Builder/Developer Investor Deals- 1031 Tax exchanges

[Randyblog]

Where do we find out about investor builder deals in Costa Rica?  I'd want to get in on the ground floor opportunity with a developer and not some tail end of the project.  I've been told by my CPA that I can do 1031 tax exchanges in another country, once the funds are set up out of the country first.  In other words I can't do a 1031 tax exchange form the U.S. to Costa Rica, but I can do one in a Costa Rica property to another Costa Rica property.  Do any developers have any experience with 1031 exchanges?  I see some companies putting on seminars in Costa Rica, so you can learn how to do this for thousands of dollars.  One seminar course at Los Suenos was $17,000.00.  I want to make sure I get my money's worth first.

Randy

[Russ]

You'd have to make sure the seminar is talking about 1031 exchanges on Costa Rica property.  In other words the seminar could be held in Costa Rica but talking about 1031 exchanges in the US.  Not that the information wouldn't help, but you wouldn't be making contact with local developers.

Maybe you could enlighten those reading on what the benefits of a 1031 exchange are or under what circumstances they are a good move?

[DaveT]

Randy,
Good post - I had similar questions about  the 1031 myself.

I am going down to Costa Rica in April (20th - 23rd) and would be glad to compare notes with you on what I found out.  I am also wanting to connect with local developers in the Central Valley area.  My initial research has turned up the following:
*  Most developers who have an existing track record have a flock of investors who follow them from one project to the next - especially, since the appreciation in the recent building activity (i.e. condos) has been so high investors are more than willing to invest in future projects
*  Money talks - most developers want to partner with first time investors that have significant capital to invest (2-5million USd) and are not willing to give discounted pricing to buyers who can buy only 1 to 3 units in a condo. 
*  Are you going to Costa Rica anytime soon or already there? - there is only so much due diligence you can do remotely...there is no substitute for being able to walk properties and regions yourself - I cannot emphasize enough how important the infrastructure issue is either...a developer may have oceanview property, but it may take hours to get to because of inept road conditions or no existing infrastructure at all.
*  The hardest and most important question is what area do you want to focus in to find dvelopers and what kind of budget are you working with? - for example, prices in the Northwest Pacific will be dramatically different than the Caribbean side, but each offers pros and cons. 

Where did you find seminars on 1031 exchanges - is there anything on the internet that discusses?
Thanks, Dave (daveterry73@juno.com)