Editor’s note: Today, we’re sharing an essay by our friend Ronan McMahon from International Living. As I told you yesterday, Ronan travels the world looking for the most profitable real estate opportunities… exciting, under-the-radar opportunities that consistently beat the market. Today, Ronan is sharing his “accumulator strategy” that he’s using to make a possible six-fold return in seven years…
Trade War Bullet #2: 1,900% in two years…
Trade War Bullet #3: Up 8,400% in the same time…
Unsexy, dull, overlooked… this play is the lowest risk I know. No international real estate investment is risk free. But, this is close. It’s also the easiest way I know to increase your investment 629 percent in seven years.
This strategy is dull… like owning a toll road or an oil pipe. You won’t have the cocktail conversation of an internet start-up investor. But, my bet is you will have a lot more money. Because, for every US$100,000 you invest, you could return US$628,620 over seven years (before taxes and other costs). And you will sleep at night.
You will need cash for this play. There’s no developer or bank finance. You’ll need to put time into it. And it requires a tolerance for boring investing. But if you have all of those things, you could see serious gains.
I’m personally using this strategy in Northeast Brazil. I expect to triple my money in seven years if things don’t go particularly smoothly. If everything goes according to plan, my projected gains are more like six-fold in seven years.
Here’s how this strategy works
We buy middle-class condos cheap thanks to a special situation in a place where economics and demographics are moving in our favor. And we buy the type of units with maximum yield. The biggest rents for every dollar invested.
I call this strategy “The Accumulator…” and done right, it’s like having your own real estate ATM. This isn’t some closely guarded secret. It’s the exact strategy that brought the Trump and Kushner families from the suburbs and on to Manhattan and super wealth. The savvy and connected have made billions following this strategy as every major city in the world emerged… from London to Melbourne…or Tokyo to Berlin.
Members of my inner circle have seen great profits from doing likewise too – in places like Ireland and Medellín, Colombia. And though it would be difficult to do this in New York these days, as Trump or Kushner did, the beauty of our international focus is we have a world of choice.
There are four steps to “The Accumulator” investment strategy. And combined, they add up to an exceptionally profitable money-making vehicle. Let me set this out for you…
The last time this expert shared a crypto idea, you could have made 23 times your money in just over 2 months. Today, he predicts his newest recommendation could make you 100 times your money over the long term beginning in 2018. Here’s how to do it.
Step 1: Pick your asset
You buy property that generates an income of 1 percent per month. The reason it is generating such a high monthly return is because we can buy it cheap thanks to a special situation. In Ireland, it was thanks to the economic crisis. In Medellín, it was because of that city’s outdated reputation. But, it doesn’t need to be a crisis market.
A new exploding city, like Playa del Carmen, Mexico, in 2003 created this type of buying moment. That’s the first part of the strategy. Buy your asset and start collecting your rent every month. If you’ve chosen your asset right, that 1 percent rental income isn’t static. To earn more on our asset, we move on to step two…
Step 2: See your income grow
Choose a rental property type in an area where the income stream is rising fast thanks to growing demand. Where I’m buying in Northeast Brazil, it’s rising by 1 percent per month. Which means after 12 months it’s gone up 12.7 percent. This is compounding.
Suppose you buy a rental property for US$100,000. The current rental income stream is 1 percent a month. But, it’s also growing at 1 percent a month.
In month one, that’s a return of US$1,000.
Month two, that’s US$1,010 (US$1,000 plus 1 percent.)
Month three, that’s US$1,020.10 (US$1,010 plus 1 percent), and so on.
And of course, in the right market or, if you choose the right property, that 1 percent per month can even increase.
Step 3: Watch value rise
The value of the asset is directly tied to the income. And every time the income goes up 1 percent its value goes up 1 percent too. Over time, that means the value of your asset is rising steadily on top of the income. This compounding happens in exactly the same way as that of the rental income.
Since our buying moment in Ireland in 2011, values of opportunities like this have close on trebled and rents have more than doubled in less than four years. (Based on multi-unit apartments bought at fire sales back then.) Thanks to today’s buying moment in Brazil we can buy at a yield of 1 percent per month.
We can buy cheap thanks to Brazil’s psychological crisis. Over time I expect yields to drift towards a more normal level of 0.7 percent per month. That means values rise by an additional US$79,120.
Step 4: Reinvest your income
You take the rental income and you do the same thing again – lock down a similar asset that will generate a healthy income every month. Rinse and repeat and you’re on the fast track to major profits.
Editor’s note: Ronan says you don’t need to be rich and well connected to make tens of thousands of dollars in real estate overseas.
But you DO need to know how to spot the right opportunities. In his book, Profit Principle: An Insider’s Guide to Doubling Your Money in Real Estate Overseas, Ronan reveals the strategies and techniques he personally uses when investing with his own money.
And right now, you can request a FREE copy of Ronan’s book. Get all the details right here.