#864 – The Expat Files: Bureaucracy, Business, and Bitcoin

Automatically transcribed from the original recording; names and wording may contain errors.

[00:00] South of the border down Mexico way That's where I fell in love when the stars above came out to play and now as I wonder Hello there all you ex-pat wannabes. I'm Johnny Mueller and you're listening to the expat files living in Latin America The show that tells you just what it's like to live work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great And it's all right here. So let's get started. All right. How about this email from Stu? He says dear Johnny. You're so right Everywhere you turn you see golden opportunities for business in Latin America in the strangest places even Perfect example the other day I was at the American Consulate the American Embassy in Panama

[00:49] I had to get a certified copy of my passport and stop at the Social Security desk and pick up some forms and paperwork Oh, and it's worth pointing out Johnny when you go to a US Embassy or Consulate There'll be a Social Security office right in there So if you're an old-timer like me and you have some kind of problem or issue with Social Security You can actually talk to someone face to face at the US Embassy Instead of sending emails to the Social Security Division that won't get answered for two weeks even more or God forbid trying to call and get put on hold for 40 minutes at a crack I can attest to that both of those things have happened to me So there I was at the US Embassy in Panama City Having to go through three different pat-downs scanners and checkpoints even having to take off my cubs baseball hat as if that's where

[01:36] I had a mini nuke or a hidden glob of c4 or something. Nope They certainly don't treat you as a welcome guest in your own embassy. That's for sure Oh and this I forgot to tell you even being American I had to get an appointment online in order to walk into my own embassy Though I understand it's a quick access line that'll let you in for an emergency if you got your passport stolen or something But it has to be a dire emergency Nevertheless, I had to go online. It took a week and a half to get into the next available slot Johnny somehow that doesn't seem right. I know a real old-timers been living in Panama a long time He's around 88. He's never used a computer. How's he ever gonna get an appointment at the embassy? I suppose this is a good time to tell you what it used to be like three or four years ago

[02:23] You just go down to the consulate go into the line with the sign that said US citizens Show the guy at the booth your passport and they let you right in There were never more than two or three people in that line you get in right away Yes, you get the third degree and a pat on but you were in the building immediately Why did they have to screw with a system that was working just fine? But you know the government's motto if it ain't broke Let's create a department to see why and then tweak it until it's out of whack like everything else What I'm saying is Johnny last time I was there a few years ago. The system worked well for Americans. No appointment necessary However outside the building there was another line about a block long Just jam-packed with local Latinas and Latinos all of them as you may have guessed

[03:10] Looking to get a legal visa to get into the states But that was then these days even us US citizens have to wait a week and a half To see a real face in our own embassy other than that outside the building. There's still a line about a block long Just chock full of Latinos and Latinas Probably the same ones I saw online a few years ago. Don't laugh. It could be true I've been in Panama long enough to know the ins and outs of manana time Even so nothing surprises me when it comes to our US Embassy every time I go to the place Thankfully, that's only every couple years. It's bigger. The place is expanded There's more bureaucracy more surveillance stuff more everything But then since when does anything in government get smaller and more streamlined that reminds me of a quote from zero hedge

[03:59] It goes like this There's no problem so small that a government won't step in to create a commission committee department or program To overly complicate whatever part of the system that worked or had some value Yes, I like that quote except lots of people are too young to know how the system worked before when it was much less complicated They think what they see today is the norm. So they go along with the program Sorry, Johnny. I digress So when I walked up to the main gate the first embassy guard pointed to a sign that said in English and Spanish No phones, no cameras, no computers, no laptops and of course guns and knives. There are no electronic devices of any kind I had a handful of that stuff. So I looked at the garden said what do I do with it? You have a locker or something each drug and said nope. Sorry

[04:48] ever so helpful those government slugs So I walked four blocks back to the parking lot and put the stuff in my car and that Johnny is what brings me To a great gringo business idea since there are hundreds of people a day going in and out of those embassy doors And everyone's got some kind of device or other they won't let Jan with why not rent a tiny little commercial space They're all over the place, especially around embassies where there's lots of foot traffic They're always located in a business or commercial district Then you rent a place a little hole in the wall dress it up make it look nice Accent the red white and blue ten by ten a hundred square foot would probably be fine Put in some of those cheap keypad lockers they have in grocery stores, you know Put your bag in there press a four-digit number come back when you're done shopping press that number again and you're out

