Boost Your Retirement Income With The Easiest Property Investment You Can Make
Last week, as we opened up registration for our 2020 Global Property Summit, I talked about how to approach a property purchase overseas… and how the head and heart both come into play.
But there’s one area that breaks this rule… where you don’t need to give much thought to how you feel about the country or area you’re buying into… whether you can speak the local language… how close you are to shopping… or who your new neighbors might be…
I’m talking about an agricultural investment… which is one of the easiest ways out there to generate a passive income today… and can provide you with cash flow for decades to come…
Why Is Agriculture Hot Right Now?
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.
At the same time, wealthier countries are developing more sophisticated and healthier demands, such as organic varieties of produce…
It all adds up to double-digit returns.
The only question is: How best can the individual investor position him- or herself to profit from the exploding opportunity?
Here are three secrets to individual investor success in this sector:
- First, invest turn-key. 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 turn-key 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…
How can you get started in these hands-off farming opportunities? And what do you have to gain from them?
For example purposes, I’m going to quickly walk you through three types of agri-investment opportunities we’ve put readers onto recently. (At time of writing, the first two still have limited inventory available. The last one is sold out, but the developer will be launching a similar project soon.)
#1: 21st-Century Hydroponics Greenhouse
Hydroponics is a highly productive method of growing produce without using soil.
This is the most efficient, organized, and flexible agri-investment you’ll find anywhere…
What’s more, this method uses less than 1/10th the water of traditional farming, and, thanks to no chemical pesticides and fertilizers, it’s easy to keep the production organic.
And, again, it requires no arable land. Instead, as an investor, you own the greenhouse and let someone else manage its production and maintenance for you. It’s completely turn-key.
Another big benefit for the investor is that it begins producing cash flow quickly… you’ll see your first pay-out within less than two years.
The developer we’ve identified is focused right now on the production of tomatoes.
Demand is very strong; not just among his current buyers who specifically asked for this produce, but the developer has also just signed a contract to supply his tomatoes to the largest vegetable distributor in the region.
The IRR is projected at 16.5%. You can expect a pay-out of US$9,313 by year 2… rising every year… to give you a projected total of US$193,000 over 20 years.
The current purchase price is US$49,500.
#2: Black Périgord Truffles In Spain
First, you should know that these truffles are not made of chocolate.
The profitable variety are actually fungi that grow underground, beneath large trees like oak or beech.
This variety as an investment also projects net returns of US$296,000 from an initial capital outlay of just US$31,000.
Truffle shavings, flakes, oils, etc., are added to foods to add a distinct flavor… one so unique and tasty that they are known as the “black diamond” of the culinary world.
Due to their popularity and demand, truffles are the most expensive food in the world. The best specimens are auctioned at Sotheby’s and chefs even lock their precious truffles in safes. No kidding.
Truffles grow underground alongside tree roots. Of course, you can’t just plant trees in the ground and expect to find truffles growing on the roots. You need specific trees for specific truffles… and you need the spores.
Truffles require a network of spores before they’ll start producing in volume. That’s where the science comes in. The plantation developer that we’ve found is working with a lab that has mapped the DNA of the truffles they grow. That knowledge allows the team to confirm that the truffles they are using to create the spores for mixing into the roots of the trees are, in fact, the truffle they want to grow.
To ensure the quality and purity of the plantations, the lab checks every truffle used in the spore inoculations that are down on the tree roots.
Despite renewed efforts aided by modern science, truffle production can’t keep up with demand. In fact, estimated demand is at 10 to 20 times (or more) than production for this black truffle.
In the first few years, cash flow is low, as the spores need time to multiply before large quantities of truffles get produced.
By year 10, however, annual cash flow is projected to be as much as US$9,000.
The developer usually requires a minimum purchase of 100 trees. But LIOS readers can get in with a purchase of just 50 trees at a cost of US$30,655.
#3: Organic-Certified Fruit Punch Mangos In Panama
This developer has a proven track record. Their research and design department is constantly working to provide optimal production. They’re growing products that are in growing global demand… in fact, everything they grow is in response to their clients’ requests.
Projected net profit after 30 years is US$417,000, but mango trees live up to 80 years…
Finally, very important, this development group—located right near the Panama Canal—has its route to market already in place. Crops currently being harvested are already in supermarkets, and the developers have commitments from major buyers from the United States and Europe for future harvests.
The entire plantation, and all produce grown within it, is certified as USDA Organic. This is a critical requirement for bringing the product to market in the United States.
Minimum investment is 1 hectare of Fruit Punch mangos for US$41,000.
At that price, the projected IRR (Internal Rate of Return, the annualized return over the lifetime of the investment) works out to 17%.
On this investment, you can expect a payout of US$4,920 on year 4, US$14,556 by year 10… rising further after that… to give you a projected total of US$417,000 over 30 years.
Again, inventory is gone on these organic mangos… but this developer is already working on the next big release. It will be a different fruit… but the setup will be similar.
You can hear more about these agricultural opportunities… and get the background on what’s driving growth in these markets… at our upcoming Global Property Summit, May 13–15, in Cancún, Mexico.
Over three days, in the company of Lief Simon and his team of global real estate experts, you’ll:
- Get to grips with the investing basics, covering the rules of the game for international property investing and due diligence… including any tax consequences or advantages.
- Discover 2020’s most-productive markets, in the Americas, Europe, and Asia.
- Sample today’s best actionable investment opportunities from around the world, including:
- Residential properties suitable for rental, or a retirement/second home.
- Properties positioned for a strong capital gain.
- Income-producing properties, and fundamentals of property management.
- Non-residential property investments.
- High-income agricultural investments.
As always, conference attendees qualify for special discounts that won’t make it to the general readership…
At time of writing, we have just a handful of our 40 complimentary VIP Packages left. Privileges include a VIP-only pre-conference session with Lief on his biggest real estate wins (and occasional failures)… reserved front-row seating… private consultations with our experts… and more.
Go here to read more details on our plans for Cancún… and to claim your VIP seat. Remember to enter your exclusive Coupon Code GPSCONF50 to save an extra US$50 on your place.
Kathleen Peddicord
