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20 Jul
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This Guy Should Be Sacked

A developer I work with in Brazil wrote to me this week to say that several recent reservations he’s received from would-be American buyers have been cancelled after the buyers have spoken with their financial advisors.

Reasons these financial advisors have counseled their clients to pull out of purchases after having signed contracts include:

  • It’s “better” to invest in U.S. real estate…
  • It’s too risky to invest outside the United States…
  • It’s illegal.

I’d fire any financial advisor who told me it’s illegal to invest in real estate outside the United States. He’s either too stupid to have his job or he’s an outright liar trying to keep all your money under his control so he can earn more commissions.

The other two reasons could be explained by greed, as well. U.S. money managers will do or say anything they can to keep control of your assets.

In addition, most of them offer this kind of advice—it’s better to invest in U.S. property and it’s too risky to invest in non-U.S. property—out of simple inexperience. They just don’t know any better.

In fact, I’d agree that it can be better to invest in U.S. real estate under some circumstances. If your portfolio is 100% invested in non-U.S. assets, I’d suggest looking at U.S. markets. Remember, I’m all about options and would never let any border get in my way when shopping for investment opportunity.

I’m a global property investor. The United States is part of the globe.

However, in my experience, few people are so heavily invested beyond U.S. borders that they should seek balance by focusing on U.S. markets.

No, again, cautions about investing in foreign property markets are almost always based on narrow-mindedness and naiveté.

Of course, I’m preaching to the choir. You’ve already figured this out. Thus your quest for opportunities overseas.

Don’t let the simpleminded, the fearful, or the ignorant interfere or distract. Stay your course.

As when considering any investment, analyze an overseas property opportunity based on how it fits into your existing portfolio and how well it matches your risk profile… then act. It’s your money. Invest it to serve your purposes, not your advisor’s.

Lief Simon