[05:36] Or you could go fancy and buy some of those locker cabinets They have in airports and bus stations bottom line for one or two thousand bucks You could have a very nice little business there Just one attendant and a couple of cameras you're set and you would never have to be there and about the name Well, you'd want to tie in the US and the embassy thing So maybe you'd want to call it embassy or American embassy storage and maybe you have an American Eagle or George Washington's head Painted outside on the front as your logo then put the word out with the embassy guards Make up some little flyers have a kid hand them out to the people mulling around in the hundreds in line, Johnny It's a no-brainer and it would certainly solve a lot of problems Every gringo expat I know and even the locals would use a service like that

[06:22] The fact that the embassy doesn't allow phones iPads computers cameras anything electronic That's a niche that should be looked at as a business opportunity Why hasn't someone else thought of that before? Who knows but they haven't or there'd be one and everyone would know about it and Johnny I don't think it's just me but not a week goes by where I don't see some kind of business Opportunity jump right out in front of me. I'm no whiz kid or creative genius either It's just that the more you get around the more niches you see that need to be filled One last thing Johnny The reason why I went to the Social Security desk at the embassy is because though I get my monthly checks direct Deposited to my bank in Panama and they usually come like clockwork on the third of every month

[07:09] Well, it just so happened a big problem came up suddenly last month on May 3rd No deposit. That's the first time that ever happened I tried calling sent a few emails and got nothing but a computer-generated email that said we've received your email Your request is being processed. In the meantime I spoke with some other expats who are getting Social Security and here's what I discovered Usually once a year you don't know exactly when the Social Security Administration will send a letter a snail mail letter to your given address It'll be a form letter with the usual government claptrap along with a questionnaire Asking things like has your marital status changed has your employment status changed have any kids left home in the past year Do we have the correct phone and mailing address things like that?

[07:57] Then you're supposed to send it back by snail mail or scan it to them and send it to them as an attachment to an email But the real purpose for that questionnaire is to find out if you're dead or alive Because I found out if you don't turn that thing in within two months, they'll stop your direct deposit So in my case because I never got the latest one, so I couldn't fill it out and send it back They thought I was dead. The problem is and don't tell me Social Security and embassy people don't know this The mail service the snail mail service in many parts of Latin America is absolute crap Especially if you live in a single-family house in a neighborhood or out in the boonies However, if you live in an apartment complex or residential tower or in a nice neighborhood in a big city You'll almost always get your mail. That is most of it

[08:42] Anyway, though it could come weeks late as you can imagine that one critical piece of mail that comes every year You better get it because if you don't get it don't reply on time They'll cut you off And that's why johnny. It's a good idea as i've heard you say in previous shows To have your lawyer let you use his office as a mailing address At least for the social security administration and other important bits of mail though here They do have services like mailboxes, etc Some agencies and organizations mail or parcels to a p.o box So if you're living in latin america and your mail sucks or is even a bit iffy It's a good idea to make a deal with your lawyer to use his address for at least some stuff Then he says as for me johnny, I learned my lesson and i'm in the process of working on that right now

[09:32] However, there's good news and bad news. The good news is after wasting a lot of time and effort I've straightened it all out. They reissued my may deposit and everything's okay And the bad news well i'm not dead. So it's bad news for the government. They have to keep paying out All right, then stew says though. I must say for all the bs. I got a really cool business idea out of it That's the way it goes one thing leads to another Signed stewart from panama. All right, there you have it another situationally inspired business idea kind of spawned out of adversity That's how a lot of these business ideas take root And here's the thing a lot of these business ideas like stews will only set you back a couple of grand So if it doesn't work out, it's not the end of the world

[10:19] Meanwhile, if you're looking to start any kind of business in the states, you've got permits multiple inspections strict bathroom access and parking ordinances Big-time rents heating air conditioning bills. You've got strict labor laws to follow You'll need a lawyer account multiple insurance policies The fact is I can't think of a single business even a tiny business like a small food truck Even a hot dog stand that won't set you back at least 25 grand to get started But that's life up in the states Speaking of red tape and permits and doing business or trying to do business in the states. Listen to this This comes from phil in virginia. He says johnny I've been listening with great interest to those bits and pieces you've been dribbling out about solar power and how to set up your own system

