Las Peñas

Jesse,

It looks remote, which I like. I guess you'd have to have your water trucked in and your waste trucked out?

It does sound really promising.

Judy

Judee wrote:

Jesse,

It looks remote, which I like. I guess you'd have to have your water trucked in and your waste trucked out?

It does sound really promising.

Judy

It has a septic tank, and the tank looks like it was built properly and not the leaky Ecuadorian style that contaminates the area around the house. It as a good well, but I think the water is only good for washing. I wouldn't drink it, even boiled. I think it's salinity is too high. The house is in the city limits, but about a 2 minute drive from the hotels, shops, and bars, which I like, because it's far enough away to not be noisy on Saturday nights. but close enough to walk into town.

Jesse,

I think you're really on to something. It sounds and looks really promising.

The distance from the beach and shops is perfect.

What kind of shop would you open? Do you have anything in mind?

Also I wonder the difference in customers depending on the season.

Wow, I think it sounds great. Keep us all posted... winter's setting in up here and I'll live vicariously through your adventure.

Judy

Judee wrote:

Jesse,

I think you're really on to something. It sounds and looks really promising.

The distance from the beach and shops is perfect.

What kind of shop would you open? Do you have anything in mind?

Also I wonder the difference in customers depending on the season.

Wow, I think it sounds great. Keep us all posted... winter's setting in up here and I'll live vicariously through your adventure.

Judy

There's already lots of restaurants and bars along the waterfront, so we would probably do a internet café with maybe only light snacks and ice cream. The locals also mentioned that the town needs a clothing store. It costs between $50 and $100 per month to rent one of the prime waterfront spots. I could buy one for $5000, but that's risky, because that front row strip has no legal titles. We already have the equipment for an internet place, because my wife (I just got married last Thursday!) has a internet place in Quito. The town has one internet place, but they are charging 50% more than the going rate (they charge $1.50 per hour).

Jesse,

Congrats on your marriage.... and congrats on finding this place... I think it's perfect.

I like the idea of an internet cafe... and snacks. A clothing store is a big investment and if you already have the equipment and experience... perfect.

Once you live there you may find other small things you could sell that aren't available.

You mentioned your wife has a child (congrats again) I hope there are area schools.

How soon would you do this? How bad is the rainy season there... I promise these are my last questions. I, as do others, appreciate your time.

Judee wrote:

Jesse,

Congrats on your marriage.... and congrats on finding this place... I think it's perfect.

I like the idea of an internet cafe... and snacks. A clothing store is a big investment and if you already have the equipment and experience... perfect.

Once you live there you may find other small things you could sell that aren't available.

You mentioned your wife has a child (congrats again) I hope there are area schools.

How soon would you do this? How bad is the rainy season there... I promise these are my last questions. I, as do others, appreciate your time.

No worries, ask all the questions you want. Though, at this point I don't have a lot of answers. Part of my original post was to try to find out how bad the rainy season is? I don't know, and that might change my opinion of the area. As for the schools, the school is private, rather than government run, and it is very cheap. I do not know if it's any good. The locals expressed a strong interest in having someone in the town teach English, so I guess the school is failing in that department. Knowing that having the community accept outsiders is essential if I'm going to run a business there, I'd probably take one hour a week to do free English classes for the kids as a way encourage the town to welcome me into the community and view my presence positively.

Great idea. I'm having trouble finding out much about it on the internet. They keep directing me to a suburb of another city.

If I end up there... I will teach English in your cafe... free... good will is worth a lot.

thanks again. And all the best to you and your family.

pro tip, add the province name "Esmeraldas" to your search. Las Peñas Esmeraldas. That should bring the relevant web sites to the top in your search. There is little to no information in English, though.

A little info on las Peñas. It's in Spanish. The beach there reminds me of Thailand. Very calm, very warm water, and most of the boats are long and narrow, a little like the Thai langtail boats.

jessekimmerling wrote:

Here's the house I found there. It needs a bit of work, but it's only $21,000.

First, please accept my congratulations on your marriage, my best regards to the bride, and my wishes for many years of health and happiness together.

