Tag Archive | "Honduras"

Interesting Land Swap


See below an interesting income producing land swap for someone who has land but wants overseas income property.

cuenca-ecuador-hostel

Or see a Cuenca Ecuador hostel business for sale at Ecuadorliving.com

The land swap opportunity comes from our friend, Ted Tidwell, who makes Bio Wash and Purely Green. He sent this note:

Many citizens are considering off-shore retirement destinations or, income producing property to protect against the declining value of their U.S. currency.

If you own vacant land, you may consider exchanging it for a high rental income resort villa on a tropical island.  (An exchange for dollars is also acceptable.)

The resort is is internationally famous Parrot Tree Plantation located on English-speaking Roatan island. Roatan is located off the northern coast of Honduras.

Honduras villa

The villa photo from the boat slip. It’s the 2nd floor on the left.

For an appreciation of Parrot Tree’s beauty and desirability, please Google “Roatan Parrot Tree Plantation.”

Honduras villa

 Social area at coffee shop.

Full-time Parrot Tree resident “Carol” provides 24/7 on-site property management.

Carol advises that the rentals are in high demand and that Marina Front villas rent for $285.00 nightly during the low season and $350.00 per night during the high season.

Honduras villa

View from the front balcony.

This is a Marina Front Villa which I’ll exchange for vacant land.

This spacious residential villa is former home of Miss Honduras in Prestigious Parrot Tree Plantation, Roatan island, Honduars.

Honduras villa

Great room.

This is a 2,000+  square foot, two bedroom, two bath villa with future 65 foot boat slip surrounded by homes that average $538,0000 without boat slips.

It is for sale at $275,000 including a prepaid (but not built) boat slip valued at $75,000.

P1Honduras villa010346

Dining area.

Community monthly management and security fees are $342 a month but are prepaid for 2012.

Honduras villa

Swimming lagoon and beach area.

Honduras villa

Resident couple. (An ex-pat found his beautiful soulmate.)

I sold this condo but had to foreclose and due to my business schedule I cannot occupy it now.

Per prevailing custom, title is held in a corporation. Owning the property is as simple as purchasing the corporation, which includes all the corporate assets and avoids real estate transfer tax.

For more details, call me at 239-283-1222. (office)
or
e-mail: BioWashTed@yahoo.com

Ted Tidwell

There are five great ways to find good value investments in these times of change.

#1: Move to a lifestyle of lower cost living such as Ecuador or Smalltown USA.

#2: Invest in high value and emerging equities.

#3: Invest in high value real estate.

#4: Invest in precious metals and commodities.

#5: Invest in your own micro business.  Earn more than the loss of your money’s purchasing power.

2017 Schedule

The Huge 2018 Risk

Here is a huge risk that could explode in 2018.

I hope I am wrong.

According to Treasurydirect.com, as of October 31, 2017 the cost of interest on  the total US public debt of $20,467,375,664,755.32 (20 trillion+) was $24,411,569,716.36 (24 billion+).

The 36 cents isn’t much of a problem.  The other 20 trillion is.

This is good news and bad… the rock and the hard spot.  The bad news is that the rock (US federal debt) is getting bigger….harder to miss.  The Congressional Budget Office (CBO) projected in 2010 (the debt then was a bit over 14 trillion) that, under law at that time, debt held by the public would exceed $16 trillion by 2020, reaching nearly 70 percent of GDP.

They sure goofed on that.  Here we are… not quite into 2018 and debt has shot past 20 trillion.

How could the CBO be so wrong? 

The CBO screwed up because they could never imagine that the Fed would push interest rates so low… and keep them there.  The interest rates are so low that the government can borrow and borrow and still afford the interest.

For example, US Federal government interest this year will amount to around $483 billion on the 20 trillion of debt.  Yet in 2008 on debt of only $9,229,172,659,218.31 (9 trillion +) the interest that year was $451,154,049,950.63 (451 billion +).

Interest payments in 2017 are 7% higher than they were in 2008.  Yet the debt is over 100% higher.  

Very low interest rates have helped the government borrow.  Low interest has also helped the US stocks reach all time high prices.

Here is the very hard spot.  The downside is that low interest has reduced earnings of investors.  Low interest has ruined the lifestyles of many who have retired.

Here is what happened and why the problem may exist for quite a bit longer.

If investors can increase the interest rate to 6% from the lousy 1% (or so) they earn now, they gain 1,263% more over 30 years.  Anyone living off interest, who is drawing down their portfolio over 20 years, makes 57% more annual income every year.

But if investors get 6% interest instead of 1%, the government has to also pay more on it debt.

The government will resist raising rates because it will ruin their budget, cause a collapse of the stock markets and destroy the US dollar.  

Rising interest rates, that we would like to see as investors, will create an almost unimaginable debt crisis.  If government interest goes to 6% it is like the $20+ trillion national debt  rising to 100 trillion!  Unless there are some huge tax increases, a 5% increase in interest rates would increase the national debt by five times.

A tax increase?  The current tax act being proposed reduces, not increases, revenue.

This is not a theoretical problem for the future. This is not something that our children and grandchildren will have to deal with.  This is a problem in the here and now.

Interest rates create a massive problem on two sides of the same coin.  Raise rates the massive national debts ruins the purchasing power of currencies.  Keep interest rates low and capitalism does not work for investors.  Politicians simply borrow more (on our behalf) but for their benefit.

Learn how to have more freedom and time, less stress, better health care, extra income, greater safety and profit in your savings despite America’s deficits, debt and currency risk.

Fortunately there are secrets that will allow a few to live much better, free of debt and worry despite the decline in the dollar’s purchasing power.   My wife, Merri and I, have traveled, lived, worked and invested around the world for nearly 50 years to gain this information.

Let me share the basics of this data and how we can be of help through 2018.

The first fact behind this secret is that things are really good in the western world.  Despite many problems, we are surrounded by more abundance and greater opportunity than almost anyone has ever enjoyed, anywhere, ever.   To enjoy a fair share of this wealth, all we have to do is understand human nature and learn how to invest in the new economy, as it changes and becomes new, again and again.

Merri and I have made seven huge transitions in the 50 years.  Each has allowed us to always stay ahead of losses that the majority of Americans suffer.  We are in another transition right now and want to share why and what to do so you can stay ahead and live a richer, independent life through 2018 and beyond.

A falling US dollar is one of the greatest risks we have to our independence, safety, health, and wealth, but also brings a window of huge profit as I explain below.   Though the greenback has been strong for a number of years, its strength is in serious jeopardy.  The growing federal deficits increase the national debt and this with rising interest rates propels a growing debt service.

When the Dow Jones Industrial Average recently passed 20,000, another milestone of “20” took place that has a much darker meaning to your and my spending power.  The U.S. national debt passed the $20 trillion mark.

The problem is that the Dow will come back down.  National debt will not fall.

The double shock of money fleeing Wall Street and US debt skyrocketing, will destroy the purchasing power of the greenback.

