Fine Homes

Alright, so you woke up one day, checked your Swiss Bank Account, called your family office planner, had breakfast with your private client service wealth manager, got your tax accountant on the phone, and between three of you, you decided to invest your proceeds from your latest company’s Merger or Acquisition not into some dubious hedge fund or start-up biotech venture, but into financing Hollywood films because you figure you need the State tax Credits, the Federal tax write-offs, as well as a nice hedge of revenues from a few movies.

Now, this may not ring too well initially with your hedge fund manager neighbors in Connecticut or your oil and gas investor friends in Bahrain or Dubai, but aren’t these the same guys who are financing Hollywood blockbusters? And the only question for you, how do you get in the game without feeling like the Uncle of the film school student who wrote his nephew a ,000,000 check for a film that starred his theater department classmates and ended up as a free download on youtube.com?

So after doing your share of homework, here’s what you discover may be the opportunity to spice up your wealthy but boring life:

*Sergey Brin And Larry Page Of Google, Fred Smith, the CEO of Federal Express, Norman Waitt, the Co-Founder of Gateway Computers, Jeff Skoll Of Ebay, Todd Wagner and Marc Cuban (formerly of broadcast.com), Max Levchin and David Grodnick Of PAYPAL, Marc Turtletaub of The Money Store, Roger Marino Of EMC Corp, former Chicago bulls co-owner Jim Stern, Sidney Kimmel Of Jones Apparel Group, Minnesota Twins owner Bill Pohlad; Real Estate Developers Tom Rosenberg, Bob Yari; and, financiers Robert Sturm, Sheikh Waleed Al Ibrahim, Zeid Masri of SilverHaze Partners, Michael Singer, Mark Esses, David Larcher, Michael Goguen, Richard Landry, Michael Reilly, Rafael Fogel, and Philip Anschutz are just a handful of high net worth entrepreneurs who entered the motion picture finance and production business with successful results.

*There are various tradable state, federal, and international tax credit incentives that would offer a premium based on an equity position. Assuming there is a 10 million dollar budget film, where 50% of it is in equity, and 50% is through international distribution guarantees prior to release. Now assume there is a 20-25% tax credit on the entire amount of million dollars, which will immediately translate into -2.5 million tax credit to an investor.

*Numerous hedge funds such as Reed, Conner & Birdwell (DISNEY), Legendary Fund (Warner Brothers), Melrose Fund (Paramount Pictures), Ingenious Media’s 700 Million dollar Float on London’s AIM, Benjamin Waisbren Investments, and a host of other funds and fund managers are entering the film finance arena.

*The explosion of international DVD, pay-per-view, home video, cable, megaplex theaters, the future of multi-lingual Internet video on demand downloads, and cross-market digital distribution including low-cost theatrical digital projection, the movie industry is accelerating at an unprecedented growth rate.

*The American Jobs Creation Act of 2004, which amends the Internal Revenue Code of 1986, was signed into law . The Act creates three tax incentives expressly applicable to motion pictures, one of which – § 181 of the Internal Revenue Code – is especially significant to independent film producers and their passive investors on qualifying films with budgets under million dollars.

*The filmed and other entertainment sectors are constantly outperforming and beating analyst expectations with regards to growth, and are the only industries resistant to untimely global events and adverse economic conditions.

*Movie Investor returns may be more favorable and more liquid than holding direct equity positions in most public entertainment and other public companies, real estate investments, and other alternative investments.

*There is a huge demand, audience, and growing distribution structure for specialty independent, ,crime, horror, and other low budget films as exemplified by the success of such films as “Brokeback Mountain”, “Sideways”, “Capote”, “Garden State”, “Napolean Dynamite”, “Y Tu Mama Tambien”, “My Big Fat Greek Wedding”, “Memento”, “Crash” , “Saw 1 &2”, Friday The 13th”, “Halloween”, “Texas Chain Saw Massacre”, “Hostel” and “WOLF CREEK”, which was made for 0,000, bought for nearly 4 million dollars prior to its release by Dimension, as well as “Hustle and Flow” which was made for million dollars and bought for million by Paramount Pictures.

*Apart from large blockbusters such as “King Kong”, “Harry Potter”, and other large scale studio films, the majority of studio-produced films have been under performing at the box office. The films that have been successful for studios were all externally financed and or co-financed with studios, sold for 2-3 x their costs, and a majority of them retained foreign sales rights to maximize revenues.

