How To Invest in a Developing Real Estate Market

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This offer expires June 25, 2014!

One of our long-term associates is offering a 3 tiered investment package in a new real estate investment project in the Dominican Republic:

Level 1: Investment of $10,000+  Return = 12% 
Level 2: Investment of $25,000+  Return = 15%
Level 3: Investment of $100k+       Return = 20% 

Contact Steve Takacs at [email protected] for more information and to arrange a skype call to discuss any questions regarding this project.

Read on to hear why Steve is working in the Dominican Republic, gain further insights into the deal in an interview from Richard Cawte and read more about Steve and what makes him the man for this job.

Owning or investing in offshore real estate is a basic tenet of PT life and always will be for two reasons:

1.  Getting out of your local (likely overdeveloped and stagnant) real estate markets allows you to make profitable “path of progress” investments in rapidly developing areas.

2.  Foreign owned real estate investments are extremely difficult (if not outright impossible) to be seized, repatriated or otherwise interfered with by your home government.

 

from Q Wealth founder Richard Cawte and contributor Steve Takacs 

 

Real estate has been and will continue to be a major investment vehicle to acquire money, freedom and wealth.  I believe that today it is still the best way to build the basis of a  portfolio for ones individual, family or corporation.

As the world continues to adopt to the global market, we want to demonstrate to you the opportunities that can be part of your global “offshore” portfolio. Long term, on the ground research has shown us outstanding opportunities in several developing markets – particularly in the Dominican Republic.

Becoming part of the global market can bring many benefits in many ways, not only in becoming part of a community, but in having distinct advantages concerning taxes, exposure to larger returns and the meeting of like-minded people. As we move forward, we are continuing to study many different developing countries that have, and will have, good sound growth in the near and for the fore-see able future.

Right now it is our pleasure to offer a particular opportunity that has been introduced to us through research, requests from associates and by spending time on the ground in key areas. 

 

Richard Cawte sat down with Steve Takacs to find out more on how we can invest in the growth of the Dominican Republic.2 dominican republic

Richard:  Steve, tell us a little bit about yourself?

Steve:  Well my name is Steve Takacs. I am from Canada with a Hungarian background. I started in the construction industry after graduating college in the late 80’s. My father, who was involved in the industry for many years, was the person who taught me the many trades that were involved with building residential and commercial units, big or small.

As time went on and my father slowly turned the business on to me, I wanted to broaden my knowledge on the many types of real estate available out in the real world to make money. I attended this course that course, investing lots of time and money because I knew that if I could just acquire one vital information, that would help me turn it around and make more profits.

In the late 90’s, I purchased my first house and from that point on I found my niche. I started renovating homes and returning them for nice profits. As I succeeded in that, I then changed to building homes, basically same thing but starting from scratch. Moving forward I wanted to challenge myself so I also got involved with building and renovating schools and hospitals. During that time, a friend and I bought our first self-storage units (tough business).

In 2009 to about 2012, I went across the US to find and search for information on large multi-family units. At the time, there was incredible amounts of opportunities in that field if you had the capital. Today, there are still many available in the US. There are all kinds of opportunities out there, sure there are more in global market but you have to be wise and knowledgeable of current cycles and events. I would like to add just one more important quality that I bring to the table and that is just recently I have taken a few courses on being an economist and thinking like one. It has given me another tool to widen my perspective on real estate and the relations it has in making optimum decision for me and my investors.

 

Richard:  Where do you see real estate in the next couple of years?

Steve:  I think with all the problems that are happening around us, today and for the next decade real estate will be the only vehicle you should be invested in.

 

Richard:  Interesting.  Why do you say this?

Steve:  Look at today’s news, the stock markets are at record highs, more than 200 million people around the world are without work and those are just the employable people. Young students from university that are graduating and can’t find jobs. The precious metal and the natural resources markets are all manipulated. Most of Europe is bankrupt, the countries like France, Spain, Italy and Greece and we can not over look Ireland. These are just a few of the negative points going on.

There is something brewing behind the scenes, I believe a change is coming. A currency reform or some type of reset, I don’t know. I want you to punch this into Google search: “Christine Legarde reset Bloomberg” and that tells you the picture.

