Trying to Help My Dad Fulfill his Dream. Out of My Depth
Last activity 22 April 2019 by kohlerias
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Hi there fellow Expats.
Me and my Dad are in the process of moving our lives to Tamarindo, Costa Rica.
in the 1970's my dad sailed to Costa Rica and fell in love with the people and the landscape and ever since dreamed of one day retiring there.
About fifteen years ago my dad bought a large beautiful hillside with the idea of building a small hotel and apartments. Over the course of the next 15 years we, like so many other developers before us struggled to get the project off the ground trying to do it from the U.S.
All we were able to accomplish was the building of a small “Treehouse” home on the top of the hill with water and power.
Now, 15 years later we have decided to move down and try to finally finish what my dad started. Needless to say we have a long and tough road ahead of us. The problem is we have no network or community of people and we are completely out of our depth.
As a non-local down in Costa Rica, we have experienced the difficulty of trying to get a project off the ground and just make life work for us down there. We are both real estate agents and know the ins-and-outs of the business but have no community connections. Is there any advice anyone could give us on how to network or reach out to Expats that are in or have been in a similar situations? Please don't think this is an advertisement, I am really just looking for advice. Anything would help.
Sell it and avoid the headache of trying to get anything done in CR. Unless, of course, you like the feeling of banging your head against the wall.
The best thing to do is connect with the embassy. They have regular town hall like get together a on different subjects, also, get out and about and connect with business owners who went before you. We are in nosara but have been to tamarindo often. Get an attorney to guide you-this is so very valuable. You will meet many expats at these meetings. Also, run things through sites like these so you can maybe get some first hand knowledge. Good luck! I know you’ll be very successful and fulfilled!
First of all there is no way you could ever do something like this from the USA. You have to be here, feet on the ground of where you're building, and on site with whoever you have hired to help you do this or that. i.e.; when the topographer is there, you're there with him; when the septic tank guy is there, you're there with him; etc. Even if you don't know jack about any of it, you must be there and learn enough as you go to make sure they're doing what they're supposed to.
A person you can trust from the community (this is a hard part since you know no one!) should be there to help you, preferably a trustworthy reliable Tico. (Like I said, this is the hard part. Finding a reliable trustworthy Tico to help you is kind of like finding a needle in a haystack. Reliability is not generally a Tico trait. Before I'm slammed: Of course there are exceptions to the rule!)
Before I tell you the HOW, let me tell you my advice, even though you didn't ask:
Unless you really REALLY want this headache, perhaps a year, perhaps years in duration, I would not do it.
Does your dad want to retire or does he want to work, stand in lines at government offices, not sure even if he's in the right line until you get up there and are told you weren't... Getting paper, paper and more paper to get permissions for building, for electricity, for water, for this and that and the other... i.e.; tons of bureaucracy in a country that considers bureaucracy King... So unless you are really prepared to go through all this hassle, my advice would be:
Rent here for awhile (unless your treehouse is livable), and wait 6 months or more to see if you really like living here, which is much different than visiting here on vacation. Trust me.
Then after 6 months or more of living here full time, if you still want to live here, go through the process of becoming residents, THEN build yourself a house. Build one cabin to rent if you want.. You can always build another and another... later...
But if you really want to build a hotel or apartments now, okay. it's your funeral so to speak. I'll give you a little info on how to get started.
1) go to Facebook and every Costa Rica forum like this one and look for people who live in Tamarindo and get to know them, ask them for references for:
*a good attorney (not just one someone used to buy a property; no. One who someone has used for some more complicated things, one who has experience with building a hotel and/or other businesses. Get references from a mover and shaker, maybe from a gringo who did what you want to do. They may see you as competition and not want to help but try to find someone who is willing to help. If you have to, look for one at a neighboring community where you wouldn't be such a threat of competition.
2) talk to everyone you can who has started a business around there. Ask them to be honest and tell you the truth. Was it easy? Was it a nightmare? How long did it take to get permissions? How long from starting to opening their business? Ask them if they'd mind if you ask them questions, before your meeting, then read from a list of questions like those above and take written notes on the answers. As if you're writing a book. Because you are. You'll be writing the story of your future life.
3) Ask everyone for recommendations. Take recommendations with a grain of salt but ask questions. I think of it like finding a dentist. If you ask everyone for a "good dentist" everyone wants to recommend their own because they like him or her. But has their dentist done implants? root canals? bridge work, etc for them? In many cases they are recommending their dentist having NO idea if he's really a good dentist who can do complex difficult work like the above.
So it's the same with people who recommend their attorney here. If all they did was handle buying property, sorry but that's not that big of a deal. They may or may not be good based on that. What you need are recommendations from people who know how to build a hotel, how to start a business and not only know how but have a track record of success!
4) Some questions you'll want to ask is how hard is it to get permission to build a hotel or cabins or an apartment building. How much will getting all these permissions cost? How much does it cost to RUN a hotel or apartment building? Is it generally profitable or is it not worth the effort and money you're going to have to put into it? What will be the timeline to get all the permissions? to build? to buy all necessary equipment (stoves, refrigerators, beds, linens, alarm system, lamps, etc etc ad nauseum...
All I can say is, do it only after interviewing a lot of people about it. Even in the USA most businesses fail. Here I think it's all the more likely to not even get off the ground. Look at some youtube videos about starting a business here. Now, I know some of those I've seen are ones where people did not do their due diligence then blamed their problems on Costa Rica. Stupid people who went into it with eyes closed. Don't be stupid. Do your due diligence before starting!
I will tell you that if I were just retiring, I'd not want a full time job dealing with government and construction and business bureaucracy here. Read on these forums how even just building a house is a giant undertaking that many do not recommend. (I personally was lucky; it was very easy and all went well with building my little house. We had a trustworthy and reliable guy. But many people have nightmare stories. It is relatively easy here in San Ramon. Much harder at the beach, I do believe.)
Like I said, first live here 6 months.
You've already waited 15 years, why not live here a while first, renting, and use that time to research and get a handle on how it will be to build a hotel or apartment building there?
First rule of living in Costa Rica applies here:
DON'T BE IN A HURRY!
(Just my 2 colones.)
p.s. Do you or your dad speak fluent Spanish? If not, then I double down on the idea of NOT doing this project! If you do, I'd still warn you against it though, at least not until after you are here 6 months to a year.
SamRamon, has presented you with the good information you really will need.
Just applying for water for your project will be daunting. And getting your banking issues may also be a major concern. Tamarindo is one of the most expensive parts of the country.
You should read the 'rules and regs' or living here, if you haven't already.
If you haven't been here for many years, I suggest you should visit again before making this move and see what life here has to offer you and at what expense.
Realize too, that you can't legally perform physical work, even by selling real estate
I'm sorry, but I think you really are 'out of your depth' unless you have $$$$$$$'s at your disposal.
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