The Beginning:

Well I guess it all started Sept 11. I was driving from Boca Chica to Sosua (5 hour drive) and when I arrived to my destination the maids came running out -- U.S no mas, U.S no mas. Not a clue what happened but after being pulled to the TV, well my life (and many others out there) changed too. To make a long story short, it drastically altered my travel plans for the next four month.

The week before my scheduled trip to Agadir (tickets in my hand, and till this day Air France has not refunded my money) we started bombing Afghanistan and I felt in prudent not to visit an Arab country (I'm also Jewish). So, were to go (I get itchy after a month home)? I felt I'd return to one of my favorite spots (and a good friend, Martin was there with his girlfriend) Cartagena, Colombia and enjoy a week of R&R :-). Iflew into Baranquilla and as usual Alvaro picked me up and the next morning off to Cartagena. Since I had been there a few month before, there was an apt I liked in Luquito and since it was low season I felt it would be all mine. Once we arrived the lady said she had just rented my favorite room but she had others (sorry, not acceptable). So, off we went on the apt hunt in Cartagena. First place Alvaro friend was not there to show us a cool apt (across from the casino) and up the block we went. Next stop was a building called Torre Centauro (three buildings down from the Hilton and across from the mammoth El Conquistador).

A lady just started to go up the elevator as we walked up the stairs and Alvaro waved her to stop. Her name was Mary and spoke perfect English. She showed me a unit and it was unacceptable and I told Alvaro let's go. She grabbed my hand quickly and said she had a real nice one to show me (why not show me this first, seemed she was the property manager and was obligated to show the others first -- a very, very, honest women).‹ Well the next was super and we talked price (she was tough but flexible -- low season) and said her husband would yell at her for such a cheap price (then I realized it was her unit) but okay. Well that was unit #503 and they lived in #502.‹ As she departed and saw my laptop she said I should meet her husband (Eddy) for he too was a computer and internet nut. So be it, how I met Mary and Eddy -- all by chance and any little thing different and this would have never transpired.

Over the next few days Eddie, Mary, and Sally (their daughter) become family and I explained what I did and Tsm. Eddy, a retired sailor (been to more places that I ever dreamed possible), loved it :-) and said he could help rent apt for Tsm and so began Eddy and the apt rentals. He got a contract (verbal) for #1003 and made the owners spiff it up to American standards and also got another verbal contract for a 2 bedroom across the street and he was in business (manages three units now, all super). Over time (we walked and talked alot and his love of women and knowledge of Cartagena was amazing -- but he just had open heart surgery and his glory days were over for a while (but boy, could he chat up the ladies). We had a ball together and over the week felt like a long lost friend (and his family).

---- BTW, Eddy speaks Spanish, German, and English and is originally from Belgium. His wife is from Iran and they constantly biker and argue but make a wonderful and competent team. She is precise, spendthrift, organized and great with money (to the last penny) while Eddy is a dreamer, spender and doer (never stops and always has a plan or something to do and loves to tinker, a kid at heart) -- computers is his latest craze with the internet. A GREAT COMBINATION! The family is retired (Eddy longshoreman pension and Mary sells jewelry when the cruise ships come in at one of the fancy shops in Laquito -- lot sof cute English speaking girls here too) ---

Eddy explained to me (they have been there for 15 years) how they actually saw the building (Torre Centauro, built when Batman was the rage, look at the building and you'll see why :-)) being built, day by day and were one of the first owners. Of course it was old drug money that built old Laquito and now those days had ended and the good times (he told me what Cartagena was like 10 years ago, oh my, better than old Cuba). Many of the present‹ owners (like 76 units) didn't live in the building and was full of renters. His goal was (and is) to restore the building to the glory days and hopefully find buyers and get rif of the dead-beat owners‹ (don't pay association fees, taxes,‹ etc) and new blood in. His wife was the the building administrator (important much later, since she had a current record of all bills and liens on each apt)‹ and so he knew all the details. And there was me :-).‹ Shit, I had just lost big $$$ in the market and well, maybe time to roll the dice and do something just for me (and Tsm?)

