All Forum Posts by: Ken Badziak

That being said, the Argentine government and economy is in full-blown collapse mode, so you might be able to find some amazing deals... I remember reading a story about one investor who got his start when he purchased a 200+ room hotel in Buenos Aires for a song when the economy last collapsed.. that was about ten years ago.

Chile has the strongest economy in all of South America, and Montevideo has the highest quality of life of any South American city... 

Originally posted by @Dominic Jones:

 Wow, great insight! I lost you when you started abbreviating... what is BsAs?

Anyway... are you saying Argentina, Uruguay and Chile should be avoided solely because of the distance or do you have further insights that you can provide as to why you are saying that those countries should be avoided?

In regards to investing in Belize, in the context of what you said, how has investing been there for you and your family? 10 years down there must mean, you either a) have a dedicated person on the ground at all times, or b) found the right, good people, or c) may be a part of the corruption going on? (hahaa, I kid, I kid).

Definitely taking your words into consideration for future dealings and proceedings. Thanks for your added insights!

 BsAs- Buenos Aires.

As for Belize, yeah I guess you can say we have dedicated people on the ground; my parents bought a property there on the beach after they visited in the early 2000's. But they're looking to move back at this point; even though Belize is practically right next door, getting in and out is amazingly expensive. It's so much cheaper to fly into Cancun that they'd rather spend 12 hours on a bus to fly out of Mexico than to deal with the expense of going through Belize International.

As far as avoiding Argentina Uruguay or Chile, I'm merely speaking from a distance perspective. It's a long long long flight down, and expensive (although not as expensive as flights into Brasil). Personally, I wouldn't mind retiring in Patagonia in Argentina, but that would mean living down there full time.

Originally posted by @Carl Devitt:

Any recommended areas for modestly priced single family housing?  I probably have to make a career decision Tuesday as I'm going to interviewed over the phone for a position in Miramar (NBC Universal Media) and I will continue to operate on a modest income <80,000 income.  
     If you believe everything posted on the internet about South Florida you can be quickly convinced its a third world expensive hell hole where English only speaking folks are not welcome.  I would appreciate a realistic assessment in regards to cost of living, property taxes, etc.
      I expect I will have to make a decision as visiting prior is really not possible.   I made a similar decision about San Jose, CA over 20 years ago but my situation was simpler then....1 wife and 1 car....now its 5 vehicles and 2900 Sq. ft. of accumulated stuff.  Even parking looks like an issue in many communities as properties are smaller.  

 You'll find plenty of places in Miramar, Pembroke Pines, Weston... have kids? Weston has some outstanding schools. Lots of good property in Boca and Wet Palm Beach, but the drive would really add up.

Look at a map and find the Palmetto Expressway; that's your southern limit. The deeper south you go the worse the traffic gets. And I mean it suuuuuuuucks. Miami Lakes (where I live) is really nice, but getting in and out during rush hour is a nightmare; every road out becomes clogged with traffic, and there are no "shortcuts", as it's enclosed on all four sides by highways or airports. Might take you 30 minutes to move 3 blocks. No joke; every road out is a bottleneck.

Did I mention the traffic suuuuuuuuuucks? It's getting worse. So stay north of the Palmetto, and if possible in Broward County (you're right on the border)

   "If you believe everything posted on the internet about South Florida you can be quickly convinced its a third world expensive hell hole where English only speaking folks are not welcome. I would appreciate a realistic assessment in regards to cost of living, property taxes, etc." -that's generally true in Miami Dade county, and becomes even more so evident the further south you go, to about Kendall. Kid you not- went to a car wash and asked the guy how much for vacuuming the car, he had no idea what I was asking. But you'll avoid much of this the further north you go.

Also, did I mention the traffic? The further south you go the more aggressive your driving needs to be; you're sharing the road with Haitians, Cubans, Colombians and Venezuelans. Stop signs are merely a suggestion for many of those drivers. Also, machismo is something you'll be dealing with. A lot.

Costs of living are fairly reasonable, except in Miami. Miami Beach is operating on their own little planet. Fun to visit, just be prepared to part with a few C-notes before you leave. 

But the skies are blue and walking around in flip flops in February does have its charm. I'm still getting used to south Florida, but every day it gets better and better.

