Coastal Dreaming

Part 3 in our series on Buy Low, Sell High.

Part 1 - Buy Low Sell High

Part 2 - Buy High Sell Low?

This could be a fantastic opportunity to buy low and sell high. This lender-owned property is ready for the smart investor. The lender needs to remove the asset off their books so they are willing to sell this property at a deep discount. The lender already made the money they needed to make on it when they sold it the first time.

Buy this property today and 3 - 5 years from now when you boast to your friends they will think you are really smart. Actually, it is pretty easy to buy low and sell high. Just do the opposite of what the masses are doing.

Rodney Dangerfield plays Al Czervik in the movie Caddyshack. When we was playing golf he was on the phone with is business manager and he says. “Buy, Buy, Buy. What? They are all buying? Then Sell, Sell, Sell.” (not a direct quote).

I will give you a $10,000 piece of advice. If you contact us to negotiate this property for you, I am willing to bet the seller will consider all offers.

Tags: real estate, San Juan Del Sur

Continuing our conversation about buy low/sell high started in our last post, here is an example of someone who bought high and sold low.

In this case the sale was a deed-in-lieu of foreclosure. The buyer (owner) could not afford the payments so the buyer gave the property back to the lender. This is still a sale. The buyer bought high ($249,900) and sold low ($0.00). This buyer lost all down payments and any equity in the property.

LENDER OWNED

San Juan del Sur Townhouse For Sale

Two bedroom, two and one half bathroom ocean view townhouse at Bayview Terrace. Fully furnished with towels, linens, etc. Two short blocks to sandy beach and 10-minute walk to restaurants and town center. Original listing $249,900.00 now being offered as a lender owned property at only $139,000.00

Most of us have heard the story of the lemmings. Wikipedia describes their behavior as such:

“On occasion, and particularly in the case of the Norway lemmings in Scandinavia, large migrating groups will reach a cliff overlooking the ocean. They will stop until the urge to press on causes them to jump off the cliff and start swimming, sometimes to exhaustion and death.”

Additional research has shown that the lemming behavior is a result of cycles.

“Lemmings of northern Norway are one of the few vertebrates who reproduce so quickly that their population fluctuations are chaotic,rather than following linear growth to a carrying capacity or regular oscillations. It is unknown why lemming populations fluctuate with such variance roughly every four years, before plummeting to near extinction.”

Economic and Business models have fluctuations and oscillations. It has become apparent to some economists that the oscillations of our current economic models are occurring more rapidly and more intensely. The highs and lows are more pronounced and the frequency is increasing.

I will predict that the world is near the bottom of the financial crisis of 2008 and we will again experience a resurgence of capital.

“there is now some evidence to suggest that the predator’s population may be more closely involved in changing the lemming population.”

The world’s coffers were built up from 2001 to 2007 and the predators, depending on which conspiracy theory you abide by, took advantage of the opportunity to seize the wealth. My current belief is that the Federal Reserve and the IMF were the predators.

Lesson: Those who are selling now are selling at the bottom and those who buy now are buying at the bottom. Now is the time to buy.

We will highlight a property in Nicaragua next week as an example.

Remember: “Due to their association with this odd behavior, lemming suicide is a frequently-used metaphor in reference to people who go along unquestioningly with popular opinion, with potentially dangerous or fatal consequences.”

Be cautious of what the media is telling you to do with your money. Check and see if the suggestions are moving you toward buying something at its HIGH. Are you going along unquestioningly?

Tags: economics, investment

Another sign that Nicaragua is growing up - a new magazine called Hecho started this spring focused on Nicaragua’s art and culture scene.  Here is the post I found on the the magazine from Americas Quarterly.  It was started by two US born graphics designers living in Nicaragua.   At a time when magazines are dying in many first world countries its great to see this medium begin to mature in developing nations.  There is still something to be said for high quality print pubs, and unlike the fragmented US advertising market, this will likely offer great ad based subsidies to ensure that the people involved in the art scene will be able to afford to purchase the magazine.

As an investor - yet another sign that the country is is maturing, entering the 21st century and starting to stand on its own identity. 

