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Ecuador Florida


This message on how Florida and Ecuador connect can help you enjoy everlasting wealth.

See how going from this view in Hong Kong from Bowen Road…

HK-waterfront

to this… brought us more than a fortune.

multi-currency-view

The leaf change has begun here in the Blue Ridge and autumn’s glorious message can help us improve our investing and business. I explain below.

Yesterday’s message, Ecuador Gold,  was about gold, good value real estate and the power of incorporating a PIEC (Personal Income Earning Corridor) in your life so you can:

1.    Do what you like.
2.    Act beyond money.
3.    Work with like minded souls.

One key to developing this PIEC is to know what you are investing in and… why.

Plato summed it up nicely about 2,500 years ago… investor… “know thyself.”

Take for example, what Merri and I knew about ourselves, as we headed south in our Honda mini van last week to look at over 20 properties in three days… a short list derived from researching hundreds of properties for sale.

Our hound, Ma, was with us… she is very happy about traveling more to Florida and less to Ecuador because she far prefers traveling in the golden rolling cave rather than being eaten (and then regurgitated) by the big, silver bird.

Merri and I were happy knowing that a common denominator between Ecuador and Florida is that each have a lot of sun at times when other places have a lot of cold!

As the autumn’s first frosts were appearing at our mountain home… we enjoyed the 85+ degree sunny weather.

A recent article entitled Ecuador Florida Connection looked at value real estate in both  Ecuador and Florida and evoked this response from a reader:  Gary, I love reading your daily emails. You are right about the many foreclosures in Florida but let me say that those foreclosures are mostly in places that would make you feel like a “gringo in Ecuador”.

I have checked on quite a few but the prices are just coming back down to what they are really worth.  Good luck in your quest !  I am trying to talk my wife into a place in Ecuador which she may warm up to a while.Maybe I can talk her into an inexpensive condo. What do have to offer preferably near the water (Salinas).

I replied: Agreed… but there is also appears to be a hole in the market for Central Fl property in the $1m to $750k range.  There are very few buyers. We have been watching prices tumble hundreds of thousands.  We are viewed one property that started at $800K+. It dropped $100K last week from $395 and is now down to $295K.  This is the sector where we are looking.

This property…

ecuador-florida

with this view…

ecuador-florida

started at $1.7 million dollars. Then Merri watched online it dropped to $1.2 million…then went to $899,000.  When we looked, it had dropped to $85o,000 and was down to $499,000 when it disappeared from the listing…foreclosed.  It is on a clear spring fed lake, has around 3 acres, all fenced, dock, boat house, large beautiful guest house, barn, pool, high ceilings and even a sauna/workout room AND in an excellent neighborhood near the historic town of Mt. Dora.

ecuador-florida

The broker that showed this house to us is Shirley Peacock at Coldwell Banker All Stars  in Mount Dora (There are two CBs in Mt. Dora).  Her email is shirley.peacock@mfr.mlxchange.com whose attitude is to help make a sale, and if it is a foreclosure or a short sale, she has knowledgeable attorneys and doesn’t flinch on these sometimes “difficult” properties.  Usually where there is difficulty, there is profitability.  We have profited by her advice and knowledge and spent a lot of time with her and had a lot of fun looking at one after another beautiful great properties.

Why did we pass so quickly on this house?  It is certainly beautiful, has excellent value and had all the qualities we were looking for…but what it didn’t have for us as much privacy that we long for…but still what a value!

We have a very defined search for good value, Florida real estate that we would like to live in.   We use the Golden Rule of Business Simplicity…  “Our desires represent the desires of many others.”

In short, the Golden Rule of Simplicity means that… “Your Passions Represent Markets.”  Figure out what you love and why and you’ll have good, strong business and investing ideas.

Expanding on this example…Merri and I love living in the sun so we know many others do as well.  This means if we buy real estate in the sun and lakefront… at a good price… there is a good chance we can sell it later for a profit.

So we are looking for places where we would like to live… in the $750,000 to $1,000,000 range where we would like to live.

Yet this is not all.

First we expect to pay much less because of this flat spot in the market. We like to go where no one else is competing.

As we expand on this example we cannot leave out the importance of knowing where one is on the diffusion curve.

To understand this better, let’s look at research on diffusion models.

A well-known diffusion study followed the spread of a new hybrid corn in Iowa in the 1930s. There were 250 farmers in the area that were observed. The goal was to see how fast these farmers accepted and switched to the new hybrid, which was superior in every way to the existing corn that the farmers had been growing.

Though this hybrid cost less gave better, more dependable crops and higher yields, not all the farmers began to use the corn at once.

Only a few farmers started using the hybrid in 1932 and 1933. In 1934 16 more switched. Then in 1935 21 more followed. 1936 saw the highest switching when 61 farmers began using the hybrid. Then there were 46, 36, 14, and 3 that switched, leaving only two of the 254 farmers studied.