About the house, I have no idea about real estate there, but it seems to me the $21,000 price probably reflects the value of the land more than the house.  How big is the lot?  How many lots are between your lot and the water?  How far do storm tides come inland?  Have streets and right-of-ways been established?  Those things aside, the structure looks fairly square and level, and so could be a good starting place.  I'd put some heavy X-bracing on those support columns ASAP, and make sure there's diagonal corner bracing up in the house proper, too.  The best feature is the porch - I love them when they're cozy, under roof and within the house - I hate roofless decks stuck onto a house because they make me feel like an egg in a frying pan.  The stairway needs to move out from under the house - it looks like it comes up under the porch now and takes up floor space - don't worry about that expense, just keep the beer coming and I'll get James to build a new one while we relax.

John

Thanks John. Yes, the streets are established right of way. Yes, most of the value is the lot. it's 500 sq meters and a corner lot. In this area, similar lots without a house have a similar asking price, but who knows what they would negotiate down to... There is one large lot in front of the house owned by a Colombian investor. The one thing I don't like about the area, is that nothing has any significant elevation, so 3 feet of sea level rise or one small tsunami would be disastrous for the whole town. Most of the houses are not raised like this one, so I'm thinking about building two mini apartments under the house with floors raised only one foot, but I need more information about the rainy season first. Yeah, I know it needs more bracing. As for storm surge, this part of the coast has been historically placid, but of course that could change.

Edit: 15 minutes drive north of town there are much cheaper lots, like $3900 for 300 meters one lot back from the beach, but I didn't like the area as much. It was surrounded by squalid shacks.

Jesse,
I am trying to gain perspective from the picture you posted. How far is it to the water, about 500-1000 meters mas o menos? Hard to tell from the pic. You mentioned a Colombian owns the lot in front of you. My one concern would be that the lots or land in front of where you are looking would be bought up, and developed. So instead of having a place with a nice view, you are now looking directly at someones house, or building project.

Judee wrote:

Jesse,

I think you're really on to something. It sounds and looks really promising.

The distance from the beach and shops is perfect.

What kind of shop would you open? Do you have anything in mind?

Also I wonder the difference in customers depending on the season.

Wow, I think it sounds great. Keep us all posted... winter's setting in up here and I'll live vicariously through your adventure.

Judy

Same here in grey gloomy Pacific NW. Days must be getting short and chilly where you are.

jessekimmerling wrote:

Judee wrote:

Jesse,

I think you're really on to something. It sounds and looks really promising.

The distance from the beach and shops is perfect.

What kind of shop would you open? Do you have anything in mind?

Also I wonder the difference in customers depending on the season.

Wow, I think it sounds great. Keep us all posted... winter's setting in up here and I'll live vicariously through your adventure.

Judy

There's already lots of restaurants and bars along the waterfront, so we would probably do a internet café with maybe only light snacks and ice cream. The locals also mentioned that the town needs a clothing store. It costs between $50 and $100 per month to rent one of the prime waterfront spots. I could buy one for $5000, but that's risky, because that front row strip has no legal titles. We already have the equipment for an internet place, because my wife (I just got married last Thursday!) has a internet place in Quito. The town has one internet place, but they are charging 50% more than the going rate (they charge $1.50 per hour).

Congratulations!!!

Looks and sound great. You can do the fixing up. Price is right. You could rent it out when you're not there. If your bride likes it I say go for it.

Is bottled water available everywhere in Ecuador?

How different is sewage issue from town to town on coast. Read your description of Lopez. Have any idea about Canoa?

LeftClique wrote:

jessekimmerling wrote:

Here's the house I found there. It needs a bit of work, but it's only $21,000.

First, please accept my congratulations on your marriage, my best regards to the bride, and my wishes for many years of health and happiness together.

About the house, I have no idea about real estate there, but it seems to me the $21,000 price probably reflects the value of the land more than the house.  How big is the lot?  How many lots are between your lot and the water?  How far do storm tides come inland?  Have streets and right-of-ways been established?  Those things aside, the structure looks fairly square and level, and so could be a good starting place.  I'd put some heavy X-bracing on those support columns ASAP, and make sure there's diagonal corner bracing up in the house proper, too.  The best feature is the porch - I love them when they're cozy, under roof and within the house - I hate roofless decks stuck onto a house because they make me feel like an egg in a frying pan.  The stairway needs to move out from under the house - it looks like it comes up under the porch now and takes up floor space - don't worry about that expense, just keep the beer coming and I'll get James to build a new one while we relax.