Best of luck to Hecho!  Looking forward to picking up a copy! 

Tags: art, culture, Media

Check out this picture of a 16 mill wind farm 1 mile south on the Pan American heading towards Costa Rica at the San Juan Del Sur turn off.  Many people think they are an eye sore - I find them actually very ascetic.  This wind farm has a nice background as well!

The key with alternative energies is diversification.  Its great to see wind coming into play in Nicaragua along with other great opportunities from geothermal.  Just like developing countries did with telecom, skipping widespread land lines and moving right to mobile, the same could hold true with energy skipping excessive build out of fossil based fuels and jumping right to alternative greener options.

Tags: wind power

Tags: cruise ships, the world

More good news for this growing tourism and investment destination!

If you have never heard of it The World is is a resort community that continually circumnavigates the globe.  It is in fact the only private community at sea.

We have heard news that they will be docking in San Juan Del Sur Nicaragua on April 23/24!  San Juan has the only cruise ship dock in all of Nicaragua, and is fast becoming the main tourism hub in Nicaragua. 

Tags: cruise ships, the world

Our volcano surfing post from early 2008 is one of our most highly hit articles.  Today I just noticed an article that ran in the New York times on this sport - entitled “A sport erupts on a live volcano in Nicaragua“!  A continuing theme of Nicaragua breaking into the mainstream media more and more. 

For a time the operator that we profiled - Bigfoot Adventures seems to be changing ownership.  Late in 08 their site was down, but it appears that they are back now as Bigfoot Nicaragua, and we wish them well.  In addition it seems there are some new operators in the space indicating that the sport is growing in popularity!  Here are the specific links to their volcano surfing options:

Vapues Tours

Tierra Tours

We have missed out on this during our trips there, but hope to hit it next time.

Tags: sandboarding, surfing, volcano

Got an email  from  our partners down in Nicaragua.  This information is from the Nica Times - Feb 27, 2009.  I tried finding an online version of this article but it appears that it might have been only in the  paper version. I also believe this is a direct quote from the article.

The board of tourism incentives, headed by the Nicaraguan Tourism Institute (INTUR) with the participation of the private tourism chambers, has already approved $33.3 million in tourism investment this year under the Tourism Investment Law. That number represents a 50% increase over all the tourism investment projects approved in 2008, according to INTUR.

Two of the larger projects that were approved are the $17 million ¨Pacific Turtle¨ resort, which will have 110 rooms near San Juan del Sur. In nearby Tola, another project was approved to build the $4.8 million ¨Agua Resort Spa¨.

In Managua, meanwhile, the board approved a project to build a new historic museum to honor the life of Nicaraguan National Hero Gen. Augusto C. Sandino.

According to INTUR, the new projects will generate 200 permanent jobs and 300 temporary jobs. Sixty percent of the investment is Nicaraguan capital, and the other forty percent is North American, according to INTUR.

Sandinista lawmaker Nassar Silwany, of the Tourism Commission, said that the amount of investment in the tourism sector reflects investor confidence in the ¨Government of Unity and National Reconciliation¨and demonstrates that the world financial crisis won’t affect investment in this sector of the Nicaraguan economy.

Tourism is quickly becoming the primary revenue source for Nicaragua, so this will be money well spent by the Nicaragua Government.

Tags: Tica Times, tourism industry

As we have said a number of times on this blog - the level of media coverage in an area will bring with it increased traffic making for great investments.  If you get in before a location goes mainstream, your investment margins will be much higher.  Nicaragua is already starting to be known on the world stage as a travel destination and San Juan Del Sur is considered one of the main tourism hubs in this country.  In March yet another high profile media outlet will profile this once quiet fishing village turn tourist getaway.  GQ magazine is profiling up-and-coming travel spots for down and out times.  In the article they mention the best view of the San Juan Bay is from the infinity pool at  Piedras y Olas  (Pelican Eyes) resort.  Having been there, I would have to agree.  Don’t just take in the view - Grab a drink at the bar with some of their superb shrimp cocktail, and watch the sun go down over the bay.  A great way to end the day!

Tags: Pelican Eyes, San Juan Del Sur