So after looking at all the great benefits, how do you actually go about finding a deal or movie project where you are certain that half your money isn’t going to be used by a Hollywood producer as a down payment on a new mansion in Pacific Palisades?

The key that separates the successful film financiers vs. the newbie Oil magnates who come to Los Angeles with a pocketful of money and end up leaving with half a pocketful of money is called several things: structured finance, leverage, risk minimization, multiple exit strategies, tax credits, and the ethical consciousness of the filmmaker/producer.

What does that translate to you in a real world scenario. Lets say you want to finance 100% of a .5 million dollar low budget genre film whose worst case scenario is a DVD release and profits from international sales and perhaps some other equity sweeteners in the conversion of the securities that you subscribe for as part of the deal.

Well, if you write a check for .5 million, and the film is shot in a state that has 30% in tax credits, you get back 0,000 in tax credits + under Section 181, you are able to write off that amount under Federal. So you are already making a nice return before the profits kick in. Then you figure you sell the film to 50 countries, and if you are really lucky, you sell the film for 3-4 times it cost to a studio at a swanky festival like Sundance, Toronto, Cannes, etc. Do this over 5-10 films and you can make a very profitable name for yourself among the Hollywood elite.

But lets really take this a step further and see how the bigger boys leverage film investing because they can get a bigger star which can translate in larger overseas sales.

Lets say a filmmaker/producer has a million film and you want in on the action. You would park million in equity, receive an 20-30% tax credit on million which will be – million, the producer will get the biggest star he can, get a studio to kick in the other million dollars, you wont worry about ever seeing a penny from the theatrical release because you know your DVD profits and international sales will cover your equity position. Make sense?

Now leverage this with different budgets, genres, stars, distribution, places where you can get high tax credits (Ie Puerto Rico is 40%), other exit strategies where you can find your shares on the London AIM, and you are on your new career path as a sophisticated and educated film financier. Off course, if you want to go even further and guarantee 100% of your capital, there are tricks to that as well.

If you have any further questions on your quest to a movie premiere on the French Riviera at the Cannes Film Festival, and its a burning a hole inside your heart and soul, contact yours truly at filmhedge@aol.com or yuri@noci.com

So you like to travel, love sun and sand? Then, invest in Condo Hotels in Playa del Carmen. Not familiar with Condo Hotels? Continue to read further.

Condo Hotels are usually luxury Properties in Playa del Carmen and Cancun Real Estate, Mexico in beautiful locations. They are most often near beaches, golf courses, theme parks and vacation destinations. Most condo-hotels are equipped with world class amenities and services that are 4 star or better. Spas, pools, conceirge, Restaurants are few of the amenities that condo hotels may feature.

As expected these world class condo hotels don’t come cheap. So how are they better than Hotels? What’s their USP?

When you buy a condo hotel unit, you can live there whenever you would like. When you are not staying there, you can place your unit under Condo Hotel Management’s rental program. And you will get a certain percentage of the rental revenue. All the maintenance of the property is taken care of by the Condo Hotel. Even Renting is handled by Condo Hotel Management. Many Condo Hotels even have online renatl Management program. This enables the Condo hotel unit owner to keep tab on the rentals etc.

Playa del Carmen, Mexico is one such hot Condo Hotel destination . Playa del Carmen is a popular tourist destination and it’s real estate market is expanding all the time. It has some of the most sought after Condo Hotels in Mexico Real Estate.

One such property is Pueblito Escondido. It is a luxury complex located in the core of Playa del Carmen, a few steps from the 5th Avenue where all the activity and fun takes place and only 100 feet from the beach. Pueblito Escondido condo hotel features many incredible amenities, services.

Pueblito Escondido is located close to the beach. The units have 2 bedrooms, balcony and private terrace. It also features luxury pool with Pub Bar on the first floor.

Another prime Condo Hotel is Viceroy Mayakoba. A refined haven of 110 new 1,500 square foot luxury villas woven along the Caribbean coastline, lagoon waterways and a championship Greg Norman golf course, Viceroy Mayakoba offers its discerning guests an unparalleled opportunity for a departure from the ordinary.