I am not a fortune teller but to me it looks like that in the next, oh maybe now to the next 24 months, we will see some type of change and the best thing you can do is get your money out of the US dollar, or any other type of currency. I believe that the safest place for your money right now, I would have to say is real estate because it will have a value and value is important as we will be moving forward to an asset-backed currency. Precious metals, well….. all I have to say is look at the cycle back in ’79 and ’80. Now I guess you are about to ask me, what credentials do I have to make these accusations. Well, thanks to the internet and the people you meet in high places and I am not talking about the Rockefellers or the Rothschilds but let’s just say… people that know things.

 

Richard:  I see, and what makes you think real estate is different?

Steve:  Real estate has made more millionaires than any other forms of investments. We all know the king of real estate, Donald Trump. He will tell you; it has created billions of dollars for him. Real estate has many different types that you can actually invest in.

Let me indicate a few:

  • Your own dwelling
  • Having a second home
  • Multi-family units small (4-10 units) and larger (50+ units)
  • Flipping. Buying to renovate then turning it around quickly
  • Farm Land, Vineyards, Coffee farms etc
  • Commercial, Factories, Self-storage Units
  • Land Developing

…the list can go on.

You can always find a niche that suits the market your in and I always say and this is just my opinion, all and I mean all real estate that is on the market, can be bought for a great deal. You just need to be creative. Its not when you sell, its how low you can buy it for and that’s when you make your gains.

 

Richard:  What markets are you currently looking at?

Steve:  I really like the developing countries. More opportunities and more growth potential. I really like Panama, Costa Rica, Guatemala, Ecuador and the Caribbean Islands. But we’ve recently spent the most time in the Dominican Republic. It has great potential in the coming years. I have a demographic that you should check out to see for yourself.

 

Richard:  Why the Dominican Republic?

Steve:  Well lets see, first a brief paragraph about the DR. DR is located on an island called the Hispaniola, shared with another country, Haiti.

It sits in the Caribbean region along the side of Puerto Rico to the East and Cuba to the West. DR is the second largest populated country in the Caribbean with approx. 10 million people. 2.9 million people of that live in the greater Santo Domingo. Santo Domingo is the capital of DR. DR is the 9th largest economy in Latin-America and is the 2nd largest in the Caribbean and Central America, only behind Mexico. Its main industries are mining and agriculture but in the last few decades tourism has been their no.1 industry.

For the last 3 years, the DR has seen good steady growth through tourism but also record amounts of foreign investments for construction and transportation. It has seen more than 600 million dollars enter the market each year. It has created new malls, a new subway system and highways reaching out to more cities, in the DR.

Such growth has helped the housing industry immensely but as studies showed last year, there is a shortage of housing of more than 100,000 units in and around the Santo Domingo area. It was even in a news article a month ago that they intend to expand the subway lines that is likely to start late fall of this year. This is great news for the investor to create housing here in the Santo Domingo area.

I also wanted to add that it is forecast that the DR population will have a steady growth of 1.3% annually and that by the year 2030 the population of Santo Domingo will grow to just over 4 million people. That’s more than a 25% increase.

 

Richard:  What will you be doing in Santo Domingo?

Steve:  Our goals are to build 4 story apartment buildings that have minimum of 8 units each.

Of course, it will depend on the size of the property, larger property means more units. We may find ways to increase the units without decreasing the size of each unit.

This will depend on the area where laws are different. The laws that include; height restrictions, park facilities for children, etc. It is of great importance that we acquire max profit from each of our projects as long as we offer good value which will bring more future buyers for our other projects.

Through my knowledge and experience of building homes, we feel we will bring a unique product, may it be by the products we use or the incentive programs that we offer. It will be a win-win situation for all.

 

Richard:  Thanks for your time Steve.

 

 

The Investment Offer:

This offer expires June 25, 2014!

3 Buy-in Levels and Weighted Returns:

Level 1: Investment of $10,000+  Return = 12% 
Level 2: Investment of $25,000+  Return = 15%
Level 3: Investment of $100k+       Return = 20% 

 

Contact Steve Takacs at [email protected] for more information and to arrange a skype call to discuss any questions regarding this project.

