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.!!)
Investor · Los Angeles, CA · Member since 2016 · 577 posts · 240 votes
9y
I have heard a lot of great things about puerto rico. The lower taxes and the lower prices make it very interesting. There is also a lot of space on Puerto Rico and there are a lot of tourists. If I were to invest there I would do an AirBnb type thing.
Washington, DC · Member since 2016 · 4 posts · 1 vote
9y
This information has been helpful. PR caught my attention a little while back and I have been researching investing in a short term rental. I am planning to visit soon for a vacation/property-scouting trip. I like the old San Juan area.
Realtor · Vero Beach, FL · Member since 2016 · 72 posts · 18 votes
9y
Since the implementation of Act 20 & 22, Puerto Rico is attracting alot of people relocating their companies to take advantage of the Tax Incentives for those that qualify.
Also, due to the current situation that PR is facing, there's thousands of properties under Market value great for Air b& b or vacation home.
Now is the time to invest in the Carribean and where every one vacation "Puerto Rico".
Investor · Cabo Rojo, PR · Member since 2017 · 3 posts · 9 votes
9y
Just joined! I live and develop real estate in PR (mainly residential and tourism-related). Over the past nine months, my partners and I have picked up over 1,200 acres and are negotiating for over twice that amount. Three factors have come into play making real estate purchases easier: economic stagnation (painful but true), large-scale emigration (ditto), and a growing need for cashing out while the losses aren't devastating. It is a buyer's market and land prices reflect that.
Our focus is to buy land in order to develop projects that contribute to economic rebirth rather than just buy-and-hold. For example, we have a three-part project (marina, hotel, and a small number of townhouses) in the works on about 6 acres. Another project aims to develop an eco-tourism project (hotels, biking/horseback trails, shore-based sports and exploration) on about 135 acres. We couldn't (or shouldn't) be doing these projects and more if there were no interest on the part of investors. Puerto Rico might be in a down cycle, but opportunities still exist.
To address certain issues raised in the thread, here are my takes: Setting up a company in PR can be done in one day and costs at least $150, but should not cost much more. (English language link: https://estado.pr.gov/en/forms-for-corporations/) Airbnb is doing quite well in PR, but it suffers from wildly diverging standards (location, quality, prices, etc.) and a glut of similar properties in key areas. Condos for rent are a good purchase because prices have dropped, but the key demographics for that kind of rental market is pretty much the same ones that have left or are leaving the island (young people, professionals, etc.) There is a lot of success in the buy-remodel-flip process, but most of it is at the low-end of property values (under $150,000) due to the huge number of repos local banks have on their books coupled with serious bargain-hunting by would-be buyers. (Our partnership sold 17 houses with this model between March and July.) And finally, investing in PR carries every caveat all investments have: do your research, understand the parameters and consequences, and be patient for the right opportunities. A big advantage: federal laws and UCC apply here in full.
I apologize for the lengthy post, but this thread tapped into interests I had not expressed elsewhere. Thank you for the opportunity to bring them forth.
Gentofte, Copenhagen · Member since 2017 · 16 posts · 2 votes
9y
@Gil C. Schmidt who do you use as architects? I recently bumped into a Danish company that are looking for projects in PR and have previously done a few project in Bahamas
Investor · Cabo Rojo, PR · Member since 2017 · 3 posts · 9 votes
9y
Right now we use a graphic artist, Herman Maldonado, for 3D conceptual designs, and we select an architect based on budget. We don't look for lowest quote, but for most complete service package. Our current projects are with James Acosta, but he's booked solid right now. I suggest looking into CMA Architects & Engineers. I believe they have the expertise and range for most projects. If that isn't the best fit (it happens), let me know and I can recommend other firms. After looking at the Bay Arch website, I would love to explore workimg with them on designing one of our hotel projects. Their work is imaginative and eye-catching. Thanks!
Realtor · Vero Beach, FL · Member since 2016 · 72 posts · 18 votes
8y
Working with Investors has connect me with great people along the way. If you need a lawyer to help you with the process or orientation for Tax Act 2022 send me a PM.
