Even in the United States, the process of finding and buying property, as well as securing a mortgage, is not an easy one. In Latin America, where real estate agents are often not officially licensed, countries use notaries instead of escrows, and mortgage rates can be staggeringly high, buying a property in Latin America can be much more difficult. Most Latin American countries lack an MLS (multiple listing service) so there is no central place to search for properties, no exclusivity for brokers, and prices for the same property can differ from broker to broker. It can be hard to know whether you are getting a straight deal when the process for researching properties and brokers is anything but transparent.
Even in countries such as Chile, which is one of the more developed real estate markets in the region, renting an apartment as a foreigner can be daunting. Local landlords usually require significant paperwork before signing a lease, including a cosigner, local employment documents, proof of local taxes, and other documents most foreigners do not have. Landlords may also require your monthly income to be triple or quadruple the monthly rent, meaning that renting many properties is out of reach even for well-paid locals.
In 2013, Vijay Kailas, a fellow Start-Up Chile entrepreneur and I started Andes Property to help foreigners buy, rent or invest in properties in Latin America to help provide more clarity into this market. In 2014, my fund, Magma Partners, made Adrian Fisher’s PropiedadFacil our first investment. Adrian has been involved in the real estate tech sector since 2012 in Argentina, Chile and now the US with PropertySimple, so we had significant experience in the real estate tech sector.
Because of a lack of information, low levels of competition in the Latin American real estate market and corruption in certain markets, potential property owners can take on risks when buying a property that they wouldn’t otherwise take on in the US, where we take many of our existing systems and platforms for granted.
Ever since I started writing here, I’ve done a year end post summarizing what I’ve done in the past year. These posts are mostly for me, so that I can look back and remember what I did, what I was thinking and what was important to me each year. Previous versions (2000s, 2009, 2010, 2011, 2012, 2013, 2014, 2015). Here’s what I did in 2016.
2016 followed on from 2015’s main two themes: focus and growth. In 2015, I started the process of eliminating distractions from Magma Partners and Andes Property and in 2016 I focused even more. I took Derek Sivers’ mantra of Hell Yeah! or No! that I started to implement at the end of 2015 to heart and said no to things that I wasn’t 100% excited about.
I not only implemented this framework for deciding to invest in new Magma portfolio companies, but also for speaking engagements, events, press opportunities, writing opportunities and more. Along the same lines, Tim Urban’s Your Life in Weeks helped me revalidate that time is my most precious resource. Thanks Derek and Tim.
I spent ~5 months in Chile, ~1 in other Latin American countries and the rest in the US. 6 months is the most I’ve spent in the US since 2010. It was good to be back more than a few months per year and I really enjoyed getting back to doing more business in the US. It was also great to see my family and friends more than I have for the past few years. My Mom finished a book project she’d been working on for multiple years and I was happy to be able to help her get it designed, edited and printed. (more…)
Ever since I started writing here, I’ve done a year end post summarizing what I’ve done in the past year. These posts are mostly for me, so that I can look back and remember what I did, what I was thinking and what was important to me each year. Previous versions (2000s, 2009, 2010, 2011, 2012, 2013, 2014). Here’s what I did in 2015.
I rang in 2015 on a cold night in Wisconsin with friends and family, then went back to Chile to get back to summer. In 2015 I was in Chile for about 9 months, the least I’ve spent in Chile since 2011. It was an eventful year that took me to nine countries for work and fun. Looking back, I think 2015 can be distilled down to two main themes. Focus + Growth, and Reconnecting.