Foreclosures in Costa Rica

Costa RIca Buy, Fix and Flip- After Pictures

2009-11-28T15:20:00.007-06:00

This home was sold to Don Rafa, a soon to be retired bread maker in San Jose, Costa Rica. He was looking for a quick and inexpensive buy for under 80K. His idea was to buy it, fix it and sell it immediately. ForbesCR team found him this one in Santa Ana in the Central Valley.

Located just two minutes from the new toll road that leads to the beaches, this property only needed another 5% of construction to complete it. He added the gutters, the banister up the stair case and the banister off of the upstairs balcony. The stairs also needed to be refinish. This is all that was needed to get this home one the market again. He bought it for 78K and today, it is on the market for $220.
A gated community, it is safe and secure. Please notice that there are no bars on the windows. Enjoy the after pictures..... and visit the previous blog in June for the before pictures. Contact me today as I can do this for you too.

LUXURY AT A BARGAIN PRICE

2009-08-21T08:34:00.005-06:00

Gracious, Luxurious, Elegant, Captivating are just a few words to describe OUR LATEST BARGAIN AT JUST $350K

This home is located in an exclusive and private gated community in the suburbs on the outskirts of San Jose. Luxury at its best, you need only a little paint, and it is ready for move in. This home furnishes 6 bedrooms with their own full baths besides the private and secluded maid’s quarters off of the laundry area.
The home’s size of 6,652 square feet of elegant construction which was made for entertaining. Your guest can park their cars in the secure and enclosed 6 vehicle carport and as they walk through the grand entrance, two spacious living rooms greet them. Your guest will not have to wait in line as there are two half baths on the lower level. The kitchen gleams with granite countertops and plenty of wood cabinets above and below.
You will enjoy endless meals in your sun room off of the kitchen.
Natural light embraces the entire house and the skylight above the grand staircase acts as the perfect spot light for your walkway to the four bedrooms, living room and library on the second floor.
Your master bedroom, hidden and secluded, is located on the main level.
The guest bedroom with its own bathroom is suitably located for privacy off of the office on the first floor. Additional specifications for this abode are:
Lot size: 6,470 sq ft
2 story house built completely in concrete.
Elegant wide front balcony decorating the main façade.

Big backyard of approximately 1,345 sq ft.
The neighborhood has security 24/7/365.
Walking trails thru nearby coffee plantation and river!
Recent appraisal for market value: $600K
YOURS FOR ONLY $350K
THIS DEAL WILL NOT LAST. CONTACT US TODAY

SOLD!!! FORECLOSURES IN COSTA RICA

2009-07-08T10:40:00.008-06:00

SOLD!!!!!!!!!!!!!!SOLD!!!!!!!!!!!!!!!!!!!SOLD!!!!!!!!!!!!!!!!!!!!!!!SOLD!!!!!

Congratulations JP on your purchase!

An excellent cash flow property. Our client saw the blog and signed up to work with us. When we took him to this condo in Heredia, he baught right away! Too good of a deal for it to stay around!

CONDO located in Heredia.

Ready to move in. Three bedroom, two bath.
Negociated at $88K. Market Value $145K.

JUST IN:

Located in Papagayo, Guanacaste (North Pacific) and minutes from the beach. TWENTY SEVEN (27) hectares for $540K! That is $2/square meter. Don't wait. Contact us today!

FORECLOSURE STEALS AND DEALS!

2009-06-07T18:03:00.044-06:00

Ocean or mountain view? Condo, single family, or Villa? Lots, commercial, cash flow property? Whatever your desire, we have it all. Unfortunately, foreclosures are up in Costa Rica (824 on the block today) but for the few opportunity seekers, this is your time. Call or write us today. We are eager to find you your next deal.

The latest steals and deals:

CONDO located in Heredia.

Ready to move in. Three bedroom, two bath.
Negociated at $88K. Market Value $145K.

CONDO located in Escazu- High rise towers of Riverside. Negociated with furniture and appliances. Price $235K, market value $299K.

Single Family Mansion in Central Valley. Bank appraisal last month at $1.2 million. Offered at $800K.

Condo Project on water in OSA (south Pacific. Fully permited and ready for you to build. $6 million. ROI is expected to be $8 to $10 million.

SOLD*SOLD*SOLD LAST WEEKS SALE!!!!!!!!!!!!! SOLD*SOLD*SOLD

SANTA ANA- LUXURY- SOLD FOR $80K.
3 BR 2 BATH SINGLE FAMILY RESIDENCE IN GATED COMMUNITY.

MARKET VALUE $180K

DON'T WAIT! CONTACT US TODAY!!!!