Go to the store even now.  Statistics say inflation is low, but buy some bread or, heaven forbid, some fresh vegetables like peppers or fruit.   Look at the cost of your prescription or hospital bills.  Do something simple like have your car serviced at an auto dealer.  Look at the dollars you spend and you’ll see what I mean.

The loss of the dollar’s purchasing power erodes our independence, our freedom and our savings and wealth as well. 

At the same time, low interest rates by big banks and higher health care costs soak up the ever diminishing income and savings we have left.  According to a Gallup poll, the most unpopular three institutions in America are big corporations & Wall Street banks, HMOs and Congress.

Yet there is little we can do because these institutions are in control.

Over the last 50 years the average income for 90 percent of the American population fell.  Our health system is restricted by a Kafka-esque maze of legislation and insurance regulations that delay, frustrate, and thwart attempts by patients and doctors from proper medical care.  Big banks and corporations restrict our freedom of choice.  The business customer relationships are no longer transactions between free equals.

Banks can trap us in indebtedness at every age from student loans to mortgages to health care costs.  They pay almost nothing on our savings.  They hide unexpected fees and payments in complex and unreadable documents.  Banks and big corporations routinely conceal vital information in small print and then cheat.  Weak regulations and lax enforcement leave consumers with few ways to fight back.  Many of these businesses ranging from cable TV to phone and internet service to health insurance have virtual monopolies that along with deceptive marketing destroys any form of free market.

These same companies control the credit-scoring agencies so if  we don’t pay unfair fees, our credit scores will plunge and we could lose the ability to borrow money, rent an apartment, even to get a job.  Many consumers are forced to accept “arbitration clauses” in lieu of  legal rights.  The alternative is to lose banking, power, and communication services.

Big business has also usurped our privacy.  Internet companies sell our personal data.  Personal information is pulled from WiFi and iPhones track and store our movements.  The government can access this information, sometimes without subpoenas.  There’s a lot that we don’t know, often withheld under the guise of “National Security.”

The glow on Western democratic capitalism has dimmed… or so it seems.  The US, leading the way, is still a superpower with economic, innovation and military might, but the institutions that should serve the people have become flawed or broken.

America’s infrastructure is in shambles.  The nation’s bridges are crumbling, many water systems are filled with toxins, yet instead of spending more to fix this, we build more prisons.  The 2.2 million people currently in  jail is a 500 percent increase over the past thirty years.  60% of the inmates belong to ethnic groups.  Not just non-white ethnic groups are suffering.  Annual death rates are falling for every group except for middle-aged white Americans.  Death rates are rising among this group driven by an epidemic of suicides and afflictions stemming from substance abuse, alcoholic liver disease and overdoses of heroin and prescription opioids.

America’s middle class is shrinking.  Nearly  half of America’s income goes to upper-income households now.  In 1970 only 29 percent went to this group.  How can we regain our freedom, our happiness and our well being in such a world?

What can we do?

Gain a better, freer life is to combine better health, higher income and greater savings for a happier, more resilient lifestyle. 

Merri and I will celebrate our 50th year of global living, working, investing and researching to find and share ideas on how to have simpler, low stress, healthier, more affluent lifestyles.  Our courses, reports and email messages look at ways to gain:

#1:  Global micro business income.

#2:  Low cost, natural health.

#3:  Safer, more profitable, investments that take little time or cost to buy and hold… so you can focus on earning more instead

Many readers use our services for just one of these three benefits.  They focus only on health or on earning more or on better, easier investing.

27 years ago Merri and I created the International Club as a way for readers to join us and be immersed in all three of these benefits.   The International Club is a year long learning program aimed at helping members earn worry free income, have better affordable good health and gain extra safety and profits with value investments.

Join us for all of 2018 NOW.

The three disciplines, earning, health and investing, work best when coordinated together.  Regretfully the attacks on our freedom are realities of life.  There is little we can do to change this big picture.  However we can change how we care for our health, how we earn and how we save so that we are among the few who live better despite the dollar’s fall.

We start with better lower cost health care.

Club membership begins by sharing ways to be free of the “Secret Hospital Charge Master”.   Just as governments hide truth behind “National Security”, big health care businesses hide medical truths behind “Charge masters”.  Most hospital charge masters are secret because big business does not want us to know how much hospital costs have risen.  Motivations beyond our good health, like corporate greed, want to keep us in the dark about health care cost.

Despite rising health care costs, a report from the Centers for Disease Control & Prevention shows that hospitals are the last place we want to be for good health.  One report shows that hospital-acquired infections alone kills 57% more Americans every year than all car accidents and falls put together.

Often, what patients catch in the hospital can be worse than what sent them there.  Governments and health care agencies agree  – antibiotic resistance is a “nightmare.”  An antibiotic-resistant bacteria may be spreading in more hospitals than patients know.  About one in every 25 hospitalized patients gets an infection and a 2013 report from the Journal of Patient Safety showed that medical errors are the third-leading cause of death in the country.

Along with the risk of hospital acquired illness and medical errors, the second huge threat to our well being… is health care costs, especially at hospitals.  This is why charge masters are so often secret.  There are few risks to our wealth that are greater than a hospital stay.

I have created three natural health reports are about:

#1: Nutrition

#2: Purification

#3: Exercise

Each report is available for $19.95.  However you’ll receive this free as club member and save $59.85.

Club members also receive seven workshops and courses on how earn everywhere with at home micro businesses.  We call this our “Live Well and Free Anywhere Program”.   The program contains a series of courses and reports that show ways to earn and be free. These courses and reports are:

  • “International Business Made EZ”
  • “Self Fulfilled – How to Write to Sell”
  • Video Workshop by our webmaster David Cross,
  • The entire weekend “Writer’s Camp” in MP3
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”
  • The course “Event-Full – How to Earn Conducting Seminars and Tours”

This program is offered at $299, but is available to you as a club member free.  You save $299 more.

Next, club members participate in an intensive program called the Purposeful investing Course (Pi).  The purpose of Pi is finding value investments that increase safety and profit.  Learn Slow, Worry Free, Good Value Investing.

Stress, worry and fear are three of an investor’s worst enemies.  These destroyers of wealth can create a Behavior Gap, that causes investors to underperform in any market good or bad.  The behavior gap is created by natural human responses to fear.  Pi helps create profitable strategies that avoid losses from this gap.

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories from economic news (often created by someone with vested interests) and is based mainly on good math that reveals the truth through financial news.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

There are seven layers of tactics in the Pi strategy.

Pi Tactic #1: Determine purpose and good value.

Pi Tactic #2: Diversify 70% to 80% of portfolio equally in good value developed markets.

Pi Tactic #3: Invest 20% to 30% equally in good value emerging markets.

Pi Tactic  #4:  Use trending algorithms to buy sell or hold these markets.

Pi Tactic  #5:  Add spice speculating with ideal conditions.

Pi Tactic  #6: Add spice speculating with leverage.

Pi Tactic  #7:  Add spice speculating with forex potential.

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return

#7:  Market history

We combine the research of several brilliant mathematicians and money managers with my years of investing experience.

This is a complete and continual study of what to do about the movement of international major and emerging stock markets.  I want to share this study throughout the next year with you.

