E245: Diversifying Your Assets Overseas with Mike Cobb

<p>As an investor, you don’t want to put all your eggs in one basket because you just never know. And as you’re scouting for options – think international diversification!</p> <p>In this episode, Erik Cabral speaks with real estate investor Mike Cobb of ECI Development. Working in Central and Latin America for almost 30 years now, Mike shares some great insights into international diversification and some things you need to consider if this is something you’re interested in.</p> <p><strong>Here are some power takeaways from today’s conversation:</strong></p> <ul> <li>Why a lot of people don’t want to make decisions</li> <li>Why invest in Belize</li> <li>Why pick a good brand franchise (ex. Best Western, Marriott)</li> <li>How the cash flow works when you’re investing overseas</li> <li>Other options for international diversification</li> </ul> <p><strong>Episode Highlights:</strong></p> <p><strong>[23:57] Looking into Alternative Investment Opportunities</strong></p> <p>Today, Belize is in an arbitrage situation where it has become popular enough to start to get a lot of travelers, but it doesn’t have branded products yet. And Belize has mainstream tourists who are looking online for a brand. Mike saw this opportunity and that’s why he decided to dive into the hospitality market.</p> <p><strong>[34:51] Why Choose a Good Brand Franchise</strong></p> <p>Owning a brand franchise like Marriott and Best Western means the property is 100% yours. You have the title to it and you can use it as a residence and live in it if you want. One of the best things about these brands too is their worldwide reservation system where they deliver heads on beds.</p> <p><strong>[36:53] How Cash Flow Works in Overseas Investments</strong></p> <p>It's hard to make leverage work in Latin America. Mike recommends against financing as an investment. If it’s a lifestyle, say you're a retiree, and you want to move down then you can make a loan. But as a rental property, the best option is if you have properties in the U.S., you can pul