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Beat Recession in Ecuador

One way to beat the recession is to live in Ecuador and enjoy its low cost of living.

How can one earn extra income while in Ecuador?

With an internet business.

In a moment we’ll look at why internet businesses in Ecuador are now easier.

First, why have your own internet business at all?

Yesterday’s message about Ecuador & Longevity showed how your own business can help you live longer and better… when you have a business that you love.

That in itself is a pretty good reason to be your own boss with an internet business.

There is a good chance that this recession will manifest itself in the form of currency destruction..rather than growing unemployment.

Governments are spending trillions of dollars (that they do not have), to kick start the global economy back to life and to create jobs.

This gets the job market rolling again but that money people will earn is likely to lose value. Printing money to create jobs without real production creates inflation.  Inflation destroys the purchasing power of cash.

This means that the best four ways to beat the recession is to invest in real estate… commodities or shares (these are all investments that will rise with inflation) or … to invest in your own business.

Why an internet business?

A Time Magazine article entitled “The New Internet Start-Up Boom: Get Rich Slow” by Josh Quittner helps explain why.  Here are excerpts from that article (see a link to the entire article at the end of this message).

Business Bucking the Recession

Here’s why.

At no other time in recent history has it been easier or cheaper to start a new kind of company.  Possibly a very profitable company. Let’s call these start-ups LILOs, for “a little in, a lot out.” These are Web-based businesses that cost almost nothing to get off the ground yet can turn into great moneymakers (if you work hard and are patient, but we’ll get to that part of the story).

How do you get started? All that’s required is a great idea for a product that will fill a need in the 21st century. These days you’d do best if your idea either makes people money or saves them money.

That’s what John Tayman is doing. He’s an author (The Colony, about a former leper colony near Maui) who lives in San Francisco, where I met him; he wrote reviews for a business magazine I edited. Tayman knew little about technology and even less about business.

Tayman said he intended to build the site on the side while continuing to write for a living. He’d work on his new company only at night and on weekends. Oh, yes, and he had only about $10,000. “Good luck with that!” I thought. Ideas are much easier to hatch than they are to execute.

Tayman went to work with nothing more than his PowerBook laptop. A hyperorganized fellow, he quickly discovered a trove of freebies online — instructional manuals and sites aimed at bootstrappers — that walk you through the process from start to finish.

Within months, Tayman had a virtual staff of 20 employees working for him in five different countries. “In fact, I didn’t even meet the guy who built most of the site until the launch party,” he says.

The article goes on to say that Tayman worked on the site about 10 hours a week and did not spend a cent on marketing or advertising.  The site’s growth is modest but steady: nearly 10,000 people visit each week.

Ecuador Broadband

It is easy and inexpensive to start an internet business. Now it is even easier to start an Ecuador internet business because mobile internet is now available in Ecuador.

Three cell phone operators are now offering an internet connection via a USB connecting modem that receives a data signal via their cell phone networks use.

This modem allows you to hook up to the internet anywhere in Ecuador where there is a cell phone signal.

This means that anywhere in Ecuador where there is even a hint of civilization you can have broadband!

We offer a special service using Porta Cell Modems,  the Ecuadorian subsidiary of Carlos Slim’s America Movil conglomerate.  In a country with a 13 million population there are surprisingly 9.7 million cellphone users (2007) and Porta has 68% of the market.

Porta´s mobile internet service is called ‘Internet Banda Ancha Movil de PORTA’. They are rapidly rolling out the latest 3G technology that allows for faster speeds.

The 3G speed is advertised as up to 1.2 MBs. I have used this service and it allows me to work on broadband almost anywhere, in a cab, sitting in a cafe… like our courtyard at Meson de las Flores. Here is a group in the courtyard on one of our tours.


I can work from the park in Cotacachi’s central plaza.


can work  the beach… almost anywhere… such as here in Bahia where we had a group on a real estate tour.


I can work on an Ecuador bus… and have.


or even on the train there.


I can work in busy cities like Quito.


or in the country.


I can work as I travel and there´s no more worrying about finding a hotel with wireless service (and hoping it works).

The service is less than $80 a month.

The only downside is that an 18 month contract is required.

