A quick property flip opportunity in Guayaquil

As you may know I manage apartment rentals in Guayaquil(Ecuador) near the airport and Mall del Sol area.

I know what you’re thinking… “yuck! why Guayaquil?”

Well, its THE commercial hub of Ecuador and I’ve found it to be the TOP place “bang for your buck” wise to own rental properties.

And in the last year alone I’ve sold one property and bought another.

So my name is out there.

And this week I got a call from a contact on an unlisted deal for a one bedroom one bath suite in a luxury building with elevators and a pool.

The owner is a bit distressed at the moment because they never titled the suite in their name and they have only until the end of this month (February) to do so or the builder will take the suite back.

So its a fire sale.

She can sell the suite, title it in her name spending a few thousand dollars which she may not have, or lose it.

The place is sold furnished and the price is lower than I’ve ever seen since I started working the area 2 years ago.

Its also in the same building where I currently own a property (but I paid more).

She’s asking $67,000 but in the building I’ve seen similar suites sell for around $85k, if you wanted to sell it fast (within 1-3 months) $79k would do.

Plus, due to the stellar location, its a great rental, could rent by the night through a service like AirBnb (I could help) or rent by the month as they go for around $800/month.

On Wednesday I plan to visit the property.

I will probably buy it although I was not planning on buying another one for now but at this price can’t pass it up.  Unless one of you are interested in which case I would charge a finders fee and let you in on it if you like.

A sneak peek inside a 2018 beach condo price appraisal in San Clemente, Ecuador

Sometimes, it can be hard to get a read on property prices in Ecuador where the (real) purchase prices are usually not recorded and kept secret by those involved not like the US where this information is often readily available.

Below is a quick, informal appraisal I did for a friend who wants to sell their suite in the Hotel PalmaAzul in San Clemente on the beach about an hour north of Manta…the below info is from my own research and not necessarily “the law”.

I did some research for your appraisal request and here is what I found snooping around with the locals.

The earthquake killed the market for about a year there but as of a few months ago the market is picking back up,now may be a good time to buy.

The Vista Azul duplexes next door are 122m2(1313.2ft2) of construction and going for around $85k-$94k at present.  They are not oceanfront.  ($770per m2)

A new complex is being finished next door right on the beach and it is sold out for around $150k for each 2 bedroom unit (112m2). ($1330per m2)

1 of the 3 privately owned suites in the hotel sold a few months ago in 2017 for $40k (22m2) which is about half the size of your suite.  Just a single room.  ($1800 per m2)

Your suite is around 44m2(473ft2) to my estimate (i measured it).

Which leads me to my conclusion wheras if you want to sell it QUICK I would list priced to sell at $80k. The benefits your suite provides is that it is right in the hotel and full access to the pool and restaurant.  Also, it can be a part of the hotel property management system.

I know you paid $89k for it a few years ago, but if you want to put a higher price and be willing to wait longer for a sale (maybe many months) I would price at $90-95k.

In order to sell quickly I would let the hotel staff know you´d like to sell it (they can show it for you). And also list with the agent in the area that works with the expat crowd.

What happens when the IRS hunts you down in Ecuador, like they just did me

“F–k me,” I thought as I saw the envelope as the delivery man gave it to me here in Quito, Ecuador.

In big letters on the front I read “I.R.S.”

Opening it didn’t offer any consolation as I read that just for the year 2015 they said I owed them $44,000!


How did they find me?  I don’t know.

What did I do next? Hired a CPA Stateside of course.  I was in over my head.  I had to refile my taxes for that year as the IRS pointed out what they thought were numerous mistakes and really I owed them a whole lot more than I said I did.

Now that I’ve talked to a person that’s a CPA in Troy MI, my taxes are refiled and my taxes paid, here is what I learned from the experience…

1. Don’t let just “someone you know” file for you as an expat living abroad.  In my case it was my mom, smart woman but not a tax pro.  Hire a professional CPA.  I’ve found they charge around $325 to file your taxes for you annually.

2. Not just banks, but online banks like PayPal send all your info on every last cent you make no matter where you are in the world to the IRS, so make sure the 1099 they send on you matches your return.

3. Open an LLC Stateside and run your (online) bank accounts where your income flows through the EIN tax ID number of it instead of your Social Security number.  This can save you on Self-employed taxes.  The hows and particulars I DONT KNOW, so please consult a tax professional, which I am not.

4. The IRS can find you!