Lucky, the Foreclosure Dog.
Lucky wandered into The Oaks, www.theoaksrentals.com, in search of food last week. We adopted him, are feeding him and will put him up for permanent adoption by one of our owners as soon as he is in shape. The economic crisis has caused some Costa Ricans to stop feeding their pets. With a world economic crisis, there simply is not enough money for some families to feed both their pets and their children.
Can a smart broker get lucky, too? I think so. Every week we get wind of distress sales, which are snapped up quickly when they are real. Just yesterday I had a call from an acquaintance in Tamarindo who has to sell his two bedroom, two bath condo in town. He purchased it two years ago for $155,000 and is now willing to sell it for $80,000. Of this amount, $70,000 is represented by a 7% assumable mortgage. HOA fees are $350 a month and taxes are about $20 a month. This is an excellent rental property, walk to the beach, that probably will return at least a 50% profit in two years. Rental income probably will fall short of carrying costs by about $400 a month, so a two year hold would require $20,000 total. With a likely $40,000 profit, you can do the math.
This is the time to tour properties and snap up a bargain. The weakest owners are selling at fire sale prices and after they have sold, the remaining units are priced at market. For example, this building has only two fire sales, then list prices jump $50,000.
If you are an investor looking for a bargain, we can set up tours based from The Oaks (sadly, no fire sales in The Oaks). From The Oaks, you have easy access to the hottest Pacific markets, and can tour 10 properties in a day. If you are a broker bringing clients, we can share commissions.
Why not just come on your own? For the same reason that I wouldn´t dream of flying into your market and buying something that looks like a bargain. Too risky. Maybe water issues. Maybe poor construction. Maybe noise. Maybe the wrong location, where that lot next door will be an eyesore. We can prescreen properties for you, whether it is condos, lots, houses or land. If you want a true bargain, now is the time.
And what is in it for me? I want to expose The Oaks rentals and few remaining sales, because I know that some people will come for a fire sale and snap up a bargain, while others will take their time, come back again, and buy the place of their dreams in this marvelous country. Those others are our motivation.
If you have always wanted to come to Costa Rica, this is the time.