Brazil Beachfront | Newsletter

Your Offshore Living & Investing Starting Point!

Written by Mikkel Thorup | October 3, 2024

This week’s edition is jam-packed, folks. Before we dive in, I’d like to extend a special invitation that includes a complimentary ticket to a once-a-year event that takes place completely online and will run from the 7th of October through the 11th!

I’m talking about the Expat Money Summit, the largest virtual conference for global citizens who understand the importance of staying ahead of the rapidly changing world. Whether you’re already well-versed in such challenges or looking to better grasp the critical issues that will affect our futures, this event is designed to help you stay ahead of worrying trends that could impact your personal safety, freedom, and financial security.

Join me and some of the brightest minds in geopolitics, economics, international investing, offshore banking, and so much more. Over the course of five days, we’ll dive deep into the topics that matter most to people like you - those who recognize that securing their future requires both education and a willingness to take action. 

 

Touring Eastern Europe: My Perpetual Hunt for the Best Plan-B Opportunities

As I write this, I’m touring Eastern Europe with my family. When all is said and done, we will have visited 11 countries in 6 weeks. Exhausting is an understatement.  

Let me be clear - this isn’t a vacation. It’s a work trip.  

I’m spending my days meeting with top-tier Plan-B service providers, including accountants, lawyers, real estate developers, and investment firms.
Hunting down the best opportunities for securing wealth, freedom, and mobility for the Expat Money community is why I take on this role. Sure, I may have the luxury to travel for 6 or so weeks, but that is not what excites me. I prefer to travel with a purpose. 

I do this because I’m always on the lookout for rock-solid investments that I can confidently present to you.

Before anything comes your way, it goes through rigorous vetting - and that means meeting with the right people and doing my homework on the ground.

It wasn’t too long ago that I was doing the same thing in Brazil - scouring the land for the best partners to ensure I could bring my community quality investments. I found those partners, and to prove my confidence in what Brazil offers, I put my own money on the line. I invested in a beachfront duplex long before I presented any opportunities to you.

I’ve shared updates on this turn-key investment property in previous editions of Brazil Beachfront, and today, I’m excited to give you another update on how this property is performing later on in this newsletter. 

 

A Destination For YOUR Dollars: How The Growing Middle Class is Fuelling Economic Stability

One of the reasons why Brazil continues to be a safe investment destination is its steadily expanding middle class. Over the past several years, millions of Brazilians have moved into the middle-income bracket, which has boosted consumer spending. 

Simply put, more people with disposable income means a stronger local economy, and this has a direct impact on real estate investments. 

With growing demand for both residential properties and tourist accommodations, the market for rental properties - especially beachfront real estate is stronger than ever.

As Brazil's middle class continues to grow, so does the demand for higher-quality living spaces and vacation properties. This demand provides you, as an investor, with a prime opportunity to capitalize on turn-key, cash-flowing rental properties.

If you enjoy these insights and are interested in expanding your knowledge about what makes certain countries worthy of foreign investment, you will certainly want to claim your complimentary ticket for the Expat Money Summit.

 

Brazil’s Burgeoning Domestic Tourism Industry

A massive driver for Brazil’s economy and one of the key reasons why investing in beachfront real estate is such a smart move right now is the emergence of a never-before-experienced demand in tourism.

Sure, Brazil has long been a top destination for international tourists, thanks to its stunning beaches, rainforests, and vibrant cities like Rio de Janeiro and Salvador, however, here is something you may not know - domestic tourism is also growing fast.

More Brazilians than ever are exploring their own country, and that’s great news for investors in the vacation rental market.

With Brazilians travelling within the country, especially to coastal regions like the Northeast, beachfront properties are in high demand.

If you’ve been thinking about investing in Brazil, now is the perfect time to seize the opportunity and start generating hands-off rental income from the surge in both international and domestic tourism.

By the way, at The Expat Money Summit, we’ll be talking about much more than Brazil. Over the course of five days, more than 40 panel discussions and presentations will take place. Join me from the 7th through the 11th of October to hear from myself as well as some of the most prominent voices in geopolitics, global mobility, freedom protection, and much, much more.

 

Claim your complimentary ticket before it’s too late. Spaces are not unlimited, so if you wait to get your ticket, there are no guarantees you will be able to attend.

 

Decades In The Making: The Future Powerhouse of South America

We’ve talked about Brazil’s growth before, but it bears repeating: Brazil is on track to become a global powerhouse.

Its natural resources, diversified economy, and strategic position in South America make it an attractive destination for businesses and investors worldwide.

Brazil is already one of the world’s largest producers of agriculture, oil, and minerals, but its infrastructure and manufacturing sectors are also on the rise. The country’s strategic location allows easy access to both North and South America while its export industry continues to expand into Europe and Asia.

What does this mean for you as an investor? 

Long-term growth.

Brazil’s economy isn’t just stable - it’s thriving, and it’s positioned to keep growing as global demand for resources, products, and services continues to increase. Whether you’re investing in real estate, business opportunities, or both, Brazil offers sustainable returns inside a market that, by all markers, appears to be an ever-expanding market. 

 

Behind The Economy: Exploring How Being the Global Leader in Beef Supply Underpins The Market

When it comes to beef, Brazil is king. As the world’s largest supplier of beef, Brazil is responsible for feeding not just its own people but also consumers across the globe. The country’s vast, fertile lands and ideal climate conditions have made it a powerhouse in agricultural exports, and beef is at the forefront of this success.

In 2023, Brazil produced over 10 million tons of beef, and a large percentage of that was exported to countries like China, the United States, and Europe. 

