I cringe when people tell me they have “X” thousands stashed away making 1% or 2% interest. In today’s environment, with the dollar depreciating like a used car, you’ve got to be a little more aggressive with at least part of your portfolio. For example, in 2008 I went to Thailand where the dollar was trading for 34 baht, now it’s worth 29-30, a 12% drop. I also passed by Colombia in 2008, where the dollar was trading for 2400 pesos, now it exchanges for 1868, a 22% drop in purchasing power in just 2 years!
Now, Ecuador can offer that higher risk, higher return payout you’re looking for. But there are a lot more ways to make money investing in Ecuador property than just the standard buy-resell! Today we’ll cover one I’ve done well with.
Money is cheap in the US. Even today, you still can get loaned money very cheaply compared to many other countries. A few years ago, it was a joke, that didn’t hold up.
In Ecuador, your cash is worth a lot more. Only very recently has mortgage rates started to drop, but the restrictions are still very tight (out of reach for most) and it’s common to see 12 year mortgages in the 8-12% annual interest range.
This environment creates a great opportunity when selling property in Ecuador to make money offering direct financing to your buyer. Of course, you have to collect a hefty down payment, get the house as collateral and arrange the contracts and everything through a good lawyer you trust. A good lawyer will supply you with “how to” documents and provide legal advice.
And it is a riskier play than just selling your house(s) outright, but hey, its a way to make money investing in Ecuador I feel few foreigners take advantage of. And that’s what this newsletter’s about…investing opportunities in Ecuador.
How much can you make off interest from your buyer? …
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