Kor Hotel Group’s distinctive portfolio, recognized on prestigious media lists such as Travel + Leisure’s Great Escapes, Departures’ Readers’ Favorites Survey and Cond?ast Traveler’s Hot Lists, includes flagship Viceroy Santa Monica and Viceroy Palm Springs; Maison 140 and Avalon Hotel in Beverly Hills; and the forthcoming Chamberlain in West Hollywood and Viceroy Anguilla Resort & Residences in the British West Indies.

Author : Tom Budniak

Caribbean Investment Property, which is located on the west coast of Barbados, has proven to be some of the most secure real estate investments in the region. The return on investment for Barbados luxury real estate has been an average 8-10% per year for more than twenty years. Because of the increasing scarcity of beach front property on the west coast of Barbados, there has been a growing trend to Barbados luxury condominium developments on the few remaining sites.

Caribbean Investment Property – Barbados Luxury Condominiums Leading The Market

Barbados luxury condominiums have been leading the demand for Caribbean investment property because of the high quality of these developments and the exceptional quality of life that has been achieved in this Caribbean island.

International interest in Caribbean investment property has been steadily growing even in times of economic slow-down as we are currently experiencing. Wealthy individuals and families from northern climes have continued to seek warm weather destination where it is safe and the quality of life is enjoyable. While luxury real estate developments are being offered in almost every island in the Caribbean, Barbados continues to stand out because of the amazing quality of life that it has achieved over the last forty-four years since it gained independence in 1966. It should be noted that Barbados is the first country in the Caribbean and Latin America to be classified as “Developed” in the recent 2010 UN Human Development Index (HDI). Barbados therefore joined the ranks of the world’s “developed” nations in terms of providing people with an excellent quality of life.

The Human Development Index (HDI) measures performances in health, education, income, and other quality of life indices. Based on the HDI, Barbados, which has been called the “Singapore of the Caribbean,” joins such countries as Israel, Hong Kong, Singapore, Slovenia, Cyprus, Malta, Lichtenstein, Bahrain, Qatar, Andorra, San Marino, Brunei Darussalam, Monaco, United Arab Emirates, and Estonia on the list of “developed” countries.

Barbados Luxury Condominiums – West Coast Still Most Popular

In the last few years there have been several Barbados luxury condominium developments on the west coast. Starting in the north near Speighstown, these investment properties have been sprouting up on beaches going all the way south to the area between Sandy Lane Hotel and the new Four Seasons Hotel project. The architecture, the amenities and the landscaping of these luxury developments is incredible. One of these Barbados luxurious condominium developments has been awarded the prestigious 2009 Best International Apartment by International Property Awards in association with CNBC Arabia, as well as two five-star awards for Best Apartment in the Caribbean and Best Development in the Caribbean.

These incredible luxury condominium developments, which are being offered on the Barbados west coast, are some of the best to be found in the Caribbean. Most of these Caribbean investment properties are the kind of luxury developments that appeal to wealthy individuals, who are seeking a unique second home in a safe and enjoyable warm weather Caribbean island. Barbados has positioned itself as the number one place to buy Caribbean investment property.

Barbados Luxury Condominiums – South Coast Beach Environment At Risk?

Because of the growing scarcity of beach front land on the west coast of Barbados, there is a growing interest in luxury developments on the south coast. One recently completed Barbados Luxury Condominium project that is of note is the Palm Beach Luxury Condominiums. The south coast beach, on which this project was developed, is particularly interesting because it is a protected beach access for the sea turtles, which come to nest in the soft white sand. It is an unbelievable sight to see the large turtles (up to four feet wide) digging a place in the sand, laying hundreds of eggs and covering them before returning to the ocean. You may also be fortunate to see young turtles struggling out of the sand (after they have hatched) and making the short trek to the ocean on a clear moon light night. A few of these little creatures will grow and survive to return to the same beach and lay their eggs to produce another generation of these fascinating sea creatures.

While the development of Caribbean Investment Property is welcomed by small island states like Barbados, there is a growing awareness that each development project must be evaluated to ensure that the environment and wild life will be protected. Governments in the Caribbean will need to be vigilant in maintaining this fine balance between the need for economic development and the need to ensure protection of the environment, which makes our islands such precious gems.

Property Purchase and Realestate investment market has currently one of the best growth rates which are the reason it is considered to offers low risk and lofty rewards. Many experts are of the view that this is among one of the best investment plan for people who have retired or still earning and looking out for an option to safeguard there money.

