Real Estate Overseas For Cash Flow
Total world population is projected to reach 9 billion by 2050.
That’s a lot of mouths to feed, and the U.S. Department of Agriculture figures that the world will need to double current production rates to meet the demand.
It doesn’t take rocket-scientist thinking to connect the dots between that reality and the current opportunity to invest in agriculture. Productive land is the world’s traditional depository of wealth, but it’s never been as solid a play as it is today.
At this week’s Global Property Summit, special guest speakers, experts in investing in productive land, are putting the opportunity into perspective.
Agriculture is a no-brainer right now. The only question is: How best can the individual investor position him- or herself to profit from the exploding opportunity?
The experts in the room with us here in Panama City have identified three secrets to individual investor success in this context:
- First, invest turnkey. Unless you’re prepared to go really big and to become an expert farmer, you should invest with a group that will handle all aspects of production for you, simply sending you your share of profits from each harvest…
- Second, focus on turnkey opportunities where you take title to the land. You want to own the fundamental asset…
- Third, specialize. You aren’t going to get far investing at a commodity level. Go into a highly specialized crop…
The most interesting specialty crop right now is organics.
“The demand for organics is exploding,” agriculture investment expert James Archer told the group today. “It’s all market driven, and the demand is only going to continue to grow. People are more aware of what they’re eating and more educated about food than ever before. Costs have been steadily climbing for years. Prices keep moving up and up, but the demand continues to expand at a greater rate. Frankly, those of us in the industry just don’t see any end in sight.
“Whole Foods is building a new store each week across the United States and has launched their new 365 franchise with the stated mission of ‘making fresh healthy foods available to more people in an affordable way 365 days a year.’
“When a Whole Foods opens, all nearby supermarkets add an organic section, too. Wal-Mart and Costco have gotten into organics, too. These are game-changing developments for this industry,” James explained.
The general discussion on why agriculture, specifically organic agriculture, is the investment opportunity of our age was followed today by three specific recommendations for turnkey investments ideal for the individual investor. You can take a position with as little as US$38,500.
Cash flow is a focus this week… cash flow from agriculture but also from rental investments. Our opening session panel discussion this morning, “Four Secrets To A Successful Rental Investment Overseas,” identified not only the four keys to making money from a rental property in a foreign country… but also targeted the top six markets for making this kind of investment right now.
As I write, I’m enjoying Rachel Jensen’s presentation on a game-changing resort beach rental opportunity on Ambergris Caye, Belize (that could earn you as much as 12% per year).
Before Rachel, Jeff Matthews showcased a leaseback rental in Scotland that means ownership of the Scottish castle where Queen Victoria honeymooned.
Still to come this afternoon are Rich Holman on turnkey rental opportunities in Medellín, Colombia… and Jim Hardesty on rentals on Mexico’s Yucatán coast.
Tomorrow I’ll share details of Lief Simon’s ideal property investment portfolio.
Kathleen Peddicord