FORECLOSURE! SOLD SIGHT UNSEEN

2009-05-02T15:06:00.014-06:00

Our clients were in Venezuela when we sent them the pictures to the house which was set for foreclosure on April 30 at 10 AM. We had less the ten days to stop the foreclosure and their arrival on the 26th would have made it too late. The deal was so sweet, a total steal. They immediately wired transferred the funds for purchase to their attorney here in Costa Rica. She and Randall teamed up to get every last detail ironed out to stop the foreclosure by paying the past due installments, interest, penalties and bank attorney’s fees. Thursday the clients finalized all paperwork. Congratulations M&F. Felicidades!!!

The deal:
Property located in Heredia where the new trains are set to arrive in the Fall. Close to Universities and international businesses. The purpose of this purchase was for cash flow. They want to rent the home out and here in Costa Rica, homes are not usually sold with the washer, dryer, stove, oven, refrigerator etc…. We negotiated the final price of $95K with all appliances, furniture, spoons, knives, forks, plates and pots and pans. A TRUE TURN KEY for our clients. They will be able to secure an $800 monthly cash flow and the resale value on this property today is $160K.

Let us help you today to find your next property here in Costa Rica.

Next Post will be our steals and deals!!!

Foreclosure- Let The Bidding Begin!

2009-03-28T16:23:00.013-06:00

It has been two months since our last post, but we are launched and the following property is this past Friday’s auction that we attended. Although we did not win the bid, we had fun. The property ended up going for $62K.

Before attending the foreclosure auction, we sat down with our client to discuss his bidding cap. He told us to stop at $50K.

The bidding began at 9:30 Am. Starting bid was $31,428- what an odd number to start off with but this was the third and last foreclosure date for the property. So the amount represents essentially 25% of the original note to the Bank.

There were a few players bidding. At 50K, there were only two of us bidding and he found himself caught up in the moment. With one nod of his head, wewent to $51K. $52K was the next amount to beat, another nod indicated to keep going. $53K, nod $54K nod, 55K, nod, $55.5K nod.....Finally at $61,500 our client realized he was “emotional biding” and he stopped nodding. The other bidder ended up with the property for $62K and we walked away satisfied that we had lost.

Although emotions were playing into this game, a big No-No, as long as you can afford it, this mistake won’t be so painful. In the end, our client realized what he was doing and was smart enough to walk away. The information below is what our client had for review. He knew that if he went as high as $70K he still would have hit his ROI. But he gave himself a cap prior to entering the bid, and when he found himself caught up in the emotional biding, he backed off.

LOT 54 A
BOSQUES DE SANTA ANA
STA. ANA, SAN JOSÉ, COSTA RICA

Lot 54ª is a 333 sq. meter corner lot with existing construction (45% complete) for a three unit, two floor condominium or apartment complex. It is located in a neighborhood that has other existing single family homes, duplexes, townhouses, and condominium/apartment units.
This is a true investment of time and money because to purchase such property, the whole permitting process will need to be initiated from start to finish. A competent company would need to be hired to follow through from architectural plans to the final permits to complete construction. There are no existing permits or architectural plans for the parcel. Purchasing this
lot is, “as is” conditions.

Some of the other existing apartment complexes in the neighborhood are selling for $145K and renting for $1K. The estimated cost to finish the project is $125K which includes but is not limited to soft cost (architect, permits, engineer, perks…..) and construction.

Base price: $31,468
Land size: 333 M2
Construction size: 110 M2 per unit (3 units)
In third foreclosure.
Date: march 27, 2009
Time: 9:30 AM
Place: Juzgado Civil de Cartago.

Comments: Property is located in an upper middle class neighborhood where new and under constructions structures were observed. A very quiet and tranquil neighborhood with easy access to public roads and transportation. The neighborhood is comprised of a mixture of single family homes, townhouses, duplexes and condominium/apartment units.

This is an area of high ROI- either for a buy, fix and flip, or to be used as cash flow property.
Based on the foreclosure amount of $31,500 to $70,000 the price per sq meter is between $95 to $210.
Maximum recommended price should not exceed $70K.
Estimated ROI should be around $165K.
Purchase price: $70K
Construction cost: $125K
Total Investment: $195K (maximum)
Sale price on each unit: $120K*
Total sale of units: $360K*
*This sales price is below current market values for the area which will encourage a quick flip.
Estimated ROI: $165K (minimum)
Estimated time for ROI: 2 to 3 years.

84.62% ROI in 2 to 3 is not bad!!!!! Not bad at all.
Unfortunately our client did not have the funds to go to 70K.

Next……

Opportunity in PARADISE

2009-01-16T14:22:00.003-06:00

We've stated this time and again but TODAY is the time. After several improvements and changes, we have decided to launch in March or early April. We are in need of a few more investors before we can get started. Please read on.

