Costa Rica Realtor & Developer in the Orosi Valley - Steve Riley
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Buy The Land & Have Your Own Home Built For You in Orosi - Part II with free video interview with Steve Riley.
Scott Oliver - October 2008
Steve Riley's firm is a fully integrated company covering the areas from Cartago, through the Orosi Valley to Turrialba and helps those who wish to retire in a living Eden, the beautiful Orosi Valley. His primary competencies are engineering/home design services, home construction, property management and landscaping to create botanical gardens and they manage to accomplish these at the lowest price to their clients. We interviewed Steve Riley in late August 2008, here's what he told us: 'Trust' is gained with our clients by working "totally open book" where the clients have full knowledge of our expenses and profits. Total transparency is our goal in all business transactions. I will address how we approach the trust factor in each topic/task. One of my goals is to list properties at Tico prices, not North American prices. We provide some of the lowest priced land per square meter of any real estate office in the Central Valley. I am able to list a Tico farm by using Ticos to negotiate our listings. The listing agent, Puli, has a dozen area agents that work in their particular locale. All of our agents are workers in coffee/citrus farms that live in the area and visit with the other farm workers and neighbors.
The Orosi Valley is green, green, green.
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When an area agent finds a farm that may be for sale, he contacts Puli. Puli will then make an appointment with the landowners to discuss similar properties in the area and the prices at which they sold. All properties receive a title search in the National Registry to check for any property liens, second notes and clear title. If the seller insists on listing at a ridiculously high price, we refuse the listing. My primary market has been selling coffee/citrus farms to North Americans and Europeans for retirement properties. Around 95% of my property sales are farms without structures. If a home is on the property, the seller wants maximum price for the home and land. Nearly all structures are "tear downs" and of little use to the purchaser, so why buy land with structures? The problem with purchasing a structure is that Ticos do not use space the same way as expats use space. Their rooms tend to be very small, low ceilings, few wall plugs, under sized electrical wiring and not accommodating to our furniture or life styles. I recommend that clients buy raw land and build the home they want, instead of settling for the home of someone else. Engineering and Home Design Services I employ a civil engineer, Marcial, who has a strong focus in home design. When building for earthquake conditions, an engineer is preferred over an architect. The homes designed by our firm are engineered to withstand a 9.5 earthquake. After any major disaster, there are always structures standing. If a major earthquake happens, those standing structures will be homes I built. Most retirees have strong opinions as to their living and building requirements. Time is taken to understand the living habits and preferences of clients. We will design the home to your needs, while obtaining all building approvals and permits. We are very flexible; changes can be made during the entire building process. After all, this is your home and it should be the way the way you want. By Costa Rican law, Engineering and Home Design Services cost 10.5% of the end product. However, sometimes discounts are made available when they undervalue the home by 40%. This is not a practise that we would encourage but it does happen and the end cost to the client might be about 6% of the end product. Costa Rica Real Estate Video Interview with Steve Riley: To watch this short video, please click on the small white triangular Play button in the middle of the screen below and allow a few seconds for the video to begin. Orosi Valley Home Construction There are many ways to construct a home in Costa Rica. I recommend that you contract out for labor only with the client buying all materials. This way, the clients receive all discounts on building materials and there is no builders' markup on the items purchased for construction. Most builders will mark up the cost of building materials 20% to cover cost and profit. I don't mark up anything but labor and encourages our clients to make all selections and receive builders' discounts for all materials. I have also negotiated, on your behalf, with local hardware stores for discounts on building materials and free transportation to the job site. We build only the highest quality homes. For three months, we researched the local construction industry in the Cartago and Orosi Valley and hired the best workers in the valley. Of the 50+ construction managers interviewed, we found 4 teams of exceptional quality that can build homes to US specifications. We work on cost plus, so the client can make any changes in the design during the construction process at minimal cost. Labor in Costa Rica is about 35% of the building cost with materials being 65% of the total home cost. Our firm works on a 22% markup on labor only, thereby building a home for approximately 8 to 11% over total actual cost. This process allows the client to control cost by selecting all materials. The only way to build any cheaper is for the client to find his or her own crews and supervisor the building.
Mike Steirnagle's new home - Nearly finished.
