Country Article / Postcards

My Third Real Estate Recommendation Surprised Everyone...

Date: 10/09/2009 Author: Ronan McMahon

Greetings from Las Vegas. As I write close on 300 attendees are buzzing around the exhibition hall. We’re on our last coffee and networking break of the day. Workshops start in 5 minutes…cocktails in 95 minutes.

I don’t think the information the group has got will stay in Vegas. This is a motivated group. They will leave Vegas ready and armed with the information and motivation to take action.

The crowd is buzzing about 2 real estate projects and two guys in particular. A crowd has gathered around Steve and another around William.

Earlier today I spoke about my 3 hottest investment markets. No one was surprised when I told attendees why I'm bullish on north-east Brazil…no eye brows raised when I spoke about distressed opportunities in Europe. They were expecting this. It made sense to them.

My third pick caught attendees by surprise. At first I got a few puzzled looks. They thought the opportunity in this market had passed. I thought so too until I discovered these 2 deals.

The country is Costa Rica. These deals however are in undiscovered, forgotten or inaccessible Costa Rica. Here you can pay less than a tenth of the prices you would pay in northern Costa Rica. Thing is: It’s nicer here.

Steve’s project is located near the town of Ojochal in the heart of the country's southern zone. This secluded spot is where emerald-green hillsides slope down to deserted beaches…where cloud-ringed mountains tower behind …and the afternoon sun glimmering through the lush vegetation creates a magical show of light and shadow…

Don't think for a moment, though, that your early-in opportunity in this area of Costa Rica means you'll be roughing it.

This is a mature development, with over 100 homes already constructed, and it's fully serviced with roads, water, electricity, satellite TV, Internet, and a modern communications system.

The nearby village of Ojochal has plenty of restaurants—Swiss, French, German, American, Italian… you can buy bread fresh from the oven…a cozy eatery serves wood-fired pizzas…a deli in town stocks imported cheeses, wines, and other culinary treats.

It feels quite cosmopolitan for such an out of the way place. And if you're an outdoor enthusiast or a nature lover, you will love the unspoiled, lush landscape, and pristine beaches.

What will really take your breath away, though, is the prices. As I write Steve is telling attendees about the half-acre lots he is offering for $40,000.

William’s project covers 640 acres and nestles deep in the Talamanca Mountains. This is on Costa Rica’s other (Caribbean) coast. You get magnificent views of the Caribbean and the surrounding mountains and valleys. The 1,300-foot elevation allows for fresh ocean breezes. The site is diverse, with virgin rainforest, five rivers, two waterfalls, and gently rolling hills. The wildlife is abundant, with hundreds of bird and animal species.

The project is located just 1.5 hours east of San José. And it’s only 30 minutes from the beautiful white sand beaches and the sparkling waters of the Caribbean. Since the airport is only two hours from Miami, you can arrive on site in just over half a day from Florida. Despite this accessibility and beauty, lots here are also available for $40,000.

Don’t let the prices fool you. These are high-end quality projects.

There is a reason these prices are so low.

Poor infrastructure has meant that Steve’s project has been difficult to get to. This is set to change. The new Costanera Highway will be complete in the next few months. A new international airport is also slated for this area. The location: 10minutes from Steve’s project.

William’s project is in Costa Rica’s Forgotten province of Limon. For much of the last century, Limon (the capital of the province is also called Limon) was a company town. The United Fruit Company managed the port, built the railroads and bridges, looked after the colonial buildings, and ran the local businesses. When they pulled out of town in the 1960s, Limon became Costa Rica’s forgotten province. A planned billion-dollar gentrification project is going to transform this port town in Costa Rica into a major Caribbean hot spot.

Point is: the reasons why prices are low in both these areas is set to change. These are the best projects in their respective areas.

I know you haven’t been able to make it here in person, so you should listen to the recording of my deals workshop where I talk about both these projects.