This puts Brazil at the top of the global beef export market, contributing nearly 20% of the world’s total beef supply.

But it’s not just the volume that makes Brazil stand out - it’s also the quality. 

Brazil is renowned for producing premium, grass-fed beef, with cattle raised in vast pastures that cover millions of acres. This focus on sustainable, natural farming is part of why Brazilian beef is so highly sought after on the global market.

Now, you may be wondering why Brazil’s dominance in the beef industry is important for you as an investor. 

Here’s why: a strong agricultural sector, particularly one as profitable as beef, helps underpin Brazil’s economic stability. As the global demand for food continues to rise, Brazil’s position as a leading exporter ensures that its economy remains resilient and diversified.

Given the expanding middle class, I suspect Brazil’s beef producers will see a surge in domestic demand. As millions of Brazilians continue to break through out of poverty, they will have the funds to fuel their bodies with the king of all proteins: hormone-free Brazilian beef, which will inevitably lead to an even more powerful economy.

Investing in a country with a robust agricultural sector like Brazil means your investment is tied to a strong economic foundation. Whether through real estate, tourism, or other ventures, knowing that Brazil is a world leader in essential industries like beef production gives you confidence that the country’s economy has the staying power to weather global challenges. 

 

My Cashflowing Rental; August Update!

It’s time for the latest update on my personal rental unit in Brazil, and I’m thrilled to share how things are shaping up. As many of you know, my rental income has consistently ranged between $500 and $850 USD per month—all without lifting a finger. This truly underscores the beauty of turn-key, hands-free rental income. 

 

 

August turned out to be a decent month. My unit was occupied for 14 out of 31 nights, with an average nightly rate of 366 Brazilian Reais, which equates to about $73 USD per night. This resulted in total revenue of roughly 5,100 Brazilian Reais for the month.

Now, let’s break down the numbers: After accounting for the 25% management fee and HOA expenses, my net profit came to 3443 Brazilian Reais or roughly $688 USD. Lucrative and effortless is the name of the game here; this is only made possible when everything is managed efficiently and effectively. 

So, I will be clear: $688 in profit is not what I am after here. That said, I am only months into having this property on the rental market, and I fully expect my returns to increase.

Sure, I am on track to earn a 10% return this year… But again… this is only the first year this property has been on the market.

I fully expect my return on investment to increase in the coming years as the demand for rentals in this region continues to grow and as the property management team at IMPAR continues to find the sweet spot regarding how they promote and price these units.

I want to make it clear that this region will also continue to evolve and, thus, will boost the price of what I can charge per night as well as how many people want to come visit the region.

As more and more restaurants, shops, and other developments pop up in the area, the allure of the region will grow, and this will have a direct impact on the profit my rental unit will generate.

It's also important to remember that I am not renting out a condo in a major city for which I paid half a million dollars; this property literally cost me 112k after all furnishings and closing costs.

I could have spent that money in a ton of different ways; however, for such a small investment to earn me almost 700 bucks a month is already a major win in my books.

It is also worth noting that this is the first investment property I purchased in Brazil.

This was the test, so to speak; however, now I can safely say this test has met my expectations, and thus, I will continue to invest in cash-flowing rentals on Brazil’s Beachfront. I already have two more properties being built that I will take delivery of in 2025, and following the completion of those, I will further look to bolster my holdings in the region.

I see my holdings in Brazil as similar to high-yield dividend stocks, except with far less risk. Unlike a dividend stock, the payouts won’t just stop due to circumstances outside of my control. Sure, I fully expect to experience periods of low rental demand, but the cash flow tap will not just get turned off on me like it can with stocks that pay dividends.

Plus, a traditional dividend stock pays out far less than the 10% return I am already on track to earn in just the first year.

And if or when I’m ready to liquidate my Brazilian real estate holdings, the price I sell them for will be far higher than what I paid…

This investment is a true triple threat in that it offers me cash flow, capital appreciation & currency diversification.

If you’re interested in exploring how you can achieve similar hands-off, turn-key rental income, I highly encourage you to join me for the online conference I have been telling you about….

I don’t want to give too much away yet, but my partners at IMPAR have a special presentation ready and will be sharing a special offer that you don’t want to miss.

One hint…. they are stand-alone villas for under 90k.

They are private, modern, exceptionally designed and only steps from the beach…. but here’s the thing: we are only building a handful of them. I suspect they will be sold out during the week of the Summit. 

Whether you want to learn about what’s involved in purchasing real estate offshore, understand the best markets for your first offshore investment or are curious about how people just like you have secured their futures and built their dream lives outside of their home countries, you need to join me at the Summit. Get your ticket by clicking this link here: https://2024.expatmoneysummit.com/checkout/complete-order/

 

Wrap Up!

That’s all for this week’s edition of Brazil Beachfront, folks!

As always, I’m excited to keep you informed and inspired about Brazil's incredible opportunities. Brazil's future looks bright, from its booming tourism industry to the expanding middle class and its position as a lead producer in crucial industries; I’d like you to be a part of it. 

If you have any questions or thoughts or just want to know more about how you can take the next step in offshore investing, don’t hesitate to contact my partners at expat@beachfrontoffers.com.

Until the next time, my friends. Take good care, and see you at the Summit! 

 

P.S. I said I wasn’t going to give too much away, but hey, if you have made it this far, I figured I would give you one more great reason to join me at The Expat Money Summit! Here are some renderings of the Ocean Garden Villas we will unveil exclusively at the Summit!