This analysis forms the basis of a Good Value Stock Market Strategy.  The analysis is rational, mathematical and does not worry about short term ups and downs.  This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.  Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

The Pi subscription is normally $299 per annum but as a club member you receive Pi at no charge and save an additional $299.

Profit from the US dollar’s fall.

In the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

Club members receive a report about opportunity in the  current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I created a short, but powerful report “Three Currency Patterns for 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but when you become a club member you receive the report, “Three Currency Patterns For 50% Profits or More” FREE.

Plus get the $39.99 report, “The Platinum Dip 2018” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events.  The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV).   The second event is that the silver gold ratio hit 80 and has remained near this level, compared to a range of the 230s only two years ago.

Now there is a new distortion ready to ripen in the year ahead.

These two events are a strong sign to invest in precious metals.

I prepared a special report “Platinum Dip 2018”.   The report explains the exact conditions you need to make leveraged precious metal speculations that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons about speculating in precious metals gained through 30 years of speculating and investing in gold and silver.

The low price of silver offers special value now so I want to send you this report because the “Platinum Dip 2018” offers enormous profit potential in 2018.

The report “Platinum Dip 2018” sells for $39.95 but club members receive it free as well.

The $39.95 new “Live Anywhere – Earn Everywhere Report” is also free.

There is an incredible new economy that’s opening for those who know what to do.  There are great new opportunities and many of them offer enormous income potential but also work well in disaster scenarios.

There are are specific places where you can reduce your living expenses and easily increase your income.  Scientific research has shown that being in such places actually make you smarter and healthier.  Top this off with the fact that they provide tax benefits as well and you have to ask, “Where are these places?”.

Learn about these specific places.  More important learn what makes them special.  Discover seven freedom producing steps that you can use to find other similar places of opportunity.

The report includes a tax and career plan broken into four age groups, before you finish school, from age 25 to 50 – age 50-to 65 and what to do when you reach the age where tradition wants you to re-tire.  (Another clue-you do not need to retire and probably should not!)

The report is very specific because it describes what Merri and I, our children and even my sister and thousands of our readers have done and are doing, right now.

Live Anywhere – Earn Everywhere focuses on a system that takes advantage of living in Smalltown USA, but earning locally and globally.

This report is available online for $39.99 but International Club members receive it free.

Save $418.78… “plus more” when you become a club member.

Join the International Club and receive:

#1: The $299 Personal investing Course (Pi).   Free.

#2: The $299 “Live Well and Free Anywhere Program”. Free.

#3: The $29.95 report “Three Currency Patterns For 50% Profits or More”. Free.

#4: The $39.99 report “Platinum Dip 2018”. Free

#5: The three $19.99 reports “Shamanic Natural Health”.  All three free.

#6: The $39.99 “Live Anywhere – Earn Everywhere” report. Free.

#7: A subscription to the Purposeful investing course… Plus more.

These reports, courses and programs would cost $767.78 so the 2018 membership saves $418.78, “plus more”.

What’s the “plus more”?

The International Club membership is $499, but we want to encourage our first 100 members for 2018 to join quickly so we are currently accepting discounted membership at $349. 

To encourage our first 100 members for 2018 to join quickly so we are currently accepting discounted membership at $349.

Save $418.78.  Join the International Club for $349 and receive all the above online now, plus all reports, course updates and Pi lessons through the rest of 2017 and all of 2018 at no additional fee.

Click here to become a member at the discounted rate of $349

Gary 

 

Ecuador Currency


Ecuador’s currency is the US dollar.

When Merri and I first arrived in Ecuador the currency was the sucre and it took 3,000 sucre to buy one dollar.  About five years after we arrived the sucre had dropped to about 8,000 sucres to buy a US dollar.  Then a decade ago the Ecuadorian economy went into self destruct and the sucre collapsed all the way to 25,000 sucres per dollar.

ecuador-real-estate-for-sale

The dollar still goes a long way in Ecuador. You can still buy beach condos like this for under $24,000.

This created incredible real estate bargains.  I began buying Ecuador real estate which is one reason I can sell Ecuador real estate now at below the market and still make a decent profit.

ecuador-real-estate

Large fixer upper houses like this in the Andes can still sell for less than $29,000.

However getting out of the sucre into the greenback was in a way like jumping out of the frying pan into the fire…. because since then the US dollar has dropped a lot in value compared to other currencies such as the euro.  Excerpts from our latest Multi Currency portfolio report show this fact.  Here is what that message said:

Since we are beginning a new decade it makes sense to look back a decade at the past multi currency action.

A reader just sent this note:  Dear Gary, I am worried by the breaking news that the “Bolivarian Alliance” is creating its own currency.

The news says:   “Countries of the Bolivarian Alliance for the Peoples of Our America (ALBA) agreed to introduce regional common currency, the SUCRE…”During the ALBA summit on Dec. 13 (In Cuba), nine member countries including Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Honduras, Nicaragua, Saint Vincent and the Grenadines, and Venezuela announced the introduction of new virtual currency in January 2010.”  Thanks.

These countries have been announcing this type of stuff for quite some time.

You can see a 2007 article I wrote about this at Ecuador Currency Opportunity.

Announcements by governments are easy.  Actions not so much so.  Getting all these countries to actually do something together is not such an easy task.  Not much has happened from the 2007 announcement and I do not expect much to happen from the 2009 announcement.

Most of the countries above face enormous social and economic challenges in the decade ahead.  Keeping their own currency stable will be hard enough.  Creating a new one easy… but maintaining it hard.  Getting all these nations to work together to create one currency seems pretty unlikely.

The European Union and euro whose nations enjoyed  much greater economic success and stronger political stability, than the nations above took decades to create. The euro was driven by a real fear… a repeat of WW I and WWII.   Yet the euro has taken many decades to form.

Should we expect quick action for a union by Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Honduras, Nicaragua, Saint Vincent and the Grenadines, and Venezuela? Remain watchful but do not expect anything too soon.

A better way to answer the US dollar dilemma  is to invest in the best value BRIC countries (Brazil, Russia, India and China) and speculate on the ups and downs of their value.

Here are excerpts from a recent Multi Currency Update I sent to our multi currency portfolio subscribers.

BRIC currencies make sense because these countries are still viewed as emerging markets… but they now are major economies.

Together, these four countries generate approximately 27% of the world´s Gross Domestic Product (GDP).

The BRIC economies are also growing faster than in the Western world.  The average annual GDP growth of a BRIC nation was greater than 7% before the recession, as compared to approximately 2% for a G-7 nation.

The future growth of the global economy depends largely on the BRIC economies continuing growth.

The simplest way to invest in BRIC economies is with a BRIC ETF like iShares MSCI BRIC Index Fund. This ETF tracks the MSCI BRIC Index and invests in about 260 different companies in these four countries.  Invest and leave the investment alone for long term growth.

Jyske Global Asset Management recommends BRIC allocation as below :

If you have a Low Risk profile                  : up to 5%
If you have a Medium Risk profile          : up to 10%
If you have a High Risk profile                : up to 15%

A more complicated but potentially more profitable approach is to weight your investments more heavily in the good value BRIC countries and sell shares in the BRICS with poor value.