We have resolved this by buying the modems so our subscribers can use them on a month to month basis without the long term contract.  We add $10 a month for this and charge $90 for a month.

If you have an interest in this service drop me a note at gary@garyascott.com

We are in the worst economic correction since the 1930s.

This creates enormous opportunity and now low cost countries like Ecuador are becoming better, with wonderful people and cheap cost combined with the the convenience of  broadband.


Learn about our internet course “Tangled Web – How to Have an Internet Business” here.

You can read the entire Time Magazine article “The New Internet Start-Up Boom: Get Rich Slow by Josh Quittner at  www.time.com/time/magazine/article/0,9171,1890387,00.html

Ecuador Real Estate & Value

Cotacachi & Ecuador real estate offer great value.

Here are delegates looking at Cotacachi houses on our last Imbabura real estate tour.


One benefit of our Ecuador real estate tours in Cotacachi and on the coast is that we are often able to talk builders into lowering their prices for our delegates since we do not accept commissions.

In fact this no commission reputation means that sometimes we do not even have to act.  We attract many new sellers who want to try us first in the hopes they can reduce their selling costs.

This means we help our delegates gain better selection, lower prices and objective opinions.

Because we do not care whether delegates buy or not or what they buy, we have no reason to slant or opinions.

We are paid regardless for conducting the tour.  This assures that our only goal is helping the delegate… not the seller.

For example, delegates who purchased these PrimaVera condos received a 2% discount…worth an extra $1,000.


It’s little wonder that these condos are almost all owned by our readers and delegates.

These were viewed on our last tour and are of excellent construction.


In the case of these houses, the price was dropped from $54,000 to $46,900.

These four particular houses are good for older buyers with health concerns as they are extremely near the Cotacachi hospital.

This is an experienced builder. Here are two of his earlier built houses.


He is starting a new project near by… 20 homes and town houses on a small river (we would call it a creek in the US)… near here which is just a couple of minutes walk from…


this Cotacachi plaza.


If you are a Ecuador Living premium subscriber (paid) and have an interest in these homes, let me know for more details.

If you are not an Ecuador Living subscriber, you can learn how to subscribe here.

This is a time of incredible opportunity because markets always tend to rise to high and fall to low.  In 2005, 2006 and into 2007, US real estate and global equity prices rose way too high.

Now through 2007, 2008 and into 2009; the economic corrections have been fixing this.  During this stabilization, a time will come when due to market panic real estate and equity prices will fall too low.

The way to reap a fortune from this down turn is to be able to spot value.

Do not however make the error of thinking that just because a price of something has dropped dramatically that it is a good value.

Take of example the price of gold.  Was it a good long term value when it had dropped from almost $700 an ounce to barely $300 an ounce  in the early 1980s?   The long term chart from http://goldprice.org/30-year-gold-price-history.html below suggests not.

The price over the next 15 years fell much lower and today 25 years later has only increased 200%… an average of 8% per annum simple return… not much better than inflation.


We need better ways to determine value than just looking at recent high prices.

I am grappling with these value thoughts as I search Florida real estate at this time.

Certainly Florida real estate prices have dropped.

A Times magazine article, “The Hope in America’s Foreclosure Capital” by Nancy Gibbs shows how change and big problems are creating opportunity. (a link to the full article is at the end of this message).

The article says:

This is how empires rise and fall, pulling our fortunes along with them. Start with virgin territory: back in 1957, the Rosen brothers of Baltimore flew over Cape Coral, Fla., in a plane, liked what they saw, paid $678,000 for the farmland and started dredging 400 miles (640 km) of canals, which is more than Venice can claim. It was a peaceful place for old people — Cape Coma, folks called it, until about five years ago, when the gold rush began.  Numbers made no sense; people got drunk and reckless. And then they got crushed. Cape Coral–Fort Myers, once the third fastest growing metro area in the country, last year became the foreclosure capital of America.

