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Donald J. Trump Announces His Latest International Real Estate Development

2/28/2007

Source: PRNewswire
Publication date: February 17, 2007

Donald J. Trump Announces His Latest International Real Estate Development at Cap Cana, Dominican Republic

NEW YORK, Feb. 16 /PRNewswire/ -- Donald J. Trump has signed a partnership agreement with Cap Cana, S.A. in the Dominican Republic to develop an enchanting luxury resort that will include a golf course, golf villas and golf lots, estate lots, a beach club, a condo hotel, and residences with ocean views that together will be called Trump at Cap Cana.
(Photo: http://www.newscom.com/cgi-bin/prnh/20070216/NYF058 )

The real estate luxury products to be developed represent an estimated value of over two billion dollars. The agreement was signed today by Cap Cana's Board of Directors President, Dr. Ricardo Hazoury and Donald J. Trump, CEO and President of The Trump Organization.

Cap Cana, one of the most important real estate and tourism destinations in the Caribbean, is blessed with extraordinary natural beauty and is ideally located adjacent to the Punta Cana International Airport, making it supremely desirable and easily accessible. With a master plan investment projected at US $1.5 billion, the first stage of Cap Cana comprises an area of 8,680 acres (of a total of more than 30,000 acres) and will take place over a span of 10- 12 years.

The first product to be developed within the partnership, "Trump Farallon Estates at Cap Cana," will include 68 estates (with at least 1.5 acres each). The estates are located within a gated community on top of the highest bluff in the area, at 200 feet above sea level, where one can enjoy spectacular views of the entire Cap Cana property and the Caribbean Sea. Home owners in the Farallon community will enjoy a special memberships to a variety of clubs and amenities within Cap Cana. Reservations for Trump Farallon Estates at Cap Cana are limited and currently being accepted on a first come, first served basis.

"I am excited to be building Trump at Cap Cana for several reasons. Not only is the Dominican Republic an exceptionally beautiful place with a wonderful history, but the allure of Cap Cana makes this a unique destination in the Caribbean," said Donald J. Trump. "This is going to be a magnificent project, and we look forward to developing thousands of spectacular acres into an elite destination that will be known worldwide in the years to come. I look forward to visiting often with my family."

"With the signing of this agreement, Cap Cana ratifies its goal to become renowned internationally as the 'World's Greatest Destination'," said Dr. Ricardo Hazoury. "By combining the Trump experience with Cap Cana's natural beauty and the talent demonstrated by our team of professionals, in addition to the stable economy of the Dominican Republic, we are confident that together we will continue to seamlessly create a new standard for tourism, real estate, and hotels for the entire region. We have no doubt this is a win- win combination and look forward to all that lies ahead."

About Cap Cana, http://www.capcana.com/ and http://www.capcana.com/farallon

Located on the Eastern tip of the Dominican Republic, Cap Cana is called "The World's Next Great Destination." It is the most important tourism and real estate project in the Caribbean, spanning more than 30,000 acres with over three miles of white powder sand beaches. Cap Cana is a project recognized for its ambitious dimensions as a fully integrated luxury community.

At the completion of the master plan, Cap Cana will feature more then 5,000 residential units and at least four luxury hotels. Also included are three Jack Nicklaus Signature Golf Courses (the first, Punta Espada, opened in November 2006) and the area's most state-of-the-art marina featuring over 1,000 slips catering to mega yachts up to 150 feet. The first phase of the marina will be inaugurated in spring 2007. Additional services and amenities include elegant boutiques, fine dining restaurants, world class spas, exclusive membership clubs, water sports, polo, and horseback riding facilities, to name a few.

Cap Cana is part of The Abrisa Group, one of the main economic and diverse holding companies in the Dominican Republic. For the development of the project, Cap Cana has brought together an elite and experienced team of professionals which include Nicklaus Design, Coastal Systems International, Inc., International Marinas, Weitz Golf International, GVA, Troon Golf, and Stewart Title among others.

About The Trump Organization, http://www.trump.com/

The Trump Organization was established in 1980 as the umbrella company for all of the company's real estate development and other corporate affiliates. Trump has continually set new standards of excellence while expanding interests in luxury residential real estate, world-class hotels, office buildings, championship golf clubs, gaming, merchandising, and entertainment. This enduring commitment has made Trump the preeminent developer of quality real estate known around the world.

No other real estate company has established the international brand identity that Trump has created. In an industry where quality is sometimes hard to discern, the Trump signature is known and trusted the world over as the name in luxury real estate. The company has consistently demonstrated the ability to add value to ventures through innovative approaches.

In addition to being one of the largest developers and managers in New York, Trump is currently building residential, hotel and golf club projects in Las Vegas, Chicago, Miami, Los Angeles, the Caribbean, Hawaii, Westchester, NY, Bedminster, NJ, Aberdeen, Scotland, Dubai, UAE, and now Cap Cana in the Dominican Republic.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20070216/NYF058AP Archive: http://photoarchive.ap.org/AP PhotoExpress Network: PRN7PRN Photo Desk, photodesk@prnewswire.com

Cap Cana, S.A.

CONTACT: Saraida De Marchena Kaluche, Cap Cana, +1-809-472-2525, ext.2238, s.demarchena@capcana.com; Eric F. Trump, The Trump Organization,+1-212-832-2000; Melanie Brandman, The Brandman Agency, +1-212-683-2442,melanie@brandmanpr.com

Web site:

http://www.trump.com/

http://www.capcana.com/

http://www.capcana.com/farallon

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Offshore Real Estate As Offshore Survival Retreat

administrator

11/13/2006

Offshore Real Estate Is Like Investing Offshore!