Heavier speculation  could buy the good value BRICS and short the low value BRICS.

For example you can see below why right now may be a good time to sell investments in India and invest in China.

Learn how to read this entire update on why to sell these BRICS now as a Multi Currency subscriber.

A March 2009 report entitled “Ecuador Economic Worries” shows why the dollar’s fate is not so important to Ecuador when it says:

A number of readers have sent questions about Ecuador economic worries. One regular Ecuador economic worry I receive is that Ecuador will stop using the US dollar as its currency.

There is little doubt that Ecuador’s economy is in a mess.

Which economy is not?

We’ll look at this Ecuador economic worry in a moment, but to put this worry into perspective, may I share some other economic worries at the same time… plus post some photos from our friend, Dennis Goff… such as this shot from a boutique hotel in Manta, Ecuador where you can stay for $52 a night.

ecuador-economic-ideas

Ecuador has economic worries, yes, but are they worse than the economic worries in Europe or the US?   The photos show that while we worry we can be in paradise on a shoestring budget.

Read the entire article Ecuador Economic Worries here.

Learn more about BRICS. Join Merri and me along with Thomas Fischer and my portfolio manager, Anders Nielsen, at our February 11-14 IBEZ seminar.

Learn more at  Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Fl.

Gary

If you plan to join us at six or more seminars and tours in Ecuador, Florida or  North Carolina in 2010 you can save as an International Club member.

See details about each of our seminar and tours below… then see our December special that allows you to attend as many of these courses you like at a huge savings.

For International Investing and Business.

For Super Thinking + Spanish

For Ecuador Shamanic Tour

For Ecuador Export

For North Andes, Imbabura & Cotacachi

For Manta & Mid Coast

For Quito & Mindo

For Salinas & South Coast

For Cuenca

You gain discounts by attending multiple seminars and tours.

Here are our multi tour adventure discounts.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Six Pack… 6 seminars courses & tours  $2,199 Couple $3,099 Save $795 single or $1,395 on a couple or more

But our 2009 International Club membership which allows you and a guest to attend as many of the 56 courses and tours we’ll sponsor and conduct in 2010  (fees would be $40,947 for all these courses individually) is only $2,999.

The International club fee rises to $3,500 in January 2010. Enroll in the International Club now at the original fee of $2,999. Save $501.

International Club 2010

Attend our 56 investment, business, Spanish, real estate and export, courses and tours in 2010 with one small enrollment fee.

International Club 2010 Membership Enroll here

Here are the 56 courses and tours you can attend free. Plus there is even one more savings you will see below.

Jan.   8-11     Ecuador Export Tour
Jan. 13-14     Imbabura Real Estate Tour
Jan. 15-18     Coastal Real Estate Tour
Jan. 19-20    Quito-Mindo Real Estate Tour
Jan. 21-23    Cuenca Real Estate Tour

Join us in February or March.

Feb. 11-14   Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Fl.

Feb. 15-16   Travel to and visit Quito
Feb  17         Travel to Manta
Feb. 18-19   Coastal Real Estate Tour
Feb. 20        Travel to Cotacachi
Feb. 21-22   Imbabura Real Estate Tour
Feb. 23-24  Quito-Mindo Real Estate Tour
Feb. 26-27  Cuenca Real Estate Tour

Mar. 11-14     Super Thinking + Spanish Course, Mt. Dora, Fl.
Mar. 15-16    Travel to Quito and Andes
Mar. 17-18     Imbabura Real Estate Tour
Mar. 19-20    Cotacachi Shamanic tour
Mar. 22-23    Coastal Real Estate Tour
Mar. 25-26    Cuenca Real Estate Tour
Mar. 28-29   South Coast Real Estate Tour

Apr. 12-15   Ecuador Export Tour ($499 or couple $749)
Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito-Mindo Real Estate Tour ($499 or couple $749)
Apr. 26-27  Cuenca Real Estate Tour ($499 or couple $749)

May  13-14     Ecuador Shamanic Minga  ($499 or couple $749)
May  16-17    Imbabura Real Estate Tour  ($499 or couple $749)
May  19-20    Coastal Real Estate Tour ($499 or couple $749)
May  22-23    Quito-Mindo Real Estate Tour  ($499 or couple $749)
May  25-26    Cuenca Real Estate Tour  ($499 or couple $749)
May  28-29    South Coast real Estate Tour ($499 or couple $749)

June 24         Quantum Wealth North Carolina
June 25-27    International Investing and Business North Carolina  ( $749 or couple $999)
June 28-29   Travel to Ecuador and Andes
June 30-Jy 1 Imbabura Real Estate Tour  ($499 or couple $749)
July 3-4          Coastal Real Estate Tour   ($499 or couple $749)
July 6-7          Quito-Mindo Real Estate Tour    ($499 or couple $749)
July 9-10        Cuenca Real Estate Tour   ($499 or couple $749)

Sept.   3-6      Ecuador Export Tour  ($499 or couple $749)
Sept.   8-9      Imbabura Real Estate Tour  ($499 or couple $749)
Sept. 11-12     Coastal Real Estate Tour   ($499 or couple $749)
Sept. 14-15     Cuenca Real Estate Tour    ($499 or couple $749)
Sept. 17-18     Ecuador Shamanic Minga  ($499 or couple $749)
Sept 20-21      South Coast Real Estate tour ($499 or couple $749)

Oct.    7          Quantum Wealth North Carolina
Oct.   8-10     International Investing & Business North Carolina ($749 or couple $999)
Oct.   11-12    Travel to Quito and Andes
Oct.  13-14     Imbabura Real Estate Tour ($499 or couple $749)
Oct.  16-17     Coastal Real Estate Tour ($499 or couple $749)
Oct.  19-20    Quito-Mindo Real Estate Tour ($499 or couple $749)
Oct. 22-23     Cuenca Real Estate Tour ($499 or couple $749)

Nov.    4-7        Super Thinking + Spanish Course Florida ($749 or couple $999)
Nov.    8-9       Travel to Quito and Andes
Nov. 10-11       Imbabura Real Estate Tour ($499 or couple $749)
Nov. 13-14      Coastal Real Estate Tour ($499 or couple $749)
Nov. 16-17      Quito-Mindo Real Estate  ($499 or couple $749)
Nov. 19-20     Cuenca Real Estate Tour ($499 or couple $749)
Nov  22-23      South Coast Real Estate Tour (($499 or couple $749)

Dec.   3-5       Ecuador Shamanic Mingo  ($499 or couple $749)
Dec.   7-8       Imbabura Real Estate Tour ($499 or couple $749)
Dec.  10-11    Coastal Real Estate Tour ($499 or couple $749)
Dec. 13-14     Quito-Mindo Real Estate Tour ($499 or couple $749)
Dec. 16-17      Cuenca Real Estate Tour ($499 or couple $749)

If you join the International Club, the entrance fee for 2010 is $2,999 (until January 2010).  Your attendance fees at all courses will be waived. You and your guest can attend courses worth $40,947.

