Comments on: Do You Have to be Rich to Buy Land In Costa Rica? http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/ News & Tips on Buying & Selling Property in Costa Rica Mon, 08 Mar 2010 10:17:35 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jabzebedwa http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-375 Jabzebedwa Fri, 23 Jan 2009 00:18:11 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-375 Hi Troy, You don't have to have a corporation to buy a property in Costa Rica, but most do. Some opt to put the property in the personal name and the law allows for that. It is probably one of the reasons that Costa Rica is so appealing to foreign investors. It's easy to own property here. Putting the property in a corporation will add a level of insulation between you and your asset, so it is the path that most land buyers take in Costa Rica. The cost of a Costa Rica corporation ranges from $200 - $600, the higher end being for shelf corporations that the lawyer has ready to use, sitting on the "shelf" in his office. The shelf corporation will have no history at all and will likely have a strange name. You pay the higher price for the convenience of having it available now, instead of the three weeks or so that it takes to have one made for you. Hi Troy,

You don't have to have a corporation to buy a property in Costa Rica, but most do.

Some opt to put the property in the personal name and the law allows for that. It is probably one of the reasons that Costa Rica is so appealing to foreign investors. It's easy to own property here.

Putting the property in a corporation will add a level of insulation between you and your asset, so it is the path that most land buyers take in Costa Rica. The cost of a Costa Rica corporation ranges from $200 – $600, the higher end being for shelf corporations that the lawyer has ready to use, sitting on the "shelf" in his office. The shelf corporation will have no history at all and will likely have a strange name. You pay the higher price for the convenience of having it available now, instead of the three weeks or so that it takes to have one made for you.

]]> By: Troy http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-356 Troy Thu, 22 Jan 2009 13:29:44 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-356 I want to buy a piece of land in Costa Rica retirement purposes.My question is,do you have to have a corporate company to buy land there?Thank you I want to buy a piece of land in Costa Rica retirement purposes.My question is,do you have to have a corporate company to buy land there?Thank you

]]> By: How to Sell in a Down Market | Guys In The Zone: Costa Rica Real Estate http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-244 How to Sell in a Down Market | Guys In The Zone: Costa Rica Real Estate Mon, 05 Jan 2009 20:02:58 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-244 [...] financial pressure on many sellers. (For more information on seller financing, see Ben’s article “Do You Have To Be Rich To Own Land In Costa Rica?” )  In any case, for those sellers who seriously need to sell this high season, list price has fast [...] [...] financial pressure on many sellers. (For more information on seller financing, see Ben’s article “Do You Have To Be Rich To Own Land In Costa Rica?” )  In any case, for those sellers who seriously need to sell this high season, list price has fast [...]

]]> By: Who is Buying Land In Costa Rica? | Guys In The Zone: Costa Rica Real Estate http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-236 Who is Buying Land In Costa Rica? | Guys In The Zone: Costa Rica Real Estate Thu, 18 Dec 2008 12:03:59 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-236 [...] #1: I’ll call them the Boydsons, were the ones that inspired the post: “Do You Have to be Rich to Buy Land in Costa Rica?”.  We spent a couple days together here, and I think that they represent a large percentage of [...] [...] #1: I’ll call them the Boydsons, were the ones that inspired the post: “Do You Have to be Rich to Buy Land in Costa Rica?”.  We spent a couple days together here, and I think that they represent a large percentage of [...]

