Below are a few readers questions about the 38 acres on the beach I viewed in Ecuador that has an asking price of $15,000. Included are my replies which can help you understand how to better profit from this knowledge.
Question #1: “Hi, I just joined the investor list. You spoke of a piece of land along a new highway and a beach front property near Malta?? Please tell him I want it! No joke I have the cash but not the time to get there. I really would like to purchase it. Please advise asap. Thank you,
Answer #1: Except in a most unusual circumstance, it is never good for someone to buy a piece of land sight unseen. Rule number one in good investing is to invest in what you know. How many worthless acres of swamp and desert have been purchased by people who made this mistake. Several people have written that they are flying down to buy this so I am not even sure if it is still available. If you love real estate investing and feel you have enough knowledge to be an absentee owner, I recommend a trip to Ecuador and a visit to at least five areas, #1: the coast from Manta an hour and a half north and south; #2: the colonial city of Cuenca and outlying valleys; #3: Quito proper; #4: the valleys just beyond Quito and #5: the valleys an hour and a half north and south of Quito. This will give you a good overview of at least part of the real estate market there and will take you three to seven days depending on how much real estate you view.
The least expensive way to get such an overview is to join an International Living real estate tour (for details contact firstname.lastname@example.org) or if you want to set up a schedule of your own you can get help through International Living’s offices in Quito at email@example.com
I am a contributing editor to International Living and conduct and am involved in some of their tours and courses in Ecuador but other than that I have no financial interest whatsoever in the Quito operation nor do I revive any remuneration for referring you to them. My recommendation is due to the fact that I know the director of this office
Question #2: Dear Gary, This recommendation seems very appealing to me. I am not sure if I am able to attend either of the seminars. I wonder how I could still be involved in this investment. I have an account with Jyskebank.
Answer #2: Whether you attend a tour or not, I most highly recommend that you visit Ecuador before buying through a loan or in cash. I cannot stress this highly enough. Merri and I love Ecuador for all the reasons that you have outlined, but you may not. The fundamentals of Inspired Investing tell us that we should invest in what we love as well as know. Selecting real estate is like choosing a lover. Give her a try before making a commitment!
Questions #3: Thank you Gary for the informations that you send me regularly. I am very anxious to attend your seminar in Vancouver, but right now I would like to get more informations on the land that you are talking about. First of all it is not clear to me if you are talking about land that you purchased, doing money transactions, or; that land is really available right now for transaction. I know that real estate over there is cheap, but if this land is for sale, it would be more than cheap it would be ridiculous. Anyway if that land or something similar is available I would like to have more informations about it, like: I would like to know everything with possibility to purchase, so;
- where is the lot and how accessible is
- Is it to far from the sea
- Any pictures about land and view
- Is general and detail map available
- Any legal person to contact, and how reliable it may be.
- When you say monthly payment, I guess there is loan involved, or what?
- Is any structure – building – on the land?
I appreciate all details about this case, so please send me, or get anybody that is involved to send me detail info about it. Your suggestions are welcome too.
Answer #3: I have written about several pieces of land recently. I have purchased several pieces of land in Ecuador but have not sold nor am offering these. I am looking at another 1,250 acre plot outside of Cuenca and if i buy this will probably offer a club to twenty people who would share the land with me for a rustic, organic, quiet country lifestyle. How veer I believe that you are referring to the 38 acre beach lot for sale at $15,000. My only relationship with this land is that I walked over it, looked at what I believe to be the property boundaries and talked with the man who introduced it to me. This is a non listed private sale and has not been offered to the public. This land is about 45 minutes south of Manta on the coastal highway and sits between the new coastal highway and the sea. This is raw land with no improvements that sits high above the ocean and ends in a cliff of perhaps 100 feet above the beach. The views are incredible looking out over the Pacific with Isla de la Plata on the horizon. There is about a half mile of beach front that is inaccessible from the land without building a road or steps down the cliff. I do not have nor have seen maps, surveys or pictures. I have no involvement with this or any of the land I write about. I have never had any interest in land I have written about but should this become the case I will make such relationship abundantly clear. In every case to date I have had no ownership, interest and have not received any commission or payment for this. I am strict about this. When one real estate developer gave me a piece of land in appreciation for having referred his development, I turned the offer down. I am paid by my readers and club members for writing and conducting courses to help them make, keep and enjoy wealth and do not create conflicts of interest by taking payment for selling things.
My only purpose in looking at properties is to give you ideas about the state of the market and to enthuse (or warn) you about an idea or area. I try to avoid specific recommendations because of Inspired Investing. Every person should choose very specific investments that are special in their lives. My hope is to help you see profitable areas you can research to make specific choices that suit you best.
The asking price I was quoted for the 38 acre beach property was $15,000 and I introduced the idea that you can borrow this amount of Japanese yen from Jyske Bank (or most other European investment banks) currently at the interest rare at 2% per annum, so the monthly interest cost would be $25 per month. Banks will accept foreign land as collateral so you would have to post some liquid asset valued in excess of $15,000 to obtain the loan.
Question #4: Just read your report on the 38 acres for $25.00/month deal and frankly it makes me so frustrated. For the last two years my wife and I have been reducing our consumer debt and we are almost there (one More Card to go). I also have been working on myself personally with the help of some of the great people I have found on the net, Including yourself. When I get offers like the one you just presented we get frustrated as we are starting literally from scratch at 40 years old, But we are very determined and your information gives us hope and when hope is all you have some times it is comforting. Keep up the good work and keep giving us hope.
Answer #4: Congratulations! There is nothing financially you can do that is better than pay off debt. Being debt free gives you more security and freedom than anything else. At age 36 I had after years of earning substantial income still living from hand to mouth and in debt. By taking the same course of action you are in less than ten years I was debt free and had a million dollars in the bank! Do not feel frustrated. The sun always shines somewhere and always shines. You will have plenty of time to capitalize on opportunity when you are debt free and you are never starting over. Or mistakes, our errors, our misdeeds, if we learn from them are just valuable lessons that help us learn how to live right. Keep up the good work!
Until next message good global business and investing!