I looked at a few possible buys (and Martin showed me a few in the area, to get an idea of values) and had some long talks with Eddy and all the ins and outs.‹ Bottom line he said I could buy but not sure how. He showed me the penthouse (cool, but lots of work) and cheaper units (maybe some for as little as $25,000) and finally I saw a unit that rocked my socks. Two levels, three bedrooms and 3 bath plus office plus the living room had 100% panorama of the ocean (full length window) and comfy balcony -- very cool and with some TLC and maybe $10,000 in upgrades it could be awesome and a real home (for the curious, I'm paying Eddy as the general contractor and he is there 9 hours a day -- working and supervisng and hiring workers :-). I won't go into the details of remolding in Colombia, but it does take a special person and someone who knows where things are and how to find (and get rid of) competent workers. It is unbelievable.

I spent the next three days looking at the apt, making sure I really wanted to do this and eddy and I went over what it would cost to make it ì American standard.î‹ Moving a wall here, making a bigger window in the third bedroom, adding a new kitchen and A/C for each bedroom room (central air eats electricity and very, very expensive, as Martin told me) and repainting and new tiles etc etc. Colombians don't think or care about maintenance and if they want a switch or holder here they just break a tile and try and cover it -- Ooocchhh!!! I hate that and we realized what I wanted was a big, big project, but when done right would be one of the nicest apt in Laquuito. I said, let's do it!

Well we contacted the owner (Humberto, lived in a finca (farm) near Bogota and was one of the original investors and owners (meaning at one time was in the drug business) and I made an offer.‹ I started at $50,00 and he at $70,000 and we ended at $62,000.‹ I said I'd be back in two weeks with a deposit and we could meet and work out the details (and now the fun really begins).

The offer:

I decided to return in two weeks with a 10% deposit (sort of good faith) and carried $10,000.00 in cash (the supposed legal limit with declaring) and $5,000.00 in traveler checks. I figured if I got fingered I'd just tear up the traveler checks and I'd be legal.

Before I arrived I thought I'd do some research on the web. There was absolutely nothing about a non-Colombian buying property or a clue how do it. Next step was to call the consulates in the U.S, they should know? Wrong. Of the three people I actually got a chance to talk to (long holds, leave message, no answer) I got three opinions:

1.) No problem, buy it and you have a year to get a cedula (Colombian Id card) 2.) Can't be done unless you have a a cedula or a business visa (took a month and they also had to review it -- nope). Later Martin told me (he has a small legit cell phone import business in Cartagena) if you have a business it was easy to get a cedula. His secretary (Colombian, duh) just went down and registeered the business with his name and then he took his license in and got a cedula easily.
3.) As a foreigner you can't buy (bumer)

Well even my Colombian friends all had different opinions on this (and how to do it) and it became apparent I would just have to wing it and go through the motions and see what happens. Eddy told me a month before some Italians bought an apt in the building next store with no cedula or nada -- so it could be done, but how?

Well of to Colombia again. As usual customs in Baranquilla was a breeze and off to Cartagean again. Humberto was coming that weekend and my first meeting was pleasant (although he was never on time) and after a few days of both us good down to real business. The deal was basically $62,000 and I keep the master bed (later found frame was bug bitten and had to be thrown out) and the Sony TV (later found out speakers were blown out and needed to be replaced). He keeps the rest (eddy was relived, he hated his furniture) and the only other arguing point is I wanted the apt asap (and start working immediately). He threw in the deal had to be 100% done and paid for by Jan 15 and we argued back and forth how to pay him (Eddy and Mary going crazy here).