In this study, the original few who began using this corn were the Innovators. These are the adventurous people who will always try anything new. Innovators start trends but do not cause the trends to take off. They instead infect the Early Adaptors 16 who in 1934 and 21 in 1935 that began using the hybrid. These are the opinion leaders in the community that will cause the trend to spread. These are people that cause the trend to really spread.

They were followed by the Early Majority (the 36 who switched in 1936), the Late Majority (61 in 1937). Finally they are followed by the Deliberate (46 in 1938 and 36 in 1939), Skeptical Mass (14 in 1940 and 3 in 1941) finally leaving only the Laggards (the two who still had not adapted by 1941).

Whenever looking at your PIEC, ask  “Where am I most comfortable in the diffusion process?”

There is potential and a risk reward balance in every part of the curve. What counts is making sure you are in tune with the diffusion position of any idea that appeals to you .

For example even laggards can find exciting niche opportunities.   In fact some times laggards find themselves turned into innovators… such as the low tech Amish Lehman’s Catalog business.

Merri and I are well aware that we lay somewhere between innovators and early adapters.  We have worked and/or lived on every continent… visited over seventy countries and rarely had a month without a flight somewhere for 40 years.

We warn readers regularly that we are usually early in and early out.

Manx-waterfront

The view in the 1970s from my flat at #5 Bowen Road was something like this… except most of those skyscrapers did not exist!   After I left, real estate appreciated 20 – or 30 times.

We were into real estate in Hong Kong, Isle of Man, London, Naples, Florida and Ecuador when the majority thought the idea was crazy.  We earned nice profits in each place but prices rose dramatically as much as ten times or more after we exited.

Manx-waterfront

Manx real estate has skyrocketed since we left this wonderful British Isle.  Many of our real estate delegates there made much more than Merri and I did, because they stayed on.  This shot and many more by Jon Wornham can be seen here.

london-house

London house prices, for homes like this, rushed upwards after I sold our Bedford Park, London house for 115,000 pounds. Today, even after the economic downturn, such a house would be in the millions.

Yet Merri and I have done very well and are perfectly happy because there are two ways to move along the evolutionary path of business and investing…. as settlers or as pioneers.

We sold this wonderful Naples, Florida home that…

Ecuador-florida

was 30 seconds walk to the beach and had a huge… glorious…

ecuador-florida

garden. We moved…

ecuador-florida

into this beat up, Blue Ridge farm house, with…

ecuador-florida

a falling down barn, half burnt house and a most gosh awful 252 acre mess, plus…

ecuador-florida

this old tin roofed house… in a really remote part of the Andes with 900+ acres of vine covered land.

ecuador-florida

Many (maybe most) of our friends believed we were nuts! (And perhaps we were and are!)

Had we stayed in Hong Kong. Had we stayed in London. Had we stayed in the Isle of Man or in Naples… we might have millions of dollars more.

We spent years redoing, reclaiming, unearthing the treasures here in the Blue Ridge and building our country house which we love during the summer and fall…but not in the winter!

Yet viewing the autumn forest at dawn from our front porch here in the Blue Ridge gives me a greater thrill than any extra bucks.

multi-currency-yard

I could not be happier because it is important for each of us to know which type of investor and business person we are.

Comfort is one of the most important aspects of successful investing. If we make investments not in keeping with our nature, we will not be comfortable.  Without comfort, we are more likely to second guess ourselves and screw up. Restlessness and worry reduce the joy of affluence and reduce our investing and business effectiveness as well.

All of us need to invest in things that we feel are right to us.

For example when we moved out here to our North Carolina farm, many of our friends in the city thought we had lost our marbles.  Yet we have loved it.   Now that it is fixed up and worth many, many times our cost, we are considering selling part of the farm and reduce our position here.

multi-currency-barn

We plan to always have some position here… perhaps less than now.

multi-currency-woods

Lance Armstrong summed this idea up in a Time magazine article when asked about who to listen to about what to do in life when he said: “The important thing is to go around (collect data-get information). Then you really start to weigh your options. Which one feels right? It may not be the right decision, but it’s what makes you feel right.”

Why when we get everything fixed up… do we want to move on? The process… the challenge… the fun of creating, is what fulfills us…. more than the bottom line.   Once we have achieved our goal we like to move on… to the next project.

This understanding is vital to your investing and business.

Know yourself.

Know that ultimately you must make decisions for yourself.  Know that you can’t know everything.

Know that not every decision will bring maximum profit, but if it feels right for you and the process is enjoyable, you improve your odds of success.

Real estate in Ecuador is steady and rising.  Ditto for the Blue Ridge. Ashe Country real estate sales may have slowed but prices have not really faltered here.