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The Orosi Valley has an excellent climate, 72º/60º, everyday of the year. Orosi is a poor man's Hawaii with spectacular views. The air is clean, the water pure, hot springs are therapeutic while the rainforest surrounds the slow paced life in the valley. It is like moving back in time, similar to what the United States was in the 1950s. The people are friendly, tolerant and welcoming to newcomers. There is no striving to "keep up with the Jones" in the valley. The locals aren't interested in what you have, but who you are. Our location and proximity to San Jose with all the amenities and medical facilities of a major city makes the Orosi Valley special and appealing to Expats. A new CIMA is being built in Tres Rios, just west of Cartago. The area has ample shopping at Terra Mall or the local Hyper Mas, a super WalMart. Nancy and I first purchased a Costa Rica farm in 1994 and charged the farm on our Master Card. We continue to invest in the Orosi Valley. We retired from the USA, Houston, TX in January, 2004. After we purchased our first farm in 1994, we rearranged everything financial and had a 10-year plan to retire as soon as we could. For ten years, every night after work, we planned our next home and life. Nothing turned out the way we planned. Our home is one-third the size and the patio us double the size we planned. After living here for a short time, we realized that most of our time is spent outdoors. There is no need for a large home. We have found our specialty by marketing coffee/citrus farms and providing turnkey services. Most of our real estate is sold in the 2 to 15 acre size in the $60,000 to $150,000 range. The Orosi valley has a broad range of buildings. Our homes are in the 1,500 sq. ft. to 7,000 sq. ft. range. The average home is about 2,500 sq. ft. and cost around $200,000 plus land. Totally first class homes are costing from $75 to $100 per sq. foot, depending on the details in the home. The money is always in the details.
This is the town of Orosi with one of Costa Rica's oldest churches
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Our Three New Real Estate Developments Projects in 2009.
- One development of 8 homes on a 200-acre farm located in Penas Blancas of Cachi. The view is of a 250-foot waterfall, Irazu Volcano, surrounded by rain forest and the night-lights of Cartago are available. These 5 + acre parcels will sell for $150,000 to $200,000
- The second development is located 8 miles east of Lake Cachi, La Joya. Only 8 parcels will be sold on this 23-acre property. The view is breath taking and beautiful, Machu Picchu beautiful. These parcels will sell for $60,000 each. Roads and landscaping of the gardens has started as well as electricity and water.
- Near La Joya is the "Parrots in the Palms" development. Twenty-two parcels for $35,000 will be developed on this 26-acre property. Community water and electricity will be provided to each parcel.
Our company will also be one of the three construction companies building in a major development in Orosi where the homes will sell for $1,500,000 to $2,500,000. Sixty homes, a 59-room hotel and 2 restaurants will be built overlooking Lake Cachi. Nearly all clients are from North America or Europe and near the age of retirement. Our youngest client is in his early 50s and most are near or slightly over 60. I would say that 70% are married, 25% single and 5% gay. Orosi has the largest percent of gays in Costa Rica according to the locals. Orosi is very tolerant of all life styles. Current Market Conditions? Orosi is going through a boom in real estate and construction. At first, we thought we would sell ourselves out of real estate within a short time. That was not the case. When we sold a farm in an area, we found that we would list 3 to 5 new farms when the news made it through the community that we were selling farms and getting good money for the local landowners. Our growth has been logarithmic, growing in square roots. It was totally unexpected. We wish we could take credit for the boom in business, but we are simply riding the wave and trying to keep our heads above water. We don't see any short-term shortages of farms to sell, but there is a shortage of long-term rentals. The price of land is rising, about 20% per year. We have some clients feeling that if they don't buy now, they won't be able to afford the land in a couple of years. That may be true. Most clients want to buy now but build in a few years. They see their stock portfolios receding and the price of land rising. A couple of times each month, we see clients almost in a panic to get in the Orosi real estate market. They are so eager to purchase, they want to put money down on anything. Land in our area is selling from $1 per sq. meter ($4,050 per acre) to $35 per sq. meter. Most farms are listed for $2.50 to $5 per sq. meter, $10,000 to $20,000 per acre. Any real estate in the area around Lake Cachi or in the Orosi Valley is expected to rise sharply. Driving 5 to 10 miles east of the lake, the farms are about half the price of the Orosi Valley. Any farms with a view or a white water river will appreciate quickly. These farms are being sold in a month or so after listing. I sold 3 farms last month that never made it to the web site. I listed the farm and took photos, but sold them to the first clients that viewed the properties before we had them on the web.
