Costa Rica will result in more than a 5x return on capital.
Individuals who are looking to invest overseas are in a strong position. Some options include:
- Purchasing home sites and building an income property on the land
- Purchasing a land and building a commercial property
- Offering capital to the developer at a fixed-rate of return
- Investing capital to obtain a piece of equity in new development projects
The right decision will depend upon each individual’s investment objective.
I use every strategy to work toward financial prosperity. Shouldn’t you do the same?