[11:04] I'm a do-it-yourself guy myself Who actually just about a year and a half ago set up my own solar system in virginia I started with the idea about three years ago, but it took a year and a half to get it off the ground Works great and when all was said and done it offsets my electric bill about 1500 bucks a year Total initial cost for my system was around 17 000 bucks Then I got a 4900 tax solar credit slash rebate Total cost around 12 grand and my system johnny's a grid tie system I don't have any battery storage though after listening to what you have to say about solar power. I wish I did But I have 36 astro energy 280 watt solar panels on the roof So what i'm doing johnny is using solar power during the day for my own house when the sun's shining of course

[11:55] And with 36 solar panels i've got a lot more than I need so I sell the rest back to the grid Now johnny being a do-it-yourself sort of guy. I get asked this question all the time What was the hardest part of putting that solar system together people think it was putting up those panels, man That's a lot of rough time putting up 36 panels Or they're thinking the charger and controller unit itself all that wiring Because I don't have one of those all-in-one units. They have today. I bought mine a couple years ago now Would it surprise you to know there was nothing difficult about the assembly at all? The most difficult and frustrating thing of all was getting the permits prior to installation That took forever And they come out to your house do inspections before during and after take pictures and you know what all the while

[12:41] They were trying to coerce me into using a solar contractor. That was registered with the state It seems they don't like do-it-yourselfers So the day the big semi-trailer arrived with four big pallets on it I thought man, we'll kick this thing out in no time. We'll get started on it this weekend I'll invite my buddies over pizza beer have a solar installation party Well, guess what those four pallets sat in my garage for almost five months Waiting for the government to get off their asses fill out the paperwork do the inspections issue the permits Getting the electric company on board to allow connection to the grid That was a pain in the ass, too Even so i'd do it all again because I certainly learned a lot along the way and when me and the wife finally moved south Of the border will have a great handle on it. As a matter of fact johnny

[13:27] I ordered my complete solar system from wholesale solar There are a lot of excellent online solar outfits That'll put a complete package together for you and ship it to your door kind of like a massive ikea project without any missing screws If you got a problem, they're on call 24 seven So they're there to walk you through it and hold your hand if necessary and for me it wasn't necessary Then phil says but what I also learned along the way is you're absolutely right when I move south of the border I'll only need to buy half of the solar system. I have up here in virginia And since now at least only two or three latin countries lets you tie to the grid and sell the power back to them Like I do in virginia. I won't really care about that because south of the border I'll need less than half of the panels i'm using up here with the money saved there

[14:14] I'll be able to buy a nice big battery pack and go completely off the grid Remember my system here in virginia cost me sixteen thousand bucks before that government rebate That doesn't include batteries. Oh and johnny three years ago when I was thinking about this solar thing My wife was not at all on board with it She said with all those stupid panels on the roof It's gonna look ugly from the street when we're ready to sell people won't want to buy it Then i'd count her by saying no. No just the opposite when they see the system is saving them $1,500 a year on their electric bill. They're gonna say yeah, I want to buy this house. Johnny. I was wrong She was right in the end if you're house shopping the lady gets final approval in the end Solar is a selling point for guys, but for women it has to look nice or it's no go bottom line

[15:01] Don't make your solar insulation bachelor pad or dorm room ugly Anyway, johnny, there is a question wrapped into all this When the wife and I finally get our plan b underway and i'm ready to go solar south of the border I'd like to order my solar system the same way from a company up in the states or canada like wholesale solar And have them ship it down in one load What do you think the shipping charges and import taxes would be on a system like you've been describing in the past few shows? 12 to 15 panels batteries controller racking cable connectors complete A system like that would fit on three standard pallets. Oh and johnny being a do-it-yourselfer What's the story on hardware stores? I hope they have franchises like home depot for me

[15:47] There's no better place to hang on a saturday morning Plus as every do-it-yourselfer knows no matter what project you're working on big or small You're always going to need something you haven't counted on nails clips fasteners grommets. So what about it john? Where's the nearest home depot? signed diy do-it-yourself fill Nope, not dui fill diy fill, but who knows maybe both shoes fit Well phil first off why is having a complete solar kit shipped down from one of those online solar outfits? That's a very good idea Plus like you say they're online 24-7 to take your calls and it's toll-free now to my way of thinking if you're a do-it-yourselfer That's probably the best way to go And you know even though there are lots and lots of solar companies and solar installers here in various cities in latin