1.) Did he have an American bank -- NO
2.) Could he cash my traveler checks -- NO (even when I signed them, he couldn't cash them)
3.) Could I wire money to his Colombian account -- NO (only specific banks accept wire transfers from the U.S) and he didn't want attention (wonder why?)
4.) Could I pay him later in $10,000 partials (legal limit, remember) -- N0 5.) Did he have a friend in the U.S I got sent the money too -- NO

At the end of this I just agreed it was my problem to get him the money if he agreed to let us have the aptNOW! He agreed. Bottom line was if we improved the place and for some reason I didn't pay him off he got a better place back. Next problem was we had to figure out a fair value of pesos to the dollar (I needed to convert my traveler checks to pesos for him). This is important, so we agreed upon 2177 exchange rate and any part of the $62,000.00 could be paid in pesos at this conversion.‹ Yes, I could have gone to the those small exchange booths that dot St. Martin Blvd., but they would only exchange at a rate of less than 2000 and if your doing thousands of dollars I wind up paying $70,000 for my $62,000 apt. How to pay in dollars or pesos at a decent exchange rate -- this was a big problem.‹ At the time I was there the ìofficial exchange rate was about 2300 pesos to the dollar -- only once did I get close to this (around 2275).

Note: Traveler checks were a total pain in Cartagena. Only a few banks would exchange them at a decent rate (around 2250), AND then there was a limit per day of $500.00 and long lines to boot. Eddy yelled a few times and one bank did $2,000.00 but told us don't come back for another month -- really! I had American Express and Citybank wouldn't touch them (in hindsight, I should have looked for the American Express office). I spent four days cashing my traveler checks into pesos and remember only a few banks will even do this and tell you don't come back for a month.‹ ALSO, exchanging dollars at a good rate (only banks give close to 2300 an only a few will do this exchange) have limits per day (like $500.00 and of course long lines) and to make pesos with 1,000ës of dollars again took many days. What a frigging pain!

Okay, now we had an agreement and details worked out (I'd also make small payments to the Jan 15 deadline and leave him a 10% cash deposit now) and we split notary costs (this is like their escrow) and he pays Eddy a reduced finder fee and he makes good on all past due bills (phone, taxes, electricity etc.). Now, we had to put this into writing and that afternoon of to the notaria in El Centro to make this a binding deal. Unlike us, the notary is a government office (and long, long lines again) and were all real-estate transactions are recorded and set-up. We walked in and right away everyone knew Humberto (as said, he was a big wheel here at one time) and immediately we got a notaria to work on our transaction (thank god, the lines were a 100 deep to have stuff notarized).‹In a few moments they had the apt building titles and recorded owners and had his name as the legal owner (I also got a parking spot). This is were all the records are, so things looking good. We explained to the deal and then the BAD NEWS!!

The notaria ask me, do I have a cedula, No -- do I have a business visa -- No -- then I can't buy. End of deal. We all sat there dumbfounded and pissed (Humberto needed the money, I could tell). We asked are you sure I can't buy and then the notaria said, well, see this deal (laying on his desk) and this is how this guy (tourist) did it. The document had a stamp from Miami and we ask what was it. A ìspecific power of attorneyî for the property he was buying. Then the notaria explained a Colombian (with a cedula)could sign for me as long as I had this power of attorney authorizing him to do so. When all the registration is done the title and papers come back in my name (seems it is the building, not the individual that collect taxes etc) and the signer is NOT on the papers -- he only is the signature needed for purchase (which follows their purchase rules of a person with a cedula must sign). Eddy said no problem and I said ok.

AHHH, not that simple. It seems (even though we were both there in a notary office with my passport and Eddy's cedula) I could only get this power of attorney from a consulate in the U.S. Now, that made no sense to me, but said that was how it works. So he suggested we write up the deal and have it notarized there (payment schedule, who pays for what and all terms) and then when I return with the power of attorney the deal would be done. I was very, very, suspicious here (hey I give Humberto my 10 % deposit and I go the Colombian consulate in the U.S for this power of attorney that didn't make any sense and they laugh at me or say I can't do this -- I'm fucked and just have lost $6,200.00).

What to do? Well, being the ìrisk takerî I am, I suggest that in the notary papers we were doing, I'd outline how I'd pay for the apt and leave a 5% deposit now and the balance of the deposit with Eddy. Once back in the U.S. and I have gone to the consulate and get the document notarized (they made the specific power of attorney there) then I'd Email Eddy and release the last portion of the deposit. Humberto understood my skepticism and also agreed. We did all the paper work, gave Humberto the 5% and he let me move in take control of the apt. Once he received the second portion (and my okay everything was fine) he would remove all his belonging and let Eddy start with the remolding.