If the sorry performance of today's investment markets has you wondering where to turn to make a profit you should consider the opportunities opening up in international real estate. I see a large number of unprecedented factors which indicate to me that international real estate could be a big upwards mover for the remainder of this decade and well into the next. If I am correct, and I think I am, the biggest profits will go to the first ones to perceive and invest into this market. But don't let that make you act imprudently. It is probable that even the prudent, more cautious investors are going to have plenty of time to make their move, because the conditions that are currently making moving overseas a more viable and intelligent option have both a fast and a slow evolution. ...and those factors are here to stay.

The migration to rural/resort real estate now well established in the United States has already extended everywhere on the face of the globe; which is why offshore resort properties, island properties, ranch properties, and their like are now being sought. In addition there are over two dozen cities around the world that are also attracting expatriate investors. Interestingly not everyone is headed for the sticks, which means the trend is not one of mere 'escapism' or 'refuge seeking,' but one of actual relocation.

Buenos Aires, Budapest, Prague, Hong Kong, Bangkok, Singapore, Santiago, Santo Domingo, Dublin, Panama City, Rio de Janeiro, Cape Town and others are all getting an influx of expatriate investors, (in addition to the tried and true expat destinations, such as Paris, Rome and London.)

Resort property or city property, offshore real estate is now getting a hard look by more investors with each passing day. A developer of waterfront Teak and Noni plantations here in Panama recently sold out of properties so rapidly that he now has a waiting list of buyers for his upcoming projects.
In a recent issue of the Offshore Real Estate Quarterly I mentioned real estate in Rio de Janeiro where real estate prices are now priced at only 25% of their actual value. The causes for the bargain prices of real estate in Rio de Janeiro are based on temporary conditions that will inevitably correct themselves, and when prices climb back to their true market value some investors are going to make a whole lot of money.

That article elicited so much email that I couldn't answer it all. I wrote the article because I love Rio, evidently I hit a nerve. So many readers agreed with my assessment that I was buried in email for months.

Real estate, no matter where it is, has remained one of the preferred investments for longer than any other investment in the world. Real estate has actual intrinsic value. [i.e. Its value is real, it is not based on fad or fancy.] As long as there are human beings there will be a need for real estate, and while real estate can fluctuate in price, its core value keeps it from being a mere 'craze' or 'fad' for any continuous period of time.

When it is overvalued it will fall back to its true value, when it is undervalued, it will eventually rise to its true value, ...but it will never fall to absolute zero except in unique areas and under unique conditions - - such as areas subject to natural or man made disasters or to areas that become crime-ridden slums. ..and yes, there are reasons why real estate rises in value and falls in value that are government caused. People vote with their actions and lately, with their feet. When a place becomes intolerable, people leave. The reasons cited by most people for getting our of the USA are: oppressive Federal legislation, a lack of morality in government, a lack of privacy, racial tensions, bad schools, and usurious taxation. But the most stated reason for leaving the USA is a disgust with the rising level of crime and violence in America.

Social Disasters

Of course America is not the only place with crime problems, many foreign cities have crime problems. Rio de Janeiro is a case in point. The crime in Rio is down from what it was a few years ago, but there is still enough crime to issue a caveat to the reader. Rio has crime and Rio is not unlike other high-density global centers, there is pollution, poverty, and crowding. The difference between Rio and other high-density global centers is that Rio is one of the most exciting, beautiful cities on earth. Rio remains environmentally beautiful despite its population density, which is a rather odd anomaly of sorts. [ See photo below. ] If prices in Rio are now 25% of their actual value, then where will the prices go when Brazil straightens out its currency problems? That is anyone's guess, so I'll give you my guess. If you buy an ocean front condo in Rio de Janeiro today for $85,000 - - it may be worth $500,000 in three years and $85,000 again in ten.

What you need to ask yourself when purchasing a property in Rio de Janeiro, is, "do I really want to live here no matter if the property goes up or if the property goes down in value?" If you can answer that in the affirmative, then you should definitely go to Rio and check out the properties. It is one of the most exciting and beautiful cities in the world.
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Copacabana Beach - What can one say?
   Living on Copacabana Beach has always been a dream beyond the reach of most of us. In the US you couldn't get a backwater condo in Miami's racially tormented streets for twice the price that great properties are currently going for in Rio. For less than the price of an average home in the USA you could live on the world's most exciting beach, and take my word for it, Copacabana is as exciting a place as you'll ever see. Imagine living there! I've been in this area a thousand times and I've never grown tired of it nor have I ever failed to find pleasure in wandering through its streets, eating at its cafes, restaurants, and espresso bars, and enjoying its special Copacabana ambiance. The beach is like no other, it's better than a side show, better than a three ring circus, it has a cast of characters you couldn't afford to hire, a lineup of beautiful women that have found the secret of inspiring awe, add to that all manner of international tourist, adventurer, artist, and expatriate ready to carry on a conversation about life around the world.
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Female readers should note that the men of Rio are no slouches... it isn't just a city of beautiful women, even though it often looks that way to us guys. If you're a woman seeking romance you'll quickly find it.
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It is my opinion that Rio is simply too diverse, too wealthy and too luxurious to ever fall below a certain point. No matter what happens to Rio de Janeiro and Brazil, Rio de Janeiro will always be a special place. It may be problematic, but it will never be a loser. [ See my article: Exciting Real Estate Opportunities In Rio de Janeiro, Brazil. ]

And there places that are losers. It is not impossible to determine a given location's negative factors. Take the case of an area in the USA, that is on its way to becoming a slum. In the USA there are usually no supporting factors to revive an area that is slum-bound. It's a downward slippery slide into oblivion. I believe that America's urban blight is to a large extent government caused, and it is, in my opinion a situation that will continue to worsen with more and more American cities dying. (Something that was pointed out by international investment guru Bill Bonner in his article about the demise of Baltimore entitled "Even The Rats Have Left." - See resources at the end of this article.)