]]> By: Jabzebedwa http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-200 Jabzebedwa Wed, 03 Dec 2008 11:11:38 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-200 Well, it looks like a topic whose time has come. Since starting to work with this idea (all of 1 week ago), I have been met with nothing but POSITIVE responses from sellers. It's not a new idea. In fact, I think that nearly all the early investors down here that purchased the large tracts of land, that we are now seeing as subdivided lots, structured their purchases this way. Somewhere along the line, the luxury of EXPECTING that the seller would carry some of the note was lost in our lot transactions. I suspect this may have been due, to some degree, to the huge demand that we have enjoyed on our properties in Costa Rica's southern zone over recent years. The sellers, as well as us real estate agents, have perhaps been a bit smug as we have enjoyed the convenience of the: 10% down / 21 day due diligence / 30 day full price close program. I have been involved in a few such owner financed transactions, and they worked beautifully. The interest rate has been between 8% - 10%, and the terms have ranged from 6 months to 2 years. I suspect that in the new world economy that we are seeing unfold, these terms will be re-adjusting themselves to accommodate the changes in the market. What we have are: sellers that would like to/need to sell, and buyers that are more motivated than ever to move to Costa Rica, albeit with less available cash than they used to have. Interesting times. The two seller financing vehicles that I have worked with here are mortgages and trusts. I also was involved in one deal where a Costa Rican article of law made both seller and buyer comfortable with doing such a deal with nothing more than the Purchase and Sale agreement that detailed the terms of the sale. I'll be posting the details of how these work in a future post. Meanwhile, I am excited to be working with buyer and sellers on these not-so-new terms. David, if you would like to see view George's property and discuss how to structure a deal that would work for you both, please feel free to drop me a line. I also have his property listed on my web site. I'm not sure if I can put links in this comment (new comment script) so I may need to send it to you in an e-mail. Dave, thanks for your well informed comments. Ben Well, it looks like a topic whose time has come.
Since starting to work with this idea (all of 1 week ago), I have been met with nothing but POSITIVE responses from sellers. It's not a new idea. In fact, I think that nearly all the early investors down here that purchased the large tracts of land, that we are now seeing as subdivided lots, structured their purchases this way. Somewhere along the line, the luxury of EXPECTING that the seller would carry some of the note was lost in our lot transactions. I suspect this may have been due, to some degree, to the huge demand that we have enjoyed on our properties in Costa Rica's southern zone over recent years. The sellers, as well as us real estate agents, have perhaps been a bit smug as we have enjoyed the convenience of the: 10% down / 21 day due diligence / 30 day full price close program.

I have been involved in a few such owner financed transactions, and they worked beautifully. The interest rate has been between 8% – 10%, and the terms have ranged from 6 months to 2 years. I suspect that in the new world economy that we are seeing unfold, these terms will be re-adjusting themselves to accommodate the changes in the market.

What we have are: sellers that would like to/need to sell, and buyers that are more motivated than ever to move to Costa Rica, albeit with less available cash than they used to have. Interesting times.

The two seller financing vehicles that I have worked with here are mortgages and trusts. I also was involved in one deal where a Costa Rican article of law made both seller and buyer comfortable with doing such a deal with nothing more than the Purchase and Sale agreement that detailed the terms of the sale.

I'll be posting the details of how these work in a future post.

Meanwhile, I am excited to be working with buyer and sellers on these not-so-new terms.

David, if you would like to see view George's property and discuss how to structure a deal that would work for you both, please feel free to drop me a line. I also have his property listed on my web site. I'm not sure if I can put links in this comment (new comment script) so I may need to send it to you in an e-mail.

Dave, thanks for your well informed comments.