John

Can't understand  it about decks either. Very chic out here for new houses. Deck furniture with umbrella are big business.

j600rr wrote:

Jesse,
I am trying to gain perspective from the picture you posted. How far is it to the water, about 500-1000 meters mas o menos? Hard to tell from the pic. You mentioned a Colombian owns the lot in front of you. My one concern would be that the lots or land in front of where you are looking would be bought up, and developed. So instead of having a place with a nice view, you are now looking directly at someones house, or building project.

It's maybe 100... 150 meters from the beach mas o menos. Yes, the owner of the lot in front could build and partially block my view. I assume, when buying in the second row back, that that will happen sooner or later, but I don't feel like low bank waterfront is a safe investment. I've seen too many places where the beach was eroding away too quickly.

suefrankdahl wrote:

Looks and sound great. You can do the fixing up. Price is right. You could rent it out when you're not there. If your bride likes it I say go for it.

Is bottled water available everywhere in Ecuador?

How different is sewage issue from town to town on coast. Read your description of Lopez. Have any idea about Canoa?

I had a conversation about the sewage issues in Canoa with the owners of a hostel there (can't remember the name of the place, but a really nice couple from Spain). They said it was frequently a problem in Canoa. Beyond that, I don't know. I'm not sure how the systems there were designed.

In some places, like Mompiche, for instance, the failing septic systems are becoming a serious problem. It didn't look or smell like Las Peñas had any of these problems yet, but I'm sure as the town grows they will have to deal with some of these development issues.

Thanks for info. People who have found their perfect place in Ecuador always talk about the pro's and the con's need to be checked out. Might be best to show up during the rainy season to help make a decision. Don't have the funds at this point to check out other parts of country.

Water and sewage are an issue. Thanks for reminding about this in your earlier posts.

Sue

OK, I'm going to buy it. I sign papers tomorrow, or at least that's the plan.

I'm not going to try to build anything high end. My idea is to have two businesses. I'll open the internet cafe and coffee shop in one of the front row prime locations. Maybe at night I'll even serve beer, wine, and mixed drinks, but unlike the other bars make it a quiet atmosphere where you can get a drink and have a conversation while you watch the sunset. The other bars on the strip all pump loud music and have more of a dance party vibe. Anyway, I'll use that prime location to advertise that I have rooms for rent just outside the noisy center of town. I'll price them the same as the hotels in town, but I'll offer free wifi and free self serve laundry. I'll build two mini-apartments under the existing house, and maybe 4 or five cabins around it. The house already has 3 small and one giant bedroom. During the high season I might rent out the giant bedroom (it's the total top floor of the house)for larger groups.

I think the core of the business will always be the tourists from Columbia and the Ibarra area, so I need to not stray too far from the price range and type of service they expect. It's in the off season that I'll push modestly priced vacations through travel agencies, tour groups, and on the internet to try to attract N. American/European/Australian tourists.

I think it's probably 4 or 5 years out before this place gets on the gringo trail and starts to get a good flow of the backpacker crowd, but I think it's pretty well positioned to have a tourist boom eventually.

jessekimmerling wrote:

OK, I'm going to buy it. I sign papers tomorrow, or at least that's the plan.

I'm not going to try to build anything high end. My idea is to have two businesses. I'll open the internet cafe and coffee shop in one of the front row prime locations. Maybe at night I'll even serve beer, wine, and mixed drinks, but unlike the other bars make it a quiet atmosphere where you can get a drink and have a conversation while you watch the sunset. The other bars on the strip all pump loud music and have more of a dance party vibe. Anyway, I'll use that prime location to advertise that I have rooms for rent just outside the noisy center of town. I'll price them the same as the hotels in town, but I'll offer free wifi and free self serve laundry. I'll build two mini-apartments under the existing house, and maybe 4 or five cabins around it. The house already has 3 small and one giant bedroom. During the high season I might rent out the giant bedroom (it's the total top floor of the house)for larger groups.

