Rental Property Investor · Medellin, Colombia · Member since 2019 · 23 posts · 32 votes
7y
Hi Tangala, we've recently started doing business in Puerto Rico. There are quite good RE investment opportunities, especially recently after the Hurricane. A couple reasons why the PR opportunities are quite strong:
US Territory: As a U.S. territory, Puerto Rico enjoys unique benefits not shared by its fellow Caribbean islands. Though U.S. recovery efforts after Hurricane Maria were slower and stingier than the response to hurricanes in Florida and Texas, Puerto Rico has access to relatively extensive American disaster resources. Because Puerto Rico is a territory, the U.S. has vested interest in helping the island recover. Power and water systems, bridges, and roads will be constructed to U.S. standards. Puerto Rico has been part of the U.S. for more than 100 years, and the government has the same responsibility to the country as any other U.S. state. U.S. citizens can travel to and from Puerto Rico without a visa or even a passport. In terms of travel freedom, Americans can visit Puerto Rico as easily as they could any other state. And because Puerto Rico uses the U.S. dollar, there is minimal currency risk. Tax incentives: In 2012, Puerto Rico introduced a series of tax loopholes to lure investors and businesses. These tax incentives make living and working in Puerto Rico an enticing prospect for businesses and investors. For more info on the tax incentives, read about Act 20 and Act 22.
Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. Opportunity Zones allow investors to defer and minimize capital gains taxes.
Real estate prices: The real estate prices are much lower than other Caribbean islands.
Minimal Airbnb Rental Competition: Hotel prices in Puerto Rico remain relatively expensive and Airbnb style rentals are scarce. For investors, this represents a major untapped market with high returns.
Economy:
Strong, diverse economy. Tourism is also only 7% of the GDP in Puerto Rico compared to 30-50% for most Caribbean islands.
Rental Property Investor · Medellin, Colombia · Member since 2019 · 23 posts · 32 votes
7y
Hi Tangala, we've recently started doing business in Puerto Rico. There are quite good RE investment opportunities, especially recently after the Hurricane. A couple reasons why the PR opportunities are quite strong:
US Territory: As a U.S. territory, Puerto Rico enjoys unique benefits not shared by its fellow Caribbean islands. Though U.S. recovery efforts after Hurricane Maria were slower and stingier than the response to hurricanes in Florida and Texas, Puerto Rico has access to relatively extensive American disaster resources. Because Puerto Rico is a territory, the U.S. has vested interest in helping the island recover. Power and water systems, bridges, and roads will be constructed to U.S. standards. Puerto Rico has been part of the U.S. for more than 100 years, and the government has the same responsibility to the country as any other U.S. state. U.S. citizens can travel to and from Puerto Rico without a visa or even a passport. In terms of travel freedom, Americans can visit Puerto Rico as easily as they could any other state. And because Puerto Rico uses the U.S. dollar, there is minimal currency risk. Tax incentives: In 2012, Puerto Rico introduced a series of tax loopholes to lure investors and businesses. These tax incentives make living and working in Puerto Rico an enticing prospect for businesses and investors. For more info on the tax incentives, read about Act 20 and Act 22.
Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. Opportunity Zones allow investors to defer and minimize capital gains taxes.
Real estate prices: The real estate prices are much lower than other Caribbean islands.
Minimal Airbnb Rental Competition: Hotel prices in Puerto Rico remain relatively expensive and Airbnb style rentals are scarce. For investors, this represents a major untapped market with high returns.
Economy:
Strong, diverse economy. Tourism is also only 7% of the GDP in Puerto Rico compared to 30-50% for most Caribbean islands.
Hi Tangala, we've recently started doing business in Puerto Rico. There are quite good RE investment opportunities, especially recently after the Hurricane. A couple reasons why the PR opportunities are quite strong:
US Territory: As a U.S. territory, Puerto Rico enjoys unique benefits not shared by its fellow Caribbean islands. Though U.S. recovery efforts after Hurricane Maria were slower and stingier than the response to hurricanes in Florida and Texas, Puerto Rico has access to relatively extensive American disaster resources. Because Puerto Rico is a territory, the U.S. has vested interest in helping the island recover. Power and water systems, bridges, and roads will be constructed to U.S. standards. Puerto Rico has been part of the U.S. for more than 100 years, and the government has the same responsibility to the country as any other U.S. state. U.S. citizens can travel to and from Puerto Rico without a visa or even a passport. In terms of travel freedom, Americans can visit Puerto Rico as easily as they could any other state. And because Puerto Rico uses the U.S. dollar, there is minimal currency risk. Tax incentives: In 2012, Puerto Rico introduced a series of tax loopholes to lure investors and businesses. These tax incentives make living and working in Puerto Rico an enticing prospect for businesses and investors. For more info on the tax incentives, read about Act 20 and Act 22.
Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. Opportunity Zones allow investors to defer and minimize capital gains taxes.
Real estate prices: The real estate prices are much lower than other Caribbean islands.
Minimal Airbnb Rental Competition: Hotel prices in Puerto Rico remain relatively expensive and Airbnb style rentals are scarce. For investors, this represents a major untapped market with high returns.
