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Asset Protection Using Offshore Banks in Multiple JurisdictionsComparison of Offshore Banking JurisdictionsOffshore Banking Money TrailAsset Protection Using Offshore Banks in Multiple JurisdictionsAsset Protection Using Offshore Banks in Multiple JurisdictionsAsset Protection Using Offshore Banks in Multiple JurisdictionsWhat is a Qualified Intermediary?FDIC Admits Emergency Bailout May Be NecessarySecond Passport and Second Citizenship ProgramsForex Trading Business Bank Account: Panama and Ecuador Weakest and Strongest USA Banks & Thrifts 08/11/08FDIC Facts and Figures – Not Encouraging 08/14/08Ecuador Trust Account BankingOffshore Banking Money TrailAnonymous No-Name Debit ATM CardAsset Protection Using Offshore Banks in Multiple JurisdictionsComparison of Offshore Banking JurisdictionsPanama New Immigration Law: Effective 8/26/08One Compelling Argument to Move Assets Offshore – LawsuitsUBS Swiss Bank Closing Accounts of AmericansWhat is a Qualified Intermediary?Second Passport and Second Citizenship ProgramsPanama New Immigration Law: Effective 8/26/08Panama New Immigration Law: Effective 8/26/08Second Passport and Second Citizenship ProgramsWhy Choose Guatemala?Ecuador BankingEcuador Bank AccountEcuador Trust Account BankingForex Trading Business Bank Account: Panama and Ecuador Ecuador Country ProfileOffshore Banking Money TrailFDIC Admits Emergency Bailout May Be NecessaryWhat Will You Do if the FDIC Fails?FDIC Facts and Figures – Not Encouraging 08/14/08Need an Economic Reason to Leave the USAUS Banks Fail, Depositors Take LossesUBS Swiss Bank Closing Accounts of Americans
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Panama Lease Option – This is a contract which allows you rent or lease a commercial or residential property for a period of time with an option to buy the property incorporated into the agreement. The lease option allows you to live in the property and buy it if you see fit to execute such a purchase down the road. Useful in situations where you are not sure the market is going to continue to rise in price. With the lease option you do not take any significant losses if the market turns down yet if the market continues to rise your price is already locked in with the option strike price. This is a mostly risk free way to buy real estate. Remember a strong bull market in real estate like what is currently taking place in Panama is like a game of musical chairs, the longer the game goes on the more people that get shut out. Sooner or later someone is going to get stuck having bought at the high peak of the Panama market and only able to sell at a loss. Lease options protect you from taking the loss if the market turns yet you can live in the property while you watch the market with your money collecting interest in the bank or other investments.
Panama Real Estate Purchase Options – This type of option is like the lease option except the lease component is not included. You do not have the possession or control of the Panama property; you just have the contractual right to acquire the property at a certain price for a period of time. Generally the owner of the property receives some compensation for generating a lease option since it ties up his property preventing it from being sold to someone else during the term of the option. If you never execute the option it just expires and the owner is free to then sell the property.
Option Profit Considerations – The best way to get a high ROI (Return on Investment) is to sell something you do not own. If you place an option on a property and sell it for a price $50,000 in excess of the strike price you made $50,000 and if the option cost you $5,000 your ROI is 1000% which is quite high. If you bought a property for $200,000 and sold it for $250,000 the ROI would be 25%. Of course I am being over simplified not taking into account any time frames which would effect the return. Options can be a rewarding may to earn money.
Strike Price – This is the price that you will execute your option at. Your strike price needs to be under the market at the time you execute the option in order for you to make a profit.
Lease Price – This is what you will be paying to lease the property if a lease is involved with the option. Sometimes part or the entire lease price is applied towards the purchase price. For example if your option strike price was $150,000 it was a one year lease option with all of the lease payments applied towards the option strike price and the lease was $2,000 per month at the end of a year the strike price would be reduced by $24,000 ($2,000 a month times 12) to $126,000. This way the money spent on the lease is not entirely wasted.
Term – This is the duration period for the option and or lease.
Transferability – We want the lease option or the option to assignable or transferable to another person. You might be able to make a gain by selling the option itself to someone without the need to ever close on the sale of the real estate.
Panama Lease Option Market – The sophisticated real estate people in Panama do know and understand what a lease option is. They will negotiate such a situation actively. As the Panama market continues to expand the use of options can be a good way to handle real estate investments with a minimum of risk incase the market turns down suddenly. There are a lot of speculators wishing to flip Panama real estate and these are a lot of the buyers of the newly constructed and soon to be constructed condos. The experienced builders are only taking 30% down payments and are only selling to people who wish to reside in the condo, end users if you will. A lot of people feel many of these projects will never move forward. Real estate options protect you in a dropping market and let you make profits in a rising market. Options also let you control numerous amounts of property compared to actually buying the property. Right now the developers of the new condos would probably not take an option deal. Wait until the units that are going to complete get completed and then cut the deals with those who are the speculators. There should be a generous amount of good deals around. In the meantime lease options on the older properties are a good prospect. The older properties are not in high demand because of the abundance of newer inventory around. In fact the older properties are built better, more luxurious and better for an end user. A flipper-speculator would do much better with the newer condos. The flipper-speculator is basically trying to sell to another investor indicating that there will be more rising prices to come. Of course if he really felt this to be the truth he would not sell would he? With the newer condos the flipper puts a 10% down payment and gets the right to buy the property at completion. He has to abide by a schedule of payments over time. These payments would best be done based on the construction progress but the builders are generally smarter than the investors so it is based on time not construction progress. If the investor fails to make a payment according to schedule he loses his rights to the condo and his payments. In a sense what the flipper-speculator is doing is very much like an option. Of course the flipper wants to sell and take a gain before he has to make very many payments and of course the longer one waits the higher the prices of the new condos should be, theoretically anyway.
Panama Legal Options – If you wish us to structure your real estate option be it a lease or not we will be happy to assist. We like to think we can improve your deal enough to pay for our services several times over. Contact us for a consultation.
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