The factors that allow Baltimore to descend straight into hell are factors that have no counterpart in Rio. Rio has its own set of problems, but they are totally unlike the problems that Baltimore faces. Racism in America, in my opinion, is a wound that will never heal. Brazil is one of the least racist nations on earth. I often wonder why Americans never seem to notice or find it odd that Brazil has no enemies, no wars, despite the fact that it is one of the largest nations on earth and surrounded by nations that speak a different language. I leave that observation for my American readers to ponder.

I enjoy being in Rio, I wouldn't go to Baltimore for a million dollars.

Natural Disasters

Human nature being what it is means that social disasters are often easy to predict, but it is just the opposite when trying to predict natural disasters. Yet, it is only the timing of a natural disaster we can't predict, we can almost always predict the potential location of a natural disaster. If we want to invest overseas we are obviously going to avoid areas that are running out of water, are severely polluted, or are in danger of constant flooding.

Let's compare two areas, one that experiences natural disasters, and one that seldom experiences natural disasters.

California, a place that has historically been a real estate hot spot, has more than its share of natural disasters; floods, earthquakes, forest fires, etc. By way of contrast, Panama has almost no natural disasters, no floods, no earthquakes, no tornados, no hurricanes. California has a population of around 35 million souls. Its land mass is 163,707 square miles which gives it a population density of around 225 people per square mile, making it fairly densely populated. (Actually it is much more densely populated in the south than in the north.) Panama has a population of around 2,882,329 with a land mass of 30,185 square miles, which gives it a population density of only 95 people per square mile.

[See: "As its population soars, California's environment approaches a crisis" in resources.]

Panama has a plurality of water, California has a water crisis. California has a great deal of crime. There is more crime in Los Angeles in one day then there is in Panama in a single year. Based on these observations do I think that real estate in Panama is a better investment than real estate in California? Yes. Plus the purchase prices in Panama are cheaper, and the upward potential many times greater, allowing a larger yield per dollar invested. But the fact that Panama is a better investment is just beginning to be realized by the international community.

I have my main offices in Panama, so I write about Panama often, but there are dozens of other places in the world besides Panama that are also bargains; I have and will continue to write about those locations in this magazine.

I think offshore real estate is the wave to catch if you're interested in being ahead of the crowd

The first ones in on a trend are usually the most successful. Is offshore real estate at the beginning of a long term trend? We are beginning to see more and more articles in the investment journals about international real estate and real estate in general. International real estate has many advantages over real estate in the USA, and one or two disadvantages. I feel that the advantages far outweigh the disadvantages.

I strongly believe that purchasing foreign real estate can be viewed as a sort of triple play. Consider these attributes: [1] Offshore real estate can appreciate more dynamically than U.S. real estate because the purchase price is often significantly lower, (and this despite the fact that we can now carry on some type of commerce from anywhere on the globe,) [2] offshore real estate can act as a safe haven in the event that things go awry in the USA, [very probable, if not already fait accompli,] [3] offshore real estate allows Americans to legally expatriate their money to an offshore haven, [4] offshore real estate can be a summer home and/or [5] more in keeping with the theme of this website and this article, it can also be a dynamic place to live and be the beginning of a new more fulfilling life.

I've asked the question before, I'll ask it again, "If we can now carry on some type of commerce from anywhere in the world and if a ranch in Argentina and / or beach house in the Dominican Republic is going for ten cents on the dollar of what a similar property would go for in the USA, then how long is it going to take your neighbor to realize the very same thing?" For the first time in human history we can live where we want to live, and in doing so, work there, rather than choosing where we have to live because of our work

But the rub to the above statement is that we can no longer find similar properties in the USA to what we can find overseas, because there are no properties in the USA similar to the bargains and the ambiance we can find offshore. Caribbean beachfront is something pretty special and there are still some great bargains out there. I think it is safe to say that we can forget beachfront in the USA unless we are extremely rich, ..and willing to put up with so many laws and restrictions regarding living there that it isn't any fun to live there. (We'll get to the idea of offshore real estate as "survival retreat" on a subsequent page of this article, but the idea of finding a secure retreat in the USA is now a joke as far as I'm concerned.) As for romantic country land for resort, retreat or quality of life, it is common knowledge that whatever wilderness in the USA that hasn't been taken over by right wing paramilitaries is filled with people so stupid that even the tree huggers can't get along with them. (Actually those are three groups with a great deal in common. They ought to start a political party. Huggers, Muggers and Buggers.) Consider the nuevo rich from New York and California who've bought five million dollar ranches in Montana and Wyoming... five million dollar cabins in Aspen, and can't stand to be there. Cultural depravation can be worst than sensory deprivation.

Now I know that I just insulted a cherished American institution and lost half of my readers. If you're still hanging on, and if you maybe think that what I'm saying has a slight degree of truth, then let me give you a bit of advice: Don't invest in American land, do seek an overseas haven where prices are lower, crime is lower, ambiance is higher, and the future is greater. You won't be alone, because from my perspective it is fairly clear that the stampede towards international real estate has already begun. The rules of the game have changed and more and more people are becoming aware of it. Our website is a case in point. Out of the over three and a half billion or so websites on the internet, we are in the top 5,000. [ See Resources ] Why would that be? Our traffic is increasing exponentially and the number of international real estate sales that I am aware of has reached a level I wouldn't have believed possible five short years ago. I'm trying to make you aware of the value of international real estate and the fact that it is becoming one of the best investments you can make. If I'm right, then you stand to make yourself rich, if I'm wrong, you'll end up with an excellent piece of property at an excellent price in a better place then you find yourself now. When you add in the possibility of offshore real estate as a survival retreat, then if I'm right or wrong takes on a whole new meaning. If you think there is a possibility that I'm right, then read on... if you'd rather invest in America because you believe there is a future there, then buy yourself a gun and head for the American country-side. You'll need the gun to survive. It's part of the tradition. What I write isn't for everyone. It may or may not be for you. It is certainly not sugar-coated.