We have been investing and creating in both the Blue Ridge and Ecuador for almost 15 years.  We love each place and will continue to enjoy them… but we love the next step as well so we are reducing our presence in each and adding Florida… with of all things… agricultural property… something we have never done.

This is a new challenge we believe makes good business sense… and for us… will be fun.

Next time you plan to invest or start a business… whether in Ecuador, Florida, North Carolina or wherever… think about yourself.  Are you a pioneer or a settler?   Where do you enjoy sitting on the diffusion curve?   Make the most of the entire process… money, fulfillment and fun by developing a PIEC that allows you to do what you like and act beyond money with like minded souls.

Gary

Because the ability to earn wherever you live is vital, we developed our course Tangled Web… How to Have an Internet Business.

I am willing to give you this $299 course free when you attend either our our North Carolina International Business & Investing seminar in October or November in Ecuador.  Sign up for either seminar and I will email you our Tangled Web… How to Have an Internet Business Course (offered at $299) free.

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

Or join us in Ecuador.

October 16-18 Ecuador Southern coastal tour Sold Out

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

December 6-8 Beyond Logic Shamanic Tour

December 9-10 Imbabura Real Estate Tour

December 11-13 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.

How to Make Money in the Multi Currency Era


The US and Ecuador property market offers a rare opportunity to make money in this multi currency era. Here is an excerpt from a recent multi currency update.

Two economic forces have come together to create extra special profits.

I know because the same  combination occurred in London during the late 1970s and allowed me to increase an investment eleven times in two years by buying property then.

Earlier in 1970 I had lived in London, England for a year, then moved to Hong Kong. During that time I also maintained a home outside of San Francisco, California.

This was a time of great inflation. My homes in California and in Hong Kong appreciated greatly. In the mid 1970s, when I moved from Hong Kong back to London, I noticed that London real estate was priced about the same as it had been in 1970. This puzzled me. Why had London property prices remained flat despite inflation?

On investigation, I learned that there had been a huge real estate crash in 1970 which continued to dampen real estate prices six years later despite the rampant global inflation. I felt this was a great distortion as European property prices had risen, but London prices had not. Yet London offered the best utility as the center of the English speaking world. This, to my way of thinking, created a huge distortion.

It’s late 1976. Britain faced  a sterling crisis. In less than two years the pound has fallen from $2.40 to $1.60. Investors had no faith in the British economy, or the government that ran it. The government’s budget was a mess.  Investors  were ditching the pound.

The plummeting pound pushed the economy to breaking point. Prime Minister Callaghan, in desperation borrowed as much as possible, £2.3 billion from the IMF.

At that time, the British pound collapsed to its lowest level ever (a pound per dollar for a short time) so the distortion widened. This meant in US dollar terms London property had dropped almost 50% while property in other major cities of the western world had increased in price by three or four times.

london-house

The house I bought was right next door and very similar to this house in Bedford Park, London W4.

This house in West London was 34,000 pounds, 9,000 pounds down (then $9,000).   I took a mortgage for 25,000 pounds ($25,000).  I lived in the house and three years later the pound had recovered to 2.2 dollars per pound plus London real estate had caught up with property in other major western centers. I sold the house for 115,000 pounds or $253,000 a profit of $244,000 on a $9,000 investment.

Now it’s the US dollar that is very low.

You will have seen articles something like the the September 7, 2009 Bloomberg article “Weak Dollar? Currency, at 10-Year Low, May Fall More” by Bo Nielsen.

An excerpt says: Anyone who says the dollar is weak after it fetched a record-low $1.3681 against the euro and the fewest pence against the pound in 25 years is expressing a euphemism.

The currency may decline at least another 10 percent by the end of 2008, say Jay Bryson, an economist at Wachovia Corp., and Kenneth Rogoff, the former chief economist at the International Monetary Fund. The dollar has only fallen 3.4 percent in the past two years to a 10-year low, according to a Federal Reserve index that weighs trade with 38 countries including China, Mexico, Canada and countries in Europe. It tumbled 30 percent in the three years ended 1988.

“Dollar weakness will be broad-based and could last for years,” said Bryson, a global economist at Charlotte, North Carolina-based Wachovia who previously analyzed currencies at the Federal Reserve.

Investors are dumping dollars, lured by higher returns elsewhere. The U.S. will grow more slowly than Europe for the first time since 2001 and Japan for the first time in 16 years, the IMF forecasts. The difference in yield between 10-year German bonds and Treasuries has shrunk to the smallest since 2004.

Those who read this site regularly or subscribe to our multi currency course know that I reported my personal portfolio and recommended getting out of the US dollar in February 2009. See that recommendation here.

I showed that my portfolio was 86% out of the greenback.