In many developing countries the property rates are comparatively lesser and therefore investing in such property can be a good deal. Also the buying process is simpler and the investor receives the same right as received by the resident of the country. This makes such investment process all the more lucrative and therefore many people across the world have been benefited with the same.

Now, due to the hefty amount required to buy a finished property, it is advisable by property dealers to invest in Condo Hotels, realestate overseas. Such investment in the real estate is comparatively easier to make due to the less initial investment which is needed.

Property purchase for the resale has been a proven method to great gains however not everyone can afford to invest large some in the ready to live houses. People from the service class can manage to pay small amount at one time that is why real estate investment in terms of Condo Hotels, realestate overseas has gain popularity worldwide. An investor is only required five to ten percent of the total cost of the property as the initial payment. Rest of the payment is required after the construction is completed (The payment terms are subject to the property developers and hence may vary in some cases). You can see your money growing in front of your eyes to a bigger fold. One of the biggest advantages of buying property overseas is that it significantly raises possibility of traveling abroad and thus a default reason to be on vacation.

Once the construction of the property is completed it is ready to resale and thus can provide you with the increased amount which will be much higher than what all you invested. The profit depends on location chosen, but many knowledgeable investors are purchasing the property near the expanding infrastructure and making triple fold gains.

If reselling is not what you wish for, the property can be rented out which will become a source of monthly income. Moreover, with the boom in the travel and tourism industry, there is subsequent rise in the rents of the hotels, guest-houses etc which can be saved if you will have a house in the region where you constantly fly for some reason.

A condo hotel investment is a way to own vacation property without the hassle incurred with other property ownership. Condo hotel property has become very popular in Orlando in recent years. This is a top vacation spot in Florida and there is high demand for rentals. With a condo hotel, you will get more money for rentals than you would with many other types of property.

Condo hotel units are larger in Orlando than in most large cities in Florida, such as Miami and Fort Lauderdale. In addition, they tend to be less expensive per square foot here than in south Florida. In Orlando, prices are between four hundred and seven hundred dollars per square foot. In south Florida, this price jumps to between one thousand and two thousand per square foot.

How a Condo Hotel Investment Works

Condo hotels are high rise, luxury properties. They are often run by large hotel companies, such as Hilton, Trump, Hyatt or Four Seasons. They have the amenities and services that are typical of five star hotels. Most have spas, pools, fine dining, laundry service and room service.

You purchase the condo and use it when you want to vacation in Orlando. The condo hotel has a rental program. The company takes care of renting, maintenance and cleaning. They also operate the services offered by the hotel. In return, the company keeps a percentage of the rental fees.

The best deals can be found prior to the beginning of construction and in the very early stages of construction. After this phase, the cost of ownership increases dramatically. Some tend to sell out fast, so you need to get in early to get the best price and be sure to get a space in the hotel of your choice. This is especially true in areas with a high rate of tourism, such as Orlando and other large cities in Florida.

Who Pays What in a Condo Hotel Investment?

There are a variety of expenses involved in a condo hotel. Some of these fees are paid by the owner and others are paid by the operator of the hotel. The owner pays all the taxes and insurance on the unit. Any improvements that are needed, or wanted in the unit are the responsibility of the owner as well. If you need new tile in the bathroom, you will be responsible for paying the bill for the installation.

The operator pays the operating expenses of the hotel. This includes all administrative costs and marketing, such as advertising the units for rental. In addition, the costs incurred for housekeeping are paid by the operator. This includes the salary of the cleaning personnel, supplies and other equipment needed to keep the hotel in good condition.

When you purchase the property, you will need to sign an owner’s agreement. This should stipulate the amount of money you get and the company gets for rental on the condo. The agreement should spell out when you plan to use your condo. How much time will you be staying there? If you want to add more time, how much notice do you need to give the company? This is important because if the unit is already rented, you may not be able to stay there.

I am a Lebanese-American, a conservative and a capitalist. I was born in Lebanon, and had one dream and one dream alone – to come to America, and make my fortune as a capitalist. I did just that. I studied at The Wharton School, went to work at the most entrepreneurial firm on Wall Street, Drexel Burnham Lambert, became a global entrepreneur-financier, and made my mark dealing with some of the largest capital pools in the world, orchestrating large scale buyouts and recapitalizations.

Today, the Middle East is a very different place than the one I left 25 years ago. “This isn’t your father’s Middle East,” a good friend with whom I do business in the region loves to tell me. And yet he is disappointed that most Americans seem stuck in the 1970s when it comes to how we think and describe the place – as if all Arabs are the same, none worthy of our trust or respect.