What I've said about America's vanished country-side can also be said of American cities, because if you want a city in the USA with a great ambiance you can forget that too. I lived in Seattle in the late 1960's and early 1970's and I got to watch it die. I believe that what kills cities is bad government. Property taxes, income taxes, zoning laws, lawsuits, lawyers without souls writing legislation and an all pervasive Federal oppression hanging over it all. It is all part of the concept that someone somewhere has the wherewithal and wisdom to tell you how to lead your own life. I no longer think that America is a pleasurable place to live, and I don't know anyone who does. America has become too restrictive, too tense, too expensive, too violent and too crowded.

In the book version of Escape From America I made the rather far flung statement that Americans have even lost their right to own chickens. I debated whether to leave the statement in the book, as it seemed a trite point too far from the mark of what I was really trying to convey. What I was trying to convey of course was that America had become a very restrictive place. In the seven years since the publication of that book I have seen the restrictions placed on Americans grow to the point of intolerability.

In Panama, if I may use it again as a comparative, there is no usurious taxation neither on income nor on real estate, there is no violent crime and the environment is pristine with a low population density to land mass. The level of freedom enjoyed by citizens of Panama is probably the greatest in the world. (Not in rhetorical bombastic statement, but in actual fact.) I do admit that most neighborhoods in Panama City don't have chickens, probably because it would be considered déclassé to own livestock. I am not sure what would happen if someone decided to own chickens in my neighborhood, but I do have a Smithsonian neighbor who has Harpy Eagles and other wild birds, and the neighbors love them. ...I also admit that I am using poetic license to make a point about social freedom and foreign attitudes towards social freedom, but it's a point I need to make. People vote with their feet, and that is what makes prices rise in the places they march to.

Panama is becoming one of the safe havens of choice for those seeking a home away from home. Its welcoming attitude towards business and foreigners is legendary. (I could and have, as I've said, name a half dozen other nations where such values exist for investment into foreign real estate and I will continue to do so in future issues of our magazines..

BOOKS INSTEAD OF GUNS
I'm sorry... I can't resist showing you a photo of what a ranch house looks like in Argentina. In Argentina they display books in their ranch house, in the USA they display the slaughtered head of an animal (deer or bear) along with their collection of guns. - - - If you find yourself much less enchanted with the USA than the people around you, it may be that you should consider moving to a more agreeable overseas location. For ambiance & profit.
Note: We have an article on the real estate market in Buenos Aires in this issue of the magazine. It is our intention to have an article on the real estate in the Southern parts of Argentina for the next issue of the Offshore Real Estate Quarterly -
< Subscribe Free To The Quarterly >
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Pollution or Palms? Is some sort of meaningful comparison possible? Those who think the second choice isn't possible have not looked at the facts. The second choice is more than probable, in the current social economic evolution of the workplace the second choice is absolutely inevitable.
   California, once the pride of America, has become a huge concrete parking lot with overpriced homes, heinous crime, mass murders, school-yard killings, rape, traffic jams, discourteous gestapo-like police, chaotic social conditions, a lack of electricity, water, and breathable air, all coupled with very unfriendly uptight people.

Considering that it is now possible to make a living from anywhere in the world using the internet, I often wonder why are so many of my readers are still in America reading my articles, rather then figuring out how to move their job offshore or online. Many of you should be going to explore one place or another as a viable destination. Making an exit plan. Is your job something that could be done from afar? Imagine how many jobs can now be done from afar. Why would one choose California over Paris, Prague, Paraguay or Panama? For many people it is becoming clear that it is over for the USA as a tolerable place to live. ...for others it will take more time. I don't mean to be impatient. Don't rush to judgment impudently, nor wait until they shut the gate.
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The principles of this website are founded on the perception that we now live in a borderless world and that with each passing day the concept of deterritorialization becomes more a part of objective reality.

As we've written elsewhere, two things have ushered us into a world without borders... the end of the cold war and the advent of the world wide web of global communications & commerce. Today it doesn't make a great deal of difference where in the world we are located, we can carry on some types of commerce from anywhere; from an island in the middle of the Caribbean or a sheep ranch in the the Australian outback. A game of global musical chairs has begun, and we are now changing places with people willing to go to America to work for a wage we no longer consider attractive, while we begin to move further afield in search of greener pastures. Many of us are now looking for what might be called a 'life.' Tomorrow, it will make a great deal of difference where we live. But certainly not in the same sense as we now perceive it. Tomorrow we will live where the best real estate exists, where the least crime and repression exists, where population pressures have not decimated the environment and where business is encouraged and not hindered by legislation. We will live there regardless of that place's global location or its former political posture. The question I asked a few paragraphs back bears asking again, ...if we can now buy a ranch in Panama (or Argentina, or New Zealand, or name your spot,) for ten cents on the dollar of what a similar property inside the United States would cost us, and if we can carry on commerce from anywhere we locate, then how long do you imagine it's going to take your neighbor to realize the very same thing? As Douglas Casey put it, "...those folks who buy that ranch in Argentina today are going to have grandchildren who will realize that they were a genius."

Is there anyone reading these words who doesn't recognize that we will soon be living on one planet without borders?

Stop and think about the inevitable.

