Puerto Rico

[Tangala Williams]

Good morning all, Has anyone ever done business in Puerto Rico? Or working with CRIM to get property information?

[Zack Giarrizzo]

Hi Tangala, we've recently started doing business in Puerto Rico.  There are quite good RE investment opportunities, especially recently after the Hurricane.  A couple reasons why the PR opportunities are quite strong:

US Territory:
As a U.S. territory, Puerto Rico enjoys unique benefits not shared by its fellow Caribbean islands. Though U.S. recovery efforts after Hurricane Maria were slower and stingier than the response to hurricanes in Florida and Texas, Puerto Rico has access to relatively extensive American disaster resources. Because Puerto Rico is a territory, the U.S. has vested interest in helping the island recover. Power and water systems, bridges, and roads will be constructed to U.S. standards. Puerto Rico has been part of the U.S. for more than 100 years, and the government has the same responsibility to the country as any other U.S. state. U.S. citizens can travel to and from Puerto Rico without a visa or even a passport. In terms of travel freedom, Americans can visit Puerto Rico as easily as they could any other state. And because Puerto Rico uses the U.S. dollar, there is minimal currency risk.

Tax incentives:
In 2012, Puerto Rico introduced a series of tax loopholes to lure investors and businesses. These tax incentives make living and working in Puerto Rico an enticing prospect for businesses and investors. For more info on the tax incentives, read about Act 20 and Act 22.

Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. Opportunity Zones allow investors to defer and minimize capital gains taxes.

Real estate prices:
The real estate prices are much lower than other Caribbean islands.

Minimal Airbnb Rental Competition:
Hotel prices in Puerto Rico remain relatively expensive and Airbnb style rentals are scarce. For investors, this represents a major untapped market with high returns.

Economy: 

Strong, diverse economy. Tourism is also only 7% of the GDP in Puerto Rico compared to 30-50% for most Caribbean islands.

Hope this helps!