American policymakers and the media tend to portray Arabs as inherently dangerous partners. It was only two years ago that the Dubai Port World deal was demagogued into oblivion. The controversy related to the management contracts of six major United States ports that had been owned by a British firm. When it was discovered that a company owned by an Arab country – The United Arab Emirates – had landed the contracts, all hell broke loose. Members of Congress on both sides of the political aisle argued that the agreement would compromise U.S. national security, and the deal was done.

Bill Clinton has been pummeled by the left and right for doing business with some Middle Eastern countries, too – as if by doing business with any Arab countries he is some kind of national security risk, or worse, some kind of traitor.

The fact is that Bill Clinton is on to something. He knows that either we facilitate business ties and economic prosperity in the Middle East, or we risk losing our ability to influence the people of the region permanently.

This is why President-elect Obama needs to establish a new narrative in the region. Rather than invest inordinate amounts of time with antiquated political characters like Bashar Assad of Syria, who leads an essentially bankrupt state, Obama should seek to develop an economic approach to changing hearts and minds in the region.

The fact is, there is a new generation of activists and entrepreneurs emerging in the Middle East: pro-American, pro-capitalist allies in places like the United Arab Emirates, Kuwait, Bahrain and Lebanon.

Who are these pro-American, pro-business allies? I am talking about those people in charge of running the new and increasingly commanding pools of capital sources, such as the “Sovereign Wealth Funds” and other private equity and investment groups shaping up in the region. For instance, the Abu Dhabi Investment Authority manages today in excess of 0 billion, more than the top 50 U.S. private equity funds combined.

These pro-American, pro-business Arabs want what we all want – the respect of the world. And what better way to confer respect than to do business with them, trade with them and give them a seat at the table of international economic power. That the G-8 has not a single Middle Eastern country included in its ranks, but has Russia as a member, can only be construed as an insult to the people of that region.

American businessmen should not hesitate to seek out business opportunities in the Middle East. My firm, Blackhawk Partners, was recently retained to act as financial adviser in a 0 million recapitalization of the biggest – and sole – water-bottling facility in Iraq. The company is run by Americans and has quickly become a dominant player in the market, well-positioned to become the largest producer of water in the Middle East.

There is no doubt that President Obama will inherit a tough set of problems in the region: Iran’s growing influence in the region, Hezbollah’s dominance of the government in Lebanon, the perception of Western weakness induced by wars in Iraq and Afghanistan, and the continued stalemate between Israel and Palestine.

But he also has a unique opportunity. Despite my very extensive experience in the region, I wasn’t prepared for the universally positive feelings Obama’s win engendered with the men and women living in the Middle East – the majority of whom are young, and the majority of whom are predisposed not to blow us up, but to emulate us.

If President Obama will focus on developing a new set of economic allies, while simultaneously dealing with the old set of political realities, he will go a long way toward turning some of that symbolic goodwill he has generated in the Middle East into something substantive.

This is one Lebanese-American conservative capitalist who will be cheering President Obama on. And praying – really praying – for his success. Because his success will be America’s success and the world’s.

http://www.blackhawkpartners.com/AdvisoryServices.aspx

The Key is to Buy at Pre-Sale Pricing

Panama real estate is red hot! We have read this from sources like ABC Nightline, The New York Times, The Washington Post, International Living, and the Wall Street Journal, to name just a few briefly. And if it is true that in Dubai you will find most of the Worlds construction cranes then Panama must be the second skyline filled with cranes. There’s construction everywhere. However if you try to book a hotel room in Panama City chances are you won’t find one. Recently the minister of tourism Ruben Blades published a report stating that there are only 17,000 hotel rooms in Panama, not quite enough for the double digits growth in tourism to the country. He stated that there is a deficit in hotel rooms of more than 20,000 rooms. And although we have a list of New Hotels that are in development in Panama, the demand is still higher than the supply. And we all know what that represents.

