A lot has been written lately about Coronavirus, perhaps even to the extent that most of us are well aware of where it came from, how it spreads, which countries present the most cases and what can be done to contain it. Yet one main question seems to lie in the air and that’s “how long with the outbreak last?”
It is only normal that as the health crisis continues and questions remain unresolved, the economic consequences that some parts of the world are experiencing also deepen and generate further turmoil.
Concentrating on the immediateness of something like this is appropriate, governments should be tackling the virus the way they are because nothing is more important than preserving human life, nothing. However, counselors and investors are forced to always have a double optic on current events. Their focus can’t just be on what’s happening today but also on what will happen tomorrow.
With this in mind, we must realize that another normal fact, as history has recently shown us, is that everything will get back to normal when the disease plateaus and the virus starts the slow process of becoming another sad episode just like SARS, MERS and others alike.
What we have in the interim, whether it’s a few weeks like Chinese experts seem to think, or several months like more conservative ones believe, is sheer and pristine opportunity. In the case of Colombia, a sudden and most surely temporary devaluation of currency that as of today gives any international investor holding USD or EUR a 30 to 40% higher purchasing power, or what’s equal but explained otherwise: a 30 to 40% discount.
With all this confusion, what you probably haven’t had chance to read is the latest report from Colombia’s Central Bank (Banco de la República), which was released a few weeks ago showing, once again, quite encouraging results. In 2019 Colombia had another positive year in terms of foreign direct investment, with more than 10 billion dollars incoming foreign funds registered, which is a 19.2% increase in comparison to the previous year (2018). These are levels not seen since 2015, when the figure surpassed 11 billion dollars.
This is not news to us, but simply the reassurance of the path that we Colombians decided to continue to follow when we elected president Duque as our leader back in August 2018. A path distinguished by good old-fashioned capitalism, stimulation of foreign investment, political stability, and support for key industries for the Colombian economy such as construction, tourism and agriculture. This, in conjunction with a continuously rising middle class, seems to be the flawless recipe for the country to continue growing well above the region’s average, according to experts.
At Gutierrez Group we like to think that we contribute to this noteworthy figure, and this new year won’t be an exception. In fact, besides the (now highly consolidated and successfully proven) investment alternatives offered in the previous years, which are still available this year, we are offering a new set of opportunities during 2020, including a few new exclusive Real Estate ventures.
So, what are these opportunities and how can you get involved? Scroll down to learn more…
7,000+ acres planted (and counting) plus our very own Timber Port.
With eight ongoing projects fully sold out, which account for a combined purchased area of 23,000+ acres, a planted area of 2,800+ acres, and more than 3.3 million trees planted, Colombian Timber remains one of our group’s most promising, not to mention rewarding, opportunities.
In January 2020, we launched our latest crowdfunded project, Colombian Timber 9, seeking to raise USD $600,000 this year. Investors are offered the opportunity to become owners of the project, with a minimum investment as low as 150 million pesos (Only USD $38,000 at the current exchange rate), aiming at a 16% annual return and a term of only 7 years, a surprisingly short timeframe for a forestry investment. In addition, later this year we’ll be offering an exclusive opportunity to participate in the development of the region’s only Timber Port, where all Colombian Timber current investors will have a priority seat reserved.
Contact us here to save your place in our new crowdfunded development. To learn more about this project visit us at www.colombiantimber.com or contact us to receive a digital copy of our prospectus.
FACTORING WITH JUDGMENTS FROM THE COLOMBIAN GOVERNMENT
Possibly the last year of this remarkably secure product.
In 2013 we started financing the government. We did it in the form of buying judgments, settlements or indemnifications that the government was required to pay to individuals who suffered a damage from the country’s internal conflict. These settlements were available to be purchased because the government took 2 to 3 years to pay them, and the winning claimants were interested in collecting right away, especially because it took them 5 to 8 years to win the claim in the first place. Hence, factoring, with public debt.
Today, the scenario has changed. While the government still owes a lot of these judgments (they owe us a couple hundred), new judgments are rarely initiated these days due to the end of the conflict (thank God!) back in late 2016. Furthermore, motivated by assuming a lesser interest rate on this type of debt (the government today assumes a 20%+ rate as of the tenth month of delay), the government will most likely end up issuing treasury bills to obtain less expensive finance, and pay off most of this debt . This would imply collecting a bunch of judgments but, sadly, also the end of this outstanding, highly secure product.