The Orosi Valley has new roads, thanks to the current president. The rumor is that the Orosi Valley will become a major tourist destination in 2010 and promoted by ICT as the next Monteverde. To date, Orosi has been a day trip from San Jose. That is changing. The Orosi area has zip lines, white water rafting, horse back riding, mountain biking, hot springs swimming, Irazu Volcano, Tapanti Rainforest and the list goes on. Tourist are now spending a week in the valley to see and do all the local attractions. Hotels are being built and expanded. The local hotels tell me they stay 80%+ booked throughout the year. Our rental villa stays very busy. Building cabins in the valley is a cash cow. A rental cabin that can be built for $50,000 will provide $15,000 in income, a 30% return on a hard money investment. The hot springs resort, Rio Las Perlas, is building the first area golf course. It is a par 3 course for the resort owner and hotel guests. We need a golf course in our valley. I am pushing hard to have one built. The large 60 room resort hotel over Lake Cachi is the largest being built. I had a representative from Holiday Inn contact me this August about the possibilities of buying the old hotel, Rio Palomo and building a Spanish style Holiday Inn on the Reventazon. They are also interested in the hot springs near the coffee mill for a resort. The hot springs property is listed on the web site.
Price Appreciation Over the Past Five Years? In some areas the land that could have been purchased five years ago for $1 per sq. meter or $4,050 per acre has doubled or tripled in price in just 5 years. I believe a person could double their money in the local real estate market in the next 4 years. We are personally investing all the profits we make from our developments to purchase additional farms. At times, we get listings that are priced too good to be true. After a check with the National Registry, we buy them if the title is clear and the owner wants to list the farm. Nancy and I purchased 2 farms in July/August, investing nearly $300,000 in our area. To us, it is better than money in the bank. Any Specific Problems in the Orosi Valley? The main problem we have is a farm in the "red zone" or landslide area. This area is just above Orosi where a landslide killed 7 people about 8 years ago. We have listings in the red zone, but I have never shown a farm in the area of trouble. We refuse to show anything near the area. I have never seen the rivers flood in the Orosi Valley, but I have seen the rivers at the banks. One Sunday, we received 14 inches of rain and the rivers were as high as I have ever seen, however, no flooding.
Costa Rica Land Sales & Development - Steve Riley's customer testimonials: Received from George Crowell on Fri, Aug 15, 2008 at 7:44 PM "A short endorsement of my friends Steve and Nancy Riley. I met these guys last August while touring the Orosi Valley. I immediately got that warm and fuzzy feeling, not just for the beautiful valley, but also for Steve, Nancy and their dog, Lola Mae. Since then I have brought my whole family to meet these folks and have purchased two properties from them. They make it easy for those of us from the U.S. who aren't typically known for our patience. In addition to the obligatory routine of showing us countless properties, they went the extra mile to accompany us to the lawyer's office, the bank and wherever else we needed to go for the real estate closing. What a great package. In addition, their rental villa, which is nestled into the side of a gorgeous valley, is to die for. These are the kind of folks who combine professionalism and hospitality to make a non-Cost Rican feel comfortable about taking the first step into this beautiful country. Two thumbs up for Steve and Nancy." George Crowell. *************************************** Received from George Lundquiston Fri, Aug 15, 2008 at 2:37 PM "I had been taking tour guests to the Orosi for 5 years because I believed it had many attributes that would appeal to them. Some of these are; cool climate, incredible beauty, excellent property values, super tranquilo, very few bars on windows, less than one hour to San Jose, etc.
No one to my knowledge ever bought anything there after the tour, until Steve Riley entered the scene. I have included him and his enthusiasm for life in every tour since. After one year of his involvement, one or more go back to see specific properties and many have bought. He truly takes them by the hand and gets things done through his excellent staff and Notary. He and his staff treat each guest as a friend and never deter from trying to satisfy the guest's best interest within their budget. Several have joined Steve in joint ventures.