Even if we take into account All the New Hotels & rooms currently in development in Panama:

34 Rooms The Holiday Inn City at Knowledge Opening March 27, 2008

102 Rooms The Radisson Colon 2000 Hotel and Casino Opening April 15th, 2008

134 Rooms The Bristol Buenaventura Opening December, 2008

103 Rooms The Radisson Summit Golf And Resort Opening April 2009

80 Rooms The Panama Marriott ext. 376 total Opening late 2009

125 Rooms The LeMeridian Hotel Opening June 2009

128 New Rooms Courtyard by Marriott ext. 248 total Opening fall 2009

800 Rooms Megapolis Condo-Apart-Hotel Opening late 2009 FIRST PHASE

300 Rooms Renaissance Panama Opening late 2010

Condo Hotels represent a great Investment option, since demand for hotel rooms in Panama is higher and growing, and the inventory at hand cannot keep up with the demand for rooms. Condo Hotels have become the NEW BOOM in Investment Opportunities. For those of us that like cash generating Investments, and returns of at least 15% annually and higher; investing in a condo hotel in Panama , Now is an excellent opportunity!

Condo-Hotel’s Explained.

Condo-hotel’s are just like traditional hotels, however, each hotel room unit may belong to an individual owner, whereas in traditional hotels, there usually just one owner of the entire building.

Condo-hotel owners generally sign a contract with a management company to “operate and manage” the hotel facilities and each of the individual hotel rooms. This is done on a profit share basis, with anywhere from 50% to 75% of the rental income going to the individual unit owners. Additionally, some Condo-hotel management companies also pool the remaining annual net operating profits with an additional percentage being distributed at the end of the operating year to the owners. This percentage varies but can be as much as 15%. Additionally, condo-hotel owners get to use their hotel room units for limited number of days per year. Generally between 1 and 2 weeks. So if you plan to vacation in the destination where you own a Condo-hotel unit, this would be an added benefit.

Additional Benefits.

With traditional real estate investments, you are generally looking to cover your maintenance and monthly mortgage costs if financed and hoping to generate a positive monthly cash flow and hope to make a profit from the increase in value of the property over the time you own it. As any landlord will tell you managing a rental property can be a huge headache – maintenance, dealing with Tenants, collecting rent etc., and these headaches are multiplied if the property you own is in a country different from where you reside.

With Condo-hotels, all of these headaches are taken away from you. The professional management company that is managing the hotel, takes care of all of these day-to-day issues, and you don’t ever have to even think about it.

The Opportunity in Panama, is Now!

Recently there has been a huge demand for Hotel rooms in Panama due to the booming economy, increased Tourism, and plenty of Business travelers entering the country. The Panamanian Tourism Institute IPAT recently released a statement saying that based on the current growth trends of tourism there is a demand for an additional 20,000 hotel rooms over the coming years. With the current hotel occupancy rates at a steady 90% and above. And the constant infusion of foreign capital pouring into Panama, the construction boom, and mega investment projects like + billion dollar expansion of the Panama Canal which is underway, The construction of the Panama International Merchandise Mart, the largest commercial structure in Latin America with 2 million square meters of construction 21,572,7820 square feet . Total investment is US billion USD over a 3-year period, the development of the Panama-Pacific Special Economic Area [formerly Howard a U.S. Air Force base], a multi billion dollar real estate development underway by London Regional, and many more. Recently the company Caterpillar, which recently announced it was moving its regional headquarters to Panama, made a statement saying they alone would have a demand of approximately 12,000 room-nights per year!

ThinkPanama.com has reviewed the Condo-hotel offerings in Panama, and has selected two Condo-hotels to Promote: The Plaza Costa del Este, and The Orchid.

GUARANTEED Returns of 15% +

The Plaza, Costa del Este: This outstanding project combines 150 unique and contemporary executive hotel rooms and 44 private residences is located in the Costa del Este part of Panama City – an up and coming area with Residential and Commercial areas including a major Office park complex.

The Developers and Operators of The Plaza, have put together an incredible “Investor Incentive Program” unparalleled in the country. 15% Return on Investment GUARANTEED for 5 years! The pre-sale prices on these hotel Units start at just 3,000. In 5 years you would have recovered 50% of your total investment, plus owners get 70% of the rental income, and are allowed to use their units for one week a year. Even though this project will just break ground this year, you will start to receive your returns well before the hotel is open for business! Additionally, real estate prices in Panama still have a strong appreciation, so if you decide to sell out in 5 years, you’re guaranteed an excellent overall ROI.

Rubbing elbow with the stars: International Superstar and Grammy-award winning artist, Enrique Iglesias, and Latin Salsa sensation Gilberto Santa Rosa are confirmed owners of units in The Plaza. Enrique Iglesias bought the Penthouse and Gilberto Santa Rosa bought a residential unit in the development.

