When you think of income opportunities from international real estate, you probably think of two types of deals:

1. In a condo hotel like this one in Mexico, you get a fixed rent from the resort operator. You do nothing…except keep an eye out for your rent check to arrive.

2. Short- and long-term rental opportunities in a market like Fortaleza in Brazil. Here, there is a shortage of rentals. I expect this shortage will get worse.

These are just two strong income opportunities we heard about at the International Real Estate Investment Forum in Toronto. Both opportunities offer the prospect of capital appreciation, too.

There are other ways to generate income from real estate. Some of these deals were so exciting, I devoted an entire section of our two-day schedule in Toronto to discuss them. Here are some of the highlights:

Income Play #1: How about a 13% to 15% annual return on your money for 20 years? We heard from Colin about how you can do this…

Germany and The European Union have aggressive targets on increasing the percentage of energy generated from renewable sources. Germany’s target is that 20% of its energy should come from renewable sources by the end of this year.

To deliver, they need to offer pretty dramatic subsidies. They are doing this mostly on the demand side. The German government will guarantee to pay you a fixed price for solar energy you generate for the next 20 years. You have a guaranteed price and market.

The whole process is capital intensive. These solar panels are expensive. Colin has teamed up with a bank that offers 90% financing of all your capital outlay. Interest rates are low…again with government support.

Of course, your solar panels need to catch the sunlight for this to work. Colin’s contacts on the ground in Germany will secure the lease of the roofs of industrial properties. Partners on the ground will also be responsible for all maintenance and management for the duration of the 20-year lease.

We recorded the entire Forum, including Colin’s energy income presentation.

Income Play #2: Across the globe, the demand for food is on the rise. To produce a kilogram of beef, farmers need seven kilograms of feed (corn is commonly used). Increased demand for meat means much higher demand for the inputs such as corn.

This trend is happening at a time when supply is coming under intense pressure. Australia, one of the world’s largest exporters of wheat, is experiencing the most prolonged drought in more than 100 years. In the U.S., 20-million acres of land—formerly used to produce maize, wheat, soya, and other crops for food and animal feed—have been diverted to produce crops for heavily subsidized biofuels.

The demand for food isn’t going away…we all have to eat. Today, there are more mouths to feed than at any time in the history of our planet, and the middle class in Asia and South America continue to grow and demand more food.

Brazil’s high plains, the cerrados, cover 500 million acres. The United States Department of Agriculture has estimated that 400 million acres of this could be opened for crop production. The area yet to be opened for agricultural production is 25% larger than the total crop acreage of the U.S.

We heard from Chris on an easy way you can profit. This presentation is part of the recordings, too.

Income Play #3: Burma is the last country on earth with an abundant natural supply of this resource. Not the type of place you can, or want to do business though. Roll up Robert with a solid and ecologically friendly way to profit from the world’s emerging teak shortage.

I spend up to half my time traveling and scouting real estate opportunities. My most enjoyable work day was on Robert’s plantation in Panama’s southern province of Darien. The place feels like a 3D movie…beautiful but hard to believe it’s real. I saw stunningly colorful butterflies…and dramatic nature as an eagle swooped and grabbed a young monkey.

That’s not the point though. This is a beautiful but also productive place. This is a primo place to grow valuable hardwoods. As for the yields and income you can get…impressive! Get the full story when you listen to this presentation from the International Real Estate Investment Forum recordings.

Next year is going to be the most exciting one real estate investors have seen in a decade. I’ve got my eye on four spots, in particular—diverse opportunities around the globe, each of which represents an excellent value play.

1.) In Brazil, I’ll show you a way to capitalize on that nation’s continuing boom, particularly along the North-East coast.

That region boasts some of the world’s most glorious beaches. With big infrastructure projects on the horizon, it’s an area where the already-increasing property prices are going to spike in the months to come.

2.) In Europe, projects and banks are in deep distress. That has created pockets of opportunity where you can buy quality cash-flow property for 50 cents on the dollar in prime European cities.

3.) In Costa Rica’s southern zone, a new coastal highway is set to open in 2010 and an airport is on its way.

With improved accessibility, property prices here will increase, just as they have elsewhere in the country when better roads have gone in.

4.) And in safe, stable, cultured Uruguay, there is an undiscovered stretch of coast big international developers have just begun to snatch up.

Rich Argentines have been coming here for generations—but keeping the secret to themselves. The best beaches and seaside towns in Uruguay are here. And now’s the right time to stake a claim.

These are the four markets I’ll be keeping the closest eye on in 2010.