Recognizing the direction of socioeconomic inevitability doesn't require as much effort and foresight as does the ability not to be concrete-bound by the past, especially when we do our current thinking. Markets come and markets go, but the desire to make an exciting profit lives on. The world's markets are made up of every human being on the earth as each tries to better their own existence by seeking out what they want and how they want to go about attaining what they want. Few markets are perpetual, and in the marketplace certain trends are created by changing situations that are part of our ever-evolving world. It is no longer required for anyone to imagine that we live in a global economy, because imagination has nothing to do with it. We live in a world with a global economy. The cultural, economic and strategic interests of nations no longer neatly stop at a line drawn in the sand... nor do they any longer precisely overlap. The nation-state has ended. Tomorrow is on its way, making foreign real estate one of the most inevitable investments for individuals capable of breaking free from rigid thinking.

There is always a lag time in such changes. There will be those who will go on staring at the NASDAQ, the gold market, or whatever it was that was there yesterday, like a dog staring at an empty food bowl. "Hey, wasn't there food in there a minute ago? Surely there will be food there again." I call such investors 'pointers,' after the dog of the same name. The gold boom of the 70's spawned a bunch of pointers. These sly dogs have been writing about gold and preparing themselves for the next gold boom every day since the gold boom ended. That was thirty years ago. Some day gold will go up again, but it will have nothing to do with the last boom, it will be a situation caused by current [or future,] market conditions, not the conditions of thirty years ago. That market has passed and it's over, along with tulip trading and over-borrowed dot.com's; now it's time to find where the next market is, where it's going to go and how we can be there ahead of the herd.

I firmly believe that the next boom market is going to be in offshore real estate.
As I've said, the movement towards international real estate has already begun. Countries like Belize, Panama, Costa Rica along with much of the Caribbean are getting an influx of buyers. But so are unlikely places like Thailand, Ireland and the Czech Republic.

There have always been institutional buyers that purchased property in external nations for industrial and commercial use, but the new type of buyer now entering the market in larger and larger number consists of independents; small businesses, individuals and families. An entirely new breed of offshore investors who are seeking greener pastures abroad as well as a profit in international real estate.

The buyers are not all Americans, which indicates that a worldwide trend is in the making. In the case of the Dominican Republic there has been a large influx of Italians and Germans. They are opening dive shops, restaurants, resorts, hotels, or simply grabbing up the best real estate and re-selling it to other newcomers. In the Dominican Republic's Zona Colonial, four hundred year old buildings are being renovated and the entire area is becoming a magnificent tourist attraction. Costa Rica also has a large percentage of European expatriates as does Cartagena in Colombia, a place where I didn't meet one American among the hundreds of expats that I encountered.

None of this is to imply that we are too late. On the contrary we are precisely at the very beginning of an socioeconomic evolution that is inevitable. As more and more people realize that they can finally live where they want to live, and that the entire world is at their disposal, there will be a mass migration that will blanket the world. The first ones in the door stand to make the best profits. As in all things, analysis and timing are crucial. Going to nations that have not yet developed a just recognition of human rights and those nations without a transparent legal system can be problematic and risky. But not unduly so.

Expatriates, and moneyed newcomers to some nations are often treated with a higher degree of respect and privilege than the average citizens of those nations. It can be a disconcerting phenomena, but it is a fact of reality. Americans with their high degree of egalitarianism often feel uncomfortable in nations where they are treated as first class citizens while the locals are still treated as second class citizens. However, the very presence of foreigners can help a nation to 'clean up' its act. Almost everyone knows where the bread is buttered, and socioeconomic evolution can have a very positive effect on more primitive nations and help usher them into the modern world.

The higher the risk the higher the potential profit.

Risk is a function of price but risk can certainly be a matter of perception. [See sidebar.] Note that I am certainly not recommending that the reader invest in nations where their money may be at risk, but I am pointing out that the best profits will occur in the more risky nations. Many Europeans and Canadians are currently investing in Cuba. I don't necessary think it is a bad risk, but there is obviously risk involved. It is my observation that there are no bargains in Cuba. The Cuban government is selling high value beach resort concessions for high dollar prices. There may soon be housing available in Cuba for individual buyers. It would be a splendid place to retire, but I wouldn't count on making a large profit out of any real estate investments inside Cuba. There are other uses for Cuba which we will address in a future article in this magazine. For the best information on investing in Cuba read Dr. Louis Sola's "Cuban Capitalism - How To Invest In Cuba - A Complete Guide" - [ See Resources ]
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Holding Title to Foreign Real Estate

Holding title to foreign real estate depends on the specific nation where the real estate is located. It is always best to hold title to any real estate in the name of an international corporation. Not all nations will allow this, but a substantial number of nations will. The process is relatively simple. The purchaser forms an offshore corporation, [IBC,] and then purchases the real estate as a property of the company. In this manner you are not personally listed as the holder of title, thereby making it difficult for anyone to confiscate your property. Should you choose to sell your property at a later date, you can simply transfer title of the corporation to the purchaser, [the corporation itself may be formed in Nevis, St. Lucia, Panama, Luxembourg or any other offshore jurisdiction.] If you transfer ownership of the IBC rather than go through a conventional real estate transaction, then no one knows that the property has changed hands except for the principals involved. The IBC still owns the property, but someone else now owns the IBC. Without a record of the property changing hands there are no transferring fees, no taxation. Protection and privacy is thus enhanced. I suggest that a separate corporation be used for each property. The use of individual corporations for each property increases the initial cost, but an IBC costs only a few hundred dollars. When the time comes to sell, one may opt to sell each property separately, or to sell one property and not the other. Transferring the ownership of one corporation is simpler and more straightforward than trying to divide a corporation into a number of separate parts for separate properties.
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Where to go - What to buy

Locations are like romances. I strongly suggest that investors buy in a place where they want to live. As mentioned in the article about real estate in Rio de Janeiro if an investment into real estate does not produce timely profits one always has the luxury of living in or utilizing what one has purchased. Especially if it's a place like Rio de Janeiro, Prague, Bangkok or Budapest, where one can enjoy an enhanced lifestyle. In this way, even if the market remains flat for several years, or, heaven forbid, drops in value, one still has the opportunity to pleasurably utilize what one has purchased. Still, it is clear that some locations are preferable to others, and that some locations will rise more dramatically and/or provide a wider degree of security. What are the guidelines?

