People in downturns follow the 80% rule. 80% of the people act incorrectly 80% of the time.
We can take advantage of this and use the current economic correction to get ahead.
I know from experience.
Merri and I were sitting at our Hacienda, Rosaspamba, in Ecuador. The time was November 2000. White mists rose over jagged peaks and a huge, multicolored bird suddenly burst from the brush.
I had been bringing investors to Ecuador to show them ways to invest in this economy while it was in ruins. Ecuador had done so many things badly.
There was graft, corruption, political hassles, discrimination and lies that all helped lead the Ecuador economy into shambles. Ecuador had been the first to default on Brady Bonds.
All bank accounts had been frozen.
Two Presidents in a row had been impeached within a couple of years and the public had been demonstrating again and again in the streets.
The worse it got, the more I had advised investors to come with me. The more property I bought myself.
Real estate prices skyrocketed up.
The economy has gained from higher oil prices. (Ecuador is the second largest oil producer in South America.) The new President is looking very capable (perhaps even a little honest) and there has been optimism.
The country dollarized after the economic debacle in 2000.
Real estate prices have risen dramatically. I am hearing stories from investors on how much money they have made in just the past year.
Has the economy slowed where you are? It does not seem to have done so in Manta, Ecuador. Here are shots I took last week of Manta harbor.
The harbor is packed!
Luxury boats as well as cargo.
The beach is thriving.
On our recent Ecuador coastal real estate tour we met with Pilar Davila, a real estate broker we have worked with for over a decade now.
Construction is booming…new condos and luxury hotels like this small beach front accommodation where Pilar is standing are up and coming.
We were inspecting this wonderful small hotel in Manta. The central lounge and swimming pool are absolutely beautiful.
Overlooking the beach and sea.
Even the business and internet center is filled with charm.
Pilar reminded me that Manta property that our real estate tour delegates bought in the late 1990s at $.40 cents a square foot is now selling for $9.00 a square foot. Condos that sold for $79,000 during the 1999 depression are $240,000 now.
Here are lots that our Ecuador coastal real estate delegates bought in the 1990s for $2,500. They are for sale now at $17,500.
Ecuador real estate prices are still low compared to the US, Mexico or Panama for example…but sometimes I have a hard time keeping my perspective because they are high compared to what they were ten years ago.
Regardless of how bad things appear, there is always opportunity. The sun always shines somewhere.
For this we should be eternally grateful. When events appear gloomy, we should get excited. There is never as good a time to create wealth as when economic conditions are bad. This is especially important to remember as the U.S. economy (which has been feeding global economic growth) slows.
In the months and years ahead our daily publications, newspapers, TV shows, etc. are likely to give us more than our fair share of doom and gloom. Let this be good news! Be thankful. Bad times are the best for making money. If we focus on serving our community, instead of weeping over what newspapers say, it will help us get ahead.
Until next message, may the sun shine for you.
Join us at a course in Cotacachi or on Ecuador’s coast this winter.
On our last coastal real estate tour we viewed this luxury hotel front…
Here are delegates working hard at viewing.
Plus we saw land and a next door house for sale.
We also saw this Bahia Coco Bongo Hostal for sale (the owner says she has $110,000 in it).
Here delegates view a 15 room hotel for sale, with an asking price of $60,000.
Plus we saw this potential Bed & breakfast. $90,000 asking.
Better still join us all year in Ecuador! See our entire schedule of 26 courses, tours, mingos and expeditions we’ll conduct in 2009.