Research Costa Rica investments BEFORE buying

[crhomebuilder]

Developers everywhere advertise incredible investment opportunities. Costa Rica is not that much different from other attractive hot real estate markets. However, when you factor in the cultural misunderstandings and lack of consumer protection regulations, folks can be taken advantage of.

I have lived and worked in the land development and construction business here since 1992, and I understand land and finished construction values very well. With all the new players entering the market, come new tricks that misrepresent properties and deceive would be investors.

Those of us who have lived and worked here for many years do not enjoy reading about consumers who write about the deceiving developers that sold them land in would-be projects that never happen. We see what is happening to the new kids on the block but we cannot help them because they leave their brains in baggage claim and do not seek advice from experienced sources.

Knowledge acquired from real estate investing in other countries does not necessarily work down here in the jungle.

I have been an investor, builder and developer here for 15 years. To this day, I approach every deal as if it were my last hundred bucks. Property values and opportunities are available here but finding a successful investment property is not as easy as many of the fancy websites lead novices to believe.

Fortunately, WeLoveCostaRica.com is able to help many potential residents and investors sort the market out before they get into a deal that ruins their dreams of living in paradise.

[watchdog]

Very good advice. There is no equivalent of the SEC in Costa Rica, nor is there a requirement for a Developer to submit a prospectus of the offering, to any Costa Rica Government agency for review and approval, prior to an offering of an investment opportunity being made. You are truly on your own in Costa Rica, when it comes to investing in real estate, or other investments, and must rely on your own due diligence to guard against fraud. I would suggest retaining an Attorney, knowledgeable in the area in which you intend to invest, at an early stage in your deliberations, in order to assist you with the necessary due diligence, prior to committing to any investment opportunity.

[Andrew]

Not correct actually… The Costa Rican equivalent of the SEC is called SUGEVAL which you can see at http://www.sugeval.fi.cr/

However, much like their US counterpart, they’re pretty much useless in helping the little guy (you and I) but if you are a massive corporation and your CFO has stolen a couple hundred million buck they’ll probably find some “creative financing” so that it will be OK.

The SEC helped so much in protecting small investors from those big nasty corporations that still managed to STEAL and PLUNDER BILLIONS of dollars from employees pension funds in small companies like Worldcom, Global Crossing and Enron.

Scott Oliver – Founder
WeLoveCostaRica.com

[sprite]

So is there an appreciable difference regarding investor safety between the U.S. and Costa Rica? I know the rules of the game are always in favor of the big money and that seems to be the case everywhere. That is how big money gets bigger and stays bigger, isn’t it?

[Author]

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