Investor · Woodbury, NY · Member since 2015 · 15 posts · 7 votes
I just heard on the news that real estate prices are dropping like crazy in Puerto Rico due to the state of the local economy. Wondering if that's a good opportunity to start investing there. Anyone on BP currently investing there? Any local real estate agent from PR on BP?
Investor · Somerset, NJ · Member since 2016 · 14 posts · 15 votes
10y
Hello Amigos,
I want to respectfully disagree with Joel, in regards of "only recommending San Juan-the capital. as the place to invest. I actually was born and raised in PR and I just came from PR from a visit to one of the properties I'm rehabing located specifically in the vibrant town of Aguadilla. Unbeknownst to many, Aguadilla is one of the handful of towns that is solvent, it has no debts and it has cash reserves. In addition, Hewlett Packard, Lufthansa, and many more new corporations are setting foot in Aguadilla as of late. Simply Google or Youtube about it, there are lots of articles on Aguadilla becoming the new Aerospace leader given that in Aguadilla there's the Base Ramey wich has the biggest Airport in the Caribbean. The news keep making Aguadilla very attractive and as one the towns with the biggest potential. I'm actually doing some rehabs for some old houses my late dad left for us. So I'm using this project as a school to help me identify some the hurdles and pits of PR investing. As of now, I'm building a small team of Managers, GCs,realtors, contractors etc and so far so good. The only thing I've noticed thus far is the speed or the lack thereof. Things are a little bit slower down there. Anyway, that's my experience so far, if you're interested in investing in PR, specially in Aguadilla, keep in touch I would love to help in anything I can. Saludos!!
Checkout this videos, (In Spanish but you will get the point.!!)
Philadelphia, PA · Member since 2016 · 11 posts · 0 votes
10y
I have heard the same stories... I was considering that but i need to get more knowledgable in my local area.
I heard that it will get higher like Miami....
Miami, FL · Member since 2015 · 23 posts · 16 votes
10y
I wondered the same thing. I would love to invest in Puerto Rico, but finding solid information has proven challenging. Anyone from Puerto Rico that can shed some light on this for us? Thanks!
Real Estate Agent · Miami, FL · Member since 2015 · 6 posts · 3 votes
10y
I'm from Puerto Rico, I just recommend the area of San Juan, nothing more. And thinking in this overseas investor looking to have a vacation house, because locals are definitely not oriented in the investment world, so difficult to find a good buyer.
Investor · Somerset, NJ · Member since 2016 · 14 posts · 15 votes
10y
Hello Amigos,
I want to respectfully disagree with Joel, in regards of "only recommending San Juan-the capital. as the place to invest. I actually was born and raised in PR and I just came from PR from a visit to one of the properties I'm rehabing located specifically in the vibrant town of Aguadilla. Unbeknownst to many, Aguadilla is one of the handful of towns that is solvent, it has no debts and it has cash reserves. In addition, Hewlett Packard, Lufthansa, and many more new corporations are setting foot in Aguadilla as of late. Simply Google or Youtube about it, there are lots of articles on Aguadilla becoming the new Aerospace leader given that in Aguadilla there's the Base Ramey wich has the biggest Airport in the Caribbean. The news keep making Aguadilla very attractive and as one the towns with the biggest potential. I'm actually doing some rehabs for some old houses my late dad left for us. So I'm using this project as a school to help me identify some the hurdles and pits of PR investing. As of now, I'm building a small team of Managers, GCs,realtors, contractors etc and so far so good. The only thing I've noticed thus far is the speed or the lack thereof. Things are a little bit slower down there. Anyway, that's my experience so far, if you're interested in investing in PR, specially in Aguadilla, keep in touch I would love to help in anything I can. Saludos!!
Checkout this videos, (In Spanish but you will get the point.!!)
Investor · Carolina, PR · Member since 2014 · 7 posts · 5 votes
10y
@Mike Wire I'm currently new to the REI business, just recently bought my first multi-family for rental income. Being a local, I can tell you that it all depends on the niche you have in mind. If you look at PR from an appreciation perspective, maybe isn't the best economy (for now), but it doesn't mean you won't find good deals.
