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Land purchase opportunity presented to me


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I'm still living in the US, and plan to move to CR in a couple of years. Recently, I was approached by a company offering an unbelievable deal on property in CR. It was to pre-buy 2 lots at $60k each with a $30K down payment on each. - They said that after the utilities were in and development started, the lots should be worth $200k each. - Is this possible? The name of the company is Costa Developers with offices in Ft. Lauderdale and San Jose. - The development is costamontana located north of Jaco on the Costanera Hwy.

Has anyone heard of this deal and is it a legit company?

 

Thanks,

Pete

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Greetings,

A year ago, we purchased 1.5 hectares ( about 3 acres ) of undeveloped land for $3,500 Cdn. What does this tell you?

Are YOU expected to battle the bureaucracies and pay for the installation of water and power? Assuming that you ARE able to get this done in a timely manner with a minimum of aggravation ( tee hee), just who could afford to buy such a lot for $200,000 US? It certainly wouldn't be a Tico. Your only market would be a gullible gringo.

Caveat emptor, my friend!

Barbara

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Hi Pete,

I would say yes and no it is possible. A lot in a gated development could be pre-purchased and increase substantially in value within a reasonable time frame. The market in Tamarindo, Flamingo and Jaco is really crazy right now, so lot prices of $150 per square meter or more are not unheard of within developments.

 

However you have a few red flags to watch out for:

- They contacted you, was it by any chance a telemarketer?

- Who said it is an unbelievable deal? TicoGrande is right, there are no unbelievable deals

- This sounds a lot like a scam that is all over the place now. 1) You have to pay before you can see the property. 2) The lots aren't actually subdivided, you only buy shares in a company that owns the development. 3) There is no infrastructure in place so you can't live there or build yet (no water or power)

 

Anyone who wants to buy real estate here has to take certain precautions:

- DON'T SEND MONEY!!!!! Money for real estate transactions is placed in escrow, or you pay when you are actually sitting in the lawyer's office (hopefully your own lawyer) and the seller signs the papers. After all due diligence is completed of course.

- Don't buy a property you haven't seen in person. Especially if you have not seen and priced any property in that area or in Costa Rica!

- Get references. Before you decide to deal with a realtor or developer, ask them for references from clients, other professionals and business associates.

- Watch out for hyperbole. Real estate in Costa Rica (anywhere) is valued according to the location and infrastructure. You can find good deals, but you can't expect to triple your money in one year.

- Get informed. A normal developer will post all kinds of information on their web site, including directions to the property. Company information like who the officers or investors are and what kind of experience they have.

 

I am of course biased, but I would tell anyone who is looking for property in Costa Rica to find a reputable realtor and use their experience and knowlegde.

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  • 2 months later...

I'm experiencing something similar.

I have no knowledge of Costa Rica but I am a real estate investor by trade in Ontario, Canada.

This is what I've been told.

By the way before I invest I'll be going down in May to see for my self.

I've been talking to a company called Paragon Properties of Costa Rica.

They are a building company. They build houses.

They offer 2 1/2 acre lots around Puntarenas.

$25k down on $60k lots or $35k down on $85k lots.

You do not have to pay anything more for 5 years.

In that time they will put the infrastructure in using the downpayment money.

The company then expects you to either sell the property, divide it and and sell 1/2, or build on it.

If you build they expect to be your building company at $60 sq.ft. which is quite reasonable.

You put $ into escrow with an Attorney in Florida where their office is and then travel to CR to view your lot expenses paid.

You can cancel and get 100% back anytime before the end of the onsite visit.

They encourage you to deal with all the local real estate brokers to check out what the market is like etc.

I would love to be told this company is bogus but all my investigations so far say they're ok.

Please give any and all suggestions please!

http://www.buycostaricanland.com

Check it out.

What I see so far is...

These guys aren't promising the world.

They just want to build my house.

Edited by Mike777
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I'm experiencing something similar.

I have no knowledge of Costa Rica but I am a real estate investor by trade in Ontario, Canada.

This is what I've been told.

By the way before I invest I'll be going down in May to see for my self.

I've been talking to a company called Paragon Properties of Costa Rica.

They are a building company. They build houses.

They offer 2 1/2 acre lots around Puntarenas.

$25k down on $60k lots or $35k down on $85k lots.

You do not have to pay anything more for 5 years.

In that time they will put the infrastructure in using the downpayment money.

The company then expects you to either sell the property, divide it and and sell 1/2, or build on it.

If you build they expect to be your building company at $60 sq.ft. which is quite reasonable.

You put $ into escrow with an Attorney in Florida where their office is and then travel to CR to view your lot expenses paid.

You can cancel and get 100% back anytime before the end of the onsite visit.