Except for the traffic.

Suuuuuuuuuuuuuuuucks.

Mexico does not allow foreign ownership of real estate. They will let you sign a 99 year lease, however the property will never be yours. So marry a Mexican! (unless the laws have changed- this was the case 7 years ago or so...)

Belize is great. My family has owned property there for over a decade. The time to buy was about 10 years ago. Just kidding; Corozal is expanding rapidly, and there's lots of developments popping up everywhere. However, the government is corrupt and not very business friendly. Nothing ever works properly, and its hard to get good help. Very much a place where you basically have to be there all the time to make sure things get done right. And on the coast, because of the coral reef off the coast, everything rusts. And I mean EVERYthing. Plastic rusts. It's a constant battle to keep things operating. Belize International looks like an African third world airport, whereas Cancun looks and feels like any major airport in the US. Leonardo Dicaprio is building an "eco-friendly" resort on his island. The Belizian government sadly gives a rat's behind about their ecology and their history; they're selling off the country to anyone with money, and destroying the amazing natural wonders in the process.

Costa Rica is good; a family friend went down there 10 years ago for a visit. When he came back home he sold his business and real estate holdings in Chicago, packed his bags and has rarely been seen since. He bought and developed property, quite successfully.

Although Montevideo, BsAs and Santiago are my three favorite cities in all of South America, I'd avoid Argentina, Uruguay and Chile, simply because they're quite far away. BsAs is a 9 hour flight from Miami.

I'd recommend Central America; Panama, Costa Rica and Nicaragua are all places that keep popping up in conversations. Plus, they're all within a three hour flight from Florida or Texas.

I designed my business card using vista print, and I think I'm satisfied, but wanted your opinions. Thanks!

Rather than simply finding a renter, what about offering your listings as a "Rent 2 Own" type deal? Tenants take on a different mentality than just pure renters; they'll take care of your property better. If they bail, you keep the deposit. (And it's my understanding that they bail more often than not) And if they DO purchase the house you'll only be hit with long term capital gains, as you would have held the property over a year. Thoughts?

Originally posted by @Aly W.:

I've had 2 great transactions with Regent Bank in Ft. Lauderdale. Excellent customer service, and it's a small portfolio lender that's friendly towards investors. I've also used GTE Financial Federal Credit Union in Tampa, but they lend in FLL.

 Fantastic info, thanks! Google brings up multiple locations; any particular one you recommend, or are they all about the same?

Originally posted by @Jon Klaus:

Chris, taking the funds out early and paying the tax and penalty can make sense if there is a company match.  

Say Joe's son puts in $1000 and his company matches for  a total of $2000 invested.  

At the end of the year he cashes it in and pays 10% penalty and 20% tax. He's left with $1400 after his own $1000 investment.  No, not as good as the 100% return if he had not touched it, but better than not participating. 

It goes against the spirit and full benefit of the company match, but it is still effective.  

 This likely won't work simply because of the vesting schedule.

They vary for each company, but generally it's a five year schedule.

So after one year, he only keeps 20% of the match.

Two years, 40%

Three years, 60%

Four years, 80%

Five years, 100%.

After five years the money the company matched becomes yours. If you bail any point prior, you lose some or most of the match.

Originally posted by @Dmitriy Fomichenko:

@Scott Trench I think this is great topic for a discussion! 

And lastly it’s Roth 401k. It allows you to pay taxes one time now and then invest tax-free forever! Who can give me any arguments why I should not invest in the tax-free environment??? 

My friend, you're putting in a LOT of faith into the government holding to their promises that your money will be free to withdraw tax free some 20-30-40 years into the future.

The people who made those promises will be long dead and gone by then, and the new Congress will be doing everything they can to grab all that juicy money just sitting there slightly out of their reach.

A Roth makes sense ONLY if you're in the lowest tax bracket already. Once you pass 20%, you'd be MUCH better off investing in a traditional IRA or 401k.

A bird in the hand (tax deduction TODAY) is much much much better than two birds in the bush, even if the Government promises they'll still be there waiting for you when needed.

what are some of the banks you guys (gals) have had success working with here in The Miami-FLL markets? 

Anyone really stand out as offering exceptional service?

And how about banks to avoid?

Thanks BPers!!!