The Orchid.

This is the most recent project of Procasa Group launched , they launched their flagship Hotel-condo project “The Orchid” to a room full of Press and Industry Executives. The Orchid, a 200 room, Five-Star Condo-Hotel, will be located in the Financial district in Panama City, and will cater primarily to Business Travelers, boasting one of the best equipped Business Centers in the City.

The property will feature a full service Spa, Pool, Restaurants, Room Service, Gymnasium, Concierge service, housekeeping, etc.

Based on projections released by the company, owners can conservatively expect an average of 17% ROI , this is based on a very conservative 66% occupancy rate. The owners share of the rental income is set at 63%, with the balance to the Management Company. Pre Sale Prices Now start at 7,000, for a limited time.

For Reserve your units at Pre-Sale price contact Douglas M. Choy, Licensed Real Estate broker at ThinkPanama.com he will be happy to provide you with All information including cash flow plans for the condo hotel units, availability, current pricing, and negotiate on your behalf the down payment, payment terms, and conditions.

Sign up to our FREE Panama Real Estate & Investments Blog to get more data and reports on Condo Hotels & other Investment options in Panama.

Many investors are looking for a safe place to put their money with the wild fluctuations in the financial market. Stable, predictable investment vehicles are increasingly hard to find, but smart investors do have choices. One of the better choices is to invest in single-tenant, net-leased properties, which many investors also call a corporate bond combined with real estate investments that still make sense today. Here’s what you need to know about single-tenant, net-leased properties:

What is a single-tenant, net-leased investment? A single-tenant, net-leased investment is typically a freestanding office, retail, or industrial building that is leased and occupied by one user or one company. Typically the tenant has committed to a long-term lease – usually longer than 10 years, and as long as 25 years with increasing rent over the lease term.

What is a net lease? There are different types of leases for commercial property in the U.S. The two most common leases are full-service leases and net leases.

A full-service lease means that the tenant is paying one base amount to the landlord/owner to occupy the space and the owner pays all the expenses related to the building including insurance and property taxes. With a full-service lease, the landlord/owner also is responsible for all maintenance related to the building. For example, if a thunderstorm damages the roof, the landlord/owner must pay for the repairs.

In comparison, a tenant with a net lease is responsible for paying rent plus some or all of the operating expenses of the building such as taxes, insurance premiums, repairs, and utilities. Depending on how the leases are structured, they can be net-net leases or triple-net-leases. Specifically, in the case of a triple net lease, also known as NNN leases, the tenant agrees to pay all of the building’s operating expenses, real estate taxes and insurance.

How are single-tenant, net-leased investments different from multi-tenant buildings? Multi-tenant buildings have more than one tenant, and as a result, owners and landlords must juggle multiple leases that begin and end at different times. These leases are rarely longer than seven years. That means that the building’s financial performance is vulnerable to the ups and downs of the market.

Many net-lease investors have previously owned other types of real estate but are looking for an investment that requires less maintenance and supervision. For example, many apartment investors end up selling their high-maintenance properties and then reinvesting the sale proceeds in single-tenant, net-leased retail properties, as do many land owners who have previously never received any income or tax benefits from their property.

Who can invest in single-tenant, net-leased properties?Net leased properties are appealing to a wide variety of buyers, from high net worth individuals to partnerships to large institutional investors like real estate investment trusts, life insurance companies and pension funds. Net leased properties also are very attractive to investors who need to do 1031 tax-deferred exchanges, or 1031 exchanges for short.

What are the benefits of investing in single-tenant, net-leased properties?Many people consider single-tenant, net-leased properties as bond-like investments because of their stable, predictable returns. Because tenants commit to long-term leases, there’s very little re-leasing risk. Moreover, single-tenant, net-leased investments can be tailored to an investor’s risk-reward expectations by choosing tenants with different credit profiles. For example, some tenants are rated by national credit ratings agencies while other tenants have only their previous financial performance to recommend them.

What are the risks related to investing in single-tenant, net-leased properties? While there are very few risks related to investing in single-tenant, net-leased properties, tenants with non-investment grade credit profiles offer higher levels of risk. But that risk typically provides higher returns as well. And investors always need to think about the “re-leaseability” of a property if the net-tenant were to vacate the space.

