Playa Lagarto Eco Development

[rtw_ca]

Has anybody heard anything about a Canadian company called Recap Investments? They are developing a project in Playa Lagarto in Guanacaste and I thought I would sound out this forum for any feedback you might have to offer.
Thank you.

[Andrew]

I do NOT know them but having said that, after reviewing a number of their websites and doing a simple Google search which of course anyone can do, this is what I think:

• Searching for the company name gives very, very little information. An active, successful development company would have hundreds of listing online when you searched from them in Google….
• Searching for the President’s name gives very, very little information. Again, an active and successful developer can normally be found widely listed in Google….
• I cannot find a single completed building or home on any of their websites.
• “5,000M2 Costa Rica lots for as low as $49,900” and “Full title and deed property” and “two minutes away from beach with spectacular ocean view and mountain view property” blah… blah… blah…, sounds a whole lot like hot air to me…
• The ‘About Us’ page on every single one of their websites tells us NOTHING about them whatsoever, doesn’t mention the name of a single human being …
• http://www.manta.com/ic/mt6hrny/ca/recap-investments-inc states they have been in business for 3 years and have one solitary employee.

There is no shortage of land for sale in Costa Rica and my advice?

Unless you can find out a LOT more information about them, I would stay well away from them …

Scott

Written by Scott Oliver, author of 1: How To Buy Costa Rica Real Estate Without Losing Your Camisa, 2: Costa Rica Real Estate Scams & How To Avoid Them, 3. Costa Rica’s Guide To Making Money Offshore and 4. ¿Cómo Comprar Bienes Raices en Costa Rica, Sin Perder Su Camisa?

[rtw_ca]

Hi Scott,

Thanks for the feedback. And I agree that it all sounds too good to be true. And often those offers ARE in fact, too good to be true.

Having said that, they sent me a letter from Facio & Cañas law firm stating that they do own the land, full title and fully paid – no encumbrances or liens. They even give the Registro folio number. Registered Feb. 2012!!!!

They are listed in the Registro Nacional.

On their Honduras gallery, there are several actual houses in various states of construction – some actually completed.

They have offered me a visit and $1000 credit towards my airfare if I buy a lot.

I have a full list of references from their Honduras project. I am contacting each and every one.

But I do agree that it sounds fishy.
Thanks for the advice.

[DavidCMurray]

With any real estate purchase in Costa Rica, at least, always do your own due diligence using knowledgeable experts of YOUR OWN choosing. Have YOUR OWN attorney research the title. Have YOUR OWN architect determine the suitability of the land for building. Have YOUR OWN surveyor confirm the boundaries. Verify for yourself that the utilities and amenities that are important to you are actually available to you.

Once you’ve fallen in love, don’t take anyone’s word for anything. Verify it for yourself.

[rtw_ca]

[quote=”DavidCMurray”]With any real estate purchase in Costa Rica, at least, always do your own due diligence using knowledgeable experts of YOUR OWN choosing. Have YOUR OWN attorney research the title. Have YOUR OWN architect determine the suitability of the land for building. Have YOUR OWN surveyor confirm the boundaries. Verify for yourself that the utilities and amenities that are important to you are actually available to you.

Once you’ve fallen in love, don’t take anyone’s word for anything. Verify it for yourself.
[/quote]

Hi David,
Thanks for your input.
I am infact, doing just that. Last month I purchased a lot at Altos los Cafetales from Brian McLane, a recommended builder on this site. So I alsready have an attorney in San Jose as well as my own S.A. now. So I have asked them to do a little search on this property as well.

I also see that the architect for this project is Carlos Arias. His site shows some completed projects in Jaco, Esterillos Beach, etc. You wouldn’t think a firm of this stature (as well as the legal firm) would associate themselves with questionable developpers, would you? Or am I being naive?

I have also requested the “plano” for the lot in question.

My biggest concern is whether the developper will fulfill his obligations on infrastructure. Generally, how does one protect himself in such a case?

Thanks again to all.

[costaricafinca]

Once you see electrical services, water lines … [i]not just a fancy gate[/i] … actually in place, then it ‘may’ be time to get serious.