In a few days I was back in the U.S. and that Thursday off to the Colombian consulate in Los Angeles. Did I get screwed or was this proper?

After three hour of traffic and getting lost on Wilshire blvd., I find the place. Okay, back in Colombia -- takea number and wait (and wait). Finally my number is called, she looks over the paper work, says okay, 30 minutes. She says it was done perfect and this is a very common form (yippee, I didn't get fucked) and the proper way to buy if I don't have a business visa (which she says takes a month and must be reviewed -- slow but does work). On the way home another traffic jam but I'm smiling all the way. I have the notarized document in my hand and all is perfect, well not all.

Now, the next problem, how to pay for the apt? I brought roughly $16,000.00 in with me last time. I Emailed Eddy to release the second deposit and for a week later another $10,000.00 (part of our agreement). Now, I was still roughly $48,000 short. Two of my good friends (thank you) brought in the legal limit for me ($10,000.00 a piece) and Eddy held the money. Now I was $28,000.00 short and before I left Mary and I found an Italian bank (Sudarmai) that had a branch office in NY and accepted wire transfers. We opened a joint account and thought this was the perfect solution -- WRONG!!

I tested the transfer on Dec 21 with $5,000.00 and Jan 3rd it still wasn't there. Shit! I was leaving on the Jan 5th back to Cartagena and needed all the money by the 15 or loose everything. There was only one sure way, me to walk in with $27,000.00 in cash and if questioned I had at least some official papers (and notarized by the Colombian consulate) of what the money was for -- but shit, I would have to lie on the declaration form and if caught just plead I'm another stupid gringo who couldn't read Spanish (made sure to get the Spanish form, not English to back up my story). Okay, landed in Baranquilla (and money all over my body :-)) and as usual I'm the first off, no checked luggage and they wave to me I pass customs -- thank God!!

Take my cab to Cartagena and now only $5,000.00 short plus expenses. For this I brought 5 credit cards and found an ATM (Lloyds bank) that allowed 500,000 pesos a shot to take out and with the cards I had could do about $1,000.00 per/day. Okay, money problem solved but what happened to my money transfer?. Well, believe it or not is showed up the day I was leaving (Jan 16) and I also got a good exchange rate (around 2260) and the fee for transfer was $45.00 to Bank of America. Not to bad, but three dam weeks!!!

Finish the deal:

Okay, now to meet Humberto and finish the deal -- I hoped my problems were over. We met on a Friday and Eddy and Mary were ready (maybe too). We all sat around the table, I told him I had all the money and he smiled. Then Mary laid out the bills (remember, she is the manager of the building). There was phone, gas, electric (big bill, electricity is expensive in Colombia), past due building dues (guess he was a dead-beat) and some taxes. His eyes just got bigger and bigger as Mary hammered him with more bills and bills. He stood up, yelled a few times it was all an mistake (some of them, at least) and Mary continued (she is a tough cookie from Iran). He then got very agitated and yelled more and got ready to leave (ya, this guy already had $22,600.00 of my money, was this a ploy since he knew I had no recourse). Eddy jumped up, yelled at his wife (in a loving way) enough and sat Humberto down and went over every bill inch by inch while Mary said (and did) nada. He finally realized all was correct and we all agreed I pay all the bills and deduct it from the selling price. Fine with me, at least I knew all would be paid.

Seems the real problem here was Humberto DID NOT LIKE OR ACCEPT dealing with a women and telling him how much money he owed and what a poor owner he was (Mary is very direct and blunt, to say the least). When we went to the notary to finish the paper work (no hitches and in two hours I was the owner) Eddy made his wife stay home :-). We returned to MY APT counted the money (a few times) shook hands and that was that.

