Ecuador
Real Estate Archive XXI
Updated July, 23 2005
By
Gary Scott
To help you get a feel of Ecuador
real estate we have posted this special archive that lists many of the hundreds
of messages we have shared with our readers about Ecuador real estate this decade.
Here is another message from
eClub advisor Andres Cordova showing how incredible opportunity is opening in
Ecuador.
"Dear Gary:
I believe we may have come across
a very interesting investment possibility. How about owning 84.4% of a $27.3 million
Dollar in assets company, for $4.3million? (the net worth of the company is of
$16.6 million, if we take into account its current debts)
Out of the $4.3 million required
to purchase the farm, $2 million would directly go towards a capital increase
in the company during this year, and$1 million for a capital increase next year.
So the actual price to be paid outside, so to speak, for the ownership of 84.4%
of the shares of the company is of $1.3 million, the rest goes into the company.
It is a company founded in 1979,
which has 10.700 hectares (26.429 acres).Its in the African palm oil business.
It appears to have some processing facilities too.
According to an audit by Price
Waterhouse Coopers, the farms average productivity per hectare was above that
of the rest of the Country.
It appears that a considerable
percentage of the planted area, which I think accounts for half of the land they
own, is about to begin production.
This company was part of a large
conglomerate here. The farm supplied palm oil to processing plants and manufacturing
companies within the conglomerate. When the conglomerate was sold to foreign ownership
( a recent event) the until-then owners of the conglomerate compensated the manager
of many years by giving him the farm, for it appears that he had made them millions.
The farm is in need of a raise
in capital, and because of this and of the above stated, the current owner would
be willing to part with a majority stock, if somebody invests in the farm. This
investment will allow the farm to grow and prosper and he does not have the money
right now, so his 24%will be much more valuable in the future, if this investment
is made.
It is a large, well known company
here. Apparently the 10.700 hectares have road facilities and good infrastructure.
According to financial projections
of the company, taking into consideration the payment of its debt in a short six
years, important profits should begin by 2005, with huge leaps in profits from
there on.
By 2008 the net profits before
taxes are projected to be $4.4 million, with profits of $8.9, $13.4, $18.3, $23.75,
$29.4, $35.5 and $42 million, in2009, 2010, 1011, 2012, 2013, 2014, and 2015,
respectively.
Of course, this is what the company
predicts, but if there is a hint of truth, it seems like a very worthwhile endeavor.
I still have several questions
and doubts. The owner of the company is going to come by our offices this next
Monday and I we shall sort out a few things that are not yet clear to us.
If any interest should warrant
it, we would do a thorough investigation and report. An independent auditor may
be hired. The would be owner may come or send somebody to inspect things.
In any case, should the elements
we are managing be correct, it would be a very interesting and rare opportunity.
Let me know what you think.
Andrés"
There are numerous deals like
this in Ecuador. Tomorrow I'll show you one with even greater potential! But they
do not come free. For every ten deals presented, maybe only one will work and
only after thorough investigation of all ten! However for those who are looking
for adventure, an exotic lifestyle at bargain basement prices and really outstanding
profit potential, Ecuador is a place to be. Ecuador real estate makes sense.
Learn more about Ecuador real estate and palm
oil
We have continual Ecuador
real estate tours.
I hope to see you in Ecuador. Until then, good
investing!
Gary
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