How To Make Money Buying A Fixer Upper In Costa Rica
Buying a fixer upper hoping to make money on it always takes a good amount of knowledge, some decent investigative skills, and a top-notch team of professionals to advise you.
But buying that fixer upper in another country like Costa Rica? You really need to locate and rely on the top real estate agent in that area.
The golden rule for making money on a Costa Rican fixer upper: Partner Up With A Good Realtor.
Why? Well, if you want to buy a fixer upper and work on it as a fun project that will eventually become your family’s tropical vacation oasis – that is one thing.
If you intend to make money by reselling your fixer upper in Costa Rica (or making it a hot ticket rental), you will have to know all of the ins and outs of these three factors:
1. Location
You are going to have countless questions about location. And since this isn’t your home country, you probably will not be so sure about the answers:
What areas sell well? What areas interest expats? What areas do tourists visit? What areas are underpriced now, but will pick up steam in a few years? What areas are already the premier neighborhoods that just may happen to have one fixer upper?
Realtors can answer these questions and will also be able to let you in on things like:
- The reputation of this particular seller/real estate company before you buy
- If there is ever water shortage in the community during dry season
- Structural problems (or connect you with a good inspector)
- How much you updated property should sell for in the area
2. Permits/Rules/Regulations
Your local real estate agent understands the law of the land. They can explain how to buy legally as a non-citizen, and how to sell legally as a non-citizen.
This is wildly important. You do not want to get caught up in paperwork and fees and miscommunications when saving money and time is the way to make money on a fixer upper.
3. Local Contractors/Vendors
Your real estate agent can either recommend or connect you with somebody who can recommend reliable and reputable local contractors and venders.
Relying on local labor and local goods is a great way to cut costs and make money on your fixer upper…ONLY if you find honest and fair options. Don’t rely on the person you met at the bar.
They can also guide you in the direction of knowing how much those costs will be in reality. You can budget for how much you think they will be all day. But it is important to figure in realistic costs.
And what better place is there to monitor your investment project than in lovely Costa Rica?!
If finding a fixer upper in Costa Rica is on your to-do list, reach out to Richard at Richard@cbtamarindo.com.