Beginning to end... How a rental apartment in Colombia yields 20%+

Below, you will see an actual real estate investment that was made two years ago. Not only will you see all of the pictures, from start to finish, but we’ll also share numbers with you. And, to show you how real it is, we’ll even share the actual rental listing so you can see what it rents for, how often it’s rented, and reviews from past tenants.

***Keep in mind that this is a large apartment, on the top floor of a building, in one of the best locations. There are MANY options that are priced significantly less in the same area.

First, we went house hunting. Well, actually it was apartment hunting, but we ended up purchasing a 3 bedroom, 3 bathroom penthouse apartment. The location is A+ (literally a block away from the nicest square of the city) and the surrounding area is rapidly improving with new construction.

After negotiating with the seller, we ended up paying just over $50,000 US dollars. However, we had some serious remodeling to do, as you’ll see from the below pictures:

Although it was clean, you can see that it was clearly dated and in need of a facelift.

In Latin America, most buildings are constructed with brick and/or concrete. Our apartment is no different, so it’s built like a bunker! This added to the challenge of remodeling, but ensures that everything is built to last.

But we didn’t just give it a facelift… we stripped it down to the bare bones. We literally replaced everything from the ceiling, to the plumbing, electrical, windows, appliances, and everything in between.

Lots of jack-hammering, debris removal, and heavy lifting went into this project.

As you can see from the above photos, we weren’t kidding about a full remodel. We even removed some walls and didn’t spare any expense, as we wanted to make sure the apartment was remodeled the “right” way. That included new plumbing, electrical, windows, air conditioning, appliances, finishes, and furnishings.

Take a look at what the final results look like:

As for the cost, we spent almost the same amount that we purchased the apartment for - just over $50,000. Keep in mind that this was the ‘all-in’ cost for the complete remodel. That means everything from the labor to the construction materials to the sheets on the beds.

Again, everything you see here is what was included in the final cost. Light fixtures, furniture, and even the utensils in the drawers were bought brand new and included in our remodel costs.

We even bought brand new kitchen appliances and a washer & dryer to complete the apartment.

Our total costs, which include the initial purchase and all renovations, come to a total of just under $110,000.

Remember, this is a 3 bedroom, 3 bathroom penthouse apartment in one of the nicest areas of Cali, and in walking distance of dozens of bars, restaurants, and other activities.

This spa, restaurant, and brewery are all less than a minute walk from the apartment.

Pretty nice, right?

This apartment yields real returns. With short term renters, yields can go well above 20%.

With long term renters, you’re looking at returns over 10%.

And guess what happens in a couple years when the outside world discovers this place?

Property prices are going to go up. And as property prices go up, rents will go up… which means our yield will go up as well.

Until that time comes, we’re still going to make great returns on this property.

And even if the property prices never go up, we’ll still get paid.

It’s an excellent investment!

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WHAT ARE THE REAL NUMBERS?

IN JANUARY OF 2019, WE RECEIVED A 2% MONTHLY YIELD.

We expect to be collecting a similar yield for the rest of the year, which should give us an annualized return of over 20%.

And that 20% return does NOT include the capital appreciation.

Furthermore, we’ve created an extremely diversified asset to add to our personal investing portfolio and we also get to enjoy it when ever we want!

If you want to see the actual listing, with reviews, the calendar of availability, and the nightly rate, look here. <— Can’t fake that!

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WHAT ABOUT THE “CURRENCY ARBITRAGE” OPPORTUNITY?

This is perhaps the most difficult part to understand, but also one of the most lucrative components of this investment.

Colombia uses their own currency called the ‘peso.’ Not the Mexican peso or the Chilean peso – the Colombian peso, also known as COP.

Since the 1990’s the Colombian peso has gone through quite an inflationary journey. Holding Colombian pesos over that time-frame would’ve been a disastrous investment. Obviously, the drug wars played a significant role on their economy, but there’s something else that has recently plagued the currency.

Commodities. Oil in particular.

Colombia, just like many other countries that rely heavily on commodities, has experienced inflation.

This is because commodity based countries rely on their exports to drive their economy.

When commodities are valued less in the global market, countries like Colombia experience a slow down internally.

However, the inverse is true for those holding currencies like the US dollar, pound sterling, or euro. Holding a stronger currency means you have more purchasing power in Colombia.

This is bad news for the Colombian economy, as their weak currency means it costs more to buy imported products.

The good news is if you’re holding a strong currency, everything in Colombia is on sale. Fire sale prices. Crazy, crazy cheap.

As a tourist, you can visit Colombia right now and have a European quality vacation for a fraction of the price. I don’t mean 25% less… I mean 75% less.

Imagine if you’re an investor.

Currently, there is real estate selling for less than the cost of construction. That means that it would cost more to buy the materials to build a new home than these homes are selling for.

Now, in the beginning of 2019, the exchange rate between the US dollar and the Colombian peso is near its best rate ever for those holding US dollars. That means that your money can stretch further than ever before because you have more purchasing power.

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WHAT IS THIS ALL ABOUT?

In June of 2017, a small group of adventurous individuals traveled to Cali, Colombia to explore hidden investment opportunities. On this trip, the private investing and social group called the Explorer Partnership was launched.

Since June of 2017, the Explorer Partnership (“E/P”) has traveled to over 10 different countries to explore unique investments, enjoy different cultures, and meet other adventurous and like-minded people from around the world.

The E/P has invested millions of dollars in private businesses, agriculture, and real estate. The goal of the group is to create lasting bonds with fellow adventurous investors, and of course, make lucrative investments throughout the world.