Marc Joseph grew up here, the Realtor son of a Realtor dad. He watched the market go mad and had his revelation: now is the moment to get back in — and stake your claim. At 41, he did not expect to be driving around Cape Coral in an old church bus that he bought off Craigslist, painted dollar green and emblazoned with the motto “ForeclosureToursRUs.com.” But most people had no idea how to buy a house from a bank, and many were too scared to try, so he decided to lead tours of the new economic frontier. He is a revivalist for this apocalyptic age, living an American story as old as the pilgrims and the 49ers and every pioneer who ever saw opportunity where everyone else saw only ruin.

It’s gotten so bad that the courts have had to hire extra judges to handle the 1,000 foreclosures a day — that works out to roughly one every 30 seconds.

The speculators are back — but they’ve changed; he has investors up North who are buying houses sight unseen, for cash. (The conditions? No mold, no Chinese drywall.) And then there are the newly pissed off and liberated: the guy in his 40s who’s tired of watching his IRA shrivel, who calls and says, “I’m coming down,” who wants six houses at $50,000 each, nice flat homes that he can rent to people who are sick of shoveling snow or climbing stairs. That’s less than the land used to sell for; it’s as if you get the house for free.

“You have to play fair, put in a decent price.” And then, just maybe, there will be rewards for the patient and prudent. “Someone else’s loss,” he says, “is another’s blessing.”

The greedy got punished, the new prospectors say. But maybe this is just how the life cycle has to work to restore balance to the world. Painted on the side of the green bus is a house being sprinkled with a watering can (“Watch your investment grow!”) and a tree with dollar bills hanging on it. Anything can grow here in all this hope and sunshine, if you bury your fear deep enough.

Merri and I have started our search.  You can see the deeper clues that led us back to Florida as a place to invest here.

Now we are combining these clues with our experience and logic to find value… that works for us… in our particular situation because all value is relative.

We’ll report what we discover… but three facts are clear:

#1: Some Florida real estate offers value.

#2: Ecuador real estate still offers value as well.

#3:  Diversification remains important.

Until next message, I hope you find good value in every part of your life.


Join our Ecuador real estate tour this May and save.

I cannot be in two places at once but I can make to possible for you to gain all the information I know and see what I am talking about for yourself by visiting Ecuador.

For example we have three Ecuador tours scheduled for May 2009.

Ecuador Coastal Real Estate Tour May 16-17

Imbabura-Cotacachi Real Estate Tour May 20-21

Ecuador Amazon Herbal Tour May 22-24

Merri and I will not be on these three tours and we do want to meet you. So to make sure we can meet, we will let you attend these either one of the May real estate tours free if you enroll in one of our three International Made EZ  courses, in July, October or November.

You get two courses for the price of one.  Enroll in any of these courses that Merri and I will conduct below and choose either May real estate tour free.

July 24-26 IBEZ North Carolina + Tangled Web

Oct. 9-11 IBEZ North Carolina + Tangled Web

Nov. 6-8  IBEZ Cotacachi + Tangled Web

There is no need to  hurry either. If you are not sure about attending two tours,  sign up and attend the real tour now… then we’ll knock the tour fee off our IBEZ Cotacachi + Tangled Web course fee later.

You can also still take advantage three course discount as well.

For example, if you choose to attend all three of the May tours… both real estate and the Amazon herbal tours, then you can attend our July, October or November course free.

You can enroll in one, two or three of these courses below

Ecuador Coastal Real Estate Tour May 16-17. $499 Enroll here.   $749 For a couple.

Imbabura-Cotacachi Real Estate Tour May 20-21.  $499 Enroll here.  $749 For a couple.

Ecuador Amazon Herbal Tour May 22-24.  $399 Enroll here. $499 For a couple.

Take Two for One. Attend any of the three courses below and select any one of the tours above free.

July 24-26 IBEZ North Carolina + Tangled Web

Oct. 9-11 IBEZ North Carolina + Tangled Web

Nov. 6-8  IBEZ Cotacachi + Tangled Web

Or sign up for two or three of the May 2009 tours and attend any of the IBEZ Cotacachi + Tangled Web FREE.

Attend any two Ecuador courses 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.

Learn about our July 2009 Ecuador export tour 2-4-1 deal here.

You can read  the entire article “The Hope in America’s Foreclosure Capital”at www.time.com/time/magazine/article/0,9171,1889164,00.html