All Forum Posts by: Alex Garrido

I agree with @Mike Lambert coming to Panama or any other country for just tax purposes is not REI, it is asset protection which is fine if you have a heritage to protect otherwise you are basically... breaking even.

Also on the topic of countries. Yes, it is probably a good opportunity to invest in Cairo or Caracas but... is it worth the mess? the risk? the money bags down the table? At least not for me.

Mexico, DR, CR and Colombia are extremely good as they attract tons of tourism in a lot of areas such as experiences, alternative tourism and nature with good logistics and structure.

Panama (my country) is behind on logistics and structure, it is messy beyond the America´s Bridge yet also the best chance to actually feel "Nomadic" - Panama City is about certain areas such as Casco, Clayton and little by little San Francisco. Panama as the country where the Nomad waves have been occuring would be Pedasí, Venao, Torio, Mariato, Boquete and Bocas. 

Hope it helps!

 My pleasure Damaso! 

 That´s correct Scott! In those towns is where the STRs entrepreneurs usually invest, they are mostly digital nomads as well and they come for the summer go when it rains, and when it rains locals fill the spot with some tourist to boot. 

Hey Damaso,

Most beachfront properties in Chiriqui will be in the Gulf of Chiriqui.

It is a beautiful zone, underdeveloped that will grow to the heights of Venao in a couple years. 

As it is underdeveloped the prices should be low, still, there are many developers that have higher prices which begs the question:

Are you asking as a risk taker or a moderate investor? 

If you tolerate riskier investments then buying a lot or vacant land (Titled, always titled) has a bigger potential return on the other hand if no more development occurs in the area then you will be left with a more long term investment. Still, a great area to invest in my opinion.

Now if you are a moderate investor then buying vacant land is too risky. You might check Coco Beach, I think they have a good project in this area and the Torio project in the area of the same name might interest you too. It seems like Torio is going to happen sooner than the Gulf, just food for thought there.

Happy to assist

Hey Scott,
That is what I recommend if you want to buy: smaller towns.

The prices are already fair and they are sliding every day. Why?

The short answer is that the prices although low did not justify for a proper business model. 

The long version is that since the early 2000s there was a boom in Panama City which followed a frenzy of buying land for no reason other than to buy land, buyers from across the globe where buying tons of land for no business purpose but a land investment.

And it was a succesful business model for the "land flipper" until prices soared, then a mix of events bursted the bubble. From Panama Papers to a dwingling economy worldwide it became evident prices where for the most part at their peak. 

Farm owners in coastal areas now wanted to sell for prices meant for only big developers. Big developers where not investing as much anymore, land flippers where left with unwanted inventory and if you for example now wanted to do an agricultural business and bought land in some places, the math would never makes sense.

The good thing is as you mentioned some small towns are thriving because of the expat presence, similar to what happens in the US with "gentrification" the expats attract the digital nomad crowd that works from the beach, surfs, love great coffee shops and restaurants etc. So Venao, Pedasí, Boquete, Catalina and newcomers like Nomad Beach, Coco Beach and Torio are making waves.

That is absolutely true, it is illegal in the City of Panama for less than 45 days. The good news is that you can put it in airbnb and such for 45 days and it would be fine, legal and before 2020 the most asked about "short terms" where for three to six months. Still very good.

The buildings in Costa del Este will have hotel permits when (and if) they are finished, they are under construction but yes, the high price I do not think justifies the purchase.

The other thing is I wouldn´t buy except that you come across a rent to buy deal which are more common everyday.

2021 Update on Panama:

Investing in Real Estate here is very different than in the U.S. The Panama City market has been sliding forever thus why I never recommend buying much in the city except if you want to move here (still...renting makes more sense at the moment)

Investing in the city really only comes down to doing a STR business based either on leverage or co-hosting models as rents are extremely low and there is SO MANY apartments and houses that are empty, doing nothing for 2 or more years.

In fact I started investing in this until 2020 of course. 

For the moment I would recommend doing your homework, calling people up, make some connections, hire a RE lawyer and start looking at prices for STRs WHEN the lockdown is over, which is impossible to know as of today. 

This is not the time to invest, it is the time to research and have negotiations down for when the pandemic is over.

If you are more of a developer there is affordable housing projects that makes sense to participate or build with a group as more people need affordable houses and regrettablely a high percentage will have to "downgrade"

Vacant land is usually a good long term business. Never buy a Right of Possession, just never do that. As an investor that is WAY too early and extremely complicated to achieve the transition to a Title.

If you guys need a call with me to clarify anything let´s share a virtual coffee (or beer, depending on time) and talk some Real Estate.

Nothing is impossible, the word itself says 'I'm possible'!

- Audrey Hepburn

Investment Info:

Other other investment.

Purchase price: $60,000
Cash invested: $50,000

first Nomadic lifestyle beachfront in Panama (Pocrí, near Pedasí)

What made you interested in investing in this type of deal?

the high ROI in 5 years

How did you find this deal and how did you negotiate it?

Found it from a mentor that decided to go and change how REI worked in Panama

How did you finance this deal?

They did all the financing, so it is private in its nature.

How did you add value to the deal?

I added value by brainstorming with him about it, made the legal and business model unique.

What was the outcome?

Actual outcome is how interesting it is that niche real estate communities and co created with the clients can maybe change how we invest especially in Latam.