Investment Advisor

Danny W said:

So far I have learned about 2 attractive investments opportunities in the DR: Central Bank cds and ANOECA. If I understand correctly, the Central Bank cs, though not insured, are safe but subject to the dollar/peso fluctuation. And ANOECA, though dealsing in dollars as well as pesos, is more speculative, especially for a retirement investment.

Can someone recommend a financial advisor who can counsel me on good retirement investments in the DR?

thanks - D

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Banco Central is unlikely to disappear like most any other private bank could... unless this island finds the same faith Atlantis allegedly did.
Yet, your investments there may depend on the grace of political swings.

Private investment companies here supposedly make simple investments (secured loans, currency exchange and/or income Real Estate investments) yet, they are limited to next to nothing as to liability. The owners could make bad investment choices, become victims of fraud or just ruin the company fraudulently and/or simply run off with part or all the money.

A local alternative here may be to build or acquire some income generating Real Estate and run it your self (or at least oversee the operation very closely). There you know where your money is. On the other hand, you may (at least at first) not have sufficient experience on how to proceed and where to invest and where not and may either have to spend some considerable amount of time exploring at your cost and without generating income at first.



... J-D.

There is a lot of money being made in the DR, and thus TO be made to.
However, as an outsider (not born here, recently arrived with no or little social network) most "opportunities" are not made accessible to.

I think one of the few "investments" available to foreigners or returning Dominicans is indeed income producing Real Estate, as long as the prospect has the time and patience to explore the situation thoroughly and only buy at sub market bottom prices or build or have built at a "local's market price" and also has the will and energy to run the income producing operations and supervision of maintenance themselves.

While, as a person living here, I would love to be able to encourage to invest their money here in other instruments, I feel that the returns offered on CDs and other deposits are too low when taking into consideration the exchange risks and way too low in USD taking into account the liquidity and political risks.
I would also be very reticent to consider entrusting life savings to a private company which can disappear virtually over night.

Always keep in mind other options, at least as a reference mark, like the fact that one can currently get up to over 7% returns on CDs in some European banks(!), with very limited risk, virtually no work, no tenant problems, no maintenance cost.

... J-D.

I know the company ANOECA quite well along with the owner. I also know many investors with this company and have never heard anything negative about either their investments or the company.

As for real estate - it should be part of your investment mix but not all of it. Never rely on only one thing for your retirement income!

Real estate investing here is full of roadblocks, issues and potential problems. Always work with someone recommended from various sources. Check and double check everything, don't take anything for granted. Real estate here is not like at home!

You can start with the Real Estate professionals here on DR1!!!! They are a good source of information, come highly recommended and are in the know.

I am thinking that now might be a good time to hold off on real estate investments considering that we are likely in the beginning stages of a world wide real estate recession. It is good to know however that there are still some opportunities for positive cash flow on investment property in the DR. I used to have a lot of investment rental property in the US and did really well on it. It was when properties got so expensive that they no longer cash flowed and I got into quickly appreciating beach houses that the trouble began. Wish I knew then what I know now......

J D Sauser said:

There is a lot of money being made in the DR, and thus TO be made to.
However, as an outsider (not born here, recently arrived with no or little social network) most "opportunities" are not made accessible to.

I think one of the few "investments" available to foreigners or returning Dominicans is indeed income producing Real Estate, as long as the prospect has the time and patience to explore the situation thoroughly and only buy at sub market bottom prices or build or have built at a "local's market price" and also has the will and energy to run the income producing operations and supervision of maintenance themselves.

While, as a person living here, I would love to be able to encourage to invest their money here in other instruments, I feel that the returns offered on CDs and other deposits are too low when taking into consideration the exchange risks and way too low in USD taking into account the liquidity and political risks.
I would also be very reticent to consider entrusting life savings to a private company which can disappear virtually over night.

Always keep in mind other options, at least as a reference mark, like the fact that one can currently get up to over 7% returns on CDs in some European banks(!), with very limited risk, virtually no work, no tenant problems, no maintenance cost.

... J-D.

