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Investor Alert? Move to Cuba, Marry a Senorita, and Buy Flip Homes for Free!

Investor Alert? Move to Cuba, Marry a Senorita, and Buy Flip Homes for Free!
by D. Sidney Potter / December 6th, 2015

If there’s one thing that conservative Democrats can rejoice about,
given the less than stellar reviews of their point person who now
occupies 1600 Pennsylvania Avenue, rent free, is that the ‘shout-out’
heard around the world would have to be President Obama’s “opening” with
Cuba that occurred earlier this year.

The residual effect of this better than late coup d’état in terms of
international diplomacy, is that the opening with Cuba will somewhat
allow Americans in a roundabout way to buy investment real estate
without the red-tape that existed before, when that other young
President, with the initials JFK monogrammed on his luggage occupied the
White House. This diplomatic opening, has just about made it possible to
buy a single family residence and/or a similar type of investment
property, such as a duplex, small apartment complex, or perhaps a
similar income producing property, without the normal red-tape;
Communist or non-Communist state.

Make no mistake, this is a momentous occasion for small investors to
resort developers. The good news however (depending upon your
perspective), is that you won’t have to renounce your American
citizenship, move to Cuba, and shack up with a Cuban national in order
to buy an investment home.

Greenbacks in a Red Country

According to Yad Aguilar, CEO of Canada-based Point 2 Cuba, a company
that provides Cuban real estate expertise to international investors and
developers.

Many people have been planning ahead for this day. I can tell you that a
number of major American hotel companies have already spotted sites in
which they’re interested. I can tell you that I’ve already heard of a
750-slip marina under discussion. And I can tell you that, for American
travelers, the prices will be incredible… beautiful penthouse condos
will be going for as little as $200,000.

Although Mr. Aguilar may be a bit more optimistic then what jaded
investors are willing to fully embrace, here are the facts: Cuba is 220
miles south of Miami and is considered one of thy hottest real estate
‘buys’ in the world right now. However, most Americans and foreigners
are shut out of this potentially lucrative product due to existing
archaic laws still on the books. Namely, the Trading With the Enemy Act,
passed by the U.S. Congress in 1961. However, that’s not the case for
Cuban nationals.

Why? That’s because Fidel’s little brother, Raul Castro, in control of
Cuba since 2006, and to his business acumen, has become an ardent
pro-business advocate in a Communist country. More specifically, Raul is
allowing Cuban residents to buy and sell their own homes. This is the
new normal. So instead of a communist revolution, a real estate
revolution is occurring, of which has never happened in such volume
since Fidel took over the island country 54 years ago. At that time,
Fidel seized nearly all foreign owned real estate in Cuba, without so
much as a peso for the real estate.

The Real Estate Revolution and The New Normal: Cuban Style

Is this a new day in Cuban-American relations? Irrespective of the
politicos, the feeling since President Obama’s announcement is bullish
among investors. Here’s what those in the know are saying about the new
normal.

“Where Cuban tourism and residential development is concerned,” says
Point 2 Cuba’s Yad Aguilar, “the sky’s the limit. The opportunities are
certainly there. And American investors, resort developers, and high-end
residential developers are just waiting for the opportunity to rush in,
and fill the vacuum that’s been created over the past 54 years. For the
resort and residential sectors,” Aguilar added, “we think Cuba will
become a land of opportunity!”

To further support this optimism, Cuban-American real estate broker
Pablo Tacon, who opened a new office in Havana earlier this year,
called Cuba Tacon Inmobiliaria – it’s a bit more complicated than that.
How complicated? There are two different ways in which Cuba’s real
estate market functions; one for the locals, the other for outsiders.

Pablo tells the World Property Journal, “One market is called Permuta,
which is for Cuban Nationals only as the buyers and the sellers amongst
themselves, with the Permutaeros as agents; the other is for foreign
investors only with particular designated properties and intermediaries.”

Translation: If you have a stomach for international intrigue, versus
buying cookie cutter bull shit condos in Phoenix, AZ and would like a
little excitement in your life, then the Cuban housing market just might
be for you. And especially so, if you dig anything written by Ernest
Hemingway and prefer tequila shots over Pina Colados.

To be clear, because this is not for the faint of heart, Cuba’s way of
transacting real estate today is archaic, opaque and fragmented. Yet,
given the country’s natural beauty, its proximity to Florida and the
thawing political détente, vis-à-vis American Cuban relations, what’s
not to like about Cuba. In practical terms, and even with the unlikely
accession of Republican Marco Rubio to the White House, can one really
expect relations with Cuban to be nothing short of sunny days going
forward? Likely not.

What’s the takeaway: Expect Cuba to delivery kick ass investment returns
to property speculators worldwide over the immediate to near-term.

Marry a Cuban, Buy a Home?

According to World Property Journal, there is a back door way of buying
homes in Cuban, albeit it’s rather unorthodox.

Another example of how some non-American, non-Cuban investors are
skirting Cuban property purchase laws, involves the investor marrying a
Cuban woman and both beginning to live permanently in Cuba. The property
could be bought in the woman’s name. She would hold the title for life.
And if the two divorce, the property remains in the woman’s name. True
love would have to blossom and endear in this situation.1

Also according to World Property Journal, there are ways of entering the
Cuban market in a less salacious manner, all the while maintaining your
Christian values. So if you happen to be a frustrated, cash-loaded
American who desires to enter the Cuban real estate arena, you may be
technically hamstrung, based upon the aforementioned Trading With the
Enemy Act, passed during Kennedy’s first year in office.

Here’s the skinny: There plenty’s of opportunity for under-the-table
action involving Americans and foreigners.

For example, and according to World Property Journal, an American
investor could consider funneling funds to a Cuban resident friend in
Cuba to purchase properties and hold the title under the friend’s name.
Under this situational scenario, Raul Castro’s government – sometime in
the near future of course, would allow non-Cuban Americans to legally
buy real estate in Cuba with no restrictions attached. The risk, is that
such a move by Raul might be many years away, which would leave the
property in the Cuban friend’s name for an indeterminate period.

So, if you’re not risk adverse and all the latter sounds too much like a
Tom Clancy novel, wherein you think you’re headed for an ulcer, then go
ahead and live your Norman Rockwell life, in your safe little world, and
buy a nice modest rental, in a nondescript master planned community –
and completely ignore the contents of this article – and log into
Zillow.com to see what harmless and unobtrusive tract home deal awaits you.

“Cuba’s Next Revolution: Real Estate,” World Property Journal, August
14, 2015. []

Source: Investor Alert? Move to Cuba, Marry a Senorita, and Buy Flip
Homes for Free! | Dissident Voice –
dissidentvoice.org/2015/12/investor-alert-move-to-cuba-marry-a-senorita-and-buy-flip-homes-for-free/

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