This week I´m checking in from my hometown of Cleveland, Ohio on a quick trip back from Ecuador.
And everyone I run into seems to be in real estate.
But it´s a completely different animal than what I´m used to in Ecuador…
…here are three common business models I´m seeing here that would NOT work in Ecuador.
1. Purchase low-income rental properties. In Cleveland, that means the properties in the inner-city where my family lives selling for around $20-40,000. In Ecuador, I would not touch this business model with a 10-foot pole. Low-income rents in Ecuador are really low (like $100-300 a month) and the rental laws just don´t protect homeowners with long, complicated eviction processes for this to be worth the hassle to me.
2. Live-in flip. Where you buy a fixer-upper property and live in it until you are able to resell it. Well, when you buy a beat-up property in Ecuador chances are it won´t be livable (if you have an average North American living standard). I know, I´ve done this one and it was ROUGH.
3. Sell on contract. This is when you tie up a property in a contract for a period of time usually 15-30 days and then resell the contract (or right to buy the property) for a profit of usually a few thousand dollars to another investor. This COULD work in Ecuador and something I may try in the near future, but this is usually done in RED-HOT markets like we are seeing in the western USA now. In Ecuador, properties usually take much longer than a month to sell due to the primarily cash-only market.
So what would I do to make money in Ecuador property? Stay tuned to this newsletter and you´ll find out!
Hasta pronto, if you liked this you’d love my Insider’s newsletter on living and investing in Ecuador,
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