You can calculate the savings as our schedule of all 2010 courses is shown below.

Arrival dates are always one or two days earlier. Please double check with us before booking flights.

I invite you to be a member of the International Club which allows you and your guest of your choice to attend all of these courses which are valued at $40,947!

International Club 2010 Membership Enroll here

You may well wonder why I would make such an offer and ask why the cost is so low? Let me answer this question frankly and from the heart.

First, it helps us do a better job for you. We feel greatly enriched when we can really help our clients improve their lives. We have learned through years of experience the best way to do this is to meet with you regularly. We can best help you learn how to improve your health and wealth through continual expansion of knowledge.

Second, we gain enormous fulfillment from the many friendships we form through the years. Our friends have enriched our lives tremendously. Let me explain this in more detail.

As a member, you will be part of our international family that meets intensively over the next year to examine ways we can make our lives better. Our goal is beyond just having money. Our goal is to have quantum wealth… good health… wealth and fulfillment through service.

Though I give all course delegates my very best, I cannot help but to do a better job for those who come again and again. As we meet often; your particular wants, needs and desires become clear, and it is easier for me to point you in the right direction.

Another phenomenon is that repeat delegates help each other! They get to know one another, help each other learn, share their insights, make contacts and gain more wealth.

Out associates in Ecuador, are experienced business people who live or work and conduct our real estate and export courses.  They can also act as your local backup for the business.

Lifestyle for Two. There is more! I have learned at my courses that many repeat delegates were couples.

We want couples! As a member of the program, you are entitled to bring another person to every single course or tour. The cost for that extra person will be ZERO!  You can bring whomever you wish. Bring your spouse, a friend, son or daughter, partner, accountant, adviser. You can bring the same person each time or a different person, whomever you choose to accompany you. (Accommodations and air fares relating to the courses are not included for members, delegates or their guests.)

Won’t you join us in this exciting club and share Merri’s and my lifestyle for the next year? We look forward to seeing you at as many courses as possible and sharing this wonderful world of abundance and well being with you!

Gary

International Club 2010 Membership  Enroll here

Investing in Chaos


Many recent messages have looked at living, business and investing in chaos during times of turmoil and change.

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Ecuador at times may seem chaotic.

Chaos is caused by transition from one wave of productive technology to another.

Investors and businesses who understand this have an enormous advantage because they know to look for the next wave.

In a moment, we’ll look at the potential for chaos in Ecuador.

First, let’s look at some positive chaos that could ruin some basic utilities but also create millions (maybe billions) for some businesses and investors.

The industrial revolution has been a time of continual chaos.  There was a time of turmoil when mankind shifted from steam technology to the internal combustion engine. Investors who had been big in railroads (but were smart) shifted to investing in automobiles and trucking and bus lines.

Then chaos came again when the jet engine made the airplane a more effective form of transportation than long distance.  Bus travel and smart investors shifted from Greyhound into airline shares.

In the information era; the PC, Internet (and Microsoft) became the major carrier of mankind and investors who saw this potential once again jumped ahead of the pack.

Where do we go next?

One new wave of technology may come in a product we all take for granted…. creating what I would call the independence era. Let’s just look at the break through.

A forward looking reader sent me the Utah Daily Herald article “New battery could change world, one house at a time” by Randy Wright.

Here is an excerpt:  On a modest building on the west side of Salt Lake City, a team of specialists in advanced materials and electrochemistry has produced what could be the single most important breakthrough for clean, alternative energy since Socrates first noted solar heating 2,400 years ago.  — a new generation of deep-storage battery that’s small enough, and safe enough, to sit in your basement and power your home.

It promises to nudge the world to a paradigm shift as big as the switch from centralized mainframe computers in the 1980s to personal laptops. But this time the mainframe is America’s antiquated electrical grid; and the switch is to personal power stations in millions of individual homes.

The battery breakthrough comes from a Salt Lake company called Ceramatec, the R&D arm of CoorsTek, a world leader in advanced materials and electrochemical devices.

The convergence of these two key technologies — solar power and deep-storage batteries — has profound implications for oil-strapped America.

With small-scale electrical generation taking place at millions of individual homes — as opposed to today’s large-scale power generation from a handful of giant power plants — there would be less worry about what’s called “point failure” on the grid. That’s when a single component gets knocked out and shuts off power to a whole region. California-style rolling blackouts would be history.

The threat of terrorism has heightened the worry. But wide distribution of batteries in homes would virtually eliminate it.

Inside Ceramatec’s wonder battery is a chunk of solid sodium metal mated to a sulphur compound by an extraordinary, paper-thin ceramic membrane. The membrane conducts ions — electrically charged particles — back and forth to generate a current. The company calculates that the battery will cram 20 to 40 kilowatt hours of energy into a package about the size of a refrigerator, and operate below 90 degrees C.

This may not startle you, but it should. It’s amazing. The most energy-dense batteries available today are huge bottles of super-hot molten sodium, swirling around at 600 degrees or so. At that temperature the material is highly conductive of electricity but it’s both toxic and corrosive. You wouldn’t want your kids around one of these.

The essence of Ceramatec’s breakthrough is that high energy density (a lot of juice) can be achieved safely at normal temperatures and with solid components, not hot liquid.

Ceramatec says its new generation of battery would deliver a continuous flow of 5 kilowatts of electricity over four hours, with 3,650 daily discharge/recharge cycles over 10 years. With the batteries expected to sell in the neighborhood of $2,000, that translates to less than 3 cents per kilowatt hour over the battery’s life. Conventional power from the grid typically costs in the neighborhood of 8 cents per kilowatt hour.

Re-read that last paragraph and let the information really sink in. Five kilowatts over four hours — how much is that? Imagine your trash compactor, food processor, vacuum cleaner, stereo, sewing machine, one surface unit of an electric range and thirty-three 60-watt light bulbs all running nonstop for four hours each day before the house battery runs out. That’s a pretty exciting place to live.

And then you recharge. With a projected 3,650 discharge/recharge cycles — one per day for a decade — you leave the next-best battery in the dust. Deep-cycling lead/acid batteries like the ones used in RVs are only good for a few hundred cycles, so they’re kaput in a year or so.

How do you recharge? By tapping your solar panels or windmills. It’s just like plugging in your cell phone or iPod, only you plug in your house.

A small three-bedroom home in Provo might average, say, 18 kWh of electric consumption per day in the summer — that’s 1,000 watts for 18 hours. A much larger home, say five bedrooms in the Grandview area, might average 80 kWh, according to Provo Power. Either way, a supplement of 20 to 40 kWh per day is substantial. If you could produce that much power in a day — for example through solar cells on the roof — your power bills would plummet.

“Batteries and PV are about to merge,” said MIT’s Nocera, using the shorthand for “photovoltaics” or solar power. “First Solar is now saying that it takes $1 a peak watt to manufacture, and another 80 cents for installation. So they’re saying that you can get PV for under $2 a watt. That’s a reduction of cost by a factor of four. Only a few years ago, it was $8. If CoorsTek and Ceramatec come up with a good battery, the market will develop quickly.”