 

 

Many major markets are volatile or slowing down.

Real-estate has always been and will be a great investment. With stock markets and other manipulated investments that have reached record highs, real-estate still can be looked as sound and trusting. In recent years, however, many markets have been up and down around the globe.

In the US the real-estate market has kept stale since the bubble of 2008. Sure you might find deals here and there but returns were slim. The US still has the problem of too many fore-closed properties that are still on the banks books. This problem will not go away soon until they really find a solution of how to fix it.

China, on the other hand has seen great growth. With a steady 10% + annual GDP, the real-estate market and other industries have really taken off. But has it reached a bubble? With growth like that happening during 2003 until now (that’s 11 years) there is almost certain to be a slow-down sometime soon.

The Euro-zone is an important piece to the puzzle too, but although we hear things are improving there are still major issues that are lurking that can quickly turn to the bad or ugly.

 

Why we have chosen the Dominican Republic.

Given the state of these markets we are focusing our attention on small emerging markets where the amount of capital needed are low and the returns on your money are high.

Our team in the Dominican Republic has been studying trends there for the last 18 months. Our main focus has been on Santo Domingo, the capital city of DR. The conclusion is that this area has seen steady growth for the last 5 years. There are no indications that this growth will slow down in the near future. The city is expanding and a new subway line that opened 2 years ago is helping that process.

 

Serious Shortfall in Housing

The main interest we have in the DR is that there is a housing shortage for low income earners, especially in and around the Santo Domingo area. Over 100,000 homes need to be built in the next 2 to 5 years in order to meet demand.

We plan to make use of this opportunity, starting with small-to-medium sized projects before moving on to multiplexes within the next 12 months. We particularly like this model because not only are there excellent profits to be made but we will be helping those who currently are not able to afford good quality homes.

 

The Project

Our first project named “Lisandra 1” is a 4 story building with 8 units. It is located in Santo Domingo Este (East) in a very nice neighborhood. The building is being built on 500 m/2 and offers 2 parking spaces for each unit. Each unit contains 3 bedrooms, 2 baths, European kitchen (a great selling feature in the DR) with an open living, dining and kitchen area.

This will be all packaged in a 120 m/2 unit.

Whilst we are building this development we will be purchasing land for two more similar projects.

About Steve Takacs

Invest in Dominican Republic Real EstateSteve has been involved in Real Estate for more than 20 years. Though involved in the building aspect of it, he has acquired great knowledge of the different types of real Estate opportunities out there. Building and renovating homes was his real passion in the Canadian and US markets. After a certain point having a desire to obtain more knowledge, he went to search for more on the different aspects making money in real estate. Also to further his knowledge, Steve has completed courses on Economics and Thinking Like One. This has widened his scope of understanding not only of markets but of the way people think and where the world is heading in the future.

Steve was born and raised in the great white north of Canada. He also has a Hungarian background and speaks 3 languages. English, Hungarian and Spanish. He has travelled to many countries to understand the many cultures, the opportunities that this world has given us. He is married, to a wonderful woman from the Dominican Republic. They have lived in many countries including Canada, Panama and the Dominican Republic.

Steves’ involvement in real estate includes building homes, renovating as stated earlier, the construction of high rises, schools and commercial buildings large and small. He was also involved with multi-family units, housing for university students, rental storage facilities and many more. He also has knowledge of constructing a real estate syndication program that produces returns in different types of real estate projects.

Steve has also worked in forming corporations, foundations and advising high net worth individuals on offshore and onshore structuring. He had a blog site that catered to the Latin-American market and also to English speaking clientele.

5 thoughts on “How To Invest in a Developing Real Estate Market”

  1. Steve,
    We are looking to become expats as well. I am a multi/single family GC with 30 yrs experience. Currently specializing in state of the art sewage and water treatment in the Bakken Oil Patch, North Dakota..
    Can you use my services? Can you introduce us to anyone that could?
    I would appreciate your opinion.

    Best regards,
    Clark Hicks GC
    http://Www.NDWasteWaterTreatment.com

    Reply

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