[rtw_ca]

[quote=”costaricafinca”]Once you see electrical services, water lines … [i]not just a fancy gate[/i] … actually in place, then it ‘may’ be time to get serious.[/quote]

But that’s when the prices go up again. This is pre-construction, pre-electricity, pre-water, etc!!!

[DavidCMurray]

Crf is right. The time you’ll know that the infrastructure is assured will be when you can drive on it, plug your laptop into it, connect to the Internet through it, and quench your thirst with it. Until then it’s all smoke and mirrors.

The question you have yet to ask is this: What if the most dire concerns are borne out? What if the infrastructure never materializes? What if the building permits (plural) are never issued? What if the assurances you’ve received from the (not) developer are not lived up to? What if the guaranteed refund isn’t paid? What if the reputations of the law and architecture firms don’t afford you the protections you think they will?

What then? Sure, you can try to sue somebody, but yours will be the very rare exception if you prevail at all. And if you do, how’re you going to collect? And when? And how much of your life will have passed on the way? And how much grief will you have endured?

Scott is right. There is plenty of real estate available to buy in Costa Rica without going out on a limb. Find something you can see and touch. Fall in love with that.

Remember, too, if it seems cheap, it probably is. Even if the infrastructure is in place, you must also assure yourself that it is adequate to your and your neighbors’ needs. I know of a ten lot gated community that was supplied by a single half-inch water line. The “developer” sold out and left it to the ultimate owners to remedy the situation — at the same time they were remedying the electrical service. See it. Test it. Only then will you have the basis for any confidence.

Please, please tread cautiously.

[costaricafinca]

You ask “Or am I being naive”? [b]Yes!!![/b][size=200][/size]

[rtw_ca]

Thank you so much for hammering this home.

I just received their “Legal Reservation Agreement” and in it, it clearly states that Recap Investments does NOT own the land! They are the marketing arm (in Canada) for a Costa Rican company that, they themselves, only have the RIGHTS to purchase this land!!!

So the plot thickens and like you said David, is it really worth “going out on a limb” on these promises. I think not.

I’ll happily build my home in Altos los cafetales and use my money to grow more fruit!!!

Thank you for the eye opener!

[DavidCMurray]

[b]Good move![/b]

[rtw_ca]

[url=][quote=”DavidCMurray”][b]Good move![/b]
[/quote]

In reading further, they also state that I, the “Buyer”, have been clearly made aware of this fact and am satisfied. Bull!

In addition, they state that Recap investments is under “no obligation” once the purchase is finalized.

You are obliged to use their attorney to close and the buyer pays all closing and transfer fees. The amounts mentioned appear far beyond typical legal fees.

Here is a true example of a company that misleads and misinforms clients. They claim to have two successful projects completed but if they were only the marketing arm, how can they make such a claim? They didn’t develop anything! But their ad doesn’t say anything about that!

Now I am not saying that this could NOT be a good investment, I am simply stating that the facts given by Recap Investments sales people are not complete and honest.

Tomorrow I will be sending their representative a letter to this affect and will happily send a copy to Scott to do as he pleases. Hopefully we can prevent others from being equally mislead.

Again, thanks to this forum for its helpful information.

[maravilla]

sounds like that other company that was paying people to come look at their lots and look what happened to those poor folks who lost all their money and the land, too. this is NOT Miami or Malibu in the 50s. don’t believe the hype. there is someone out there who sees you as a chump and will tell you whatever your want to hear to separate you from your money. what you state above is how a lot of companies operate. once they get your cash, they couldn’t care less what happens to you or your lot. i know poeople who RUSHED to give that other company big fat deposits because it was a good price, pre-construction, blah blah blah, and now all there is is a nice gate house and nothing else. AND the only people who will ever make money on these developments (besides the folks who scammed people like you) will be the lawyers who are filing the class action lawsuits.

[Andrew]

I will be publishing a DEVASTATING article about a project early next week which – after some serious problems – continues to try and sell land that they do NOT own …

Once again, it’s primarily gringo fraudsters – although there is one principal who is a Tico – selling land in Costa Rica..

Scott

[rtw_ca]

Hey Scott, On one of the articles on your site about a house for sale in Atenas, there’s an ad for the very site we are talking about here. What’s that all about???

[Author]

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