As you know I am bullish on the real estate market in Fortaleza, Brazil. Fortaleza was Brazil’s #1 domestic tourism destination last year. Visitor numbers were up by 16% in the early part of this year. There is a hotel and short-term rental shortage. Soccer’s world cup is coming in 2014. Over $5 billion will be spent on infrastructure and tourism upgrade in the lead up to the tournament. Best of all there is a limited supply of developable land in the prime boardwalk area.

The type of real estate I recommended to members of Real Estate Trend Alert (and bought myself) have been pre-construction deals in these prime areas. We got in with preferential terms such as a 1% down payment with monthly stage payments of 1%.

Real estate in Brazil is priced and sold in the local currency—reais. Buying a condo for BRL 190,000 involves a down payment of BRL 1,900. You then make monthly payments of BRL 1,900. Today BRL 1,900 is $1,060. Who knows how many dollars the payment of BRL 1,900 will be next month?

Locking in today’s exchange rate would seem like a sensible option to make sure you know what your cash flow will be. Here’s a way you can do this:

Move your U.S. dollars or other currency into a Brazilian real (BRL) CD and you will lock-in today’s exchange rate while earning 5% interest on the BRL deposit.

Some members of Real Estate Trend Alert do this. I wrote to them about this early this year. This is an e-mail I recently received from a member:

“I hedge the Brazilian currency through a Brazilian Real CD account. I did that for the Beach Class project….Had I not done that, I would have lost nearly $18,000 just in the first few months! Instead, I hedged the currency so it has not cost me anything above what I budgeted, and the property has appreciated $18,000 and I have earned about 7% on my money!”

The real isn’t forward traded. You can’t hedge using a forward contract. That’s why a BRL CD is the best way to lock in today’s exchange rate, fix your monthly payments in $ terms and see your real deposit accumulate interest.

This June, Fortaleza, on Brazil’s northeastern coast, was named as a host city for the 2014 soccer World Cup. In 2013, Fortaleza will host the Confederations Cup. Property investors should pay attention—this is a fantastic opportunity to profit.

The build up to 2014 will see dramatic infrastructure upgrades in Fortaleza, as well as a tourism boom and global exposure. The government is investing 9.8 billion reais ($5.5 billion) and infrastructure projects there will get 63% of this spend. I’ve just returned from my eighth scouting trip to Fortaleza in 16 months. I was there to figure out how we can profit.

In Fortaleza, I found a market that is already benefiting from the World Cup effect. The two five-star hotels (the Gran Marquise and Hotel Luzeiros—both located on the boardwalk) were full…and this is the low tourist season. Demand for high-end accommodation has already been growing for the past 18 months. Companies involved in or pitching for projects associated with the World Cup arrive in town weekly.

Foreign investors looking to profit are increasing. Mostly from northern Europe, these guys have seen this trend before. Property prices in South Africa rose by 35% in 2005, with the country’s hosting of the 2010 World Cup a major factor.

There’s a buzz of excitement in the air. R850 million ($480 million) will be spent on tourism projects: gentrification of urban areas and installing attractions like the state aquarium. And a large sum will also go toward things you’d expect: improved Internet access, new equipment for the hospitals, and so on.

The governor has released a list of projects that will be delivered. Many of these will start immediately. This represents an immediate injection into the local economy, and will fuel demand for short-term rentals in the city. Specialist skills will need to be brought in from outside Fortaleza, and these people will need somewhere to stay.

The Fortaleza area is going to see a major upgrade in road (there will be a new ring road), rail (Fortaleza is getting a metro system), bridge, port, and airport infrastructure. This will make certain areas more accessible and desirable, and will drive up real estate prices in these areas.

Many of the projects on the governor’s list could create an opportunity for you to profit.

Many of you are fearful about the medium term prospects for the dollar. This is one of the reasons investing in real estate in Brazil is so attractive. Real estate here is denominated in the Brazilian currency—the real. Brazil has energy, food, manufacturing, water and a young middle class population. Exactly what an emerging economy needs.

The real/dollar exchange rate has fluctuated wildly in the past couple of years. Exchange rate fluctuations have a direct impact on your investment.

The units I have recommended and have purchased myself will be perfect for short-term rental. They will generate real-denominated income. I like the idea of a future real-denominated income stream.

Today, we need to consider how we mange payments during the construction period. To remind you: A typical condo purchase in Brazil involves monthly payments of 1% during a three-year build period. Once you take possession of your unit you typically have the option (although this can vary from deal to deal) to continue to pay 1% per month plus interest on the outstanding balance.

What options do we have that will hedge this exchange rate exposure? Let’s assume the unit you are buying costs 200,000 reais ($106,000 at today’s exchange rate).

The real isn’t forward traded so you can’t hedge using a standard forward contract. We need to be more creative.

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