My liquid portfolio currency allocation was reported as Brazilian real  4%,
 Denmark kroner  33%
,  euro 31%
, British pound 10%
, Turkey lira 8%
, US$ 14%.

I also mentioned in February that I was going to start buying Florida real estate.

So Merri and I began looking and in our research found that there appears to be a hole in the market for Central Florida property selling in the million to $750,000 range.  There seems to be no buyers at all. We have been watching prices tumble hundreds of thousands.

We are viewing one property next week that started at $800K+. It just dropped $100,000 last week from $395,000 and is now down to $295,000.

This is about a 25% drop in that house’s price in six months. That’s pretty good!

Now look at what this means in depreciated dollar terms.

dollar-chart

Here is a chart of the euro to US dollar from yahoo.finance.com from February 2009 to September 10, 2009 when this was written.

In February a US dollar bought .80 euro so that house at $395,ooo cost 319,200 euro.  Now a US dollar buys about .68 euro so this house at $295,000 costs about 200,000 euro.

That is a drop in that house price of 37% in six months in terms of euro. That’s even better!

Here is the magic in this hidden, built-in profit.  For most of the market, the profit is hidden.  Most investors are not comparing currencies and real estate prices.  Yet these distortions will filter through. Eventually European investors…. or those like me who are holding currencies other than dollars will see this distortion and cash in.

I, and now you, just have an advantage because we are always looking at both markets… currency and real estate.

Ecuador Real Estate Cheaper as Well

This also creates better value on Ecuador real estate. Take for example one penthouse property I am selling at $139,000.

This is a perfect property for those who want peace… quiet…and instant access to miles of empty, warm Pacific beach.

ecuador beach rentals

This two room, top floor penthouse is at Palmazul and includes use of the the swimming pool, tennis courts… and spa.   You can dine here, one floor below.

ecuador beach rentals

The units are fully equipped… kitchen…

Ecuador beach rentals

with full size fridge.

Living room…

Ecuador beach rentals with a view…

Ecuador beach rentals leading…

Ecuador beach rentals to large private balconies…

Ecuador beach rentals with these views…

ecuador beach rentals

and sunsets to kill for.

ecuador beach rentals

Long walks on the beach… you can amble at low tide for ten miles and not see a soul.

ecuador-seminars

Luxury bathrooms with bathtub…

Ecuador beach rentals

and a king size bed with view and caressed by the ocean breeze.

Ecuador beach rentals

This unit would have cost 111,000 euro in February. Now the price has dropped to 94,500 euro… just from the dollar’s fall.

The US and Ecuador property markets offers a rare opportunity to make extra profit now because of hidden added value from the US dollar’s fall. History suggests that real estate is a real asset so its price rises as the currency its counted in falls.

These corrections take time because most property owners do not calculate their property in multi currency terms.  Those of us who watch this can gain extra profit now.

The article above is an excerpt from a recent Multi Currency update. Learn more about multi currency investing. Subscribe to our multi currency course.

Gary

The greatest asset of all is the ability to earn globally in many currencies.

This is why we are providing a special three for one offer with our  course Tangled Web… How to Have an Internet Business. This can help you create your own internet business.

Our emailed course “Tangled Webs We Weave – How to Have Your Own Web Based Business” is a continuing educational program.  You receive the first 28 lessons when you enroll and a new lesson every week or two.

This course teaches how to create a web based business and is developed from the ongoing experiences that we have from our successful and profitable internet business.

This course is well worth the enrollment fee of $299… but currently you also receive two additional courses FREE.

The other two courses are #1: International Business Made EZ, and #2: Self Fulfilled – How to be a Self Publisher.

These two courses have sold for $398 and thousands have paid this price. We add them to your course at no added cost as I believe they will help you develop a better business in these crucial times.

Even Better Get All three Courses Free

To make this offer even more compelling,  I am giving everyone who enrolls in our North Carolina or Ecuador International Business & Investing seminar in October or November all three courses, “Tangled Web… How to Have an Internet Business Course,”  “Self Fulfilled- How to be a Self Publisher” and “International Business Made EZ” free.

Join us with Jyske Bank and my webmaster David Cross in West Jefferson North Carolina. Learn more about global investing, how to have an international business at the seminar.

Oct. 9-11 IBEZ North Carolina with our webmaster  David Cross & Thomas Fischer of JGAM

Or head south to Ecuador!

October 16-18 Ecuador Southern coastal tour

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Join us with Peter Laub of Jyske Global Asset Management in Ecuador. Learn more about global investing, how to have an international business at the seminar.

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

Join us in the mountains and at the sea. Attend more than one seminar and tour and save even more plus get the three emailed courses free.

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

Read the entire articles:

Weak Dollar? Currency, at 10-Year Low, May Fall More

Dollar Is Near Lowest in Almost Year as Borrowing Costs Plunge