During my last years research and analysis of the local market, what I discovered by applying what I learned to the local market, is that the two primary niches here are based on flips (buy-slight rehab-sell) and buy-hold (for rental income, not appreciation).
Being that said, if your plan is to invest overseas, you'll need a solid team to locally work with, at least a couple agents with same type of business experience, contractor for rehabs & repairs and active property manager. I have to admit that there are really good professionals on the business, BUT not very active on these type of platforms like BP, still very attached to the face-to-face business style, so maybe building relationships will require some time.
Once you have a solid team, I've seen a couple investors around BP that currently own their REI business on the states but have a rental property portfolio here in PR. As a new investor I'm sorry I cannot point you with the right contacts, since I did basically all the lifting by myself (property search, visit scheduling, comparable market values, deal analysis, mortgage shopping, option contract, negotiation, insurance selection, etc.).
Also agree with @Edgar Villanueva in regards of not only looking into San Juan, I'd say that it is true that highly populated areas like San Juan would give you a lower vacancy rate, which is good for long term rental income, but I also personally know investors with vacation units within the west & south west of the island, were short-term rentals move nicely on certain seasons due to the attractive beaches in that area.
I really hope an experience investor in you same situation (PR market investing from overseas) reads this posts and give you a better insight. For now, feel free to ask any more specific questions you may have and I will do my best on pointing you to the right direction and if I don't know the answers, I'll find a way to get them when possible.
Realtor · Vero Beach, FL · Member since 2016 · 72 posts · 18 votes
9y
I do agree with @Roberto de Leon, Puerto Rico has other Beautiful places besides San Juan, metropolitan areas. Besides, S.J there's great potential in purchasing Condo with beach view & Properties under Market Value all over the island to invest or for some rental income.
Gentofte, Copenhagen · Member since 2017 · 16 posts · 2 votes
9y
Hi guys, relatively new to BP but am looking at buying condos in PR for rental. So far what ive see is that the ROE for rentals (short or long) is not very good but people tells me that you will earn a lot more renting on AirBnb. Anyone has any experience on this? Im from Denmark so will need to apply for residency to get the tax breaks offered at the moment which i certainly dont mind. Ive been trying to get in contact with lawyers and bankers thats been recommended to me but none of them can help me or even reply to my mails. The most important aspect for me, right now, is to get in touch with a lawyer that can help me with the company structure. Im guessing a LLC would be the preferred structure?
Im mainly looking at the San Juan area (Old San Juan, Isla Verde etc) because im assuming, if going for pure AirBnb, these areas will attract the most rentals.
Btw so glad to see this thread as Ive been looking for quite some time now for some more information and experiences
Check out https://www.airdna.co/ for statistics on the AirBnb market in Puerto Rico (or anywhere else you are interested in).
Before buying a condo, find out the HOA policies. Some prohibit the use of the condo as a short term (i.e., AirBnB) rental and that will severely impact your cash flow. I was going to buy one in Condado recently and when I found this clause, the numbers didn't make sense anymore.
Whoever quoted 10 to 20k to setup a company in PR either to doesn't know what they are talking about, or wants to make a quick buck off of you. Run away from them.
This is the second thread I read today that shows you linking the conversation to another thread which seems like you're suggesting something wrong with Puerto Rico. I believe we are here to find opportunities for investment, don't you think? Then, please, instead of suggesting the "issues" would you be so kind to address a more thoughtful input of Puerto Rico or any other area you're interested in.
Gentofte, Copenhagen · Member since 2017 · 16 posts · 2 votes
9y
@Jeff B.Yeah we all know the problems that PR is facing and likely will be facing for quite some time, hence why it makes it interesting to invest. @Doug R. can you recommend any lawyers that can help me (foreigner) set up an act 20 company? The person ive talked to, had an online business which he said cost him around 20k to set up in PR. Lawyers fees, various government institutions etc that he needed to pay. Sounds like a crazy number to me, especially when they want to attract foreign investments.
Sacramento, CA · Member since 2017 · 25 posts · 7 votes
9y
@Peter Hoeck Did you have any luck purchasing a property in PR? If so, I'd be curious to hear your experience, as I'm also curious in investing in PR. Thanks.
