The Smart Panama Investor

Here are 8 great attributes to any smart Panama investor. Coming to know a lot of these folks, and with many of them as personal friends, it can be helpful to look at the commonalities of those who truly succeed in the Panama real estate market, to delineate them from everyone else.

Buying real estate in Panama can be frustrating, there’s no doubt about it, and everyone, whether they’re a smart investor or not, thinks they want something "special". In reality though, with more and more competition in the market, that "special" deal is getting harder and harder to find.

Investment opportunities that are "special" most often are not on the market for long because they sell so quickly. Sometimes they’re sold through a broker but more often than not, they’re sold direct (from seller to buyer): the listing not even making an appearance on the public market.

The Panama real estate market today is commonly referred to (by me) as the Wild Wild West. It’s an era where modern day gunfighters, outlaws, and desperados prey on the weak. It’s an era where things like romance, misfortune, and legends have a way of making dreams (and sometimes breaking them). But to the smart Panama investor, there are ways to differentiate between the real and the far-fetched; between a good investment and a bad one.

1. Smart Panama investors know the importance of patience. They are not in any hurry to make an investment. While this doesn’t mean they procrastinate or, delay the buying process, it does mean that when the ideal investment happens arise, they are able to jump on it like a real estate puma. Sometimes this means buying a last minute flight. Sometimes it means canceling a last minute birthday party.

2. Smart Panama investors know how to smell out a deal. Much like bargain shopping, they know that in such a ground-level real estate market, an amazing deal does indeed exist! They seek investments not in the mainstream flow, but rather off the public radar. Oftentimes, these back road deals are the result of gossip from friends or acquaintances: smart Panama investors know how to socialize and work their way into the so-called Panama grapevine.

3. Smart Panama investors rarely waste their time; they let professionals do the dirty work. They are not stupid in searching for that "special" deal in that they are not interested in knocking door to door (or land owner to land owner) to ask "if it’s for sale". They find a reliable real estate agent to do this hunting for them, and concentrate their time and money on other things such as their vacation.

4. Smart Panama investors know how to find the right agent. They research Panama real estate agencies and ask to speak with managers in order to work with top sellers. Once they find those top sellers, they research their previous clients. These top sellers are often the most motivated and the most knowledgeable, thus ahead of the trend in terms of new product.

5. Smart Panama investors never pay the full asking price. They practice the same negotiating techniques they might use at a flea market or a used car dealership. Whether this means asking for a discount up front or presenting various pricing proposals, the smart Panama investor knows that everyone in this country—from the rural farmer selling his land, to the large developer with a project—is, at some point or another, willing to compromise.

6. Smart Panama investors are always willing to walk away from a deal. They know the value of a good deal just as much as they know the danger of getting emotionally tied into a bad one. They never invest in something that they cannot afford to lose and they rarely let emotion influence their decisions.

7. Smart Panama investors can read between the lines. They have a sense of why the investment opportunity has presented itself and often size up these parameters in order to use them to their advantage. They are able to sense if the actual owner of the property has died or is in desperate need of cash, thus coming up with a calculated offer significantly less than the asking price.

8. Smart Panama investors have a vision and can see opportunities which others cannot. If the investment was a straightforward one, someone would have already made it. They are able to combine research and experience with creativity and imagination to predict the outcome of an investment. "No great discovery was ever made without a bold guess." – Isaac Newton.

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