Shall We Buy Beachfront Property?

That was the headline of a recent email I received from a buddy. Beachfront property in Manzanillo, Mexico. I really don’t know Mexico but I do know he has researched this and it might make an attractive investment for some. Since my brother lives on the Big Island of Hawaii-I’ve always had my eye on Kona for investment properties. I had clients who had formed partnerships and had successfully purchased real estate for investment purposes. Here are what I would call “Best Practices” for investing with friends, acquaintances or business associates.

1. Start with the end in mind. If it’s a true investment property in Hawaii, what is the groups time frame? Have a clearly stated exit strategy.

2. Everything is in writing. Written by a real attorney, not on the back of the napkin.

3. What happens in the event of Death, Divorce, etc? Not fun stuff, but one or both of those will eventually occur. Be sure that the language is very clear and leaves nothing to interpretation.

4. Run It Like A Business.
That probably means you hire a professional management company. All parties involved should expect monthly or at least quarterly accountability.

5. Have Fun! This can be a great way to get in on the ground floor and diversify!

One Response to “Shall We Buy Beachfront Property?”

  1. Steve Mertz says:

    Thanks for the info-I had heard some of those rumblings. Another point: they don’t have mortgages, it’s cash only!

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Dansette