FOR 2019, WE ARE RETURNING TO CALI, COLOMBIA FROM MAY 31 THROUGH JUNE 2 AND WE WANT YOU TO BE OUR GUEST!

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WHAT ARE WE GOING TO DO IN CALI, COLOMBIA?

Similar to our last trip to Cali in 2017, we’re going to be looking at residential real estate that can be utilized for personal use or as an investment.

We’ll also be meeting with some of the most influential and powerful people of the city (and country) to understand what the best opportunities in Colombia are right now.

And, perhaps most importantly, you’ll be able to meet new people who share the same adventurous, curious, and driven desire to be successful.

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WHAT REAL ESTATE INVESTMENTS ARE AVAILABLE?

GROSSLY MIS-PRICED IS THE BEST WAY TO DESCRIBE IT.

That’s why we’ve already invested there. We see purchasing Colombian real estate as hitting several birds with one stone.

Here is why you need to understand how great this opportunity is:

1. CAPITAL APPRECIATION

Colombian real estate is dirt cheap right now, but people are catching on. In major cities over the past several years, prices have been increasing 7%-8% per year. We expect this to continue.

2. CURRENCY ARBITRAGE

This may be the best opportunity in the deal. If the Colombian peso returns back to its previous range, then your property will be valued 30% higher in US dollar terms. Of course, you’d only realize this profit if you sell your real estate after the currency moves. However, a 30% gain without you having to move a finger is very attractive.

3. YIELD

Let’s say that the Colombian peso stays at its current level and let’s say that property prices don’t appreciate. Apartments still yield well over 10%, so you’ll still be making money.

4. DIVERSIFICATION

This area is probably the most important and most difficult to quantify. We all know that diversifying your portfolio is important. Purchasing Colombian real estate is a perfect way to spread your assets out, while receiving a solid return. In addition, there are many opportunities to receive residency with a path to citizenship with certain investments.

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WHAT DOES THE SCHEDULE LOOK LIKE?

DAY 1 - MAY 31

Day one starts out in the evening with a gathering at an exclusive location where we’ll have catered food, drinks, and special guests.

You’ll get to meet everyone who has flown in from around the world, enjoy an excellent dinner, and get introduced to the people on the ground you’ll want to know.

After our gathering, you can go back to your hotel or go out and enjoy the incredible nightlife that Cali has to offer.

DAY 2 - JUNE 1

Day two starts in the morning with our real estate walking tour. We’ll be guided by expert locals who will tell us all about the area, how the real estate purchase process works, and they’ll show you actual properties that you can buy.

Around noon, lunch will be served at a top restaurant in Cali to recharge our batteries. After lunch, we’ll continue our real estate tour.

In the evening, we’ll convene at one of the best restaurants in town, that we’ll have all to ourselves. We’ll review the days sites and meet the insiders who will help you make your investment(s) possible.

DAY 3 - JUNE 2

Day three is an open schedule that will allow you to follow up on any real estate that you are specifically interested in. We’ll suggest several different places that you can meet for lunch and dinner to allow you to connect with the many incredible investors who will be traveling to Colombia from around the world.

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WHAT’S INCLUDED?

• Food and drinks at our welcoming dinner on the evening of May 31, along with special guests (very influential local Colombians that are excited to share their business ventures with us)
• Real estate tour on the morning of June 1
• Lunch at a top restaurant in the best part of Cali, Colombia
• Real estate tour continued in the afternoon
• Dinner and drinks at one of the best restaurants in all of Colombia
• In person introductions to the people on the ground who make these real estate investments possible
• Follow up information after the trip with all contact details you’ll need to invest in Colombia
• Introductions and presentations on how you can obtain a Colombian residency visa

WHERE WILL WE BE SPENDING TIME?

All of our activities will be in the El Peñón area of Cali, Colombia.

We recommend staying at the Dann Carlton Hotel or the Intercontinental. 

All of our activities will be in walking distance of those two hotels. 

There are also many other hotels within the area, as well as lots of AirBnB options, so you can choose whatever you'd like.

WHAT’S NOT INCLUDED?

You are responsible for getting to Cali, Colombia and booking your own accommodations (see above).

You will need to fly into Alfonso Bonilla Aragón International Airport, which is Cali’s main international airport. Currently there are direct flights from New York, Miami, For Lauderdale, Madrid, and dozens of Latin American cities. There are also connecting flights for anywhere in the world.

THINGS YOU SHOULD KNOW

• We already have dozens of people confirmed to attend from around the world. Many of these people will be arriving several days early and leaving several days after the event. If you would like to spend more time in Colombia, this is a great opportunity to explore the region with like-minded people who are eager to do the same.
• You do not need to be an accredited investor to buy real estate in Colombia.
• There is a broad price range for real estate. There are some apartments for sale for as little as $25,000 USD and then there are large mansions (more like personal country clubs!) that are over $1,000,000 USD. Depending on what you’re looking for, there is most likely something for you.
• We do not charge any fees or get any commissions on the investments you make. We simply facilitate the gathering and connect you with the right people. That’s it. No strings attached.
• We are not a financial publisher or affiliate marketing company. We are simply a traveling social group that likes to invest in exciting opportunities. That means that we put our money where our mouth is and don’t ‘sell you’ on anything that we aren’t personally doing ourselves.

If you'd like to join us, register here.

For obvious logistic reasons, we must limit the number of people who can come. (It's pretty tough leading a large group of people through residential real estate!) We already have well over 75% of our spaces accounted for.