[16:38] America from what I can see they're all overpriced and most of them aren't carrying the latest and greatest equipment either Except when it comes to the panels as mentioned in the previous show There are huge solar projects going on in the tropics. So they're ordering the latest greatest panels in bulk That's why you see them pop up all the time on buy and sell sites like olx.com In fact just yesterday I was checking out solar stuff on olx.com and I found four different outfits that were selling 300 to 375 watt panels For a hundred bucks apiece in the box brand new man. That's like 30 to 35 cents a watt That's cheaper than you can buy them up in the states. In fact, those are direct from china prices Yep, that's right. Almost everything in the solar power business comes from china too

[17:24] Oh, and just recently you've heard all the talk about trump's tariffs on china, right? Well, you know if you live in latin america that won't affect you a bit Speaking of tariffs and taxes phil was wondering about that too So what's the story most latin american countries will not tax the solar panels themselves the rest of this stuff the lithium ion Batteries charger controller unit etc. Well that varies depending on which latin country you're shipping this stuff too In some latin countries all solar stuff is exempt in others. It's taxed anywhere from 10 to 20 percent And the normal shipping charges. Well, let's use that example of three pallets coming in from china or the us Whatever you're looking at anywhere from 500 to a thousand bucks So for example, you order a complete system from wholesale solar just a name. I'm not endorsing them though. They're dependable

[18:13] I've heard nothing bad about them. Let's say their system is 10 grand add 800 for shipping Why so much? Well, that stuff's heavy if it's an all-in-one battery controller unit could weigh for even 500 pounds And each solar panel 50 pounds, so 10 of those there's another 500 So the pallets will come by boat and finally delivered by truck Then let's say another 10 customs charge. That's another grand in the end. We're talking 12 grand for a 10 grand purchase Now you're set you've got everything all you need is a swiss army knife Yeah, right and there's a very good chance if you live near a medium or large sized latin city You'll have more than a couple of gigantic hardware stores like home depot for the odds and ends

[18:59] Which begs the question why when you're assembling a thing? There's always a screw or a washer missing Why don't they just add a couple extras damn enough said about that All right, speaking of moving money and assets down to latin america anonymously or not so anonymously depending on your case One of the best if not the best way to transfer funds and capital fast and easy is bitcoin or crypto But of course if you've never dipped your toes into the crypto waters, you really don't know where to start Do you and who to trust? Because even if you don't have any crypto and you're not into it at all You've probably heard that once you send it to someone You've got no recourse if you made a mistake or sent it to the wrong person That's why you always have to know who you're dealing with who's honorable and who isn't a lot of skunks out there

[19:49] And you know, they're not all in politics Most yes, but not all so if you're up in the states Transferring some of your assets and wealth down to latin america your plan b exit strategy site You have to trust who you're sending it to the receiver at the end of the line Or you can do what seems to be more and more popular and secure these days buy a hardware wallet like a Nano ledger or trezor load it up with your cryptocurrency while up in the states Write down your 24 keywords and don't show them to anyone Then you wipe yes wipe the trezor or nano device. So it's got nothing in it. It's clean. It's empty You fly down to your latin plan b destination of choice when you get there reload your 24 keywords and your crypto will

[20:34] Instantly appear once again in your trezor or nano It never was really gone. You know, it's always on the blockchain But you know that right that way when you're on your way out of the u.s Houston new york or my jammy when you're stripped down manhandled Is that still the word manhandled? How could it be? It's patriarchal sexist with undertones of male violence strike that word now. Where were we? Oh, yeah When you're at the airport being stripped down and person handled And suddenly you empty your pockets and your trezor or nano falls out on the floor Do you really want to hear the words coming from a spit bubbling tsa agent? Hey bub just a minute. Is that a trezor or a nano device? Are you bringing bitcoin across?

[21:20] Would you mind taking a seat in that hot sweaty room over there? Well, then since you wiped it you could say in all honesty. It's a device that's completely empty It's got no cryptocurrency at all on it. It's naked now That's not to say I know anybody that's ever happened to but it's a scenario that I think's gonna start popping up Anyway, the ownership of your crypto comes down to your 24 keywords So you don't even have to bring a hardware wallet with you when you're traveling as long as you've got those 24 keywords Tucked away somewhere when you get to your latin country or plan b destination All you have to do is buy a nano or a ledger, you know Load your 24 keywords in and voila your cryptocurrency bitcoin Litecoin ethereum, whatever reappears in that brand new device. What could be simpler than that?

