Invest Panama IncAbout Invest Panama
Most other property investment companies are essentially sales representatives for a specific development, or multiple developments. They make their profit by selling property to you. We do not; we make our money by investing wisely in each and every property, and managing these investments effectively.
How we operate
- We create a new company (newco) in which the Investor and Invest Panama Inc own 50% each.
- The investor places the investment of 30% of the purchase price as a loan to the newco.
- We find the best possible investment property available in Panama, with regards to price, income potential and capital growth.
- Invest Panama Inc puts in the rest of the capital required to purchase the property (as a loan to newco.). This now makes us a cash purchaser. This greatly speeds up the purchase process (getting mortgages in Panama is slow and cumbersome, especially for investment properties).
- As we are a cash buyer, this inevitably puts us in a much better bargaining position, typically discounts of 5-10% can be negotiated for cash purchases.
- We get the property surveyed by a reputable qualified local surveyor.
- If the survey is acceptable, the property is purchased and title registered in the name of newco.
- We arrange any maintenance and refurbishment works required, we style the property as required and furnish it appropriately.
- We then manage the whole tenant process, including property maintenance, getting and vetting tenants, drawing up contracts, collecting the rent, dealing with tenant issues, etc.
- Once the property is tenanted, we secure a mortgage on this property, and Invest Panama is repaid their capital.
- On an annual basis, the accounts for the property are drawn up, and all the profits are paid out 50/50 between the investor and Invest Panama Inc.
- When the time is right to sell the property, we organise everything, sell the property, pay off the mortgage, repay the initial loan to the investor, and split the profits 50/50.
As you can see from the above, if the investment doesn't make any money, we do all the work and don't get paid a cent for it. It is absolutely essential to us that the investment makes money for you, otherwise we make nothing.