Absolutely every investment in the world entails a degree of risk. Investing is gambling, some gambles are closer to a sure thing than others, but all gambles are gambles by definition. This is why I recommend seeking out real estate in a place where you wish to relocate, if you don't make an overnight profit you are at least living in a place where you want to be. If a location is close to a sure thing, the price will reflect that factor, the initial prices will be higher and the price rises will usually be slower. But not always. Panama and Belize are pretty close to a sure thing. Price rises in Belize have been significant in prime areas, but it remains very difficult to define prime areas. When I wrote the book, Escape From America, it was possible to buy an island in Belize for $20, 000 - At the time no one knew where Belize was, it was a total unknown. Today almost everyone with half a brain knows where Belize is and there has been an influx of buyers from around the world. Those seeking a beachfront lot and a laidback lifestyle will do well to consider Belize. Belize is the sort of place where you can build what you want and live how you want without big brother looking over your shoulder. On the negative side you won't find the Cuban ballet there, nor will Luciano Pavarotti show up at the opera house. ...There is no opera house, but there is a fish market and it is probable that it okay to go barefoot the rest of your life in Belize without missing an appointment.

Profits will continue to be made in Belize real estate and if laid back is your sort of lifestyle you should catch the next plane to Belize. We know of two tour groups that are oriented to relocating to Belize and we'll mention them in resources at the end of this article.

If you're more prone to having your cake and eating it too, Panama is an excellent choice. Panama is where we have our offices and we owe a good deal of our success to being located in Panama. The infrastructure is excellent in Panama. The infrastructure in Belize is primitive. [see resources.] There is less crime in Panama than there is in Belize, and Belize has hurricanes, Panama does not. In Panama, the language is Spanish, in Belize English. I'd take an island in either spot, but it is a thousand times easier for me to run my business in Panama than it would be in Belize and for me that is the deciding factor.
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Each of these nations can more or less be considered a sure thing, if not in the traditional sense at least in the modern world where environmental concerns and a low population density are issues to consider. People are now leaving America in droves and I expect the trend to continue until it reaches a stampede.

Let's Make Some Money!

At the start of this article we said that we believe that the purchasing of foreign real estate can be viewed as more than a triple play. Consider these attributes: [1] It can appreciate more dynamically than U.S. real estate, [2] it can act as a safe haven survival retreat in the event that things go awry in the USA, (very probable,) [3] it can be a summer home, [4] buying international real estate is an excellent way to expatriate money and [5] more in keeping with the theme of this website, it can also be a dynamic place to live and the beginning of a new more fulfilling life. Let's look at these fundamentals.

Foreign real estate can appreciate more dynamically than U.S. real estate.

This is true. Smaller economies can be more dynamic than larger economies, they can grow faster and are less burdensome to analyze. Purchase prices tend to be much lower for real estate, and there is plenty of foreign real estate whose true value isn't perceived by the locals as having the same value as it does to you and me. A good example of this is Belize which was a sleeper for years.... one could buy an entire island in Belize a few years ago for practically nothing. The price has risen sharply, but there are other areas that are comparable to Belize. Panama has over 1,700 islands, over half of which have even been registered by the government. Ecuador is also a sleeper, as is Paraguay. Each of these places requires a separate analysis, which I will provide in future issues of our eMagazine. I am hoping to have a series on Argentina, Paraguay and Uruguay in the first quarter of this year.

Purchasing foreign real estate
can be viewed as more than a triple play
Three dimensional Chess, from Star Trek
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Offshore Real Estate can act as a safe haven "survival retreat" in the event that things go awry in the USA, [very probable].

I have never been a dooms-day preacher and I don't intend to start now. With that said, it would be prudent for the reader to take a calm and objective look at some of the possible negative situations that may soon take place inside the USA and see how those events may affect you and your loved ones. I believe that you can avoid being in the pathway of those oncoming disasters by having an offshore survival retreat. An offshore survival retreat can be many things, it can be a summer home, a place where your family lives and survives a social break-down that may be happening in the USA, it can be an excellent investment, it can be an excellent place to live, it can be a way of expatriating and diversifying some of your assets offshore, it can be the beginning of a better way of life. That is what this article is about in a nutshell. It can be all of those things at the same time, or it can just be the one that is the most important to you. I call it investing in offshore real estate.

I view an increasing loss of freedom as a disaster; whether it be a loss of financial or personal freedom is irrelevant to me, as they are one and the same thing in my view. I have seen, from afar, a tremendous loss of freedom in the USA and have received many thousands of email talking about the startling disillusionment and the financial/personal suffering caused by the effects of the so-called new world order. It's a sham, a way of controlling the world without taking into consideration the will or the consensus of the controlled. ...and if you think it's bad now, hang around the USA just awhile longer, because I am convinced that the worst is yet to come... and what I mean by worst, is much worse.

