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I don’t think Scott’s intent was to highlight a particular developer… but rather a particular circumstance that was a good example of the dangers that potential buyers may face. Yes….perhaps it was a bit of a wet slap…. but also a very good general example of the danger signs when dealing with ALL real estate developers/promoters here in Costa Rica.
I think most of us that have been on this site for a while and are familiar with the RE market in CR have a pretty good idea who Scott was talking about… but his comments are overall a generalization of the conduct and actions of MANY developers/promoters here in CR. His article was not intended to place the spotlight or blame on any one person…. it was to inform those that use this site as a resource to make them aware of problems to avoid!
I don’t think even the most liberal of judges could make a case that Scott’s comments were actionable… nor do I believe that if they were successful in making an argument that the comments were directed at anyone in particular that Scott’s comments were anything but the TRUTH!
The basis of making a case of slanderous or defamatory conduct is that your intent must be that you are aware that your actions and statements were false (or that you should have known)… and that your intent (or result) was to cause harm. Expressing an honest opinion based on your experience and knowledge does not meet that requirement. Besides… I believe Scott has history on his side as well as the FACTS… both of which mean something in court… even in these times… and even in Costa Rica! Therefore…. I think Scott is quite safe enjoying his freedom! LOL
Not intended to be a legal opinion or advice…. just some good old common sense! I’m not a lawyer but play one on TV!
Edited on Feb 20, 2009 10:22
grifz77…I’d say that there’s enough guilt to go around… but the ones that were making the big money… and SELLING their services were the banks… they were also the ones that were SUPPOSE to know what they were doing! Capitalism at it’s best… bordering on criminal intent…. I take that back… it was CRIMINAL!!! LOL
As far as walking off… as I said… not my act… but for folks that are so far underwater on their mortgages… with no real hope of staying current until the “recovery” (NOT)…. I can see why they would bolt!
grifz77…. Yes paradise does collect a rather odd group… I guess every nice place has the same problem… be it in Central America or the South Pacific.
As for the folks leaving the banks high and dry… I’d agree, it’s not my act… but as for your description “the scum of the earth, lack integrity and have absolutely no dignity.” … I’d say the folks doing the lending fit the same bill!
Why would the politicians care about the good folks out there working for a living, paying their bills, living within their means, providing for their children, saving for their retirement, paying the taxes, and keeping the system afloat! Those are the folks that always take it on the chin! And I for one am QUITE tired of it! Anyone want to join the revolution?
I know of two people that walked off and moved to CR from the US… both having either taken out big loans on their homes (HELOC’s)… or just giving the keys to the bank on a mortgage that was so much more than what the property securing it was worth… just as you stated! And those are the one’s that tell you their story… I’m sure there are quite a few more! CR has always been a place that people run to to escape trouble (legal and personal)… now we might have to add financial to that list!
There’s all kinds of folks in CR… for different reasons… I think we can both agree on that! Those playing the market and flipping RE for quick profit will be the ones burned… those that have made an INVESTMENT in CR for the right reasons should do fine!
At risk loans will STILL be at risk! We’ve already seen that those loans that were modified to assist the borrower, the majority of the time fall back to being in default. Let’s face it… there were a bunch of folks that got loans that should have NEVER been given them, even if we applied the “old” standards of lending they just were NOT qualified! A market out of control where common sense and reality were ignored… because EVERYONE was making money! These folks got in the game planning on riding the increase in real estate value… many KNOWING they couldn’t handle the payments! A quick reality check tells you that no matter what you do… most will NEVER be able to carry a loan!
Now with the fall in the real estate market and job market the reality is that folks at risk really have NO chance of paying anywhere NEAR what they owe. They refi’d as the market continued to climb… took cask out and bought stuff (further over-fueling the economy of consumption)… and lived WELL beyond their means! Now short sales really aren’t even an option, they’re WAY over extended! Property taxes that rose as did home values are now WAY over priced and the size of government has grown to cobble up the tax revenues. Now governments will have to downsize as taxes are challenged or simply not paid. California is going down first.
Thus the market will have to fall and adjust to reality no matter how much money Uncle Sam throws into this black hole! Unless Uncle Sam is going to start giving away homes there isn’t much that can be done! And when that happens… the rioting really starts in the streets! Most likely a reality in the future anyway! They can’t just keep “creating” money to solve this mess!
This entire bailout package is nothing more then the next step in destroying the future of the US! The market must be allowed to correct itself… and YES… I know there is going to be a lot of pain…and people are going to get hurt… and the economy is going to go into a depression (we’re headed there no matter what Obama and the boys do!)… but to keep throwing money at these problems (ie The banks and the auto industry) will only bring down the ENTIRE economy! It only stalls what must happen…. and makes the recovery from this mess even more difficult and lengthy!
Funny how NO ONE is talking about the national debt these days! I guess it’s like someone in over their head with bills… just throw them in a shoe box and hope they go away! Washington is throwing around TRILLIONS like the zeros after the number up front mean nothing! Yesterday Detroit dropped the other shoe on what it needs… and it isn’t pretty! More good money after bad! GM is talking MAJOR cuts and yet needs another $16.6 billion dollars! And Chrysler added $2 billion dollars to what it needs like they were talking about monopoly money! Uncle Sam could just BUY the two companies for what the taxpayer is being asked to throw at them!
