Costa Developers

[slider]

Anyone know anything about this company?If so, respond.

[Ivo]

Hi Slider
I have not had the chance to research them yet. They are well located in Tarcoles, on the Costanera highway (coastal road), 20 minutes out of Jaco. Tarcoles is still a little funky but little by little. The main problem is that the closest amenities are inJaco, 20 minutes away. If they don't build any amenities, it will be a hard sale. Nativa resort made the same mistake (I worked there as marketing and sales manager when it was still called Lomas de Carara many years ago).

They are just only cutting the roads and starting to build a Nice entrance, nothing more is being done. The advantage of projects like that is that when you buy now, you grab a great price. The disadvantage is that if the developer doesn't build what they promise, you'll be stuck with something that will never acquire value. Tough to live on your own in an unfinished development. That's your decision to make.

Another good area to research is Playa Samara in the Nicoya ula. We have a partner in that area.

good luck on your search

Ivo
Godutch Realty

[Russ]

This could be a legitimate opportunity, they do give an actual location of the development on their website and are working with Stewart Title for the escrow money. They also advertise every week in The Tico Times.  However, I read the escrow agreement and it gives them the right to access 75% of the money in escrow and as far as I could tell on an unrestricted basis.

I would try to separate fact from fiction in this case.  Is the sales person trying to play on your greed and offering you unrealistic returns?  How much are their prices different from similar development that are already built?  Will any banks finance the purchase?  What conditions must the developer meet in order to pull out the money for escrow. 

If I were to invest in a so-called pre-developed development, I would want to know the company's history and experience in Costa Rica.  Also I would look for independent confirmation of what their resources are. I might try to copy the policies banks use when they do construction loans.

A friend of mine took out a loan to remodel their gas station here in Coronado.  The bank does not give him all of the money once they approve the loan.  They establish in the loan agreement a percentage of money that they will payout as the construction progresses.  They inspect the site on a weekly or bi-weekly basis and if the contractor has not reached a specified point they do not get the money.

Another example is when the bank offers financing on condominiums within developments or high rises.  In this case the buyer gives the developer a downpayment and the bank finances up to 70% of the pre-construction price.  Once the developer breaks ground, the buyer begins paying on the mortgage, but the developer does not receive the money from the bank until the reach established points, either on a unit by unit basis or on a floor by floor basis. 

[CostaORbust]

I received a package from Costa Developers and I wanted to know what to expect next in the process. Also has anyone done business with them, I am trying to see if they are legitimate.



   

Thanks 

[Russ]

For a  quick check based on the information the developer gives you, right click here, Costa Rica Developers Quiz PDF to download the file. Or left click to view it in your browser.  (file size is 453 kb)

[grifz77]

Good day all.

I don't regularly post here but on other sites. I'm just an investor trying to help out other investors, if I can help one person on this site then this has been time well spent.

I warn any investors or individuals considering doing business with Costa Vista Land to take extreme caution. In my case they outright lied to me and refused to use an escrow account. My dealings with Costa Vista Land which my lawyer advised I terminate could have cost me a lot of money. Luckily I have a reliable attorney. Be very demanding of this group to provide you legal documents. Be sure to do very thorough due diligence if you decide to do business with them. They do not own any land in Costa Rica. Ask a lot of questions even if they make you feel uncomfortable asking them. CVL does not believe in disclosure. Caveat emptor.

Good luck to all.

[Ivo]

Thanx for your info grifz77, much appreciated. In registered on their site and it seems they're into selling dvd's not in selling property. First they promise FREE info but then you have to even pay their digital version. Plus they want your credit card info.......

This is what you get when you register:
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With this powerful information you will discover that: How Investors are positioning their selves to make millions of dollars in Costa Rica.

On this DVD-Video we will give you a personal tour of Costa Vista Lands current property in development. This will give you a first-hand look at where you will be investing.

The Extra Bonus Material we will give you along with your DVD will show you as an investor how you can purchase land inside your self-directed IRA and grow your investment in Costa Rica completely Tax FREE. (See your FREE Bonuses Below)
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So, for those who are looking to make a lot of money as he says: make sure you do due diligence

[Russ]

Thanks for the update on this company, it appears that they have added a new angle with the IRA. For anyone reading this post please check out these forum threads and articles.

Developer Quiz / Checklist

Finding Costa Rica real estate on the Internet

Purchase foreign real estate in your IRA

The IRA especially, it seems that some people could be mislead by this statement: - "- The IRA Wealth System Video will show you how to connect your business to your IRA and build unlimited wealth Tax Free. This is a perfect tool for the real estate investor."     [emphasis added]

As our article states you may use your IRA to purchase real estate as an investment, either in the US or overseas.  There are specific conditions you must abide by however, in addition you are not building wealth Tax Free - it is tax deferred.  Which means you pay the tax eventually! You also must withdraw from your IRA a certain proportion once you reach certain ages.  So while this method is an excellent vehicle, it must be used wisely.