[22:10] Except what happens when you're down in your latin country You want to convert that to funny money or buy things with it or perhaps you want to accumulate more crypto Well, the good thing is every latin country has crypto contact groups and exchanges and meetup groups All the countries have them all the big cities have now a lot of gringos and expats and people Working on their plan b want to be completely anonymous or as much as they can That means you really have to know and trust the people you're going to buy and sell from Well, if you come down to my expat insider seminar, you'll personally meet a group of extremely trusted and vetted crypto network guys Mostly guys very few women why because the bitcoin and crypto universe started in the nerdy sphere Hmm did I just invent a new word? Well, someone's got to do it

[22:57] So what you had is tons of geeks and nerds jumping on board So you can bet the first guys in that now so-called crypto whales were nasally voiced males with acne who were unattractive to women Though, isn't it funny the bigger your bank balance or these days Cryptobalance the more attractive you are to women. That's why you'll hear in the upcoming email that it's oh so important You never tell anyone how much bitcoin or cryptocurrency you have Oh and about the fact that eight or nine out of ten crypto owners are male. I'm pissed Where are those gender affirmative action warriors in the crypto space? Come on, you crypto justice warriors time to get out the picket signs and fire off a few thousand venomous anti-white male tweets Time to rally the bernie sanders and occasional cortex troops because there's real social and economic injustice here

[23:49] crypto justice warriors time to man your weapons Oh, no, can't say that either right gonna bite my lip here. Give me a second Anyway, the email starts johnny My soon-to-be ex-wife has hated bitcoin and cryptocurrencies pretty much since I first learned about them I stupidly talked and talked about it obsessively after I bought some bitcoin a while back when it was still around 800 bucks She even went so far as to make a rule that I was not allowed to talk about it in front of her unless I Spent some of it on her every time I brought it up I tried my best to get her to understand it, but she didn't want any part of it In fact in 2017 I made some time to sit down with her and go through some quick youtubes on how to set up and use a coinbase account

[24:38] But she never got off her phone twitter and facebook to pay attention jesuth is johnny. She is horrible with money She got us fifty thousand dollars in credit card debt and that's not even including her student loan Which by the way, she's way behind on now and wants me to pay for in the divorce settlement Oh and recently at a court date. We had some time to talk She said kyle you're way too worried about that school loan stuff when bernie sanders gets in there or whatever democrat They'll cancel the school loan thing I said if you're so sure then take that condition out of the divorce settlement, but she didn't Problem is johnny if marrying the wrong woman isn't problem enough She knows about all my bitcoin and crypto stuff not that she'd ever be able to access any of it

[25:25] But she can sure go to court and make a big case That I owe her a lot more because i'm hiding stuff and keeping it from her In fact her lawyer told me if I didn't pay up he'd have my passport blocked until I did well There goes that plan b. So just a little general advice if you're planning a divorce like whoever plans that stuff, right? Load up your hard wallet nano ledger or trezor with crypto never give anyone your 24 keys And you'll never be at risk of the courts locking up your crypto assets. They can get everything else, but not your crypto However, if you're in a good relationship and your wife wants to get into crypto Set her up with an online wallet like coinbase because any wallet you set up on the net like coinbase is traceable That way in the future if there is a divorce then you choose to go the discovery route with your lawyers

[26:13] Only her crypto accounts not yours in your hard wallet are traceable Bottom line if you're into crypto and you buy a hard wallet, it could be the best hundred bucks you ever spent Because I think very soon and it's probably happened already someone out there Maybe a group of lawyers with hacker skills are setting up a crypto detective service Man, won't that be popular with millennials going through a divorce? You know the beauty of the blockchain is that for any particular coin Every single transaction made is on it Remember all the online exchanges like bid pay and coinbase ask for proof of identity when you sign up Just a heads up johnny on how not to get burned. I'm speaking from very close to the flame myself signed kyle

[27:02] Ps working on that plan b johnny can't come to your july seminar, but i'll be at the next one provided my passport's not blocked All right, kyle meet johnny here What more can I say? Oh and speaking of plan b's don't forget in a couple weeks now My expat insider seminar will get underway with a bang It's an invitation to come down to latin america for a week and drink from the fire hose Just go to www.thenewexpat.com and click on johnny's seminar link You've been listening to the expat files living in latin america If you need some help with your own plan b you can schedule a one-on-one phone call with me But first download my free plan b questionnaire at www.thenewexpat.com Better yet if you want to get your plan b going from right up there in the states

[27:48] Just sign up for my nine hour expat essentials course get the perfect plan b blueprint by going to the expat files.com slash academy Los bemos