How are single-tenant, net-leased assets valued?Unlike traditional real estate investments whose valued is determined exclusively by the real estate itself, a single-tenant, net-leased property’s value is determined by a combination of factors including the tenant’s credit, the length of the lease and rental escalations over the term, and, last but not least, the real estate. In markets where the real estate experiences wide valuation swings, a single-tenant, net-leased property will maintain its value because of its bond-like, long-term lease and the credit tenant guaranty for the lease.

When is the best time to invest in a single-tenant, net-lease property?Net-leased properties are like all-weather tires. They are good investments in both good and bad economic times and in hot and cold real estate markets. Here’s why: a single-tenant net lease is guaranteed by a long-term lease at pre-set rental rates. As an owner, you know exactly who will be a tenant in your building, how long that tenant will be there and exactly how much rent they will pay you. That means you will derive a steady income from your investment, regardless of how the economy or real estate market is performing.

For those considering entering the world of rental-based investment, it is important to note that Playa del Carmen condos have become a favorite choice for vacationers looking for a luxury rental near the beachfront, where they can enjoy all the conveniences of being in one of Mexico’s leading tourist destinations, and the comfort of a safe condo complex. For this reason, Playa del Carmen luxury condos have the benefit of serving as an excellent choice of vacation home that can double as a stable income, not only covering the expenses of keeping up the condo but also bringing profit.

One example of a development which combines the highest level of a luxury villa lifestyle with the conveniences of a condominium complex – excellent security, beautifully designed shared green spaces, palapas and a pool – is Villas Tranquilidad in the new “El Cielo” community at the north end of Playa del Carmen. The villas themselves have a modern, energy and resource efficient design. This combination of features allows buyers to enjoy comfort in spacious rooms, and large balconies, while also enjoying the financial benefits of efficiency. For balancing rental incomes against expenses, this aspect is also of key importance.

Villas Tranquilidad is located in the “El Cielo” gated community, providing security, access to the future extension of Playa del Carmen’s famous Fifth Avenue, and very close proximity to the beachfront. For real estate buyers looking for a luxury vacation home in a pleasant community, with bike trails and convenience of location, that can double as an excellent rental for vacationers who want proximity to the beachfront, these villas are a superb choice.

Villas Tranquilidad is only one option among the numerous condos or homes in a condo-style development in Playa del Carmen real estate. Both those looking for a second home, and those looking to invest in property with excellent rental potential will find condos very suitable to combining these two reasons for purchase. Playa del Carmen condos are internationally recognized as luxury for beachfront vacations and lifestyle at accessible prices. This fact will help buyers see the value in buying condos in this city, and the reputation will help them in their future endeavors to rent out to visitors.

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Start out by working with a real estate agent to find out where apartments for sale in Santa Barbara are located within the region. Finding Santa Barbara commercial real estate for sale is not difficult, but an agent can narrow down your search results to fall within your price range, location needs, amenities and more. An agent can also get you a comparative analysis report that gives you an indication of apartments that are up for sale. Prices are based on location as well; for instance, if you want to purchase commercial property near the State Street district, you may end up paying a little more for the property than you would in other areas. Next, you should look at how you will handle your investment. Do you plan to invest in properties for the purpose of offering commercial leases? Or are you purchasing apartments for the purpose of offering residential leases? Either way, you need to work with someone who is knowledgeable with both the residential and commercial leasing process to be sure that you have all of the information you need — both financially and legally — to make it work. If price is a consideration, you may consider looking for apartments or properties just outside of the city limits, in regions such as San Luis Obispo and The Mesa. Both places have great properties for less the cost you would pay within the State Street area or other communities within Santa Barbara. If it is residential property you are considering, amenities for the apartments for sale in Santa Barbara should also be a consideration. Are you purchasing property with a pool? Will you offer additional laundry services washer and dryers in each apartment? Would you rather offer hardwood floors or carpet? All of these will affect the price of your apartment, so be sure to keep these things in mind when you are meeting with your agent. Whether you are looking at apartments, or commercial property for sale in Santa Barbara, the financial aspects should be a consideration. Figure out the monthly mortgage payments you can afford to make on your investment. Be sure to set up your commercial leases to make the financial burden easier. No matter which you decide to purchase — be it apartments or properties — real estate remains a sound financial investment. Just be sure to do your research and make informed decisions to ensure success.