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J.D. how can you open a cd in an European bank? can you deposit in dollars or you need to exchange dollars to euros? thanks

Florida Cracker said:

I am thinking that now might be a good time to hold off on real estate investments considering that we are likely in the beginning stages of a world wide real estate recession. It is good to know however that there are still some opportunities for positive cash flow on investment property in the DR. I used to have a lot of investment rental property in the US and did really well on it. It was when properties got so expensive that they no longer cash flowed and I got into quickly appreciating beach houses that the trouble began. Wish I knew then what I know now......

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"hold off on real estate investments" !!!!! This is the best time to buy real estate in decades.
Want a sound retirement plan? park 50 to 70% of your investment funds into US income properties, preferable multi family or commercial.

Lucille said:

J.D. how can you open a cd in an European bank? can you deposit in dollars or you need to exchange dollars to euros? thanks

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First Lucille, let me be clear that it is not my advise to anybody to buy this or that or invest here or there. My post above was more intended to remind reader to look around at the many posibilities available globally and to compare them to local options.

Some banks in Spain are offering these returns on CD's. You may want to check or search the net for online-banks for even better returns.
I don't know that you could open such an account online though (without personally showing), however Europe offers banking to non resident aliens.
To the contrary than in the US, in Europe it is fairly easy to most everybody to bank in several common currencies like the EUR, USD, GBP and CHF. Those who have done so in Euros have run a pretty good bet until recently when compared to the US Dollar and even the British Pound. Currency risk is something one has to be very much aware of and it may be a good idea to consider placing deposits several main currencies in order to hedge against swings.
You should aslo educate yourself about deposit insurance in each EU country before assuming it that it is equal or similar to your country before you invest any monies.

As "planner" reminded in her post above, most any investment should only be part of a diversified strategy.

I hope I could answer your questions... J-D.

gamana said:

"hold off on real estate investments" !!!!! This is the best time to buy real estate in decades.
Want a sound retirement plan? park 50 to 70% of your investment funds into US income properties, preferable multi family or commercial.

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Here in Fl, I flagged 6 properties in January that I thought were excellent deals. They are all sold. Now however, there are 5 more properties available that make the January deals look very pricey and only one is under contract. Until this phenomenon reverses, I'll be on the sidelines. Prices here are still too high in many cases for positive cash flow on multi families in my opinion. With the difficulties in financing right now, I think that demand will slow further before it picks up. Perhaps things are different in the DR, but it appears to me that Caribbean property is behind the curve as far as deflation goes, so I will be taking a wait and see approach.

Lucille said:

J.D. how can you open a cd in an European bank? can you deposit in dollars or you need to exchange dollars to euros? thanks

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Everbank offers worldwide CD's. You choose to denominate your deposit in whatever currency you like, then buy a CD at the prevailing rate of that country. If you have dollars and are betting that the dollar will fall against the currency of your choice, you can add the Dollar depreciation to the yield on your cd and do very well.

https://www.everbank.com/

Robert added:

I suggest you get the people that are having problems to post all the details, facts etc etc. Until then, it's just unsubstantiated gossip.

I haven't heard a bad thing about Alberto's operation and I know a few people that have made good money over the years with him, that I can substantiate.

Investment options

When following closely the "events" of financial giants going belly up in the USA and worldwide, I wonder if the alleged "secure investments" outside the DR hold water... Lots of people lost their 401K's, GIC's etc overnight. Even real estate in the US is getting hit hard with homeowners walking away from their properties and tenants behind on the rent payments.

I would invest as follows;

1. Keep a fair amount of funds abroad. Choose a risk free bank account.
2. Apply for a 36 month term at Banco Central, DR. Interest is 18%.
3. Aquire a residence in the DR at a decent area (don't go overboard)
4. Avoid private finance houses in the DR. The risk is too big.
5. Stash a nice chunk of cash in a safe deposit box, outside the DR.

Georgios

It is always best to be wary - research everything. There are no "advisors" here, no one is regulated or watched over. You have to be very very careful.

And everything needs to be geared to your particular circumstances and needs. NO blanket advice will work for everyone nor should it.

