Introduction: Why Cross-Border Investment Can Go Wrong
There’s a reason Latin American investors continue to look north: the U.S. real estate market remains one of the most stable and opportunity-rich destinations for global capital. From Miami condos to Texas multifamily deals, the spectrum of investment options is broad. But that doesn’t make it simple.
At Infinity⁹, we’ve seen investors across Latin America—from Quito to Bogotá to Santiago—lose money not because of a bad market, but because of bad strategy. Most of the risks aren't dramatic. They’re subtle, procedural, and entirely preventable. Here are the top five mistakes—and how to avoid them.
1. Buying in Their Comfort Zone Instead of Where the Data Leads
The mistake: Many first-time investors gravitate toward cities they already know: Miami, Orlando, New York, maybe Los Angeles. The thinking is simple—familiar equals safe. But familiarity is not the same as strategic.
Why it hurts: These markets are often overpriced, overly competitive, and saturated with speculative buyers. It’s difficult to find yields that justify the risk.
The better strategy: Work with data, not instincts. Institutional investors follow rent growth, population trends, and job creation—not beachfronts. At Infinity⁹, we help clients target overlooked metros with strong fundamentals and better risk-adjusted returns.
2. Using the Wrong Legal Structure
The mistake: Buying U.S. property in your personal name or through the wrong entity type.
Why it hurts: This can expose investors to U.S. estate taxes, lawsuits, and reporting headaches. We’ve seen heirs lose up to 40% of an inherited asset’s value simply due to poor structuring.
The better strategy: Invest through a properly structured LLC or foreign-owned entity, designed with your tax residency and estate goals in mind. We coordinate with legal and tax advisors to structure ownership vehicles that protect your capital—and your heirs.
3. Underestimating Tax Implications (Both U.S. and Home Country)
The mistake: Assuming taxes work the same way everywhere or trusting a local accountant unfamiliar with cross-border real estate.
Why it hurts: Missed filings, double taxation, or avoidable penalties. U.S. real estate generates multiple layers of taxes—income, capital gains, withholding—and each interacts differently with Latin American tax regimes.
The better strategy: Work with bilingual professionals who understand both jurisdictions. Infinity⁹ ensures that clients receive coordinated tax advice from advisors licensed in both the U.S. and the investor’s country of residence.
4. Relying on Brokers Instead of Investment Strategists
The mistake: Thinking that real estate brokers will guide your investment decisions.
Why it hurts: Brokers sell properties. They are transaction-driven, not strategy-driven. Too often, they push what’s available—not what’s optimal for your goals.
The better strategy: Treat U.S. real estate as an investment class, not a consumer product. Partner with professionals who evaluate deals based on cash flow, leverage, risk, and long-term growth—not just location and finishes.
At Infinity⁹, we act as fiduciaries, not salespeople. We source institutional-quality deals and guide you through capital allocation decisions—not just closings.
5. Not Thinking in Terms of a Capital Framework
The mistake: Buying opportunistically rather than building a portfolio with a clear strategy.
Why it hurts: Without a plan, it’s easy to over-concentrate in one type of asset, or chase returns without considering liquidity, taxes, or succession planning. It becomes hard to scale—and harder to exit intelligently.
The better strategy: Build a Capital Framework: a structured plan for how and why each dollar is invested. Infinity⁹’s investment philosophy centers on intentional portfolio design, with each acquisition serving a broader wealth-building purpose.
Conclusion: There Are No Bad Markets, Just Bad Strategies
Buying U.S. real estate from abroad can absolutely build generational wealth. But the road is full of traps for the unprepared. These five mistakes are all avoidable—but only if you approach the process with a clear strategy, the right team, and long-term thinking.
At Infinity⁹, we specialize in guiding Latin American investors through this process with intelligence, integrity, and deep cross-border experience. After all, your money doesn’t need a visa—but it does need a plan.
