Forum Replies Created
-
Posts
-
Addressing the rumor mill:
First, we are, as Scott said, taking a sabbatical of sorts to explore other regions. I must clarify, however, that I would not call it “moving”, as Costa Rica and particularly Atenas, will remain our “home base.”
I have literally invested blood, sweat and tears over the last five years in the real estate business. Although we still LOVE Costa Rica and intellectually believe in the steadiness of its real estate market, I have lost my passion for the business and have decided to step away to pursue other passions.
For Scott’s part, he will surely recommend someone capable and passionate for the Atenas area, as he always does. I’m forever grateful for his support and, more importantly, his friendship.
Now you may gossip the proper facts at the coffee shops and CR forums.
Best wishes to all!
Jeff H.
Peter Schiff is terrific. No one wanted to listen to him when he was warning of the approaching hangover, the commentators only wanted to speak to party planners (money managers). I happen to agree with Imxploring…even though i was an Obama supporter, printing this much money will essentially triple the money supply in a 2 year period. If you tripple the supply of anything in a two year period, you can be assured that the value will drop rapidly.
PK,
You seem to possess a curious amount knowledge of Costa Rica tax law for a casual person “looking for investments” in Costa Rica. From the beginning of this tread, it seems as though a game of “gotcha” is being played to try to discredit me in some way, as if you are a disgruntled competitor.
Thank you for making me aware of the precise commission tax code. I’m sure our accountant is well aware of it.
I wish you well in the future.
JHPK,
First, Thank you for making people aware of my Paradise Profits business, as we have not officially launched yet. I appreciate your concerns in regards to Sugeval, but we are an “Education” business, not an investment business. We pay corporate taxes like everyone else who plays by the rules.
I’m sorry that based on your research you feel that we are not qualified to help you with your investments in Costa Rica. Maybe if you read the book you will draw a different conclusion. You will certainly learn a lot in the process.
I offer you my sincere best wishes and the best of luck in regards to your investments in Costa Rica. Whether you seek our advice or not, I believe you made the right decision to invest in this country that we all love. My hope is that you avoid the truly unethical folks out there.
Best,
Jeff Hickcox
It seems that I need to set the record straight regarding this discussion about my status in Costa Rica, my companies, and my reputation.
For the moment, I will assume that Randy has good intentions and is simply raising important questions about someone with whom he is not familiar. Following my statement, I will request that anyone who knows me to please post their opinions of me so that one can gain a better sense of who I am and what my motives are in Costa Rica.
In terms of residency, my son was born in Costa Rica and has dual citizenship. Through his application, my family is in the legal process of residency.
First and foremost I am an educator, through my experience in real estate investing in the United States and the tremendous amount of research I have done while in Costa Rica. The result of my work is the book I have created which explains the characteristics, laws and strategies that work in Costa Rica. However, I do not claim to be an expert in every facet of real estate and investing, which is why the strength of the book is in the recommended professionals. Through this network of trusted professionals, my company First Equity Development has invested in several projects as we are legally allowed to do. We advise investors on an individual basis in a partnership agreement; we do not operate an investment pool of any kind.
As far as my testimonial which appears on the site of Costa Rica Land & Property, I was a customer in my move to Costa Rica, and it was precisely because I was so impressed with their service that I became a shareholder and contributor.
Lastly, my commitment to Costa Rica is a lifelong one; I am not here to make enemies. Randy, I would be happy to discuss this with you personally. I know there is a troubled history with Terry, but I would enjoy meeting you to gain more insight.
Jeffrey Hickcox
David,
The builder that I use in Atenas charges $80/SF for turnkey construction. This price is from permits to paint, and includes a normal sized custom pool. He will not dip below these costs because this builder will not go below a certain grade of quality, ie..He only uses clay tile roofs, granite counters with inlayed sinks, wood cielings, etc..etc..but the cost will go up if the client is adament about having an exotic floor tile or other ultra unique finishing details. This price also includes basic landscaping, finished driveway (depending on the length) and a front gate. However, it does not include appliances. I hope this helps.
In real estate, cycles are very EASY to read. That is why I stopped buying property in the US 2 years ago. A real estate cycle is all about CAPITAL. When capital leaves the market, you will see the beginning of a down-cycle when capital is added you will see an up-cycle begin.
Two years ago in the US my mortgage guy told me banks were starting to tighten their lending requirements. Combined with all-time-high inventories and the eminent subprime shakedown, the down-cycle was prime to hit. Simply put, the supply of homes was is super high and demand (capital) is gone. Currently the US has still not bottomed out. You will know when it does, when capital is being added. Right now banks are being bailed out by Wall Street…that scares me as much as the ugly fundamentals of most companies.
The RE market in CR has seen and explosion of capital and IT is just starting. Up-cycle is well under way. Other factors will come into play in order to find good investment property, but the main factor (up-cycle) is here, and demand has not even really begun.
Regards
Your friend is correct, the right investment property here will outpace anything in the stock market, but you must be very selective. Every developer touts incredible investment potential. It has taken me a full year to grasp values here in CR and I’m still learning new things everyday. I was an investor/developer in the States and I approach every property from the standpoint of values and opportunity and I have to say, finding a homerun investment property (buy & hold) is not as easy as many of the glossy brochures say.
One thing I can say for sure is that I would much prefer to own a physical asset than a stock certificate. I went to school for finance/economics and used to be in the market, until the Enron, Tyco and WorldCom debacles. You see, I can read a balance sheet, but it doesn’t help when large Blue chips are lying to you on their balance sheet. The large majority of investors don’t realize these lies until it is too late. After those scandals, I lost my faith in the market and have been buying property ever since.