Property Manager · Phialdelphia, PA · Member since 2017 · 511 posts · 627 votes
8y
Hi All,
I've been looking at PR for a while and was planning on going there for a month on October 1st to see opportunities. But Maria hit the island very hard. Do not know if it make sense to go there now. Heard many horrible stories about shortage of food and water supply, not to mention electricity and internet/phone.
@Alexander Castro Do you think PR is still good place to look at the moment? How fast do you think the island will get back on track after the devastation of the hurricane?
Gentofte, Copenhagen · Member since 2017 · 16 posts · 2 votes
8y
@Yuriy Skripnichenko I was planning on going here in November but with Maria hitting the island, I won't be going for a while. From what I hear locally, it will take quite some time before things are back to "normal" again unfortunately. But perhaps the people here on BiggerPockets who actually lives there now can elaborate. Anyhow all very sad seeing whats going on and what has happened to the beautiful island.
I hope they will recover and get back on track with all essentials for residence. I'm still very interested in the island and want to go to check out the market in the future. Maybe even in December this year
Same here, more or less have everything lined up but still thinks its way too early to go there before 2018. Talked to a friend whos an economics professor at UPR and he said theres no point going now, wait until at least the electricity is up and running again. Besides dont think you will find any real estate agents etc that will/can take you around. Im not even sure any of the government offices are working properly. I would wait until end Jan/Fed depending on the progress but if you go, pls do share what the situation is on ground :)
Wholesaler · Katy, TX · Member since 2013 · 213 posts · 109 votes
8y
@Yuriy Skripnichenko the situation on the island is very hard at this moment. Power won't be reestablished 100% for at least a year. The governor is saying that by December 15th they will have 95% of the power generation but 1) They play with those figures (power generation is not the same as clients being serviced) and 2) They are saying that because if they tell the truth, they will have crowds at the airports trying to leave. Saying power will be back to 95% in December gives the people a false sense of hope to get their lives back to normal (which won't really happen by December).
Unless you are bringing food, supplies and much needed help, there's no point going there at this moment. The places that are running with power generators are starting to close because they have been running those generators practically non-stop for 30+ days and they aren't designed to take that beating. My mom lives in Guaynabo and she told me yesterday that a few restaurants around my hometown have closed because the generators failed and they can't get mechanics or parts to fix them. My brother sent my parents 4 solar panels October 1st and the US Postal office still don't know where they at. I sent my uncle a generator October 16th via UPS and it still hasn't been delivered.
My point is.. things will take a long time to get back to "normal". The island will not be the same once recovered. The economy will suffer greatly with the amount of people leaving the island (estimates are at 1,000 leaving every day). There will be great Real Estate investments to buy cheap but investors need to be patient. At least wait for power and communications to be reestablished.
Investor · Valencia, CA · Member since 2017 · 171 posts · 130 votes
8y
@Dennis Rodriguez before the hurricanes, Puerto Rico was our fastest growing market. There are people there I consider family now through our company. Our company (Powur) is actively supplying solar and batteries to Puerto Rico. The silver lining in this devastation is that we have a chance to build the power infrastructure in a way to off set future disaster. There is zero reason to rebuild the archaic grid.
Much love to all on PR and let people know there are people and companies on the mainland that care very deeply about the plight of fellow citizens.
Lender · Camuy, Puerto Rico · Member since 2016 · 56 posts · 52 votes
8y
I'm an investor here in PR and also mortgage banker.. The island for sure took a severe hit with the storm and there is still work to be done, but every day there are positive signs of recovery.. We have been back working steady here at my office for about 3 weeks now and are closing loans again as the entities needed to do so are also resuming normal operations. Power is gradually coming back to the metro area and there are pockets in various towns around the island that are now getting power restored as well. I personally feel there is much opportunity here to invest and now is a great time for those that have been considering a venture here to gear up and start making their plans to do so!!
Boston, MA · Member since 2017 · 95 posts · 29 votes
8y
Lets hope those Hurricane's were flukes and not a sign of what the weather pattern is like now that the Ocean water is getting warmer. I'd hate to think the Caribbean would get those Super Hurricane's every year.