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  • #141560

    Nil
    Member

    Options for Money Transfer from US for Buying Real Estate with no bank Account in Brazil: I am intending to buy a property in Rio(posted in details in Property section) for which I have to wire money to sellers account in Riosince I don’t have bank account. Based on research here on the board (thanks to Dunga, Bubbles, Sven, Moving Soon and many more folks who posted before related to this subject) and talking with some of the friends, I arrived at the following conclusions: 1st: The money sent to sellers account must be registered with Banco Central does Brasil within 30 days so that it will be recorded and it will be necessary when you decide to repatriate money out of Brazilat some time in future. 2nd: While wiring money from USA, in the wiring form, fill out the followings:Bank name, Associate information, account number, branch location, Sellers Name, and wire information (this is where you would put purchase of real estate and initial agreement number). For ABAor Swift number that’s where the agency number needs to be recorded. I got a sample of Bank of America- Funds transfer Request and Authorization form. Options for using financial institutions and private agencies:

    1st: Since I have bank accounts in BOA, CITI, and HSBC in USA. I am still exploring the best ones.With these banks, the exchange rate is not very good and they charge some transfer fees. The receiving banks will charge some fees irrespective of which banks you use in USA.The advantage is they register your money with Banco Central do Brasil? Conflicting reports. But either way you have option in Rioto register your money within 30 days. 2nd: Some specialized money transfer companies: a. Transfast (http://www.transfast.com– New York16 West 46th StreetNew York, NY, 10036Tel: (212) 382-2828). Still to call them but based on feed back good exchange rate and possibility of registering your money with Banco Central do Brasil. b. Cambio Real (Cambioreal.com – CambioReal Incorporated1043 Christina Mill DriveNewark, DE19711Tel 1-302-250-4098) – Did not call yet? But similar to the above. c. Money Gram (company based in Britain) – One of the members on the forum works for that company and he/she sent me some detailed information about the company. Very prompt in responses. They also offer some help in opening a bank account for non-residents. Not suitable for me at this juncture. But advantage is they tell you exchange rate upfront and register with Central Bank. May be good option for folks from Britain-not sure about myself since I have to wire money to Britainfirst and then they will send the money to Brazil. May be it is not big deal ‚Äì just need to do my research more. d. LCCT- Another company based in Britain. I don’t think that they service US customers ‚Äìbut not sure. e. Some general money transfer companies based in malls in US (member Moving Soon- used them in the past) – I could not explore more about that.

    Personally I am leaning towards one of the above transfer companies instead of banks just because of better exchange and less fees but need to explore more about their process of registering with central bank and I will post my experience in the future. I still have some time at hand in making decision about this.

    Lots of information is in the past posts but if some one has the information on more transfer companies or some of the facts, I missed, please chime in since I never wired money to Brazilmyself. Gosteelers2010-03-01 04:15:16

  • #141583

    1st:The money sent to sellers account must be registered with BancoCentral does Brasil within 30 days so that it will be recorded and itwill be necessary when you decide to repatriate money out of Brazilat some time in future.
    Correct, the investment capital should be registered with the Banco Central.
    2nd: While wiring money from USA, in the wiring form, fill out the followings:Bankname, Associate information, account number, branch location, SellersName, and wire information (this is where you would put purchase ofreal estate and initial agreement number). For ABAor Swift number that’s where the agency number needs to be recorded. Igot a sample of Bank of America- Funds transfer Request andAuthorization form.
    The receiving bank would give the seller a lot of grief requesting all the transaction related documentation and contracts as well as documents about the origin of the funds.
    Options for using financial institutions and private agencies:

    1st: Since I have bank accounts in BOA, CITI, and HSBC in USA. I am still exploring the best ones.Withthese banks, the exchange rate is not very good and they charge sometransfer fees. The receiving banks will charge some fees irrespectiveof which banks you use in USA.The advantage is they register your money with Banco Central do Brasil? Conflicting reports. But either way you have option in Rioto register your money within 30 days.


    There are no best ones, they are all horrible. Be prepared for some pain and frustration. Of course, miracles do happen and things can go through smoothly and quickly, but it would indeed be a miracle.