As for closing costs:

1.) Humberto and I shared the notary (escrow) fees, about $200.00 each.
2.) Humberto paid the finder (agent) fee and it was deducted from the selling price.
3.) I had to pay a 2% registration, title, taxes and property fees that amounted to about $1500.00 dollars.

Lessons and if I'd do it again:

1.) I would have opened a CityBank account in the U.S, that would have made cashing traveler checks and monry transfers easier (I think, they were pricks went we went there though) since there was an office in Cartagena. Also, at least visted the American express office and see what they have to offer.
2.) If you don't have an Eddy and Mary (who knew all the bills and liens on the apt), you certainly would need a good real estate agent, a good lawyer (non-female:-)) and find out who the manager of the building you are buying into and have a long talk with him (her) of fees and expenses.
3.) A business visa would have solved many problems, but (as the power of attorney) you must show up in person to pick it up -- it also has to be reviewed, so don't know if this a problem and much more paper work (letter from your company etc., etc.). The power of attorney (which is created in Colombia but notarized in the U.S) is just a formality -- pay the $20.00 fee and wait till they finish stamping it. You also have to show up in person. This means if you live in Omaha, Nebraska (assume no Colombian consulate near by) getting to a consulate could be a pain besides being expensive. Nothing is simple in the land of Oz.
4.) Get lot of credit cards ready and call your bank before you leave that you'll be drawing on it daily from a foreign ATM. They stopped one, thought it was fraud.
5.) Leave the last $1,000.00 with the building administrator. Some invoices don't show up for months and your stuck with them unless you want to track down the seller (good luck). In 60 days, have the seller come and pick it up (or what is left of it).

Conclusion:

What I liked about Torre Centauro and my apt

1.) Eddy and Mary (who runs the building). Like family, so this would be total turn-key operation. They collect my rents and pay my bills. I do nada!
2.) Other apt's I had been in had ridiculous security. In this apt there was no ID check or girl interview, but they still understood privacy and how to keep the bad (touts, girls etc.) or persistent out. Like the guys, they were cool.
3.) Fast elevators, roof top pool and deck (needs work)
4.) Drug store (New York) and great bakery adjacent to building. Yes, endless supply of vitamin ìVî at your door steps.
5.) Upside potential awesome and potential for a ìone of a kindî apt was here at a reasonable price
6.) The hotel touts (same guys in front of building for 20 years) were always waiting for an order (be it to carry something, get some beer or find a girl in case you were lazy) and were nice and not the pester type.
7.) Location (for me) had great advantage. Tennis and gym in Hilton (across the street) and tons of girls at El Conquestador (kitty corner from building) and walk from main beach to building always got a few phone numbers every few days (dumb easy too).
8.) Building has own private beach (with Freddy, a mellow Tony who finds or brings you whatever you want) for those times you just want to read or chill out.
9.) My unit has what I call the ìmillion dollar viewì and after some work could be one of the nicest (and coolest) apt in Laquito and a real home.
10.) Good cable T.V (with english CNN) and a Colombian porn channel -- girls love this :-). Still might put in Direct TV, have south facing balcony.
11.) Building has good phone lines for internet (clean lines, no static and dsl could be possible).

What I didn't liked about Torre Centauro and my apt

1.) Location is a ten minute walk to main beach (Las Veles). For some people, this is to far. Over time, I realize this was an advantage.
2.) Building run down a little and needs some (well, a lot) tlc. Hall and stair lights broken, cracks on walls, access to beach needs to be re-done, pool has green water (tiles need to be replaced) and lounge area also re-done. Whole building needs new paint and wood ceiling fixed etc., etc. Mary is on top of this, but $$$$'s are short.
3. Most people are renters who don't give a dam. Food left in hallways etc. You don't know if next week will be five single girls from Cali or 5 drunken band players who never close their door and practice 24 hours a day as your neighbors. I like quiet and peaceful and sometimes it is just the opposite. I'll never return Dec 15-Jan 20, but best time for renting.
4.) Intercom is antiquated (hard to hear) and front desk has to call you on phone when people arrive. If your on the phone, well, they just wait.
5.) This is Colombia, government could loose power (slight, but possible) and rebels could take away foreigner rights and possessions. Life is a risk.