Forbes Investments de Costa Rica, SA (FICORSA) is positioned to offer qualified investors an opportunity to make huge returns on their investments. The business is buying, fixing and flipping real estate in Costa Rica. There is no better time, place or opportunity today than this.The legislation: Previously in this country lenders were unable to enforce payment on a bad debt. It could take anywhere from 8 months to over a year to foreclose on a property. Now with the recently executed legislation, a debtor is able to seize goods and real property within ninety days of default. This has created an incredible investment opportunity in the Costa Rican real estate market. These can be acquired at as low as 25% of current market values.

The Team: It's no secret that with the virtual collapse of world financial markets real estate has emerged as the best possible investment today. Valerie Frank-Solórzano has over 15 years of experience in the business of real estate and foreclosures in the US and Costa Rica. But her firsthand knowledge of properties about to come into foreclosure, as well as those already in foreclosure, and the companies prescreened data base of over 400 cash buyers that makes for an investment opportunity virtually free of risk. Her experience and that of her teams experience, assets, and the country’s longtime allure to foreigners combined with the new legislation inspired the creation of this unique opportunity for investors to cash in on this once-in-a-lifetime opportunity.

The Opportunity: To facilitate an agile and continuous buy, fix, flip operation FICORSA needs working capital. A holding company was created to capture 50 investors with a minimum investment of $100,000 each. Ideally, we want our investors to leave their initial investment to work for a period of three years. The first year all profits will be reported then reinvested back into the business. This ensures a running surplus of cash and continuous working capital that will yield higher profit margins. A share of the profits will be distributed after the first year and ROI is projected to be between 15 to 20% of initial investment. However, by year three, a 30% ROI is projected to reward investors who are able and willing to stay the course.

FICORSA's strategy is to continually add to its existing database of pre-screened cash buyers, select properties that meet these buyers’ and our own criteria, and sell well under current market values. This rewards our cash buyers for their liquidity and insures a continuous flow of new cash purchasers and a stream of working capital.

With few time delays and when properties can be acquired before they go on the foreclosure block, or obtained at the third and lowest foreclosure bid, returns will be at the higher end of our expected profit margin. However, our conservative resale estimates ensure that the occasional unexpected delay in rehabilitation or property transfer will have little impact on overall medium to long-term profitability, which is why our average ROI is higher than similar investments.

Don’t miss out on the chance to get in on this opportunity at the beginning. Invests with Forbes Costa Rica today!

val@forbescr.com

FORBES INVESTMENTS DE COSTA RICA, SA

2008-12-20T11:17:00.008-06:00

Forbes Investments de Costa Rica, SA is official!!! Those investors interested in earning 15 to 30% ROI in the first year are encouraged to get in on this action NOW. We are in the business of buying, fixing and flipping real estate pre-foreclosed and foreclosed properties in Costa Rica. There is no better time, place or opportunity today than this.

Forbes Investments de Costa Rica, SA is the only entity of its kind in Costa Rica. Valerie Frank –Solórzano the founder and presidnet of Forbes Investments de Costa Rica, SA personally is involved in each purchase, negotiation, bidding, rehabilitation and sale of the investment properties.

Forbes Investments de Costa Rica, SA is on course to pay out higher than usual returns on investments with the profits gained from the purchase, rehabilitation and sale of pre-foreclosed and foreclosed properties. Our top priority in choosing a property to acquire is geared towards those that we already have a purchaser for and is sold under current market values to these cash buyers. Not only does this reward our purchaser for having the buying power, but it excites more purchasers to join our database, thus adding to our easy and targeted exit of these properties and quicker and profitable payouts to our investors.

Our techniques to insure quality purchases follow a rigorous six-step process. Not one property is purchased without having passed each of these steps with a profitable margin. Unexpected time delays in the rehabilitation process or in the property transfer process may present itself, however, our conservative margins allow for this delay without jeopardizing the profit margins. When we have no time delays or if we are able to acquire the properties before they hit the foreclosure block or at the third foreclosure bid, then our returns are only higher. This is what allows for our ROI to hit higher than normal averages.

Forbes Investments de Costa Rica is seeking investors that are not in need of liquidity as we require the investment to remain in our use for a minimum of one year; three years is ideal. You will not want ot leave us after your first payout!!!! The rewards are great. The nature of the business at hand requires purchasing power, and our investor’s capital allows for this purpose. Each investor becomes a partner in the company and each investment decision is in capable and professional hands.

The timing to participate in such an investment opportunity could not be better than now. In this present moment of worldly financial crisis, Forbes Investments de Costa Rica, SA is flourishing. Do not miss out on your opportunity to be part of something great. This is the opportunity, and the time is now to secure your financial future.

val@forbescr.com

Costa Rica Foreclosures and New Legislation

2008-10-21T22:01:00.013-06:00

Costa Rica’s Legislative Assembly enacted a new policy for the collection of secured and unsecured, defaulted debts on the 16th of October 2007. It was a much needed change as there were many loopholes in past legislation which allowed delays in the foreclosure and collection processes. Credit grantors essentially had no recourse, taking the grantor anywhere from 8 months to 2 years to foreclose on a property. Only paying the debt in full will prevent a foreclosure with the new legislation.