This said, this seems to be the very last year of availability for this incomparably safe product. If you are interested in investing before it is officially over, and securing a 10% to 13% annual return, contact us here to receive info and get on board.
MORTGAGE AND TAXI LOANS
Bank-like lending at its finest.
Interested in cash-flow? We’ve got you covered. While the two previous opportunities do not generate any type of steady income, both our Mortgage and Taxi Lending operations do.
In 2019 we escalated both products to a point where we placed a combined average of half a million dollars per month. This year, we’re ready to take it even further.
This is an ideal opportunity for those interested in increasing their inflow of cash in Colombia, at rates ranging from 10% to 12% per year, with a secure asset backing up the loan and a highly devoted team that makes this an effortless, completely turnkey solution for our clients.
If interested in any of these alternatives feel free to reach out to us here.
These four investment opportunities were methodically structured and put into action several years ago. They have been tested, year after year, and successfully provide consistent, above-average returns for our clients. Today, besides these alternatives, we’re proud to also offer a set of exclusive, tailored Real Estate ventures, as you’ll see below.
AirBnb rentals + Student Housing in vibrant Laureles.
This is a five-story mixed development in Laureles, one of today’s most desired neighborhoods by tourists and expats. The building, currently under construction, is located just in front of UPB University, one of the most important private colleges in Medellin. It features five floors of small, tastefully designed studios. Most of the units of the project were sold right after launching it back in July 2019. However, we did keep a couple of units to be sold during 2020. If interested in grabbing one of them, feel free to reach out to Daniel Gutierrez, the manager of the project, directly here.
Building a privileged community in one of Colombia’s most beautiful lakeside towns.
Few people know this, but our family (or more precisely, our father) was a precursor to what is now Guatapé, one of Colombia’s most beautiful towns, featuring a beautiful lake and a world-class, breathtaking mass of rock, where you’ll find one of the most beautiful views in the country.
Guatape’s neighboring town of el Peñol was flooded in the 70’s by EPM, Medellin’s public electric power company. Back then, our father was in charge of relocating the inhabitants of the town to newly designated areas.
Since then, our family’s involvement and interest in the region has only grown, year after year. We have sold countless properties, including a striking parcel where Luxe by The Charlee, the only high-end (yet unfinished) development, is located. We have seen many different projects being built. However, we’re yet to see a truly unique, high-quality development take place, one that distinguishes itself by offering what our demanding foreign clientele is used to in other parts of the world.
This is precisely what we aim to accomplish with Nükâk. This is a project designed to create a community focused on lifestyle, featuring 20+ lots with or without a built-in house, 50+ apartments, a hotel and a modern boat marina.
The project will be sold in different stages, starting in the second quarter of 2020. If you are interested in participating, contact our project manager here.
Mixed development in Alejandría neighborhood, right in the heart of El Poblado, Medellin.
With 4 floors of commercial space and 9 floors of mixed residential use, featuring 18 apartments for daily or monthly rentals, this project is set to break ground in late 2020. It’s located in El Poblado, walking distance to the Golden Mile, the city’s most important financial and business district, and Provenza, the most vibrant nightlife district of Medellin.
Fund raising for this development is projected to start after the licensing stage, during the fourth quarter of 2020. Investors will receive individual deeds for their purchases.
Impeccable location for the liveliest tourists.
In the very best area of the city for those interested in staying right in the middle of the action, Mr. Odd will be a 32-suite hotel right in vibrant Provenza, close to the best restaurants, bars and nightlife sites. An additional 180 m2 (1,938 ft2) space will be available for an exclusive restaurant or venue interested in this prime location.
The project will be operated by our growing Property Management Division, adding to the existing portfolio of 50+ properties. Fund raising is expected to start in early 2021. If you’re interested in this, or any of our other projects, contact us here to hold your space.
Give us a call, or send an email, to be a part of our exciting, limited-opportunity investments and learn more about the successful track records of our existing projects. Contact us at your earliest convenience to be sure you don’t miss out. With so many options we certainly have something that will fit your needs. We look forward to working with you and welcoming you into the Gutierrez Family Group in 2020.
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