He spoke of your ability to accomplish so much in a day, he too is amazing. Sometimes I forget how much you young folks can do in a day. Neither of you probably gets as many naps as I do now." George Lundquist. *************************************** Received from Mike Steirnagle on Mon, 5 May 2008 02:38:46 +0000 "Thought you might like to see some photos of the house which your crew is finishing in a day or two. Phew! Took a year to do it but it was soooooooo worth it. They did a spectacular job. I have nothing but the highest respect for them. I bought 3 wood carvings from one of the crew guys. Did six paintings of family members. What an experience this whole thing has been. I have grown as a human being so much. Getting to know how another part of the world lives and sees life was truly amazing. So, thanks for all that you have done to help us solidify our dreams. The house should be inhabitable by summer when we come down to try and finish furnish it, etc. So, it is open to you guys and your families whenever you are ready to come to the coast." Mike Steirnagle *************************************** Received from Derek K. Kunz on Tue, Aug 19, 2008 at 6:11 PM "I wanted to tell you about my second experience with Steve. Obviously the first experience was one that made me excited about Costa Rica but also made me secure in the knowledge that my wife and I had found someone that we could trust and confide in. On our second tour this year we dedicated much of our time to the Orosi Valley area. During that time I met some of Steve's former clients. Being the obnoxious and direct person I am, I asked each of these individuals what they didn't like about Costa Rica and what issues they may of had with Steve Riley. There may have been some hesitation about Costa Rica but there were none about Steve. Oh, by the way, we have an offer pending on one of Steve's properties." Derek K. Kunz *************************************** Received from Charlotte Leonard and David Lovelady on Fri, Aug 22, 2008 at 8:20 AM "I wanted to let you know that we purchased our little finca from Steve Riley, on the east end of Orosi Valley, one year ago. We had not one problem due to the professionals working on our behalf -- Steve Riley owner, his assistant Yami Astorga and our attorney Roberto Umaña. Everything went smoothly and no surprises. Yippy-Skippy...there are success stories in Costa Rica! We feel very fortunate to report this success and wish the Riley's continued success." Charlotte Leonard and David Lovelady, Cachi de Cartago *************************************** Received from Ray and Michele Martin on Fri, Aug 22, 2008 at 7:57 AM "A year ago we visited Costa Rica for the first time....we arrived full of expectation. To say that those expectations were met would be an understatement. We fell in love with the country immediately. We visited the Arenal Lake area first. The views were beautiful and the people welcoming. But it was when we rounded the hill and started our decent into the Orosi Valley that our breath took a gasp and our hearts skipped a beat. There are not enough words to describe the beauty that stretched out in front of us. I had met, via email, Steve Riley in Orosi and we met with him the very day we arrived. We immediately felt that we had know him for years. Steve's enthusiasm for his country is very infectious. He showed us several properties and of course we fell in love and bought one of those properties that very week. Since then there have been many trips to our new home and we have spent a lot of time with both Steve and Nancy. The knowledge that they share from all their experiences is invaluable to newbies like us. They have walked through each step of this exciting journey with us and will be building our new home. We will and do....recommend them to anyone who is dreaming about moving to Costa Rica. We look forward to the good life in our adopted country and our continued growing friendship with the Rileys." Ray and Michele Martin *************************************** Received from Tim Hewes on Sun, Aug 24, 2008 at 9:32 AM "I am writing you to endorse my now good friend Stephen Riley and wife Nancy in the Orosi Valley. I purchased 6 acres in the Orosi area about one year ago with Steve's help and my wife and I will retire there and build when we are able to sell our house state-side. This decision would never come to fruition if not for the advice, counsel and friendship of Steve and Nancy. Steve helped with every step of the purchase process, registration, corporation creation, lawyer and worker to oversee our land while we try to retire. Steve continues to manage our worker, paying him weekly and visiting the property to ensure everything is taken care of. We recently put a road on the property and Steve oversaw its construction for us. I completely trust Steve who continues to assist with our property in any way we request. I look forward to having him as a neighbor, but most of all as a friend in Costa Rica. I fully endorse his business as highly ethical, trustworthy and always reliable." Tim Hewes, Milwaukee Brewers Baseball Club *************************************** You can see Costa Rica Living in the Orosi Valley Area - Part I here which includes a free video interview with Steve Riley. Costa Rica Real Estate in the Orosi Valley If you would like to contact Steve Riley for more information about real estate and living in the beautiful Orosi Valley area, please help us to help you by using the form below:
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