Hello @Roberto Leon, what area did you purchase your multifamily in? I'm currently looking at investing in PR and would like to understand some of the better areas to purchase multifamily units. Thanks in advance!
Gentofte, Copenhagen · Member since 2017 · 16 posts · 2 votes
9y
@Francisco HernandezNo not yet, as im moving from overseas to PR, theres a few things i need to get in place first but planning on moving there in Sept/Oct. Talked to a few that has investment properties in San Juan (Isla Verde area) renting out on Airbnb etc and they're doing quite solid. If you look at long term rentals, the numbers are not really adding up. For me at least. If you need a solid real estate agent, let me know and ill pm you
Professional · Gurabo, PUERTO RICO · Member since 2015 · 19 posts · 12 votes
9y
For additional information regarding multi-unit properties in Puerto Rico, contact arrendadores.org. This is a local members only group composed of residential and commercial property owners. Most of the members are brokers with vast experience. Among the perks of belonging is they provide a tried and proven lease agreement and keep members abreast of new laws and any changes in the works that would affect multi-unit property owners.
Real Estate Investor · Rincón, Puerto Rico · Member since 2017 · 25 posts · 6 votes
9y
@Peter Hoeck My attorney charged my 12,000 to set up an llc and a get the act 20 decree but I wouldn't recommend them. PM me and maybe I can help you apply yourself for the grant (I've been talking to the guys over at the OITE for over a year).
Rental Property Investor · Mars, PA · Member since 2014 · 92 posts · 36 votes
9y
My partner, @Zach Shepard and I are making a trip to Puerto Rico from 8/13 - 8/19. The purpose of our trip is to get to know the PR real estate market and identify properties to acquire. We are primarily interested in acquiring units, designing/furnishing and operating them as short term rentals (Airbnb, VRBO, etc). We need to identify a property manager who can manage the end-to-end short term rental experience (corresponding with guests on Airbnb, checking them in to the unit, handling maintenance issues during the stay, check out, maid service turnover, etc). We wish to maintain control of our ability to operate short term furnisehd rentals, so, we will avoid properties with COAs/HOAs unless they expressly permit this activity and are friendly toward operators.
We intend to meet with real estate brokers, property managers, designers and other professionals during out trip to set up a team on the Island that can manage our interests since we live and operate in the US Mainland's Midwest. We'd also like to meet with hard money lenders and bankers to establish local financing relationships. Please share your insights on these areas.
@Victor Chico appreciate your insight on short term rental restrictions. Would you be open to getting some lunch or dinner with my and my partner when we visit PR in August?
@Alexander Castro you mention condo opportunities. These can be restrictive for operating short term furnished rentals. What are your suggestions someone with this strategy?
@Roberto Leon we haven't set our itinerary yet for travel within the island. If we make it to your area in Carolina we'd love to get together.
Excited about PR and getting to know some like minded investors!
Realtor · Vero Beach, FL · Member since 2016 · 72 posts · 18 votes
9y
Hello @Danny,
Not all have restrictions. Many use them for Air b&b. I suggest you invest in properties with ocean view or ocean front where the return is more. I have seveal available starting from $100k. Will gladly help, send me your contact info.
Professional · Gurabo, PUERTO RICO · Member since 2015 · 19 posts · 12 votes
9y
Not to give lawyers a bad rap, but considering the current market in PR, even their business has suffered quite a lot. I recommend you shop around for fees. I'll make some calls tomorrow.
Rental Property Investor · Mars, PA · Member since 2014 · 92 posts · 36 votes
9y
@Alexander Castro my contact info is in my signature line. Please private message me and let me know when you are available for a phone call this week. Me and my partner, @Zach Shepard, would like to chat with you. Would like to understand what property managers in your market are equipped to handle short term furnished rentals.
Gentofte, Copenhagen · Member since 2017 · 16 posts · 2 votes
9y
@Doug R. I would certainly appreciate any help you can give me. USD 12k sounds like a heavy price tag. An accountant i talked to mentioned a way lower figure however that was for setting up the business under act 20