Well that's it, if you come this far there is a secret bonus here, some secret places of mine to meet women that have never been discussed on Tsm. If you'd like Eddy to show you the remaining apt's for sell, or questions, his Email is

esalence@yahoo.com

If your ever in the area, stop by, take a peek at my apt and say hello to Eddy and Mary. He'd love to show you his work (he is the general contractor in the remolding and also the person who will rent it out).

www.singletravel.com/cartagena

Bruce

Having seen your apartment during the reconstruction I will admit it's going to be nice. It is a great view!

I wouldn't buy in that building personally because it is gaining a reputation as a 'gringo and puta' place.

Too bad it took you so many tries to get the financing worked out. There are easier ways...

Wow. I just found this old post. It's interesting. Probably shouldn't admit this but I was also going to buy an apartment in a foreign country. Cuba of all places! I was in La Boca (near Trinidad) when I inquired about buying property. It's amazing you can buy a 3 bedroom apartment with oceanview for about $15,000 US. It would have been an additional $3,000 to $4,000 to fix it up nice.

After finding out the details I found the owner and agreed to buy it. Everything just felt right. I would have had to put the house in another Cuban's name and I met a great older couple that was trustworthy. I signed a contract and luckily the owner was the equivalent of the DA in town. A very well respected attorney. She wanted me to put down $1,000 US in earnest money to hold the apartment until I came back with the rest of the money. I put down $500.

Long story short I didn't end up going back and buying it. I guess the prospects of losing it since I'm American and the circumstances involved I didn't go through with it. I do dream about how things would be if I bought it though. Congratulations. I hope things ended up working out for you. I see this post is about 2 years old.

Bruce still owns the apartment and goes there every six weeks or so for a couple of weeks.

I don't think he is on this board any more though.

Hunter

I am in the process of buying an apartment in Cuba about 5 blocks from the beach $2500. 2 bedroom 1 bath. Will be in a friends name.

My only hesitation about a place in Cuba would be the likelihood of (1) Bush's re-election; and (2) Castro's demise.

Given the Bush political and family situation, it would not surprise me if he sent US troops in after the death of Castro and tried a little more "nation building".

Since Jeb is governor of Florida, and the Bush brothers have made such a huge set of commitments to the expat Cubans in Florida, any US caretaker government would be likely to try that stupidest of all stunts: reparations.

In this case, of course, trying to restore property to Cubans who fled.

That would put three strikes against you:

1) Assuming that your property increased in value in a post-Castro Cuba (and how could it not, honestly, with US tourism dollars pouring in?) you'd be likely to hear "Max who?"

2) There is the chance that your property would be seized as either a direct reparation (it used to belong to someone in Miami) or indirectly (it is confiscated and given to someone from Miami).

3) There is the chance that your involvement would be detected, especially if you took steps to try and prevent possibility #1. In which case a US caretaker government would declare you in violation of the present-day laws regarding trade with Cuba, and seize the property.

If you want to spend money for something like this, at least invent a cut-out: create a corporate entity in the Bahamas or someplace, give yourself controlling interest but put some non-US citizen on the board, and let the corp buy the Cuban property.

If caught, you can pull a Tyco and blame the non-US VP for "peculation". (The corp needs revenue, so do something with it. Maybe something the local guy is already doing.)

Dem Paranoid Gnomes

Thanks for the info. I have considerd all of these options. I have a corporation in the Bahamas, as we are trying to buy a small hotel in Cuba. The hotel is our biggest concern as this would be the largest outlay of funds.

But the apartments at $2500 usd are a great bargain even for a year or two. I would put the apartment in my chica's name. Even if she tried to keep it for herself later on, I had already prepared myself to give it to her.

Motivated by guilt, I know my chica wants to marry me, but I have done that twice and would prefer to take care of her financially rather than marry her at this time.

I feel that cuba will open up to US citizens in a few years and I want to to be well versed in the workings of Cuban business, above the table and below it.