The Price of Perception & Learning to “Close One Eye”

Hey guys, Mikkel here. Let me get straight to the point today because this is one of those concepts that can fundamentally shift how you think about offshore investing:  

The best opportunities are found in the discrepancy between reality and public perception. 

You see, most people only invest when things look perfect and the mainstream agrees. 

But by then, the upside is gone.

The best opportunities exist when perception and reality are out of alignment…

The best opportunities are found when you know something that others don’t because you have done the research for yourself rather than taken what the masses are saying as fact.

And look, I’m not suggesting you just ignore the challenges…

…I’m telling you that the very existence of those challenges is what makes the upside so big.

When it comes to Brazil, this concept applies perfectly. 

Yes, there’s a lower-income class. 

Yes, some areas are dangerous.

Yes, the bureaucracy is clunky. 

But here’s the reality of things: if all of those things were “fixed,” you wouldn’t be getting in at this price.

If Brazil had the European “branding” of Portugal… the tax incentives of Panama… or the first-world optics of Canada, then beachfront real estate in the Northeast would be selling for 10 or 15x the price.

But right now, that isn’t the case because the world hasn’t caught on yet.

Yes, the mainstream media likes to lump Brazil in with “developing markets” as if it hasn’t been a global powerhouse for decades.

They just can’t seem to look beyond the idea of Brazil they’ve gotten from the movies. 

…or maybe it’s in their best interest not to…

So yes, the mainstream has it wrong.  

But when they eventually catch up and start writing their “Top 10 Places To Retire In Brazil” articles, you’ll want to be holding real estate, I can assure you of this.  

Because at that point the story will be written, the prices will have jumped, and you will have missed the boat. 

Right now, you’re still ahead of it all. And if you’re reading this, that means you’re the kind of person who knows how to move before the herd.

You don’t wait for a green light from the mass media outlets that don’t know up from down before making your move.

You look at the data and the fundamentals, and then you act.

True wealth isn’t built by following mainstream trends; it’s built by identifying mis-priced assets in misunderstood markets. 

That requires courage, vision, and sometimes, the willingness to “close one eye” to the things people look at so you can focus the other one squarely on the signals pointing to massive growth. 

I'm not saying prices in Brazil’s Northeast are going to double next week. 

But I am saying that in 6–18 months, you're going to see a very different landscape.

…just like I’ve already seen over the past two years…

The infrastructure will be further along, more investors will arrive, and the mainstream media will finally start reporting on the rise of Brazil’s Northeast like it's breaking news, while you and I will be sitting there saying, “yeah, we knew this a year ago.”

Allow me to put something into context for you:

Right now, in Brazil’s Northeast, you can buy a beachfront villa with a full ocean view for the same price someone in Toronto or Miami would spend to renovate a mid-sized kitchen.

Let that sink in for a second.

Not a timeshare in a dinky little town that is home to nothing more than just a bunch of cookie-cutter builder-grade townhouses…

I am talking about a fully-titled villa on the beach that you own outright.

…for less than it costs to renovate a bathroom in a “developed” country. 

When people ask me why the prices are so low and why you can still buy anything near the beach in Brazil for well under $100,000, they’re really asking the wrong question.

The real question isn’t why it’s so cheap… it’s how long will it stay that way?

A recent project (which is now sold out by the way) was some beautiful 1-bedroom condos that sold for $67,000 USD cash.

Now ask yourself… what does 67k do for you in your home country?

As I mentioned earlier, you could renovate a small bathroom with that money, which is certainly a nice-to-have, but in reality, it's a sunk cost.

Alternatively, you could own a hard asset that generates cash flow for you every month while gaining in value with every passing day.

The choice is yours…

…and I think it’s an obvious one. 

So why are people seemingly still hesitant to make the leap and invest offshore?

Because they’re still swayed by the headlines.

Despite knowing better than to trust the mass media, the perception has often been so deeply drilled into us that it can be tough for many people to overlook.

Not us.

Forward-thinking investors like us don’t wait for the perception to change, or else we watch the best and biggest opportunities pass us by.

I’ve watched this pattern unfold in dozens of places around the world. 

It’s always the same:

1. Early movers buy based on reality… they see the fundamentals and move before the crowd realizes the actual reality of things. 

2. The mainstream catches on (usually when the Financial Times or Bloomberg runs a “hidden gem” type of story). 

3. Institutional capital and late-stage retail investors flood in, and prices spike.

We’re currently sitting at stage one… but not for long.