international marketing and information

Real estate is offered worldwide. Bolivia is only 1 of N places but we think that there are significant opportunities for small dollar real estate investors in the $35,000 to $50,000 range.

Properties generally aren’t improved in any way before going on the market: Properties generally go on the market as-is in bolivia. This creates plenty of opportunity to buy at a lower price than asking when offering a cash sale.  This lower price can be as much as 20%-30%.

Prices are low so financing isnt needed: Properties in outlying areas that need work can be bought for as low as US$10,000. The price range that we see that is ideal for local buyers is the US$40,000 to US$75,000 range.  This seems to be the sweet spot for both local buyers and those returning from Spain and other parts of Europe to buy properties.

Less risk by selling into the local market: Many international locations have properties that aren’t geared for the local market. After 3 years in the local market, we’ve found that there is a constant local requirement for housing. This requirement is only increased by the number of local Bolivians working in Europe, USA, and Japan that want to return and invest their savings in a local property.

So, as an illustrative example, we are aware of residential properties that are asking in the the $35,000 range, can be purchased at 30% less due to their current condition, and only need $5000-$8,000 worth of work.  They could then be sold 45-60 days later at US$45,000 or more.  Many investors would be able to swing one or two of these deals each month at these prices.

if you are interested in exploring opportunities in Bolivia, contact Alicia@boliviabienesraices.com

Note: this is not an offer or solicitation to buy.  All real estate investment involve risks and the above example may or may not representative of all opportunities. You should should perform your own due diligence and consult your legal and tax advisers before engaging in any real estate purchase.

Interesting article about changes that international buyers should be aware of when considering real estate purchases in India. 

http://tinyurl.com/dfr5mz

With real estate fraud on the rise worldwide, I wouldn’t be surprised if more governments dont start payong closer attention to international real estate transactions.

 Gotta ask the question. I dont know if they are but the below Twitter snippet might make a reasonable person think that at least some are. If not, then perhaps twitter should be redefined as the opiate of the masses…

Why else would exact copies of the same twitter post (or “tweet”) linking to an otherwise smart guy’s posts appear in different people’s twitter streams without any sort of indication that it’s an ad? Hopefully, this anything but the future of real estate marketing.

Here’s the problem even if this isnt a paid service. In my view, you can automate your own twitter stream to your heart’s content - put it someone else’s and it’s now an ad (even if unpaid). For all of the fuss that some in the re.net make about vendors (the term, “vendor slut” used by some comes to mind), at least you know that vendors are trying to sell you something.

Lots of people dislike the magpie service (including me) but at least they put a #magpie in their automated marketing posts to let people know that its an ad…. Perhaps it’s on his blog someplace that he is doing this. I didnt see any reference to it after a quick search. Perhaps its just pure coincidence…I’m sure some carefully crafted answer will be forthcoming.

Until then, so much for transparency, bring on the manipulation of the masses!

We get calls, emails, blog comments, and notes on Facebook all of the time about how there is a boom going on in [insert name of international location here] and how we should be directing buyers there. Between us, we’ve often been to many of the recommended places.  How should someone that doesnt know about the local market proceed with an international real estate opportunity…especially when the developer or agent explains that there is a “boom” going on.

Here are our observations from first hand experience that may help:

- A building boom doesn’t always mean a buying boom: Just because lots of units are being built, doesnt mean that anyone is actually buying them. Building booms can occur for a multitude of reasons other than demand. It may just be speculators which, unless you got in early and have impeccable timing, actually increases the chances that you’ll not do as well as hoped on your investment. Another reason is that building permits aren’t well controlled. After all, if there was a real buying boom, why would they be looking for customers so hard?

- Look carefully at the values of nearby properties: We know of places where land is marketed to international buyers at 10x the value that the same land is being sold to locals. In some cases, the local language versions of property websites have pricing that is 60%-80% of the prices for the exact same property on the English version of the site. There is no MLS or code of ethics in place in many areas. Buyer beware….

- Think about the future: How will future construction impact your investment? We know of one area where building were being built from the back of the land to the front with each new row being sold as “ocean view”.  Many absentee investors might be surprised to find that their once broad ocean view is now largely blocked by construction to the front.

- Look at the past: Study the builder’s reputation for past projects. Sometimes the golf courses dont get built or people get ripped off. Dont just ask the developer - also do an online search about the developer and each of their past projects. Ask about the builder and past projects in well visited forums about international investment.  Bad deals often generate quite a few unhappy customers willing to share their grief with you online.  Great developers build bunches of happy customers.

- Take a trip on your own dime: As the economy slows, many developers are offering paid trips to potential buyers. I’d recommend traveling on your own dime so that you have the freedom to do some of the research above. There are great deals out there…take the time to find them.

Any real estate purchase contains risk. International investment is no different. Dont take any observation or opinion made in this article as legal or financial advice - consult your legal and financial professional. We are also available on a consulting basis to help you make the right international real estate purchase in the US or Latin America.

The NY Times has an interesting article on one couple’s experience with buying real estate in Rio de Janeiro. The world is filled with many interesting international real estate opportunities.

Here is a video interview with John Tuccillo who is now a consultant but also formerly was the Chief Economist for the U.S. National Association of REALTORS (NAR). We filmed this video interview for the REALTOR Association of Greater Miami and the Beaches (RAMB) while at the SIMA 2008 real estate fair which is billed as the world’s largest real estate event.

Mr. Tuccillo covers a number of topics, many of which are applicable to those interested in finding international buyers. Using our video platform technology, the video plays right on their site.

