Real Estate Trend Alert

By Ronan McMahon

Profits in Panama and Bargains in Paris

Saturday, March 13, 2021

Ronan McMahon Dear Your Overseas Dream Home Reader,

Welcome to your Saturday wrap up!

First up…

I’ve just closed on a bank fire-sale condo on Portugal’s sunny Algarve.

Here’s a short video tour of the property.

This is an awesome deal. The condo is about to get cleaned up and made rental ready.

I have admired the community from a distance for a long time. It’s a super high-end development of apartments and town homes (many with their own pools) in a great location within the super luxurious Vale Do Lobo.

Next door is the super luxurious Quinta Do Lago where the jet-set hang out. It’s a place you find homes worth anywhere from €1.8 million to €10 million.

Last November, I had an offer of €410,000 accepted on this repossessed condo. Last month, I found a similar condo in this community listing for €830,000.

More than twice what I’ll be paying…and I am doing it with 100% bank financing because it is a fire-sale.

But the bank didn’t make it easy to do business. When I made my first offer (€350,000) their system was down, they couldn’t accept offers…in short, they didn’t seem to care.

This is the norm with many bank fire-sales. And the bank’s lack of interest and understanding of what they are sitting on works to our advantage.

As long as we do the leg work…

My contact and I met the bankers over lunch in Portugal and I could tell by their manner that they clearly didn’t know the value of what they were sitting on. And they didn’t seem to care either. All they wanted was to avoid any extra work or hassle. To them, showing these homes to a prospective buyer just meant they might miss out on a long lunch.

So we got the keys and went to see.

The unit we got for €420,000 (my contact and I are partnering because we both wanted it!) on is a very spacious apartment spread out over two levels with three terraces…and a roof top area with hot top.

Check out the short video tour…this is the condo!

Here’s the play:

  • Buy one of these homes for €450,000 or less. That’s the asking price. Because it’s a bank foreclosure we can borrow 100% at extremely low rates and effectively make this play with the bank’s money.
  • Polish up the condo, address any work needed. In the case of my apartment, I reckon that’s about €5,000 to fix some cabinets etc.
  • Create an income stream. Rent for one full year. By creating a rental track record you increase the value of the property. With a strong rental track record, second-home buyers can justify paying top dollar as they know they will still be able to use it lots and cover all costs. These are super blue-chip condos so you can pull in €48,000 to €55,000 a year in rental income. Even at the lower end, you’re talking €4,000 a month. You’re in positive cash-flow right from the get-go.
  • Sell it for a big profit. I’ve seen a listing for the exact same unit type at €830,000.

I figure on monthly costs of about €1,500 to cover mortgage, HOA, and other costs. I will need some money down for closing costs, those cosmetic repairs and furnishing. I’m only furnishing because I plan to build the rental book to add value.

I figure there are more available homes in this community than the bankers let on. I’ll keep scratching away and bring deals to my RETA members.

HUGE Deal Coming

This coming week I recommend you stay glued to your emails because I’m sending something massive your way…

A little-known tax change in tropical Panama means that you have a chance to save $61,000 on a fully furnished condo in a unique beachfront community. Your condo is just a stroll to the sand and your community is set to be the hottest beach destination on Panama’s Pacific Riviera.

Best of all…

Your condo comes enrolled in a rental program with onsite rental management.

A hands-off, turnkey deal where the potential for profit is huge…

It’s one of the best deals I’ve negotiated in two decades of real estate scouting.

It’s simply not going to last…nothing this good ever does.

You get a fully furnished condo in a unique and luxurious beachfront community on the nicest beach within an hour of Panama City…for just $112,000.

You’re saving an incredible $61,000 thanks to a little-known tax change…

And when I say “fully furnished” I mean it. You get everything down to the last towel, plate and spoon.

The value of the furniture pack is $15,000.

Factor all this furniture in and your price is just $97,000… for a condo on possibly the nicest beach in all of Panama…just an hour or so from world-class Panama City…in a uniquely luxurious new destination…a brand-new beach town inspired by the best of Southern California’s beach life and culture.

Unbelievable. I know.