Sprite,
Unfortunately, I have noticed construction costs going up faster than land costs. In the year that I have been here working in real estate I have seen prices jump in my area from $55/SF to about $65/SF. With new construction permits up 61% in 2006, prices will tend to rise.
With that said, it is better to lock in today’s prices. I think you will do alot better investing your capital into the CR RE market than anything in the NY stock market. It seems the only thing rising safely in the States is oil and food. ConAgra is a safe investment and some alternative energy companies.
You can also loan your capital to professional spec home builders here and it will be secured by a mortgage on the asset (property). This private mortgage lending vehicle typically pays between 10%-15% simple interest.
Just my thoughts. I hope it helps more than it confuses you.
Jeff Hickcox
Scott Benson,
First things first. We all love the freedom that comes with our passports. America has earned much goodwill to allow ourselves to travel freely to many places. None of us disagree with the things that are still great about America, like the police forces and the Justice system. Although, don’t you think it is odd that the US has 5% of the world’s population and 25% of the world’s inmates – especially for supposedly the most “FREE” country in the world.
ECONOMICALLY – You keep pressing the issue of the great depression and I’m glad you are. The difference we face today is GLOBAL COMPETITION. As someone else pointed out, we used to be the biggest importer of raw materials and the biggest exporter of finished goods, and now we are the exact opposite. We have to pay our auto workers and a living wage of $40K per year, plus $15K for health insurance, that cannot compete. Some like to blame the unions for higher wages, but I guarantee you can not raise a family on $40K per year with the ever-increasing cost of energy, food, and other vital expenses.
Please read “The World is Flat” by Tom Friedman to see why globalization will not allow the bounce back like after the Great Depression. Further, the reason the USA recovered so quickly is because of the humanity exuded by F.D.R driving the country out of dispair. Unfortunately, we currently don’t have any leaders that are even close to that kind of character. F.D.R. also ordered immediate FULL SCALE investigations minutes after Pearl Harbor. And Bush fought a 911 investigation for over one year…that is beyond poor leadership..and borders on suspicious.
Jeff Hickcox
Roark,
It appears that you have missed the entire point of my article for you to zero in on “fear” and “climate change”. it appears that you may be one of the people too busy downloading ringtones and watching reality TV to actually read and pay attention to the REAL world.
I would like to address climate change further. Even the current Administration, an arm of BIG OIL, has had to finally admit to climate change. Bush just made a major speech about it at the UN only weeks ago. It is happening and the argument is over. Some may argue that it is a natural cycle, but what they like to leave out is the natural cycle is caused by increased (natural) CO2 levels in our atmosphere. So it is a pretty simple assumption to make that humans adding CO2 will only accelerate a natural cycle.
I would like to know, along with Scott, how invading, destroying, and displacing a country (Iraq) without being threatened or attacked by that country, and being WRONG about the information that “justified” our invasion, results in being a force for good?
Jeff Hickcox
Doug,
I would advise you not to invest in Jaco. The area is booming because mostly investor/speculators are buying condo pre-sales.
What those seminars have not told you is that the traditional end-user in Costa Rica which are foreign retirees and vacation home buyers want nothing to do with Jaco.
It seems like around 80% of the buyers of these projects are investors like yourself. Ultimately, you will have to find an end-user to make money on your investment.
The crime is getting a bit out of control in Jaco – Petty theft & violent crime alike. Teenagers are approached multiple times per day by drug dealers selling crack.
There are far safer areas in Costa Rica to invest your capital in. These areas are safe and peaceful with many prospective buyers waiting in the wings.
I hope, for your sake, that those seminars are giving you all of the information that you need to make an educated investment.
Good Luck! Pura Vida!
Jeff HickcoxGenn,
I am curious about your program. Do you allow your tenant/buyer to build equity every month? Do you give the right to the tenant/buyer to sell their option for financial gain? Do you only use this program only in your communities? Or can you negotiate this type of deal on your client’s behalf anywhere in Costa Rica?
Thank you for taking the time to reply.
Jeff HLotus,
I do agree there are risks, however there are risks invovled in every type of transaction.
I think someone in the US researching Costa Rica online and plopping down all cash on a house in Costa Rica without living here first can be even more risky. Especially if they overpay for the property.
When you speak of the banking system here, I agree. That is why these and all US buyers should pursue mortgage companies based in the USA. More and more of these companies are expanding services into Costa Rica.
I did many of these transactions in CT. I had an 80% cash-out rate. I hooked my tenant/buyers up with a credit adviser and a mortgage pro to help them prepare for a loan. Maybe some folks in your area are not honest with this program. However, if done correctly this opens up possibilities for people who thought they had no options to build equity.
Here in CR we aren’t dealing with bad credit buyers. We are dealing with middle-class retirees who want a marriage between renting & buying. Less money down, building equity, and getting to know Costa Rica. It is a less risky happy medium.
I appreciate your concerns, but you can be assured that we handle our business with integrity. Scott would not recommend us if we were not forthright and honest agents.
Jeff H
Lotus,
I’m gald that you thought the article was interesting. The speculation factor is just a small part of a deal like this “rent-to-own”. For the person who was planning on renting anyway, it is a great opportunity to take advantage of future appreciation. They can sell the home before they buy it – and double-close, sell their option, buy it cash, or finance their way out of it.
Many of these folks are waiting for a home to sell in the U.S. or wherever. Those funds can help to buy the home. When a married couple has a guaranteed income of $2000 per month for the rest of their lives and limited liabilities – a mortgage is a real possibility too. $2000 per month is ‘boot strap’ money in the USA – but here in CR it is a nice income. Although I don’t mention a mortgage throughout the article – you can visit http://www.CostaRicaMortgage.net to see the many options that they are offering for North Americans.
Good Luck! Pura Vida!
Jeff Hickcox