Ben

]]> By: Dave Roberts http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-198 Dave Roberts Wed, 03 Dec 2008 06:46:15 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-198 Ben, George, David..... I'm glad to see a discussion such as this.... This is the first receptive discussion I have seen regarding creative real estate transactions in Costa Rica. THANK YOU BEN!! I have traveled to the southern zone and have attempted to negotiate transactions whereby a trade or owner financing was involved. ..... my ideas were not well received at the time (2007 & early 2008). Owner financing is by no means risky, provided the financing party is comfortable with the collateral and the buyer has something vested (down payment, exchanges, cross collateralized security etc.) As the holder of owner financed paper one can trade the paper, hypothicate the paper, sell the loan in its entirety, or sell a portion of the payments in order to generate cash at any point in the future provided the transaction is created properly. Typically the rate of return on the loan will far exceed any cd, money market or stock unless we see 16-18% cd's again or you get lucky in the stock market. Typically, over time, the collateral is going up in value which further increases the security position for both parties. In the event the transaction, terms and security agreements are structured properly, both the buyer and seller win. The importance lies in the security instrument being structured such that it's merchantability is sterling so the holder is not stuck holding paper in the event their position changes in the future. There are many sources of buyers for paper secured by real property. Insurance companies and pension plans are the largest buyers as well as banks, finance companies and the private sector. A steady income stream is always nice to have. The paper is considered an asset on all financial statements and banks also make loans with a pledge of collateral called a hypothication agreement. Another bonus for the seller in the states is the way the transaction is taxed, however I have zero knowledge on Costa Rica tax law regarding how a transaction such as this is treated. I am interested in buying in the Uvita, Dominical, Ojochal area. I would be interested in owner financing or trading since I am trying to sell my properties in Florida in order to move. My surf boards are in their flight travel bags and I'm ready. Hola, Ruthie if you're reading this.. Dave Ben, George, David…..
I'm glad to see a discussion such as this…. This is the first receptive discussion I have seen regarding creative real estate transactions in Costa Rica. THANK YOU BEN!! I have traveled to the southern zone and have attempted to negotiate transactions whereby a trade or owner financing was involved. ….. my ideas were not well received at the time (2007 & early 2008). Owner financing is by no means risky, provided the financing party is comfortable with the collateral and the buyer has something vested (down payment, exchanges, cross collateralized security etc.) As the holder of owner financed paper one can trade the paper, hypothicate the paper, sell the loan in its entirety, or sell a portion of the payments in order to generate cash at any point in the future provided the transaction is created properly. Typically the rate of return on the loan will far exceed any cd, money market or stock unless we see 16-18% cd's again or you get lucky in the stock market. Typically, over time, the collateral is going up in value which further increases the security position for both parties. In the event the transaction, terms and security agreements are structured properly, both the buyer and seller win. The importance lies in the security instrument being structured such that it's merchantability is sterling so the holder is not stuck holding paper in the event their position changes in the future. There are many sources of buyers for paper secured by real property. Insurance companies and pension plans are the largest buyers as well as banks, finance companies and the private sector. A steady income stream is always nice to have. The paper is considered an asset on all financial statements and banks also make loans with a pledge of collateral called a hypothication agreement. Another bonus for the seller in the states is the way the transaction is taxed, however I have zero knowledge on Costa Rica tax law regarding how a transaction such as this is treated. I am interested in buying in the Uvita, Dominical, Ojochal area. I would be interested in owner financing or trading since I am trying to sell my properties in Florida in order to move. My surf boards are in their flight travel bags and I'm ready. Hola, Ruthie if you're reading this..
Dave

]]> By: Dave Roberts http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-199 Dave Roberts Wed, 03 Dec 2008 06:46:15 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-199 Ben, George, David..... I'm glad to see a discussion such as this.... This is the first receptive discussion I have seen regarding creative real estate transactions in Costa Rica. THANK YOU BEN!! I have traveled to the southern zone and have attempted to negotiate transactions whereby a trade or owner financing was involved. ..... my ideas were not well received at the time (2007 & early 2008). Owner financing is by no means risky, provided the financing party is comfortable with the collateral and the buyer has something vested (down payment, exchanges, cross collateralized security etc.) As the holder of owner financed paper one can trade the paper, hypothicate the paper, sell the loan in its entirety, or sell a portion of the payments in order to generate cash at any point in the future provided the transaction is created properly. Typically the rate of return on the loan will far exceed any cd, money market or stock unless we see 16-18% cd's again or you get lucky in the stock market. Typically, over time, the collateral is going up in value which further increases the security position for both parties. In the event the transaction, terms and security agreements are structured properly, both the buyer and seller win. The importance lies in the security instrument being structured such that it's merchantability is sterling so the holder is not stuck holding paper in the event their position changes in the future. There are many sources of buyers for paper secured by real property. Insurance companies and pension plans are the largest buyers as well as banks, finance companies and the private sector. A steady income stream is always nice to have. The paper is considered an asset on all financial statements and banks also make loans with a pledge of collateral called a hypothication agreement. Another bonus for the seller in the states is the way the transaction is taxed, however I have zero knowledge on Costa Rica tax law regarding how a transaction such as this is treated. I am interested in buying in the Uvita, Dominical, Ojochal area. I would be interested in owner financing or trading since I am trying to sell my properties in Florida in order to move. My surf boards are in their flight travel bags and I'm ready. Hola, Ruthie if you're reading this.. Dave Ben, George, David…..
I'm glad to see a discussion such as this…. This is the first receptive discussion I have seen regarding creative real estate transactions in Costa Rica. THANK YOU BEN!! I have traveled to the southern zone and have attempted to negotiate transactions whereby a trade or owner financing was involved. ….. my ideas were not well received at the time (2007 & early 2008). Owner financing is by no means risky, provided the financing party is comfortable with the collateral and the buyer has something vested (down payment, exchanges, cross collateralized security etc.) As the holder of owner financed paper one can trade the paper, hypothicate the paper, sell the loan in its entirety, or sell a portion of the payments in order to generate cash at any point in the future provided the transaction is created properly. Typically the rate of return on the loan will far exceed any cd, money market or stock unless we see 16-18% cd's again or you get lucky in the stock market. Typically, over time, the collateral is going up in value which further increases the security position for both parties. In the event the transaction, terms and security agreements are structured properly, both the buyer and seller win. The importance lies in the security instrument being structured such that it's merchantability is sterling so the holder is not stuck holding paper in the event their position changes in the future. There are many sources of buyers for paper secured by real property. Insurance companies and pension plans are the largest buyers as well as banks, finance companies and the private sector. A steady income stream is always nice to have. The paper is considered an asset on all financial statements and banks also make loans with a pledge of collateral called a hypothication agreement. Another bonus for the seller in the states is the way the transaction is taxed, however I have zero knowledge on Costa Rica tax law regarding how a transaction such as this is treated. I am interested in buying in the Uvita, Dominical, Ojochal area. I would be interested in owner financing or trading since I am trying to sell my properties in Florida in order to move. My surf boards are in their flight travel bags and I'm ready. Hola, Ruthie if you're reading this..
Dave