If one chooses one's offshore destination carefully one stands a very good chance of surviving, financially and personally, the sort of social break-down and subsequent total loss of freedom that may soon happen in the USA. ( ...that exact sequence: social break-down and subsequent loss of freedom, along with never taking the blame, is the modus operandi of the new world order.) It is my intention to include a commentary on this important issue in each edition of the Quarterly, without turning the Quarterly into a sounding board for doomsday rhetoric. Readers should note that the original version of this article was written prior to the attack on the World Trade Center in NYC. In fact, portions of this article are derived from the book version of Escape From America which was published in 1995, so the concepts in this article are concepts I've held for years. They are simply becoming more timely, more popular, more obvious, and therefore more relevant.
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   One of the most repeated comments we receive from those who've decided to leave the USA regards the level of bureaucratic repression and lack of privacy many have begun to experience in their daily life inside the USA. What I find unusual is that this comment usually comes from those who are America's best and brightest; dentists, doctors, attorneys, creative people, and others who have worked hard, believed in America, and followed the rules, not from criminals and non-producers. It's pretty difficult to ignore the quantity of email we get on this subject or to write it off as paranoia. I have to admit that I experienced the same thing myself and it was a pronounced part of an overall negative experience that was instrumental in causing me to relocate. Things just aren't right in the USA. Many of us no longer trust the bureaucracy, we believe that they are lying to the American people and that their true agenda is far from transparent, perhaps even inimical to our well-being. ...as our comments on the new world order imply.
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Paranoia aside, it is never foolish to be prudent, and Diversification of ones Residency will become a very hot item in the years ahead as there are shifts in the balances of power away from the power held by the people to an all powerful Federal Government as a stand-alone entity. That this will be coupled with a loss of economic freedom, personal privacy and all of those liberties we believed belonged to us, seems to me to be a forgone conclusion. If I, along with thousands of others who seem to share this perspective are correct, then the first buyers of safe haven real estate will make the largest profits. I see offshore real estate as a timely and excellent investment, not just a withdrawal from a negative situation, but a relocation to a more positive one.

When total, and not merely defacto martial law is declared inside the USA, you and your family can be in your offshore safe haven survival retreat, sitting on the verandah overlooking the beach. In the sequence I see unfolding global finance will still function as it is part and parcel of the new world order. What will be affected is the growing inability of the smaller fish like you and me to function freely inside the USA when and where it applies to the global financial market. The freedom of those inside the USA without power will experience a drastic curtailment of their financial freedom to compete freely in global markets, or to expatriate their funds or their selves to a preferable location, especially if they choose that option too late. Hey, if a nation no longer has anything to offer you, but still needs you to function, then the best option is to keep you a prisoner so you can't leave. You don't believe that? Its never happened before?
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Read your history. It keeps happening over and over. The life span of the Roman Empire is said to be anywhere from 1,000 to 1,800 years, depending on the historian doing the talking and their particular perspective of history. ...do you see a Roman Empire today? It was probably the greatest, strongest, most organized empire that ever existed and it's gone. [ See Resources for an excellent map dance of the expansion and contraction of the Roman Empire. ] All nations rise and fall, and those who are in positions of political power in those nations usually don't care who they stumble over on their way to the bottom. The years in Germany prior to the rise of Hitler were some of the most free most creative years Germany has ever known. The nation was filled with the cream of European intellectuals; artists, philosophers, and scientists. A large number of these creative and intelligent people did not leave Germany in time, they did not believe in the impossible. Hitler was impossible. They were then taken prisoner and ultimately exterminated. ...history is not evidence against the future, I won't pretend that. ...but there is a lesson there for those who care to look and to think about what they see. You can count on yourself and your family, every Italian knows that. Do you know that? To an Italian most other forms of loyalty outside of the family are tempered by their relationship to their family. My great, great grandfather told my father a secret message that was given to me. I believe the content of that message more then I'll ever believe a politician. That was part of the message. The message stretches back to antiquity. I'll share part of it with you. Take care of yourself and your family first. They are your first concern and responsibility. It isn't so profound, but it's amazing how many things in the USA try to destroy that bond.
Wassily Kandinsky - a turn of the century (1866 -1944) Russian born painter whose exploration of color and the varying possibilities of abstraction make him one of the more important innovators in modern art. He believed that color possessed musical qualities, and indeed, much of his work seems to possess a certain electrical musicality that projects itself out of the canvas and can often enthrall the perceptive viewer. As an artist, teacher and as theorist he played a pivotal role in the development of abstract art. During his lifetime, much of his work was removed from museums and public view, first by the Bolsheviks and later by their Nazi counterparts as these totalitarian states attempted to determine the shape of the human soul, just as most of our planet's governments continue to do even today. Kandinsky made his home and lived the majority of his life in Western Europe having to move from one nation and then another as the political climate changed.
Wassily Kandinsky lived in Germany From 1896 to 1933. Until 1933 Germany rivaled Paris as a creative center
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On Survival Retreats And Our Modern World

Back in the 1960's in the USA, financial guru Harry Browne wrote a book suggesting that a survival retreat might be a good idea. Many of us bought cabins in the woods, stored dried food, grains, beans/peas/legumes, garden seeds, gardening equipment, along with other survival gear. At Harry's suggestion we also bought and stored silver and gold coins. It was an interesting experience, and if you'll go back and read the newspapers of those days you'll see what Harry was talking about. I never regretted the experience, it got me out of California, up to Washington State, I made a very good profit on the gold and silver coins, and an excellent profit on the real estate, in fact, it was that experience that got me into real estate where I made more money than I'd ever made in my life, plus it changed my perspective of the world by making me more cautious of government. (..reminding me of my great, great grandfather's wisdom, which in my youth I had put aside.) But the sixties opened a lot of people's eyes to the dishonesty of the US Government, even those who had never read Harry Browne. While a huge proportion of them could not see the Federal Folly in economic terms, they could clearly see the Federal Folly. Ask any 1960's Viet Nam vet.

