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Showing posts with label investing in Ecuador. Show all posts
Showing posts with label investing in Ecuador. Show all posts

Monday, February 22, 2016

The Multiple Listing Service in Ecuador

As many of you have noticed, I have been away of this blog for over a year.
Last year I was hired to implement the first true RET´s Multiple Listing Service in Ecuador, and today is a reality.

Although, the idea of implementing an MLS system, was conceived in early 2012, it wasn´t until last year that the project started to take place.

As many of you know, I was a REALTOR® for the State of Alabama. But in 2012 I moved back to Ecuador. Today I am an International REALTOR® Member in Ecuador

It is fair to say that one of my wishes was that, if "I ever went back to Ecuador, I would like to introduce the Multiple Listing Service".

That wish became a reality in late 2014 when I was introduced to the person who was in charge of the MLS project.

How did they run in to me?

It was quite interesting the way this event took place. In early 2013, I was getting my Ecuadorian Real Estate License (it is fair to say that before then, I didn´t even know there was a license requirement in Ecuador)

In one of our Marketing classes, one of the instructors, whom has lived in the United States too, was teaching a class about CRM. At that time I was a RE/MAX agent in Quito, (and, as many of you may know, RE/MAX has IList, a listing system owned by RE/MAX, that is used by its agents in many countries, except the USA since every agent lists at their local MLS)

Since the CRM topic was not really understood by many of my classmates, I had the great idea of telling the instructor that I have access to a CRM, and that he can use it to teach the class... His response was: Why don´t you teach the class tonight! I really didn´t have the chance to object to the request, but I think it was a great 3 hour oportunity to teach what a CRM was and better yet, a CRM that was linked to a Listing System, which is very similar to a Multiple Listing Service.

Time went by and, in September of 2014 one of my classmates, Miguel, was a good friend of Consuelo L.  who was the person in charge of doing the research and implementation of the MLS for the Pichincha Real Estate Board, and in a casual conversation, Consuelo was talking to Miguel about "This MLS project that she was assigned by the Board of Directors"... I am glad Miguel remembered that day that I thought the CRM class. A month later, I was hired to implement the system.


The Challenge(s)
We had many challenges along the way. The biggest of all was the "Cultural Change" challenge, which prevails until this same moment. Implementing the MLS platform was a challenge too, due to the fact that many of the municipalities didn´t have information about the exact number of neighborhoods in their own cities. Almost every parrish and every neighborhood or town was entered manually, and who really understands statistics understands that for data purposes, every neighborhood has to be entered into the system. It took a lot of time to gather this information. But believe me when I say that implementing the system was relativately easy compared to change people´s "competitive chip" to a "co-operative chip"

Although, the user expectations were a lot higher than the present result, we are about 53 people (whom I will call "Pionneers") that have become part of this culture change. Eventually, we want to take the MLS to the municipalities so they have a more accurate way to assess property taxes.

The benefits of an MLS are infinite, not just for the Real Estate professional, but for the economy of this country

This is the link to the MLS webpage: http://marketinmobiliario.ec


Tuesday, December 24, 2013

Ocean View and Luxury in Crucita, Ecuador!

Without a doubt, Crucita is becoming a great place to retire for expats from all over the world!
This is the view from Loma de Crucita from one of RE/MAX Propiedades listings. You will be able to find out more about this property on the following link: http://www.remax.com.ec/Casa-De-Venta-Crucita-Manabi_890021006-44
Crucita, remax ecuador, waterfront properties, vista al mar
Panoramic View from Loma de Crucita, Manabi-Ecuador


Friday, September 6, 2013

Commercial Real Estate in Ecuador 9.3% ROI



Thursday, April 11, 2013

My featured Properties

Here is a compilation of my listings, all of them include a virtual tour.CLICK HERE If you need more information about any of this properties or you are planning to move to Ecuador and need more information, please, don't hesitate to call me. Click HERE to find my contact information

Tuesday, March 19, 2013

New Tenancy law vetoed by Correa

Ecuadorean President, Rafael Correa, vetoed the proposed Tenancy Law in it's entirety saying that "the bill has been poorly designed"

The proposed bill consisted in setting limits for the amount of rent to be charged by the landlord and its based on the municipal assessed value of the property.

If the assessed value of a property is $100,000, then the 10% of its value equals to $10,000, you divide this amount by 12 months, which equals to $833. This is the maximum monthly rent allowed according to this bill.

The other controversial part of this bill had to do with the warranty deposit. The norm has been the equivalent of up to two months of rent.
The proposed bill stated that the maximum deposit to collect shall be equal to up to two months of rent and shall not exceed $159 per month, or $318 for the maximum deposit. So, if we use the previous example of $833 per month, your maximum deposit allowed by the bill would be $318 which in fact, is based on the minimum monthly salary, giving a big disadvantage to owners of high end rental properties. This refundable deposit is destined to cover property damages in case the tenant refuses to repair damages to the property. But what if the damages exceed the set value?

According to the new bill, the warranty amount shall not go to the landlord, but to a municipal bank account assigned by the Banco Nacional de Fomento ( a state bank). The intention about this account is good in my personal opinion, because it protects the renter from dishonest landlords and landlords of dishonest tenants as well. The part I don't like is that of the deposit has to be given to the Municipality. In my opinion, The Municipality of Quito's bureaucracy will be the greatest obstacle for either landlord or tenant whenever is time to get such deposits back! This public entity is known for turning a simple process into a nightmare! However, the creation of an entity designed to withhold these deposits combining mediation services in case of disputes is vital. An escrow account company well regulated by the Superintendency of Banks and not just for rental deposits, but security deposits for purchasing real estate as well... Otherwise, we will see cases like Union Constructora over and over again!

In other countries like some states in the United States, Real Estate practices are well regulated. When it comes to purchase a property, the buyer leaves a deposit. The broker's obligation is to deposit the money into an escrow account. It is against the law to deposit this money in the broker's personal account. If for any reason the transaction ceases and after a mediation process then, and only then, the escrow company will distribute the monies to the affected party, including the broker if necessary.