J-D - will send you a pm.

J D Sauser said:

Robert added:

I suggest you get the people that are having problems to post all the details, facts etc etc. Until then, it's just unsubstantiated gossip.

I haven't heard a bad thing about Alberto's operation and I know a few people that have made good money over the years with him, that I can substantiate.

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I respect your decision Robert, however let me just remind you, "planner" and the readers that my post was in response to somebody stating that they had never heard anything... I did hear and from sources which claim to be affected directly, so I think it was nothing but equitable to post in response, but withholding any names on either side.
I think however, that it is adventurous at best to expect people to lay out their financial dealings on this public Forum or their issues with a particular "investment firm" and I also would be surprised that it would be regarded by you as in the interest of this Forum for them to debate them here... at least that's what it would seem from previous eliminations of posts regarding this very subject.

I rest my case and my apologies to anyone who may have felt offended by the post even though this would never have been my intention.
Thanks! ... J-D.

J D Sauser said:

which claim to be affected directly....

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My point exactly...

Until those claims can be substantiated or those people post their issues, then it's just worthless gossip.

J D Sauser said:

Robert added:

I suggest you get the people that are having problems to post all the details, facts etc etc. Until then, it's just unsubstantiated gossip.

I haven't heard a bad thing about Alberto's operation and I know a few people that have made good money over the years with him, that I can substantiate.

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Robert,
Over the years I have been a regular & (I am lead to believe by others) useful contributor to DR1. I could only see helpful advice in J-D Sausers's comments & am surprised that you saw fit to delete them.

If I put some factual information up on this subject, would my FACTS be allowed to remain without being deleted? ~ Grahame.

BushBaby said:

If I put some factual information up on this subject, would my FACTS be allowed to remain without being deleted? ~ Grahame.

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No problem. If you have personally had issues and post the facts.
If at any time it starts taking the tone of "vendetta" then it will be deleted.

Robert said:

I know a few people that have made good money over the years with him

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Yes, I was one - great rate of interest, always paid on time.

Robert said:

If you have personally had issues and post the facts.

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My personal experience was late payment of capital after certificate expired. Not sure if I should go into details?

Robert said:

No problem. If you have personally had issues and post the facts.
If at any time it starts taking the tone of "vendetta" then it will be deleted.

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Interesting that you should introduce the word "Vendetta" Robert especially here in public. I would have thought that would be better done by PM. However, as you HAVE raised it, may I ask you to now tell me WHY you think I would have cause for a vedetta?
Have you probably been misinformed as to my intentions on this subject?
Are you trying to cause doubts to others as to my credibility on this subject?

Check my history & you will not find I have EVER had a vendetta against anyone, even the person who used to malign me so much here. Healthy discussions maybe, disagreements - sure. BUT Vendettas?? ............ I don't have the time for that B/S. As you saw from the tournament nearly two weeks ago, I should be out practicng my golf game rather than giving honest, factual answers on DR1!:cheeky: :surprised!

Your response will obviously determine my manner of posting The 'Issues' I have experienced personally with Alberto of Anoeca. ~ Grahame

BushBaby said:

Interesting that you should introduce the word "Vendetta" Robert especially here in public. I would have thought that would be better done by PM. However, as you HAVE raised it, may I ask you to now tell me WHY you think I would have cause for a vedetta?
Have you probably been misinformed as to my intentions on this subject?
Are you trying to cause doubts to others as to my credibility on this subject?

Check my history & you will not find I have EVER had a vendetta against anyone, even the person who used to malign me so much here. Healthy discussions maybe, disagreements - sure. BUT Vendettas?? ............ I don't have the time for that B/S. As you saw from the tournament nearly two weeks ago, I should be out practicng my golf game rather than giving honest, factual answers on DR1!:cheeky: :surprised!

Your response will obviously determine my manner of posting The 'Issues' I have experienced personally with Alberto of Anoeca. ~ Grahame

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I never accused you of a vendetta, I just pointed out that if posts started leaning that way they would be deleted. That goes for everyone, so don't think you have been singled out or special