Economy:
Strong, diverse economy. Tourism is also only 7% of the GDP in Puerto Rico compared to 30-50% for most Caribbean islands.
Developer · Aguada, PR · Member since 2014 · 927 posts · 279 votes
6y
We just returned from PR for our last trip of the year. We have been looking to buy down there, but had a couple local deals delay our purchase. 2020 will be our year.
We are also looking at dealing with the CRIM. I plan on sending my wife down for a couple weeks of boots on the ground and making office calls with the CRIM and banks on the island. we are interested in looking into some of these abandoned properties and vacant land. I will let you guys know what we find out over the next few months.
Does anyone know of any list services that wholesalers use here in the US that also work on the island? I would be interested in hearing more about that as well.
Old San Juan is the place if you want the big tenants to sign a NNN lease. There is no better place. There is a reason why Hilfiger, Sunglass Hut, Ralph Lauren... have spaces down there
Old Bridge, NJ · Member since 2014 · 14 posts · 2 votes
6y
Was down there for months after the Hurricane assisting with electric power restoration. I think there is definitely opportunity but San Juan can be expensive. Also check out Rincon. Beautiful area very "gringo" friendly if you will. There is some high crime areas and the police do not really do much about it.
My significant other is actually from PR moved after the Hurricane so I do have some inside knowledge. Family is still there we visit once a year for about 2 weeks at a time.
Hello Aaron, im a native of Puerto Rico, and i also share the interest in real estate investing and deals. I use facebook, and a classifieds web page , sort of a craiglist but for PR. Realtors kinda just have a monopoly going on. There is really no MLS. As that can raise doubts or questions, i see it as an opportunity to really get the wholesale deals. I have a very good sense of the market as i have been comparing markets like central Florida, south Florida, Pennsylvania, currently working with a best friend which is a realtor in Georgia, as well as our church friend which is working with an investor and we share with each other similarities or differences. I have narrowed my opinion as i have experience in the construction, handyman side, as well as i have spent the past 3 years independently learning financial education. I am working on putting a sort of strategy for first time investors in Puerto Rico, and have an answer to such great questions like the one you asked. If you like to connect and hear an opinion, at your service.
Hello Aaron, im a native of Puerto Rico, and i also share the interest in real estate investing and deals. I use facebook, and a classifieds web page , sort of a craiglist but for PR. Realtors kinda just have a monopoly going on. There is really no MLS. As that can raise doubts or questions, i see it as an opportunity to really get the wholesale deals. I have a very good sense of the market as i have been comparing markets like central Florida, south Florida, Pennsylvania, currently working with a best friend which is a realtor in Georgia, as well as our church friend which is working with an investor and we share with each other similarities or differences. I have narrowed my opinion as i have experience in the construction, handyman side, as well as i have spent the past 3 years independently learning financial education. I am working on putting a sort of strategy for first time investors in Puerto Rico, and have an answer to such great questions like the one you asked. If you like to connect and hear an opinion, at your service.
Pierre, yes there is no MLS. point2point or FB groups are a help as well. Realtors are lazy and non responsive. I am still waiting back from a text I sent last week.
Ft L J Mcnair, DC · Member since 2017 · 24 posts · 7 votes
6y
@Aaron T.
Does anyone knows where I can find a list of properties with tax liens in PR? Is there an agency that has that info and if so, how can I get it? Gracias!
Does anyone knows where I can find a list of properties with tax liens in PR? Is there an agency that has that info and if so, how can I get it? Gracias!
Karelyn,
The CRIM will be the one that controls all the data for the island. Unfortunately, taxes are so low there, that it takes forever before the government does something about it. The government is in no position to take homes back, since 6 out of 10 are already on government assistance.
I looked into the tax thing too, but quickly realized it does not work the same as the states.
Ft L J Mcnair, DC · Member since 2017 · 24 posts · 7 votes
6y
@Aaron T. One follow up question, what website do you use to find foreclosed houses in PR? Any free websites? The ones I find charge you to get detailed information. I assume there has to be a public database with all the info for free, no? Thanks for your help!
@Aaron T. One follow up question, what website do you use to find foreclosed houses in PR? Any free websites? The ones I find charge you to get detailed information. I assume there has to be a public database with all the info for free, no? Thanks for your help!
I use point2point to look at inventory. you will also see foreclosed homes in there as well. you can take the info and drop it into skip trace if you want to find the owners. one thing to note is that PR is still living in the past as far as technology and ease of finding data. If you can look past some of these things, its still a beautiful place.
Professional · Gurabo, PUERTO RICO · Member since 2015 · 19 posts · 13 votes
6y
It's to early to determine the impact of the virus. On the other hand, I was able to sign a deal for a client on a HUD-REO property. Local buyers are still looking.
Professional · Gurabo, PUERTO RICO · Member since 2015 · 19 posts · 13 votes
6y
It's hard to say what's going to happen. Prices are already at there lowest, sales activity might slow down initially but eventually, things will pick up. It's still less expensive to own than to rent. Deals are still available but it all depends on which market you're interested in.
Investor · Jupiter, FL · Member since 2019 · 54 posts · 20 votes
6y
@Javier Rancier I’m looking for high returns probably multi-family homes. What kind of returns have you seen your investors getting? What location would you advise to look into?