Brazil Beachfront | Newsletter

Early Into Emerging Market's: The Art Of Identifying A Worthy Oportunity

Written by Mikkel Thorup | May 21, 2024

Hello again, everyone!

I am happy to have you reading along with me this week! I want to make a quick note to all of you who read Brazil Beachfront for the fun facts and bits of random information about Brazil: I regret to tell you that this edition won’t have too much of what you’re looking for…

Instead, this edition will focus more on real estate, special offers, and some key considerations about buying property in Brazil. Given that next month I am hosting a special presentation with my partners, I figured it would be best to share as much information about the process of buying a home in Brazil before then so I don’t have to spend too much time going over these details during the presentation.

By the way, if you haven’t already registered for the presentation, you can do so for free by clicking this link here: https://us02web.zoom.us/webinar/register/WN_tqFrzWF_S2eJnU2knPpoWA#/registration

To those of you who may be unfamiliar with what I do, I would like to share a little bit about why I run these special presentations, what makes me uniquely qualified to do so, and how I find the perfect development partners so I can present my clients with investment opportunities that are unmatched in terms of their stability, upside and ease of transaction.

For the past decade, I have led my team at Expat Money toward becoming the number one online destination for all things global living and international investing. Though we do share A TON of free content every single day, we are a business and, thus, must keep the lights on.

At Expat Money, we keep the lights on via our private consulting services. Basically, we guide people just like you towards a life abroad. From legal tax mitigation to residences and citizenships to offshore banking and, of course, real estate, we offer clients a one-stop solution to a better, more prosperous life.

Having spent thousands of hours helping clients find and purchase homes worldwide, I have become an expert in not only facilitating the transaction but also knowing what to look for and, more importantly, what to avoid when purchasing real estate overseas. This hard-to-come-by experience is rare and unique and thus makes me the ideal choice for finding and securing real estate offshore. It is for this exact reason that I began scouring the globe, looking for the best destinations and developers so I could begin helping people who could not afford my private consulting services to purchase their own investment property offshore.

Over the past couple of years, much of my effort has been focused on the Panamanian real estate market, and in many ways, it still is. However, Panama is not accessible to everyone simply because of the cost of housing + living there. Panama is a stable country absolutely however, more and more, I began getting inquiries about financially accessible destinations for investment, and thus, I did my research, which brought me to Brazil.

It didn’t take long for me to realize the upside of investing in Brazil. In a nutshell, here is why I am bullish on Brazil as a whole:

  • growing middle class

  • abundant supply of natural resources

  • diversified, advanced economy

  • location proximity within South America

  • emergence as a high-growth country

  • BRICS membership

Of course, on June 8th, during the special presentation, I will dive deeper into why the points I have just made above matter so much to those of us who are seeking a real estate investment that not only appreciates in value but can also drive continued cash-flow right into our bank accounts every single month. I am hosting a presentation with my partners titled “Beyond The Backyard.”

"Beyond The Backyard" is an investment methodology that challenges narrow-minded thinking and promotes a global approach to investing. Just as we import products worldwide, the “Beyond The Backyard Approach” asks, “Why shouldn’t we export our investment dollars to capitalize on emerging market opportunities?” I can’t stress it enough: if you are even the slightest bit curious about exploring the world of offshore real estate investing, you should be there.

 

Client Update: Palm Bay Projects

Admittedly, I have been so busy that getting frequent and consistent progress updates for my clients has not been my strong suit. That said, in every coming edition of Brazil Beachfront, I am going to make sure to provide an update surrounding the developments that my clients have already invested in. So, with that, let’s take a moment to check in on what has been going on within the Palm Bay project.

As of today, there are already 22 homes completed, with many more under construction. Simultaneously, the site has a ton of important infrastructure being completed - the roads are being paved, and the electricity distribution system is being installed. Once completed (2 months or less), the development site will really start to become visually pleasing as the green spaces and wooden walkways to the beach will be created. This is essentially the last step before the homes of my clients are ready for move-in or for the turn-key rental market.

At this point, we anticipate zero delays; thus, the target completion date remains quarter two of 2025! Congratulations to all of my clients on nearing the finish line. I can’t wait for you to begin reaping the rewards of your savvy decision to purchase an investment property in Brazil!

 

Quick Buy Offer - ONLY ONE Unit Remaining!

Although our project inventory sells out quickly, it is normal in our business for deals to fall through. Whether the client changes their mind after already having made a deposit payment or there is some form of financing issues, for one reason or another, in some cases, there is previously sold inventory that is made re-available for sale.

This week, we have a very special offer. There is literally only one unit available, and it is going to go quickly, so if you are interested, you should send an email immediately to my partners at expat@beachfrontoffers.com 

This three-bedroom, three-bath townhome boasts 100 square meters of interior living space. However, there is also a private 27-meter-squared terrace where you can enjoy the year-round sun while taking in the ocean views (the beach is just under 1km away from this development, by the way).

This unit was offered for sale at $117,000 USD more than two years ago. It is worth noting that the exact same unit in the exact same development has sold for as much as $150,000 USD since then.