The mechanism is amazingly simple. Today three auction dates are set up front for each property in foreclosure. In the past, the second and third auction dates were set only after the outcome of the first auction proceeding. Since with past legislation practically anything could stop the foreclosure process, setting a new date and getting the process started took months. Today’s legislation has cut this time to a maximum of 90 days as nothing, other than payment in full can stop foreclosure proceedings, the three dates are set up front, ten-business days apart.

Costa Rica Foreclosure process is as follows:

All participants on the day of auction must present a certified check representing between 30% to 50% of the opening bid prior to entering the court room; without it they cannot participate in the auction. The starting bid is the total of the original note. It is not established upon current market value. This is one of the foreclosure wonders of Costa Rica.

If at this first auction there is a successful bidder, they have three business days to pay the remaining balance or the auction is forfeited and their down payment is disbursed; one third to pay down the balance of lien and the other two thirds to the court. This is never returned to the forfeiting bidder. The foreclosure proceeds to the second date but 100% of the remaining balance must be presented in a certified check in order to enter. Usually, if there were no bidders present for the first auction, the opening price for the second auction would begin at 25% less than the initial bid. In essence, 75% of lien amount and a certified check representing 50% of that figure is needed to participate. By the third and last auction date, a certified check for the full amount of the bid must be presented as this final auction begins at 25% of the initial lien amount.

Another notable amendment in the policy has provided for court appointed representatives, specialists in foreclosure proceedings, to conduct the auctions. The process is no longer a judge’s dominion as in the past.

Due to the agility of the new legislation, there has been a thirty percent increase in foreclosures since May 1, 2008, when the law went into effect. Mortgage grantors waited for passage of this new legislation to begin foreclosure proceedings. Government entities are also using the new legislation to their advantage to collect on real property tax payments in default, as are local banks. Four years ago, banks began issuing millions of dollars worth of credit to their cardholders, and as in the U S, many card holders have defaulted. Banks are now attaching the debt as a lien on cardholders’ real estate - and foreclosing.

Understand that all mortgages in Costa Rica carry a variable rate: there are no fixed rate mortgages. Many of the mortgages issued were in US Dollars when it was more economical to borrow dollars verses Colones. The prime rate in the country has increase to the point that the amount of money initially borrowed, coupled with the rate adjustment has caused many monthly mortgage payments to rise above what is affordable for the borrower. Hence, more foreclosures are now on the horizon. Most likely, by years end, or first quarter 2009, there will be a fifty percent increase in foreclosure.

Please email me if you have any questions. val@forbescr.com

Costa RIca Foreclosures 4 the REAL Investor

2008-10-15T19:08:00.005-06:00

Foreclosure investing in Costa Rica is a unique industry. Not many know the specifics of the business and even fewer have the financial means to participate. It is essentially uncharted territory creating a huge supply of real estate to select from for our investors.

The global economic situation, recently passed legislation in Costa Rica, and the country’s distinctiveness, has made this present time, the product, and setting opportune. Costa Rica, besides being strategically located for easy access from North and South America, both Atlantic and Pacific coastlines and 2 International Airports allow for easy access into the country from anywhere globally.

Costa Rica became a democracy in 1821 and today it remains stable and strong, standing by its decision in 1983 to be a neutral entity in world conflicts. Numerous free trade zones and tax holidays, along with Costa Rica’s encouragement for foreign investments and business friendly government policy, has attracted the financial and physical presence of fortune 500 companies such as Wal-Mart, HP, Pfizer, Microsoft, GE, Intel, etc. The World Bank in a conference in El Salvador earlier this year stated that the country possesses one of the most stable and robust democracies in Latin America.

Adding to the strength and attractiveness of the real estate market in Costa Rica is the country's stunning scenery, unlimited out door activities, it's rain forests, beaches, and pleasant citizens. For self-sustainable ecological tourism, it ranks number two in the world only falling short to Palau in the South Pacific. The Corcovado National Park, located in the Osa Peninsula has been labeled the most biologically intense place on earth according to National Geographic. One of the many islands, La Isla del Coco, is a candidate for the Seven Wonders of the World adding to the desire to possess a piece of paradise where foreigners have the same rights as its citizens in Costa Rica Real Estate ownership.

In a country that is slightly smaller than the state of West Virginia, a little over a quarter of its territory remains protected for natural preservation. It is undoubtedly inevitable that the limited amount of land will only boost the demand to own it and, the economies strength and countries magnetism will only increase the capital gain potential for investors.

Next posting will include information on the new legislation that has made a difference for our investors and the step by step foreclosure proceedings in Costa Rica.