That’s why I urge you to stay tuned to your emails because I will send you all the details.

Here are the broad strokes…

Within five years of delivery I expect the condo you can own for $112,000 to be worth $250,000.

That’s a gain of $138,000.

I know, I know this sounds crazy. But I have a lot of good reasons to believe this. And truth be told, it’s in fact an extremely conservative prediction based on everything we know about this beachfront community, the developer creating it, and it’s amazing location. All things I cover in-depth in the coming days.

My money is already where my mouth is on this deal. I bought a condo in this community last November and took my huge saving thanks to the little-known tax change.

I’ve also brought several such opportunities including this one to members of my Real Estate Trend Alert group. It’s thanks to the collective buying power of my RETA group that I can negotiate such deals.

Now I’m giving you the chance to get your slice of this tax saving—$61,000—and to be a founding owner in what you could call “Surf City” Panama—a beach destination unlike any other…

You’ll enjoy the luxury of a high-end resort with the community of a small beach town in Southern California.

Best of all, when you’re not here the onsite rental management takes care of everything and sends you the checks.

When you are spending time in your new luxury condo, thanks to the stunning plans for this community you can lounge by your community’s lagoon pool all day… head to the spa for a massage… take your pick of restaurants for lunch…catch a wave with a surf instructor…

Or maybe you go comb the area’s 30-odd miles of virgin beach…

Or take a boat to one of the secret islands offshore. (John Wayne owned one of these.)

You can spot whales, exotic birds, dolphins and turtles…or catch a tuna and barbecue it for friends. You can hike the lush hills and cool off in canyon-clad rivers…

Then at night, you can pop into Panama City for dinner in the fashionable and historic Casco Viejo district, catch a movie, even an opera.

The World Bank now ranks as a “high income nation.” It’s one of the world’s great safe havens, a stable and solid democracy, a beacon of freedom and a major center of international trade.

This opportunity is in my view very urgent. Pressure is on abolish this tax “loophole.” And that’s one big reason that I want you to have your slice of this as soon as possible…

Watch your emails. Deals like this are rare…

Price Falls in Paris

“All over the capital property prices are falling…” so say real estate agents in the City of Light.

With tourism revenues smashed by the pandemic we’re seeing highly leveraged Airbnb owners with no choice but to sell…

Motivated sellers with few potential buyers able to visit Paris?

I sense opportunity.

We’ve already seen this in Rome where real estate insiders say some central apartments have sold at 30% off.

Look, I’ll be clear…

Paris is no place to look for a profitable real estate investment.

But it’s Paris. And if you’ve ever dreamed of owning a little pied à terre from which you can stroll down the boulevard for your coffee and croissant, start thinking…

Across Europe the pandemic is creating opportunity.

The pandemic has accelerated many trends that play right into the hands of real estate investors. Work from anywhere means millions of people can go where they want…maybe that’s you. Maybe it’s the people you rent your Parisian studio to…

Global tourism is going to bounce back with a vengeance. Pent up demand for vacations will see blue-chip tourism destinations like Paris busier than ever.

Across Europe there are buying moments…

My team and I are on point to make the most of them and bring the best deals to RETA members.

Stay tuned.

Wishing you good real estate investing,


Ronan McMahon, Real Estate Trend Alert

Your Comments and Questions

Jason says: Hello Ronan, How will I have the opportunity to be a founding owner in the “Surf City” Panama offerings you emailed today? I’m sure many will want to participate, and I don’t want to miss out on such a reasonable investment for what may potentially be part of me and my wife’s retirement home.

Thanks again for all your helpful information you offer up. My best friend turned me onto International Living magazine four years ago and it really opened my mind to what my options could be outside of the States.

I hope me and my wife can make this happen on these Panama beach condos you are about to launch. If the developer has in-house financing programs that would be great too like you mention in your email release today. Have a great day Ronan!

Ronan says: Hi Jason. I’ll be sending the details on the deal and how to act on it very soon. In brief, yes, we have developer financing for this. The initial payment plan is spread of 30 months, at $253 a month, with some balloon payments along the way. That covers 50%. The remaining 50% can be financed with the developer over five years from delivery of the units.

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