The long-term impact of home electric generation for a power company’s business model could be huge. After all, you can’t stay in business if nobody’s paying for power. Exactly how that will play out remains to be seen.

This technology is new to me… but seems breathtaking and loaded with opportunity.  Please send any thoughts, ideas, information or opinions you have.

Before you invest though, remember the golden rules of investing.

1. Money isn’t everything
2. Work only with people you like
3. Buy businesses, not stocks
4. Invest only in what you understand
5. Don’t over diversify
6. Keep looking for new opportunities
7. Buy businesses you plan to keep for life
8. Look for businesses that are available at a good price
9. Do what you like

Potential Ecuador Chaos

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The people of Ecuador are friendly and happy.

There is some potential for change in Ecuador that could benefit those moving and investing there.

First, let’s look at the cause of the turmoil.  A recent message entitled Investing Internationally shared news about the Ecuadorian government’s plan to take back a number of radio and TV frequencies stations. We promised to stay tuned to what happens and share observations and opinions from trusted sources in Ecuador about this.

Since that time, the Western press has published even more bad sounding news.

A recent AP article entitled “Ecuador Wants Citizen Committees To Defend Gov’t” said:  QUITO, Ecuador — Ecuador wants to create local citizen committees that would defend the government and its “revolution” — sparking criticism that the president aims to control opponents in a system reminiscent of Cuba or Venezuela.

Citizen Participation Minister Doris Soliz told Ecuador TV on Thursday that local citizen groups are needed to defend against coups like the one that recently deposed Honduran President Manuel Zelaya, or against outside agitators, noting U.S. military plans to use Colombian bases.

Other articles covered lots of rhetoric from Venezuela’s President about winds of war in the area (Chavez’s commenting on the announcement that the US would place military in Colombia).

Since the daily press distort, dramatize and magnify the negative; here are more comments from Ecuadorian business people with this comments.

Dear Gary: Sorry for the delay in my reply.  Correa is an unpredictable president.  On one hand he tries to emulate everything Chavez has done in Venezuela.  It is clear that Chavez gave him millions to finance his political campaigns and now he is obligated to do whatever Chavez wants.

On the other hand, he knows how far he can push the people of Ecuador.  If he is not careful, he can end up like Zelaya in Honduras.  I see strong confrontations coming if he tries to close radio and TV stations like Chavez did.

As you say in your reports.  We all need to be diversified in order to avoid problems in one place and not have anywhere to go in thing go bad.  I do believe the Ecuadorians are not as passive as the Venezuelans, and if Correa pushes too far he will find out. Let’s wait and see.

I agree with this reader. Ecuadorians are an independent people, and I have watched them (peacefully) oust a number of Presidents who abused their power.

Here is another opinion from one of my many sources.

Gary,  My comments are just some personal opinions and for that reason I prefer that I not receive any credit.   There is some noise going around that Correa wants to have “block leaders” who will report back to the government of any dissent. You can imagine what this means. Stifling dissent. It is a time to be careful and hope the Ecuadorian military remains faithful to the people of Ecuador. While there are so many needs and opportunities in Ecuador to be attended to, one could ask why does the president feel it is necessary to be out speaking of “winds of war blowing” against Colombia?
Anyway, it all comes with the territory of being in the Latin governmental world I suspect.  If the leaders were just humble people looking to improve the lot of their people instead of being megalomaniacs hell bent on being Castro or Hitler, life would be easier for all.

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Here are children in a parade in Cotacachi.

Readers should note that it was not Correa, Ecuador’s president who made the comment about Winds of War but Chavez of Venezuela. A lot of press makes it sound like Correa is much more closely aligned with Chavez than I believe he is.  Good or bad, I do believe that Correa is his own man and is pretty independent.

Here is another comment by an Ecuadorian with a great political and historical background.

Thanks for asking.  Correa. He is all right.  His big problem is being too young.  There is
a proverb in Spanish “mas sabe el diablo por viejo que por diablo”.  (
The devil knows more because he’s old than because he’s the devil). That is Correa’s problem.  He is not old enough.  Velasco Ibarra who was president five times, was very much like Correa, when he was young. When he grew older he became much more sedated.

Again I agree with this. Everything I have seen has led me to feel that Correa has many good intentions and is trying to correct many wrongs and has a big job.  In his youth he may be too ambitious and impatient.  Time, inertia and politics should correct a lot of that!

Here are more comments.

He usually talks too much.  He talks every Saturday for 3 or 4 hours continuously.  It is not highly recommendable to quote him or mention his speech. Sometimes he just changes his mind. Or does not follow what he mentioned in the previous weekend.

That could describe more than one politician!

I have met the President a couple of times. He actually stopped next to us on the street at 9pm at night and met our son and was very sincere and asked what we thought about how things were here in Ecuador.  He is very headstrong, but I think that he is a very intelligent guy and he knows how to negociate  and what it is going to take for Ecuador to become a stable economy and that is with foreign investment and tourism.

Again this is the way I see it as well.

This is from a Quito businessman:

Dear Gary:  Many thanks for sharing the concerns some of your readers have about President Correa. I get some emails on the subject too.  I should start by saying that I am no fan of President Correa,  far from it. I don’t particularly like his discourse as if from the union trenches of the 60s and 70s.

Some of his economic policies seem to go counter current and his relative closeness with Chavez is a blemish.

Nonetheless, there are merits too, amongst which is great effort in improving education and health care. Also, in attempting to fix some wrongs and distortions we’ve had on several fronts.

In spite of Correa’s antics, Ecuador continues to offer, and perhaps more so than ever, rather remarkable opportunities for real estate investors, visitors and expats.

Let me explain:

The new, fresh-out-of-the-oven, Ecuadorian Constitution states, following with the tradition of the previous one, that foreigners have exactly the same rights as Ecuadorians under the law.

Furthermore, private property is protected under the law as one of the main pillars of our economy. Confiscation is prohibited and eminent domain (expropriation) situations are extremely rare, much less so than what they would be in Miami, London or Toronto for that matter.

While some people may believe that Correa is not particularly pro foreign investment, the reality is that Ecuador, just as the next country, needs investment to prosper and, hence, the President is very welcoming of it, he just demands responsible practices.

While the pitfalls of politics-as-usual and nationalistic grandstanding in Ecuador, can and does preclude some major investments from coming in (picture hydroelectric, oil exploration, etc), for most of us, of your readers Gary, this should not be a problem.

Regarding the Government’s stance towards foreigners coming to Ecuador and investing here, something quite nice and reassuring happened to me recently, which is telling about how reality differs from perception.

Here’s the story:

While working in the concept for a coastal development with international capitals and geared mostly towards foreigners, we realized that better government planning and zoning was needed in the area if we were to spread our wings the fullest.

I decided to call the Production Ministry, which is a high level coordination entity on top of many other ministries in Ecuador to see if they could perhaps give us some light as to getting some better zoning for the area.