They encourage you to deal with all the local real estate brokers to check out what the market is like etc.

I would love to be told this company is bogus but all my investigations so far say they're ok.

Please give any and all suggestions please!

http://www.buycostaricanland.com

Check it out.

What I see so far is...

These guys aren't promising the world.

They just want to build my house.

Stay away from Paragon, I don't think they are for real...I am a realtor from Georgia that has been investing in Costa Rica over the last 10 years..I have many friends that are realtors in costa rica and NONE of them have heard of Paragon..That doesn't mean their bogus but, Paragon actually contacted me and could not answer any of my questions regarding the land. I can't stress how important it is to have a good realtor and an even better lawyer! It's very difficult to divide property in costa rica. It is a MUST to visit any property you are considering purchasing in costa rica..

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Stay away from Paragon, I don't think they are for real...I am a realtor from Georgia that has been investing in Costa Rica over the last 10 years..I have many friends that are realtors in costa rica and NONE of them have heard of Paragon..That doesn't mean their bogus but, Paragon actually contacted me and could not answer any of my questions regarding the land. I can't stress how important it is to have a good realtor and an even better lawyer! It's very difficult to divide property in costa rica. It is a MUST to visit any property you are considering purchasing in costa rica..

 

 

Sounds like you know the game down there!

I'll take your advise.

I think this forum is terrific!

Thank you.

Edited by Mike777
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  • 1 month later...
Sounds like you know the game down there!

I'll take your advise.

I think this forum is terrific!

Thank you.

We actually went down and checked out Paragon but we didn't anty up the $30K they wanted. Since we were going down anyway to our investment home in Playa Tambor we agreed to only put up $5k as good faith money to look at their properties.

 

Well to start with they were 1hr late picking us up at the hotel in the morning. Then they took us to their home modeling center where they show you the home building materials and upgrades for future construction.

 

Then we were told that the original lot we reserved didn't have the water view we were promised so they'd show us another lot in a different area. On the way there the company called the sales person to tell us it wasn't available and then to show us an entirely different area. Then the car broke down and we had to wait for a replacement vehicle.

 

We were taken up to Puterenas for a nice lunch (the only highlite of the day) and then driven up to the 3rd backup property. Needless to say it was a complete washout! No view, steep grade and across from a smelly horse ranch.

 

Then they took us to another area which while somewhat better was unreachable by foot or ATV and therefore we couldn't even walk the property. They just pointed up the hill and said "it's over there somewhere". In any case the grade was such that it would be a daunting task to build on it.

 

All in all we wasted no time in getting our money back (it took about a week). With all of the beautiful more traditional investments available in Costa Rica I see no reason to get involved with this operation. Many of the references we contacted while enthusiastic had purchsed their properties sight unseen and I think are in for a disappointment when it comes time to develop them.

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We actually went down and checked out Paragon but we didn't anty up the $30K they wanted. Since we were going down anyway to our investment home in Playa Tambor we agreed to only put up $5k as good faith money to look at their properties.

 

Well to start with they were 1hr late picking us up at the hotel in the morning. Then they took us to their home modeling center where they show you the home building materials and upgrades for future construction.

 

Then we were told that the original lot we reserved didn't have the water view we were promised so they'd show us another lot in a different area. On the way there the company called the sales person to tell us it wasn't available and then to show us an entirely different area. Then the car broke down and we had to wait for a replacement vehicle.

 

We were taken up to Puterenas for a nice lunch (the only highlite of the day) and then driven up to the 3rd backup property. Needless to say it was a complete washout! No view, steep grade and across from a smelly horse ranch.

 

Then they took us to another area which while somewhat better was unreachable by foot or ATV and therefore we couldn't even walk the property. They just pointed up the hill and said "it's over there somewhere". In any case the grade was such that it would be a daunting task to build on it.

 

All in all we wasted no time in getting our money back (it took about a week). With all of the beautiful more traditional investments available in Costa Rica I see no reason to get involved with this operation. Many of the references we contacted while enthusiastic had purchsed their properties sight unseen and I think are in for a disappointment when it comes time to develop them.

 

 

Thanks so much for the imput!

What do you think of investing in CR in general and would you point me in the right direction?

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  • 4 weeks later...

Mike -

 

" Thanks so much for the imput!

What do you think of investing in CR in general and would you point me in the right direction? "

 

there is an expression used in Costa Rica that we know thousands of investors who leave Costa Rica in just a few short years with one million dollars - the problem is; they came here with 3 million dollars

 

have that tatooed on your brain and enjoy your personal visit to see what is really happening in Costa Rica, and it's not stuffing our bank accounts with free money :ph34r:

 

saludos y pura vida

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  • 2 weeks later...

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