]]> By: George http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-202 George Wed, 03 Dec 2008 04:43:30 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-202 Hi Dave, Please contact Ben directly as he has requested. He has been my go to guy and has personally visited the property. His team is hard working and quite expert. As for some more input on Uvita: If you are not up to speed on the construction of the Pacific Highway Ben can advise. Matter of fact I believe he has written about the progress. I don't know the name of the other highway under construction from San Jose to Jaco but, my Gringo instincts tell me the completion of these roads alone will be huge for potential appreciation. George Hi Dave,
Please contact Ben directly as he has requested.
He has been my go to guy and has personally visited the property.
His team is hard working and quite expert.
As for some more input on Uvita:
If you are not up to speed on the construction of the Pacific Highway Ben can advise.
Matter of fact I believe he has written about the progress.
I don't know the name of the other highway under construction from San Jose to Jaco but, my Gringo instincts tell me the completion of these roads alone will be huge for potential appreciation.

George

]]> By: Bob Kable http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-201 Bob Kable Wed, 03 Dec 2008 04:42:14 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-201 Hey Ben, Thanks for bringing up a topic Bea and I feel strongly about. As you know,we bought 200 acres in the Dominical area in 98. (In Lagunas) We built our dream home and put 90 acres into a nature reserve to protect the wildlife we love.When we came to Costa Rica we were lucky enought to run into a seller who was willing to hold a private contract. Otherwise the farm we now have would have been beyond our reach. When we decided to sell some lots of our own, we figured we should offer others the same chance to buy into the Costa Rica dream. Selling with owner financing has not only been profitable, but has been the basis for many long term friendships. Banks such as Banco Nacional and Scotia Bank are getting better at US style property and home loans, but they are still very time consuming and the rates as of last week were running at 9-11%. A owner contract is simple(especially through a CR corporation) and in our case we have always meet or gone under the banks' rates. Hey Ben, Thanks for bringing up a topic Bea and I feel strongly about. As you know,we bought 200 acres in the Dominical area in 98. (In Lagunas) We built our dream home and put 90 acres into a nature reserve to protect the wildlife we love.When we came to Costa Rica we were lucky enought to run into a seller who was willing to hold a private contract. Otherwise the farm we now have would have been beyond our reach. When we decided to sell some lots of our own, we figured we should offer others the same chance to buy into the Costa Rica dream. Selling with owner financing has not only been profitable, but has been the basis for many long term friendships. Banks such as Banco Nacional and Scotia Bank are getting better at US style property and home loans, but they are still very time consuming and the rates as of last week were running at 9-11%. A owner contract is simple(especially through a CR corporation) and in our case we have always meet or gone under the banks' rates.

]]> By: davidmcquaid http://www.costa-rican-real-estate.com/2008/12/gotta-b-rich-buy-land-in-costa-rica/comment-page-1/#comment-196 davidmcquaid Tue, 02 Dec 2008 03:44:02 +0000 http://www.costa-rican-real-estate.com/?p=118#comment-196 George: I'd be interested in hearing about your Uvita property. We've been to CR six times in the last two years, and we agree that Uvita/Dominical offers the best investment potential. Please e-mail me at davidmcquaid@mac.com Thanks, David George:
I'd be interested in hearing about your Uvita property. We've been to CR six times in the last two years, and we agree that Uvita/Dominical offers the best investment potential. Please e-mail me at davidmcquaid@mac.com
Thanks,
David

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