I was immediately transferred to the head authority in charge of foreign investments in Ecuador and in a few hours was meeting with him along with other officers from the ministry he had called in.
They were not only incredibly welcoming of our ideas and concepts but asked us to create with them a road map not only for planning and zoning, but for infrastructure, education of the local community, and much more.

They have let me know that they are ready to lend a hand as needed and that when the time comes, once we have things down on a plan we can meet with the secretary of the ministry and even President Correa for further vision.

What is the reason for this incredible support? Well, that they are really pro investments and that when you want to do the right thing, doors become open.

On the subject of visas, something that concerns many foreigners, I can say that the President has prompted a very open regime for foreigners to come to Ecuador. However, some changes in the procedures are driving some of us nuts. We just have to adapt.

In any case, you can expect to get a resident visa in Ecuador in 3 to 6 weeks in most cases. The new director of Migration is quite a gentleman and very open and understanding. It’s a pleasure to work with him.

With regards to some radios being closed, this is something the President declared as a possibility on grounds that some radio frequencies had been granted with irregularities according to an audit. While the audit may be correct, President Correa does have a bitter quarrel with the press and his fixation with it is over the top now.

Getting back to real estate; I’d like to add that foreigners have been investing and buying real estate in Ecuador for some time, and that this is a trend that is seemingly quite on the rise.

I am seeing the start of a major wave here.

Ecuador has excellent real estate opportunities and values and the current international crisis where former “safe havens” have been shattered is making this truth about Ecuadorian real estate all the more compelling.

Investors into Ecuadorian real estate ought to buy soundly into capital preservation and important appreciation potential.

As final thoughts, given the current financial problems the world is seeing, the violence in Mexico fending off tourists and investors… the bursting of the real estate bubbles throughout, the baby-boomers coming of age with individuals lusting for active living with quality of life to boot, Ecuador is starting to make some tremendous sense to many.

Our President may be a bit of a showman (to put it somehow), granted; and we as a nation have a ways to go into maturity; we are rough around the edges, but we may have among the warmest, most welcoming people on earth, and no development can buy that.

We have good infrastructure and low cost of living. Those who see beyond the perception should be able to get in early on the trend, ride this major wave and make the best out of it.

These are good points… especially this one… the government may be talking one way or the other… but look at how it is acting. In this case it appears that the government is pro tourism… pro investment and is welcoming residents from abroad.

Here is one final comment.

Gary, I don’t get involved in my host country’s internal politics.  I am however a strong believer in the Open Society and the value of ideas meeting arguments, so I guess I would prefer more media outlets to fewer.  By the by, Ecuadorians I know say this is the first time they feel they cannot express freely what they feel about their government, for fear of repression.

These are two key points also. I do not get involved in politics anywhere.  My feeling is that time is better spent adapting to whatever the politicians do rather than joining into the political fray. Reality is that if you do business fair and well, whatever the political system is you’ll be welcome.  The second point is about freedom of speech.

I recall feeling fear like this recently when talking to my son over the phone. I was about to make a joke about a certain president and decided not to thinking… I had better not joke about this.  The problem was I was in the US… not Ecuador.

The great technology that has created such great access to information has destroyed our privacy as well…everywhere.

My new real estate acquisitions are in Ecuador . Recent messages have looked at the importance of seeing reality. People write often asking if it‘s safe in Ecuador. I was thinking of the reality of this as Merri and I concluded a long Ecuador morning walk. The birds were singing, roosters crowing in the distance and we saw two very young children, a girl of maybe six or seven and her little brother maybe four or five walking alone through the village on their way to school. This is so typical in Ecuador.

I wondered how many children of that age in North America are allowed to walk alone through town as they are in Ecuador.

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More Cotacachi children in a parade.

You see young girls like this (maybe eleven or twelve) walking around night and day. This is not because Ecuadorian parents are careless. It is because there is a great deal of safety in Ecuador .

Here are a few facts I know.

#1: The Ecuador constitution protects landownership of citizens regardless of citizenship. No local government can take land by eminent domain for economic development.

#2: No Ecuador children have been shot in school.

#3: Ecuador schools do not require metal detectors.

#4: No Ecuador police force has used a “no knock” search warrant to break down a door and then shoot an innocent 80+ year old resident 50 times.

#5: We do not worry in Ecuador about being sued if someone spills hot coffee on themselves at our hotel. By the way our coffee is hot here.

#6: Ecuadorian doctors do not have to shut down their practices because of malpractice insurance costs.

#7: Parents in Ecuador are not at risk of having their child diagnosed as having ADD and being forced to give them Ritalin. Read http://www.ritalindeath.com/ if you want to have your heart rendered over the weekend.

investing-in-chaos

There is a deep culture in Ecuador.

Back in early 2007, a potential real estate buyer visited me about buying a $93,000 house in Otavalo. As we enjoyed a “cuppa tea” and visited I could see he loved the house but was really worried about loss of property due to Ecuador’s constitutional reform.

My view was that the reform was unlikely to reduce individual land rights. As we can see above, the opposite took place. the constitution strengthened property protection.  Ecuador’s base of wealth has always been individual land ownership.

Then I pointed out to this potential buyer that his  real bigger risk was buying a similar three bedroom house in England. A similar house would cost him between $400,000 and a million dollars. The risk of losing $93,000 in value when the overheated English real estate market dips seemed greater to me than the chances of losing $93,000 in Ecuador because a house would taken due to constitutional change.

Prices were way overblown in England.  This was exactly what happened.  Real estate crashed in England while real estate prices in Ecuador have remained strong.

Plus Ecuador offers the benefits of $1.40 a gallon gas, lovely weather, sweet people, no capital gains tax on real estate sales, very inexpensive but good medical and dental help, ridiculously low property tax, almost no tort liability, inexpensive cost of living, low crime and better food.

In the west, the cost of living is so high that many people can barely move!

So where is it safe to live? I think when Merri and I are really realistic, we feel that there are many aspects of safety in Ecuador.

Many of us feel many changes in our homelands that are not good. If you do, don’t despair, the sun always shines somewhere as it did here in Cotacachi, Ecuador. Here’s the sun coming up!

Merri and I always practice diversification…in asset class as well as geographically.  We are over weighted in Ecuador so we are voting with our money that the chaos here will create more opportunity than trouble.

See more about Ecuador diversification here.

Change and chaos are parts of the rhythm of life.  The never ending evolution created by time and space creates turmoil but also opportunity.

We hope the chaos in your life brings only good to you.

Gary

Combining good international investing with the greatest asset of all, the ability to earn wherever you live, brings everlasting wealth in chaos.

This is why we offer our course Tangled Web… How to Have an Internet Business.

A clear mind and healthy body are also a vital assets… plus a second language is a powerful diversification tool.

This is why I am willing to pay you $300 to attend either our Ecuador Super Thinking plus Spanish seminar in September or our North Carolina International Business & Investing seminar in October.  Sign up for either seminar and I will email you our Tangled Web… How to Have an Internet Business Course (offered at $299) free plus I’ll knock an extra dollar off your seminar fee…. to round up the $300 savings.

See details of the two seminars below.