This exact unit can be yours for $117,000. Yes, that is correct. This ready-to-rent townhouse can be yours immediately for the pre-construction price of $117,000 USD.

This unit can be purchased, titled, and entered into the rental market immediately. It will be a high-cash-flowing asset for whoever is quickest to make the decision to purchase it. Please note that this unit will require furniture before placing it on the rental market. However, we have made this a seamless task by offering a complete furniture package for an additional $15,000 USD.

Again, this offer will pass you by if you wait too long. I highly suggest contacting my partners at expat@beachfrontoffers.com immediately.

 

My Rental Property Earnings Update

Full disclosure: April was not a super profitable month for me. After getting off to a great start in February and March, April saw a bit of a downturn for my rental unit in Brazil. Regardless, I am in the business of living in the real world; thus, I will share my real-world results, not just the high points.

Unfortunately, it was an unseasonably rainy month in Brazil. This, coupled with the fact that April is traditionally a low month because there are no holidays this time of year, resulted in a little less than what I would have hoped for. This is the reality of the rental market. There are highs and lows. It is inevitable that sometimes, the demand for beachside rentals will be low.

Until April, I had consistently earned almost exactly $850 USD a month; however, in April, I only netted around $300 USD.

I must add that I was in no way surprised by this. It is simply a part of the game, so to speak. Do I jump with joy during a low month? Of course not, but at the same time, I do not get down or concerned by this. I understand I am playing a long game, and once annualized, this lower-than-average month will hardly have an effect on my annualized returns.

The fact of the matter is that even in a slow month, I was able to pocket just 300 bucks without so much as lifting a finger. Would I have preferred 850, like in February and March? Sure; however, I will say that to earn this money without lifting a finger, answering an email, or even giving my property a second worth of thought is still a victory in my books.

I look forward to keeping you guys in the loop as I continue to track and share the results of my earnings in the coming issues. Whether they are good or need improvement, I will continue to keep you, my loyal reader, updated.

 

Edition #5 Readers-Only Exclusive Offer

Earlier this week, I spoke with my partners, and I learned that there were still some unsold units available in the exact same region where my rental property is located. So, I suggested we make this week’s special offer one that would make readers of Brazil Beachfront a neighbour of mine. They agreed.

For readers of Brazil Beachfront, we have a very special offer on beachside bungalows. These particular units were designed and built specifically to meet the demand of the tourism market.

They are located on a private, secure beach near Canoa Quebrada, about 90 minutes from Fortaleza. Canoa Quebrada is one of Brazil's most popular tourist destinations and rapidly gaining popularity.

Each unit features a 65-square-meter interior with a 30-square-meter outdoor terrace/pool area and is built on a 360m2 private lot.

Here is the best part… if you pay cash, you can have one of these fully titled, rental market-ready units for $99,000 USD!

At the time of writing, only a handful of these units remain. In the previous edition of Brazil Beachfront, we presented an exclusive offer, and the units did not last long. Given the price point and potential for capital appreciation and turn-key rental income, I expect these to go fast, too. You can learn more by writing my partners at expat@beachfrontoffers.com.

 

The Purchase Process Explained

The journey toward owning property in Brazil is far easier than you may think. It is surprisingly straightforward.. let me explain.

The purchase process begins with us gathering your essential information, such as your full name, passport number/ID number, physical address, phone number, and email address, so the purchase agreement can be drafted and sent to you.

Once created, the agreement will be sent to you for your review and signature, after which we will both counter-sign the final copy. Then, you will wire us the funds within the agreed-upon timeframe. Simultaneously, the titling process for fully constructed units or lots is initiated.

If you decide to include it, your furniture package will be ordered 30 days before the unit enters the rental market. Next, the rental agreements are sent to you for your review. Once approved, we will both sign the final version so we can enter your new property into the rental program (or, in some cases, you could now move your personal belongings in and make it your home).

If you purchase a preconstruction unit, you will receive regular updates, including photos and emails, so we can keep you informed throughout the construction period.

Like I said… it’s a lot less complicated than you may have assumed.

 

The Flooding in Southern Brazil…

You may have heard about the devastating flooding that is hitting the Rio Grande do Sul, particularly in Porto Alegre. It is reported that the flooding has impacted roughly two million people across rural and urban areas and has left over 620,000 people displaced. This news is extremely saddening to myself and my team, many of whom are Brazilian nationals. I would like to thank everyone who emailed me this week to ensure that all my staff and their families are ok. Thankfully, everybody is fine.

While it’s important to acknowledge this outlier event and pay our respects to those affected, I decided I should take a moment to share this with you while simultaneously reassuring those of you who already own property in Brazil’s Northeast that your homes are not at risk whatsoever - the region where the flooding is occurring is over 2400 miles to the South of Brazil’s Northeast.

Well, that will do it for this edition of Brazil Beachfront. I hope everyone enjoyed it. If you have any questions, don’t hesitate to write my partners at expat@beachfrontoffers.com 

My partners are extremely capable and love speaking with potential clients, so again, if something inside you is telling you to inquire about an investment property, I would advise you to follow your gut and do so now.