Should you store garden seeds and dried food in Bocas Del Toro? Why not? It's a good place to grow a garden, so when you're not dining on fish, lobster, crab, bananas, coconuts, and a wide variety of food that is literally free for the taking, you can go out in your garden and get a salad to go along with it. If you ever need a retreat you've got a perfect location. You can spend your days on the water, like everyone else, fishing, sailing, diving, zodiac jamming, and island hopping. If, on the other hand, you never need a retreat, you've got an excellent summer home.   ...and I mean excellent. I could build an equal case for the Dominican Republic as a place for a survival retreat, or Ecuador or even Argentina...   yes, I know that Argentina recently suffered a financial collapse, and those who had their money in Argentine banks lost almost everything. Don't put your money in Argentine banks. I have an article on the ABC's Of Exchange Controls, International Real Estate & Foreign Currencies. Read it, it's in the resource section at the end of this article.

The gold and silver coins? Yeah, get some and keep some. I'm not bullish on gold, but I always try to err on the side of caution. Harry Browne often said that at least 25% of one's portfolio should be in gold. ...but Harry never believed in real estate and when I took Harry's advice I made more money, dollar for dollar, on the real estate I bought than with the gold I bought. I may start buying gold just before the next presidential election as a precautionary measure.

Intelligently purchased Offshore Real Estate can act as a summer home.

A recommendation I make over and over is to make sure that you purchase offshore real estate in an area where you'd like to live, either full time or as a summer retreat. If it doubles as a survival retreat so much the better. In my opinion it is now possible to make a living from anywhere in the world via the internet. I do, and I'm no genius. If I can do it, you can do it. I do have some articles coming up on this very subject, and they'll be in this magazine when they are ready. The obvious point to the statement about making a living from anywhere is that if you can make your income from your new location, and if it's a place you want to live, you've bought some pretty valuable freedom along with your real estate, and freedom is as valuable as it gets.

Offshore Real Estate Is Offshore Investing

Moving money offshore can often be a complicated shell game. It doesn't need to be when you buy international real estate. No one can complain that you are doing anything improper, and once it is purchased, well your funds are offshore. That is why I call it offshore real estate, because it is something of intrinsic value that you have managed to expatriate without breaking the law. If you purchase it in the name of an IBC as recommended on the previous page, then your privacy and options are optimized ten-fold. (Even if you buy three properties and then turn around and sell two.) What can one do with money that one has expatriated? There are offshore brokers to invest in the stock market, there are offshore web hosting companies that allow one to do offshore eCommerce. ..or there soon will be, because I am starting an offshore web hosting company that will feature and provide those aspects that reflect my philosophy on this matter, which are; absolute privacy, security, speed and dependability. It will be in place by July of this year 2003. You will be able to host with our company and be assured absolute privacy as well as the possibilities of an international income that is paid offshore. Perfectly legal in Panama. All these things can be done in the name of an IBC without taking the income as personal income. Yes, I've a series of articles on this subject... they will be online in February of this year. I probably have enough articles for a book. If you're wondering why I don't write another book, it is because I would rather post articles in our magazine. We always say we've got more than 200,000 subscribers, actually we have over 250,000 but we are only going to change the numbers on every 100K click. We get around 150 new subscribers per day, over 4,000 per month, which comes out to over 50,000 subscribers per year. If you are still wondering why I continue to give articles away rather than sell a book the answer is because the platform our magazine provides us far exceeds the power of a book.

The Future?

No one can predict the future. With that said, I am happy to report that real estate prices have already risen dynamically in most of the places I recommended in my book. In two of those places real estate prices have fallen but not the values. The cause of the fall in prices in both cases is due to currency problems, not the value of the real estate. I see both cases as being buying opportunities. I will be writing more about these opportunities in the coming months.

Offshore Real Estate can also mean having a dynamic place to live and the beginning of a new more fulfilling life.

This should go without saying. Yet many people are fearful about moving abroad. They've come to believe that everything outside of the USA is somehow dangerous. It is precisely the opposite. There are numerous countries that are less violent and have lower crime rates than the USA. America is among the most violent crime-ridden countries in the world.

Living overseas can be the greatest adventure of your life. It can open your eyes to an entirely new way of perceiving your life and the adventures that life provides. I know of nothing that comes closer to starting your life over than moving overseas. There is a time worn platitude which states that... "..you can't run away from you're problems."   Like most platitudes, it's based on a selective view of reality. You may not be able to run away from your problems if your problems consist of having a high I.Q. or a heightened sense of wonder, but you can certainly run away from the people who tell you that you can't run away from your problems. They are usually found sitting in their backyards watching their lives melt away while you are sitting in a sidewalk cafe on the Riviera planning your day. You can run away from idiocy, repression, racial tensions, thugs, traffic jams, and the herd of bureaucrats who want to tell you how to live your life, raise your children, and more or less regulate every step you take from birth to the grave. The best answer to give people who tell you that you can't run away from your problems is that you aren't running away. ...tell them that you are running towards something, a way of life that has meaning.

Every day has meaning for me and I want to assure you that the same can apply to you. I am free. Free in a way that someone living in America can not even imagine. The sun rises over the Atlantic ocean and hits the tops of the palm trees, the parrots start squawking and the grackles give their high pitched whistle in the mango trees. I cannot express to you how wonderful it feels to be free, what a great value it is to my spirit. I know Americans who live on boats on the Mosquito Coast, Americans who live on coffee plantations in Costa Rica, Americans who own Vineyards in New Zealand, Americans who live in France, Americans who write for newspapers in Buenos Aires, Americans who live in the mountains of the Dominican Republic and the list is endless. With me they all share a common bond, they are free, and they can re-plan and reconstruct new lives, avoid the old mistakes, make new choices with a wider range of possibilities and a lower entry fee. ...and of course there are bumps in the road. Every road in life has potholes. With a bit of practice you can learn to swerve around them without losing your sense of freedom or your sense of joy. What you end up with is a new, more fulfilling life in a place that is dynamic and a joy to be in. Damn, it's fine!