Join Merri, Thomas Fischer of JGAM, our webmaster David Cross and me in North Carolina this October and enroll in our emailed course on how to have a web business free.  Save $300.

Learn more about global investing, how to have an international business and diversification in Ecuador at the seminar.

Oct. 9-11 IBEZ North Carolina

Here is an email for a recent seminar delegate: Amazingly helpful, amazingly timely … thank you for this !

Sept. 17-21 Ecuador Super Thinking + Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 21-24 Ecuador Import Export Tour

Nov. 6-8 IBEZ Ecuador Seminar
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador seminar or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Read the entire article New battery could change world, one house at a time

Ecuador Wills


Ecuador wills do not work if challenged.

We’ll look at some important information about Ecuador wills and Ecuador’s legal system in a moment.

Plus see below how asset protection benefits in the LLC you use may have changed.

Here is a group of indigenous farmers that our foundation Land of the Sun (LOTS) is helping.  They created a mingo (working circle) to clean out their water system that feeds a school that LOTS is helping to renovate.  Merri and I and some friends visited to check on their progress.

Ecuador-wills

Everyone works, men…

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women…

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young…

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and old.

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Well… not everyone works.

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But everyone gets involved in helping. Here is our hotel manager Franklin Sandoval conferring with the head of the village.

Ecuador-wills

I mentioned our foundation here  because it helps us gained fulfillment in our business, plus creates tax and asset protection benefits plus is part of our estate planning to make sure that the people of Ecuador are helped even after we pass.

Making sure that your assets held abroad are protected and properly conveyed in your estate requires extra planning.

Yet many Ecuador Living subscribers have been buying real estate or are moving to Ecuador without giving thought to the added complexity in their estate plans and other legal requirements.

I strongly suggest that you review you entire estate with both a local and Ecuadorian attorney. Here are some excerpts from an Ecuador Living report on why.

The Western world operates on two systems of law, the civil law of ancient Rome, and the common law of England.  These two systems have a lot in common, yet in many important areas they differ.

These differences can create legal conflicts in contracts, wills, trusts, parental rights and even residency.

The passing of wealth to heirs for example is one area that differs.

Few people coming from North America (which operates under a British common Law system), understand that US, Canadian or Ecuador wills do not work in Ecuador if challenged.

Many legal systems have evolved from The Roman civil code.  The Napoleonic Code is the French version, established under Napoléon I in 1804.  The Napoleonic code was not the first legal code to be established in a European country with a civil legal system though. The Codex Maximilianeus bavaricus civilis was reated in Bavaria arund 1756).  The Allgemeines Landrecht formed in Prussia, around 1794.  The West Galician Code,  began in part of Austria around 1797.

Many of the civil codes in Latin America are based on an original work derived from the French code and Castillan law.  Chile was the first to accept this type of legal system in 1855.  Ecuador followed in 1858.  El Salvador,  Venezuela,  Nicaragua, Honduras, Colombia and Panama are other countries with a legal system based on this foundation.

In this Ecuador legal system, the will is called the testament and allows the testor to direct the disposal, in whole or in part, of their property, upon death.   The testor retains the right to revoke the provisions in the testament anytime during his or her life.

However there is a difference in common and civil law as to what is a person’s property is.   In most civil codes, the wife automatically owns half of all property unless otherwise  stipulated in a formal way. The children own the other half.  Period. A will cannot supersede this fact.

If a person’s will leaves all of his or her property to his or her spouse, the will works fine UNLESS the children contest the will. If they do the testament will not be valid.

This can create complications in simple circumstances.  If the circumstances become complicated… for example children from two or more marriages… then problems could mount.  There is even a concern in my mind that a surviving spouse could lose investor residency status if the inheritance falls below required minimums.    A spouse could lose residency and a house!

In a common law country a person can write a will on a scrap of paper, throw it in a drawer (not advised) and that may be enough.  Though it also might not.  In a civil code jurisdiction such a will definitely will not work!

So if you create a will in Ecuador and then write another later… be sure to make the change official. Otherwise the new will may not work.

In a common law legal system wills do not have to be recorded and often the act of writing a new will allows the new document to supersede the old.

Ecuador’s Act reforming the Civil Code, of August 17, 1989 updated a number of areas relating to  covers relationships between a children and their parents, marriage, divorce, the status of wives, marital property and marital agreements.

Having an attorney to help you with estate planning in every country where you hold property makes sense…  especially if  two of the countries have different legal systems.

The US attorney we use is our friend (and trustee of LOTS) Joe Cox.

Joe’s firms specializes in cross border tax and estate planning, asset protection and real estate.

He provides an incredible system called The Strategic Snapshot which is an easy to use, color coded visualization of a person’s structures, corporate entities, estate plan and assets. We use the snap shot and have found it incredibly useful in seeing how everything from a legal point of view should fit.

You can ask Joe about the Strategic Snapshot at  jcox@coxnici.com.

Joe’s law firm also provides an excellent estate planning newsletter that I read regularly.

A recent letter at his archive shows how and says:

Conversion to Manager-Managed LLC Format

Many individuals concerned with asset protection have formed a Limited Liability Company (“LLC”) in an effort to protect their assets. In fact, most people do not know that Florida was the second state in the United States to draft LLC legislation (dating back to 1982). Most LLCs we see in our daily practice have been formed as member-managed LLCs, that is, when the members (i.e., owners) of the LLC control and manage the LLC as well. However, due to recent changes in the law regarding LLCs, we are now recommending that any Member-Managed LLC be converted into a Manager-Managed LLC format.

The intent of this recommendation is to increase the creditor protection of the LLC should the Member be involved in a lawsuit.

For example; under a Member-Managed LLC, if a creditor of the Member is able to obtain the LLC membership units (by court order, for example), the creditor could obtain management rights and make decisions for the LLC. At least one recent court ruling (from Colorado) makes this result a possibility. However, under a Manager-Managed LLC format, the Manager retains control of the management of the assets held by the LLC even if someone else “controlled” the LLC membership units.

In a Manager-Managed LLC, an elected Manager (pursuant to the Operating Agreement) manages the LLC. Note, that an existing member can act as the initial Manager of the LLC, and an independent Manager can be elected at a later time, if desired. Under a Manager-Managed LLC format, if a member was successfully sued, and the creditor obtained the member’s LLC membership units, the Manager could withhold distributions from all Members and the creditor would receive nothing. This result could deter a potential creditor from filing an unjustified or otherwise frivolous claim.


Plus Joe’s website offers an easy to use internet questionaire. See Questionaire.

We live in a complicated world often made more frustrating by the legal system.  Legal systems are problematic enough when one lives and resides in one country.   Difficulties can compound when living and or holding assets in two countries or more… especially if both legal systems…common and civil become involved.  So get an attorney and get advice so you, your spouse and your heirs never find your results uncivil.

The text above is an excerpt from a more complete report sent to Ecuador Living subscribers that describes Ecuador legal system, how to create wills there and provides legal contacts in the US, Canada and Ecuador that can help.

Learn how to subscribe here.

Regards,

Gary

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