Marketing to international real estate buyers means one of two things: 1) attracting them to you and/or 2) going to wherever they are.

Some of the best places to find international buyers and investors of U.S. residential properties and other real estate are at any of the major real estate fairs or conventions throughout the world.  Vidlisting.com now has a program in which they will take care of all of the details of a booth or stand at such shows as well as provide supporting materials useful in a foreign market such as real estate video to assist you sell your property.

Vidlisting.com is in the middle of such a representation for the world’s largest real estate fair, SIMA, which is held annually in Madrid, Spain.  The client, Koko Resort, is an american owned resort in Bocas Del Toro, Panama and they wanted to have a presence at this year’s SIMA expo. In addition to designing, setting up, and manning a stand at the show with people fluent in three languages as well as videos & DVDs, Vidlisting has done a number of supporting functions online even gone so far as to make a special SIMA oriented home page (you can see it at http://vidlisting.com during the dates of the show - 8-12 April 2008 - and at the first link thereafter).

In short, the Vidlisting International Trade Show program is a comprehensive online and off line approach to generate international business with foreign buyers.  Contact them at sales@vidlisting.com with questions or to get more information.

Here is a short video that we did some time ago with Kent Payne of Gran Pacifica in San Juan Del Sur, Nicaragua. San Juan Del Sur is a popular international investment location due to its beaches and pristine feel. It is very much what Costa Rica must have been like in the late 1970s. Kent is an icon within the American community in Nicaragua. He is one of those just very friendly, good guys that you come across occasionally in the world. It is hard to go anywhere in Nicaragua without meeting him or at least hearing about him.

Kent was kind enough to sit down with us and chat. In this short video interview, we talk with Kent about Gran Pacifica and also get his thoughts about investment in Nicaragua. Enjoy!

You have a few options to get to the main island of Bocas Del Toro Panama.  The first is by air which is comprehensively covered elsewhere.  You can also cross into Bocas Del Toro by ferry, water taxi, or private charter.  We’ll cover the drive in addition to the ferry and water taxi options in this blog post.

Getting There

The crossing points for both the ferry and water taxis are located in Almirante, Panama which is on the same route as Changuinola, Panama. The turnoff to Almirante/Changuinola from the interamerican highway is only about 15 kms shy of the city of David, Panama. One tip is that if you are driving from Panama City, there are only a handful of gas stations between the city of Santiago and the city of David. Only 2-3 take credit cards and those are really close to David. Fill up your vehicle with gas in Santiago just to be safe especially if you are using credit cards.  It’s almost 3 hours from Santiago to the turnoff to Changuinola and Almirante.

The drive from the turnoff to the town of Almirante is about 100km (some 70 miles) and paved the entire way although a few sections of road need repair.  In all, the drive fto/rom the turnoff took a bit over 2.5 hours in both directions.

The road portion of the trip can be divided into thirds - from the turnoff on the Pan American Highway to the town of Galaca is about 20 minutes with much of the route being straight and flat. 

Galaca to the town of Punta Peña takes almost 1.5 hours   This part of the drive is primarily winding mountain paved roads that have poorly maintained sections and a fair amount of slow moving vehicles. You’ll be crossing the continental divide. Figure up to 2.5 hours or more if you aren’t comfortable passing slow moving trucks or buses on winding mountain roads.

Punta Peña to Almirante takes around 45 minutes. You’ll need to make the turn at the huge gas station/restaurant or you’ll end up in the town of Chiriqui Grande. This gas station accepts credit cards and is the last gas before Almirante. Another tip is that you’ll likely not find decent lodging in Almirante - plan your departures accordingly.

Making The Crossing Into Bocas

Ferry: The vehicle ferry makes a single crossing each day to Bocas at 8am. My original intent was to bring my rental car across on the ferry. However, there isn’t a lot of space for vehicles on the ferry and there are large vehicles such as 18 wheelers that need to cross as well. There isnt much need for a car in Bocas anyway.  Taxis are cheap and plentiful and you can walk/bike almost everywhere.  If you must cross with your vehicle then you’ll need to get in line as early as possible.  The day that I went, I showed up at 6am (thinking I would be early) but the line had formed the previous day and, as such, I was unable to get my car on the ferry.

If you want to cross on the ferry by foot, you can safely park and store your car at the gas station right next to the ferry dock (about a 30 second walk to the ferry) for a cost of US$3 per day. You can alternatively arrive by taxi. 

The cost of cars is based on weight - to cross by foot costs US$1. The ferry takes upwards of two hours to make the crosing to Bocas.  I crossed on a saturday morning and the upstairs passenger area on the ferry filled quickly. Again, arrive early to find a seat on one of the wodden benches. If you dont want to look outside, there is a TV and we also had a few local food vendors.  There isnt much space to move around on the deck of the ferry when the deck is full of large trucks and other vehicles.

Water Taxis:  Water taxis are a bit more flexible in terms of schedule as they depart every half hour. The water taxis leave from a taxi accessible area a bit further away from the cargo terminal in Almirante than the ferry.  The water taxi costs US$4 and takes about 30 minutes for the crossing.

This blog is going to be where we write about general international topics and also for a non-technical audience interested in using video as a part of an international real estate marketing package.  Video is a great tool to attract new prospective buyers from throughout the world.  We’ll use this blog to talk about international informational tidbits, international real estate marketing in general and the use of video where appropriate.

If you are looking for real estate video specific information geared toward those that need professional video services on and off line, please check out our real estate video blog. If you want technical information about our online web video content management and syndication platform as well as discussion on broader technical and conceptual topics, please go to our video platform blog.