All Forum Posts by: Rob Pattison

The cameras were one of my ideas, Dustin, but the selling for $90 million is an idea I didn't think of, thanks for the suggestion!

I have a surfing buddy who lives on a bluff on the southern California coast in a house he inherited from his grandparents who bought that house in the 1950's.   The house is worth several million dollars today and has a multi-million dollar view of the ocean from the porch which sits on a bluff and overlooks a portion of the Santa Monica bay.  The house is on a larger lot with a lot of trees and bushes.

Several years ago a rich guy bought one of the houses next door and has been one of those nightmare neighbors from hell.   He's called code enforcement on my friend to remove structures on his property.   He's attempted to move the boundary line.   A bunch of plants on my friend's property suddenly died, then code enforcement showed up and said there was a report from a neighbor that my friend wasn't adequately keeping up his property.

The situation for my friend is so bad, that he feels he can't leave his property for a weekend for fear of what the neighbor would do.  He suspects this guy is trying to run him off his property so that he can buy it up and enlarge his own estate.

I know how I would handle the situation.   Knowing that we are in the People's Republic of California, does anyone have any advice I can relay on what they have done, or would do in a similar situation?

I've purchased this property and after a too-long escrow period, the property which is the subject of this thread is now mine.

I've started the rehab, hiring an architect whose services I used during the due diligence period.

My question to the Bigger Pockets community is this:    The roof has had holes and water from rain has come through for several years as the previous owner abandoned the property.   What is the liklihood of mold and what can I do to get rid of that mold?

This property is in Estereos Oeste, about 25 miles south of Jaco.

I

Lol, broken glass shards.   That sounds like a good idea.  I'm not sure if I'd go that route seeing as I'd be doing short term rentals to families when I'm not residing there.  

Sure, I'll send pics of this property, let me figure out how to get the pics off my iphone and to my computer.  The regular way is not working.

How do people pay their contractors from long distance?   I'm guessing I allocate money once I see a receipt for the supplies, maybe a portion for the labor if he needs it.  Ask for pics and facetime of completed work before releasing more funds.

Hi Steve,

The contractor who charged me $300 sent me a bid for $20k.   My inspector who is also an architect sent me a bid for $9k.   I've met the inspector twice and am going to go with him.   

I'm closing escrow on this property this Monday the 19th.   As soon as the dust settles on the deal, I'll start the rehab.....first step is to rebuild the fence, make it high, with barbed wire, like I see several other places have.  Petty theft is common here, elsewhere in Costa Rica, and probably anywhere else human beings live.  I live in Hermosa Beach and you have tweakers who will try and steal from houses during the day, when they know people are off to work.

Has anyone had the experience of a contractor asking $300 to provide a quote for rehab?    One contractor is asking for $300, would apply it to the invoice if I choose him.  Still.....

I'm heading down to Costa Rica Friday this week for 4 days, will do my final due diligence, meeting with both attorneys (hired one to double-check the other's work), a property manager, the realtor, rehabber and surveyer.

Thank you for the potential trouble points you bring up, Steve.  

I've hired a second attorney, who is removed from the transaction and will not benefit if I close or lose money if I don't close.  We had a conversation today.

He said he has many foreign clients who he advises to put their corporation who owns the concession property into a Costa Rican trust, with the foreign client the sole beneficiary/decision-maker.   To the government, the concession is owned by a Costa Rican entity, the trust.  By law, the trust must comply with the wishes of the sole beneficiary.  The cost to set that trust up is around $1.5k and the annual fee around $700.

We have something similar here in the People's Republic of California, the tax-happy/regulation hyper-happy paradise that I live in. Right now I have my investments held in a self-directed IRA and then held in an LLC for liability protection and anonymity, so the people who's non-performing mortgages I own don't start calling my personal phone#, or come knocking on my door. I pay the state of CA $800 per year for that LLC.

An attorney told me that I can put everything in a trust, pay a one-time fee of about $2k, and then no other fee after that.  California can't look into the trust, or tax the trust.  The attorney said that California took a case ligitating that fact all the way to the Supreme Court....and lost.    I would need to check out those facts before taking that step.   My accountant said taking that step would remove the tax deductions I currently enjoy by deducting my business expenses from my business income.