Iceland is a good example of where the US is headed… I remember watching a documentary on the giant dam they were building to generate power for a large Alcoa plant… claiming it would create jobs… a few thousand if I remember correctly. However, when I took the time to calculate the BILLIONS they were spending to generate the jobs… it came out to about $400,000 per job… it made NO sense! And as we see now… Iceland has collapsed!
And just as we are seeing now… Uncle Sam is throwing TRILLIONS into nothing but spending that will have to be PAID BACK in the future! Lucky for Uncle Sam… the folks that will be doing that are too young to see that their future is being stolen… or have not yet been born!
As far as the effect on real estate in CR… I think many people that have bought and built here are much smarter and conservative… and for the most part are far more intelligent (such as the folks on this site)… there will be tons of folks wiped out… and there will be an effect on the market in CR… but nothing like the US and many parts of the world are going to see!
I tend to think that there are a lot of folks (other than the flippers) that bought in CR not just because of the beauty and lower cost of living. I believe there are many folks like myself that saw what was going on and were looking for the lifeboat when things collapse… and CR in my opinion is a much more likely place to ride out the storm that’s now hitting our shores… and there a lot more pain to come!
I won’t even get into the mess with society, food, water, and the environment that will be coming to a head shortly… we’re already starting to see the signs of that disaster… and THAT will cost big money too! It’s just too much for one morning!
Wood floors are a bad idea over concrete… really a bad idea for a good part of Costa Rica! Go with tile… I have yet to see a wood floor that stands up here… looks great when it goes down… but give it a year or so!
Thank your lucky stars they ONLY charged you the “gringo” price… if they charged you the American Medical care/Lab test/Drug price…. you’d be looking for a mortgage to pay it off! LOL
So the “online marketer” promoting ????? made a quick $4 million… WOW! That’s really amazing… what’s even more amazing is that rather than operate the type of business he’s promoting and making the real money and taking the real risk… he sells a “package” that tell others how to do it! Where there’s NO risk to him! LOL
I get a dozen of these a week… I have to laugh at the vagueness of the pitch and the length they go to “explaining” the business yet not giving you any idea what it is! That is until they have your $139.95! This is all part of the “pretend” economy that got us into the mess we’re in now… people that don’t really SELL or PRODUCE anything… all paper “businesses” that work the magic of the internet while you sit at the pool surrounded by babes in bikinis with the aftermarket upgrades! LOL
In bad times the snake oil salesman always come out… people looking for a quick and easy solution… but let’s face it… we know the REAL deal with these pitches… don’t we?
Besides… the guy looks like a long hair burn-out… more likely the type trying to sell you weed on the beach at Jaco!
As for where the economy is headed… we all have our opinions… but remember… it took the “boyz” in Washington a year to figure out we were in a recession… and these are the fools driving the bus…
Edited on Feb 17, 2009 11:04
Scott… If things get as bad as you think… and I believe as well… would you consider churros a “comfort” food?
I’m looking forward to your article… there’s not doubt in my mind that there’s some REAL pain coming… being in a position to ride out the storm is more important than ever!
Did I forget to turn off my webcam…. how did he know I was sitting stark naked at my computer eating churros?
I would have at least combed my hair! LOL
I like good pizza as much as the next guy… but I agree with Scott… for a business (especially in these times) to rip off a customer with such a poor exchange rate is just bad business! If the issue is taking a risk with big bills… then limit the size (as many do) to nothing larger than $20 bills!
I’ve never had a issue with a business not wanting dollars. Many times they will give you the price in dollars and colones! I make it a point check what kind of exchange rate they quote… and NOT deal with businesses that try to screw you on the exchange! It just leaves a VERY bad taste in my mouth! Not the dessert I want after an otherwise good meal! 🙂
One would have to guess that a place selling pizza in CR would be seeing a lot of dollars… and would know the rate… and be very comfortable dealing with (and verifying) dollars. So my guess is they just look at the exchange as another way to screw tourist and grab an extra 10%! Not a bad little deal… all that extra profit when the bills clear bank inspection… profit that doesn’t show up on the books!
Just like the silly folks at the airport that exchange at the “Global” exchange…. when they can walk outside to the ATM and get a MUCH better rate! It’s all part of the game…
Let’s face it…. a 10% profit on the exchange rate in addition to a normal business oprating profit is pretty darn good for a business owner! And not something WE should be paying for! Thanks for the heads up Scott!
Perhaps we should start thinking about the fact that these new faces in Costa Rica will not be expats… they’ll be American refugees.
The REAL deal Scott… got the call myself and saw it with my own eyes!! And I have to admit the guy was quite ingenious… had every little space used… and the locker was only 6’X8’… I think he was paying $85 a month (utilities apparently included!!) As for the bathroom… I’m sure he was using the grounds for simple tasks… and using the fast food place down the road for more complex issues that required more attention! LOL
