Beach View Lot in Nicaragua

[Micah Money]

Investment Info:

Other other investment.

Purchase price: $24,000
Cash invested: $5,000

Quarter-acre lot in Nicaragua (not Texas); 2 beach views; rocky pacific overlook on a mountain spur; 10 minute hike to two popular surfing beaches; 20 minutes north of San Juan del Sur, Nicaragua; no improvements made to land yet; holding cost is $104 annually.

What made you interested in investing in this type of deal?

I wanted to invest in a Central American country that had reasonable potential to ROI or where I would be comfortable living there if I chose to.

How did you find this deal and how did you negotiate it?

I used a U.S. expat agent who understood the market, the culture, the language, and the American investor mindset. My agent worked hard to find the deal. I gave him my buy box criteria and he ran with it. I negotiated a slightly cheaper cost than asking price by offering to pay closing fees and close fast with a wire transfer for the full amount.

How did you finance this deal?

Cash

How did you add value to the deal?

I have not yet added value. Lots of potential exists. The area is being developed by foreign investors which is increasing the value of real estate in the area. But it's very challenging to manage a project in Nicaragua without being on-site. I'm open to joint ventures and ideas.

What was the outcome?

I continue to hold the land. I am currently brainstorming what strategy I could use to begin cash flowing the property with minimal investment.

Lessons learned? Challenges?

Investing in foreign markets can be challenging based on lack of knowledge of the market and the laws. Paying for trust, like a reputable agent, is a great approach to mitigating risks associated with investing in other countries.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Leslie Stewart, leslie at investnicaragua dot com, www dot investnicaragua dot com