Regarding the forfeitures of the Bejuco properties, this attorney said there are several reasons why a person might have their concession taken from them:

1.  The concession owner didn't comply with the regulations, and didn't pay the annual fee and any other fees.

2.  Another reason is that the concession owner did pay the fee, but didn't perform other requirements of the concession lease, one example being they didnt properly maintain the property and allowed it to revert to looking like the jungle.

3.  Another reason one could lose their concession is if they didn't build on the property, and only used the property for parties.

4.  Another would be they didn't have a 50% Costa Rican partner.

Ultimately, without knowing the facts of each case, all we know is that people in Bejuco lost their concession property.  The reason why, probably would need to talk to an official or pay an attorney to investigate.

 I will keep posting what my due diligence brings up.  I'll have more detailed info when I meet the surveyer, property manager, rehabber, realtor, attorney, et al, starting the next 8 days.

All feedback from Bigger Pockets is good feedback, so if you see a potential blind spot I'm missing, I thank you in advance for letting me know.

 Hey Everyone,

I've booked a flight to go back down to Costa Rica, from LA, and will do my final due diligence March 27th - March 31st.   I'm staying at a local hotel, about 5 minutes walk from the property I'm comptemplating buying and will live in this town for 4 days, talk to my clients from there, bring my guitar and rent a surf board.  I've been able to run my business for a month at a time when I've been to Bali, Vietnam, Thailand and Malaysia.   

I'm meeting a topographer (surveyer), two rehabbers, an architect, a property manager and the real estate agent when I'm down there.

I've dealt with two Remax agents down there off and on, then another up in Tamarindo where I was looking at property.   My gut was telling me that they were above board, although all of us, including me, have been fooled before.  Neither of the 3 came off as desperate or gave me the "hard sell" and they are all American, one of them graduating from the same university I did.  I met him through the International Living organization, based in Atlanta.

The remax agent showed me houses "in the hills", Mike, that were freehold and I could have bought for between $100k and $200k, most, but not all of them in gated communities where you pay an HOA fee.

As you mentioned, we all have varying levels of risk tolerance and what we perceive to be enjoyable.   I'd rather live 60 seconds walk to the ocean and live in a community of like-minded people who love the ocean, than live a 5 minute to 10 minute drive away, it's a different atmosphere and mindset.  I'm willing to take on a higher risk for what would be extreme pleasure to me, rather than take a safer risk for what would be to me, a ho-hum, vanilla atmosphere.

I've read about studies in several personal-development books that list the #1 regret of successful people who are at the end of their life.   The common theme from these people who have a great vantage point of their lives to reflect, is that they wished they had taken on greater risk to realize their dreams, instead of playing it safe.  I don't want to live a life of regret.  I can always make more money, but we can't get back time.  I'm in my late 50's.  I saw both my parents go downhill....rapidly........at the age of 80 and that's all the wake-up I need. 

I understand that any foreign government can reverse the laws and in Costa Rica, there'd be heaps of plenty gringo beach house concession lease-owners who'd be unhappy.   It's a risk I'm willing to take, while I scour around to find a bargain here in Hermosa Beach, CA, lol.

I'll keep everyone apprised of how the trip turns out in case anyone is considering following a similar path.

I just contacted the attorney that Mike Virden referred me to and will most likely hire him to overlook my attorney's work.   Here is his comment on concession leases being renewed:

Hi Rob,

Thank you very much for your email and confidence.

I will be more than glad to help you and review your attorney’s work. I believe you called me, my Secretary just told me but I am in the middle of a call at this moment. Can I call you back? If so, please let me know your number and I will revert the call in 15 min max.

To answer your question, concessions are granted 95% of the time, but the structure is very important, even more if you are a US citizen.

Thanks for your feedback, Steve.  Your advice is sobering.   The two Remax realtors, both Americans, that I'm dealing with, who have each been in the country 16+ years tell me they've never heard of a lease not being renewed.  The attorney the realtor is referring me to said the same thing.

I'd be happy to talk to the realtor your family used if you still have the contact info.