Breaking the Comfort Zone: Investing Internationally

[John Flanagan]

With real estate markets throughout the US continuing on the tear they've been on for quite a while I wanted to create a post about a topic I don't think is covered enough on Bigger Pockets, investing internationally.  Personally, I have been looking at investing internationally for the past 5+ years but didn't pull the trigger until recently.  While I had done extensive research on investing in countries from Central and South America to Europe and spoke with people to help facilitate investments in certain countries, there was always an excuse or domestic opportunity that stopped me from doing it.

This year I partnered with two brothers on a mixed-use 100 unit development in Peru, Aire Simbal.  While still early in the project, to say the numbers are staggering when compared to what I would be able to do in the States on the same level is an understatement.  Building and labor costs are a fraction of what I have found in the states (not to mention quality laborers are easier to find and more efficient in my opinion). In regards to rentals, we are using the short term rental model since the market is almost non existent in the area and have had to limit stays to 3 nights on the 2 units currently rentable since they are booked solid.  

Would love to hear from other members about their successes (or failures) investing outside of the United States.  What countries and what strategies were used?  Personally it feels like half the people we compete with for properties here in the US couldn't spell Real Estate if you gave them the letters and they have only contributed driving property values higher and higher.  Would love to hear your thoughts!