    2nd: Some specialized money transfer companies:
    a. Transfast (http://www.transfast.com– New York16 West 46th StreetNew York, NY,10036Tel: (212) 382-2828). Still to call them but based on feed backgood exchange rate and possibility of registering your money withBanco Central do Brasil.
    b. Cambio Real (Cambioreal.com – CambioReal Incorporated1043 Christina Mill DriveNewark, DE19711Tel 1-302-250-4098) – Did not call yet? But similar to the above.
    c. Money Gram (company based in Britain)- One of the members on the forum works for that company and he/shesent me some detailed information about the company. Very prompt inresponses. They also offer some help in opening a bank account fornon-residents. Not suitable for me at this juncture. But advantage isthey tell you exchange rate upfront and register with Central Bank. Maybe good option for folks from Britain-not sure about myself since I have to wire money to Britainfirst and then they will send the money to Brazil. May be it is not big deal – just need to do my research more.
    Don’t get your hopes high about setting up a non-resident bank account. It is hard and banks hate it just a little bit less then providing efficient services to their customers.
    d. LCCT- Another company based in Britain. I don’t think that they service US customers ‚Äìbut not sure.
    More of the same.
    e. Somegeneral money transfer companies based in malls in US (member MovingSoon- used them in the past) – I could not explore more about that.
    Sender beware.

    Personally I am leaning towards one of the above transfer companies insteadof banks just because of better exchange and less fees but need toexplore more about their process of registering with central bank and Iwill post my experience in the future. I still have some time at handin making decision about this.

    These agencies can be legal outside of Brasil, but not in Brazil. Make sure that they lay out the complete picture for you about the way the fund transfer is conducted. You do not want to get inadvertently involved in one of the many money-laundering schemas.

    Lots of information is in the past posts but if some one has the information on more transfer companies or some of the facts, I missed, please chime in since I never wired money to Brazilmyself.

    Have you looked into setting up a Real Estate investment Fund in Brazil to manage your investments and operations?

  • #141584

    See p.m box.

  • #141642

    Nil
    Member

    Boris! Thanks again…Regarding “real estate investment fund to manage investments and operations”….I heard about it in the past but did not give any thought about it. I don’t know the pros and cons of it. Either we can discuss it when we meet or if you think that it will benefit other members of the board as well ..you can give some details here. Also does it need to be set up before you buy the property? Also keep in mind .I am still on tourist visa .. BR metonymy: Sent you a pm as well and thanks for the referal but it might not work in my case right now since my requirement is much more than their maximum limit and I don’t want to do it in parts. But I am keeping that info in my file for my future requirements…

  • #141644

    You are very welcome… again. I would prefer that we deal with issues that are not confidential on this forum.
    FIP (Fundo de Investimento Imobiliario) is a relativly new financial structure in Brazil. The main pros are:
    Ease and speed of setting up a fund.
    Legal status of investor is irrelevant
    Ease of moving capital in and out of Brazil
    Strong supportive legislation and transperency
    Tax benefits (under certain conditions the tax rate on profit distribution to shareholders can be 0%).
    Flexibility in terms of applying investments
    Liquidity
    Up to 33% of the capital can be invested in non-real estate related financial instruments.
    Cons:
    Cost of setting up a FIP is arount R$100,000
    You will need at least three non-majority (less then 40%) foreign members to be able to cut your income tax to 0, there are also limitations of benefitial tax rates on off-shore originated capital.
    Annual Administrative costs run at around 1%
    Actually, it is possible to invest in the already existing FIPs. Conservative rate of return there is around 14%-16% per year. Unlike its US counterparts, Brazilian Real Estate Investment Funds are dead serios about collateral, deal with investments on project by project basis, and are very closely regulated.

  • #141743

    Jeanne
    Member

    Does anyone know how much Banco do Brasil and other banks in Brasil pay for money market accounts, as far as interest goes?
    1% 2% etc???????

  • #141744

    Jeanne
    Member

    Also, how much is a new honda civic in Brasil, ??????
    any one knows? brasilians seem to be fixated in new cars….Brasil is the only country in the world that gives importance to new cars.
    No other country on earth thinks that cars are symbols of status…..only brasilians are frivolous with cars and keep on buying new cars.

  • #16338

    Nil
    Member
  • #277249

    lianeliane
    Member

    Doesn’t transfast have $10,000.00 for sending limit? That must be enough for the whole payment, I would probably send money to Brazilin smaller amounts.

  • #277256

    Anonymous

    [QUOTE=salamandra]Also, how much is a new honda civic in Brasil, ??????
    any one knows? brasilians seem to be fixated in new cars….Brasil is the only country in the world that gives importance to new cars.
    No other country on earth thinks that cars are symbols of status…..only brasilians are frivolous with cars and keep on buying new cars.
    [/QUOTE]

    This statement is palpable nonsense.

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