All Forum Posts by: Oscar Montealegre

@Andres Valenzuela

Hola Andres! Apologies for the delayed response. Yes I do know Jaramillo Mora. I also bought another 3 bedroom apartment "en obra" with Jaramillo in Valle de Lilli. Construction was completed in August and I got the keys in late October. With this apartment in Cali (and all others) I opted for the 1 year rent agreements. I noticed in Colombia it is not easy to rent because you need to have two guarantors which reduces the possibility of tenants not paying the rent. At any rent, I would love to hear more about your investments so we can share info.

Saludos y hablamos pronto :)

@Account Closed

Sorry for the delayed response.

I got a 15 year loan, interest rate 10.44%.

Cartagena is a hot place, I think you are buying at a premium but nevertheless it will always remain one of the most popular places to visit in Colombia. Cheers!

@Mike Lambert

Hey Sorry for the delayed response. Quick answer to your questions: First Colombian banks are very bullish in offering loans to US Citizens that have Colombian passports. Because my parents are from Colombian I was able to obtain a passport and much needed 'cedula' within 6 months.

The rate was 10.44% and loan duration is 15 years. Loan secured by the same property. No other collateral needed. Cheers Mike!

Adriana Duarte

Hi Adriana, Apologies for my much delayed response. Yeah I just returned from Cali, Colombia this last December and prices continue to increase at a rapid rate. What I did this time was buy a property under construction "En Obra", where I have the option to pay the deposit over a time frame of 18 months. The property is located in El Bosque, near ChipiChape. I would love to hear any insight from you. 

@ Kristin Caras

Thanks Kristin! I travel a lot to Colombia since I was young-my parents emigrated to the U.S. from Colombia. Also, when I obtained my master's my thesis was on Colombian democracy and the general economy. And yes, I don't live in Colombia but I try to keep a tight grip in Colombian affairs via newspapers, magazined and visiting at least twice a year. 

It's a risk-albeit calculated-but in real estate you got to enjoy it. Perhaps because my roots are Colombian I find Colombian real estate more exciting and pleasurable than my investments here in the U.S. Such is life right. Anyway, thanks again and talk soon.

@Mike Lambert

Thanks for the message. You can't go wrong with Medellin. Cartagena on the other hand may be too over priced and in my opinion is over reliant on tourism. That's just my quick take.

I was able to do one transaction with a 30% deposit and the rest financed in the local currency. Bank of Occidente did the financing. It wasn't as complicated as I thought it was going to be. 

I would love to hear about your trip when you return.

Have fun Mike and talk soon.

@Lee Leathers:

Sorry for the delayed response. I'm seeing between 3-4% cap rate. I bought a duplex two years ago that yields a 6% cap rate, but I think I got lucky that I was able to negotiate the Ask price lower due to dealing with a motivated seller. 

I've noticed the neighborhood that is of close proximity to USC is more expensive than other neighborhoods, so I tend not to look there due to affordability.

But I hear you loud and clear.

Investment Info:

Single-family residence buy & hold investment.

In 2018 I bought 3 apartments in Cali, Colombia. Cali is the 3rd biggest city in Colombia. In terms of value, I am getting a bargain price compared to the flavors of the month, i.e. Bogota and Medellin. However, Cali continues to grow and I believe property valuations will be at par with Medellin in the next decade. Therefore my outlook is now is the time to buy if you're looking for bargains and most importantly if you have the stomach to withstand the risk in investing in emerging markets.

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

My parents are from Colombia so I have always had an interest investing in stocks and real estate in Colombia. Also, this allows me to diversify in the most literal manner.

How did you finance this deal?

One I bought full price with cash.
The other two I was able to get them financed in the local currency, allowing me to hedge my investment and mitigate currency risks.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Currently buying two duplexes in South Central Los Angeles. Only 5 miles from Downtown LA; playing the long game combined with the outlook and the halo effect from Downtown LA will penetrate South LA.

How did you finance this deal?

Seller offering financing.