I think the core of the business will always be the tourists from Columbia and the Ibarra area, so I need to not stray too far from the price range and type of service they expect. It's in the off season that I'll push modestly priced vacations through travel agencies, tour groups, and on the internet to try to attract N. American/European/Australian tourists.

I think it's probably 4 or 5 years out before this place gets on the gringo trail and starts to get a good flow of the backpacker crowd, but I think it's pretty well positioned to have a tourist boom eventually.

That's a great idea Jesse. Love the idea of a quiet place to have a drink, and conversation. Maybe you could even get some American sports, and have them on. Would be cool to have a local hangout with some sports, and a lower keyed crowd. Of course not like I'm there, but the whole salsa music blaring all hours doesn't really have much appeal to me.

Sounds really nice with or without the sports. Wish all of the coast could develop this way. Good luck. Hope you get to enjoy some time there as you're working on it.

Good luck with it, Jesse. I'm inclined to quieter bars/restaurants myself, but beyond that, it seems like a good idea to offer something different.

Hope it works out well for you, and I hope I can visit soon.

Soccer draws the South Americans...

The boat the Lemenolas, where we registered the property. Total closing cost? $220 

So, the guy who owns the property in front of us is building mini golf. That's a win. Our view won't be blocked and we'll have mini golf across the street!

Sounds good. Who are all those people and where are they going?

suefrankdahl wrote:

Sounds good. Who are all those people and where are they going?

They're the morning commuters arriving at La Tola from the island of Lemenolas.

Ok, the big remodel starts in 15 days. When we're done, we'll have 4 rentals with private bathrooms and 3 or 4 with shared bathrooms, and we'll live in the top floor unit. Our carpenter is estimating one month, so we're assuming that means 6 weeks. We're using a combination of cement block and bamboo to keep the cost down. It looks like it'll run about 6k, and maybe another 3k, for furniture for the hostel.

jessekimmerling wrote:

Ok, the big remodel starts in 15 days. When we're done, we'll have 4 rentals with private bathrooms and 3 or 4 with shared bathrooms, and we'll live in the top floor unit. Our carpenter is estimating one month, so we're assuming that means 6 weeks. We're using a combination of cement block and bamboo to keep the cost down. It looks like it'll run about 6k, and maybe another 3k, for furniture for the hostel.

So about 30k give or take for property, and upgrades. Looks like you got some pretty good ROI potential there.

A map identifying the location of the Las Peñas

jessekimmerling wrote:

Ok, the big remodel starts in 15 days. When we're done, we'll have 4 rentals with private bathrooms and 3 or 4 with shared bathrooms, and we'll live in the top floor unit. Our carpenter is estimating one month, so we're assuming that means 6 weeks. We're using a combination of cement block and bamboo to keep the cost down. It looks like it'll run about 6k, and maybe another 3k, for furniture for the hostel.

Wow, I look away a couple days and - boom - you're rocking.  Best of luck!  Will you paint the exterior?  Got a color scheme?  What about shrubs and trees and flowers?  Schizky!  You're having all the fun and I'm stuck here with a lunatic client that wants me to install her kitchen ten times so she can figure out what she really wants.

Nice to hear of someone else exploring the North Coast.  Good luck neighbor.  Been up to Las Penas and it is beautiful.  As for a business idea,  how about running a tour of the islands off La Tola.  We tried to do it twice and both times got shot down.  here is our North coast adventure blog,  would like to get in touch and maybe have a drink sometime at your new place. Best wishes...  http://www.atruetalltale.wordpress.com

Hi Luna, thanks for the invite. Yeah, I'd seen your blog before. Great writing. It's a good idea, running tours to the mangrove islands, but I don't want to take on the expense of owning the boat. Maybe I'll try to get a local fisherman to do tours when there's demand. When we were on the ferry to Limonas, I noticed the boatmen worked in pairs, one driving, the other up front as a lookout for sunken logs or other obstacles. There were a couple moments when the lookout had us abruptly swerve to avoid something or other. I think those are pretty tricky waters to navigate.

An update, for those that care... We still haven't started building the rental cabins. Instead we built 2 bathrooms, redid the windows, did some landscaping, built a new kitchen, and we're about to paint. Yes, my wife took over the construction schedule. Oh, and we tore the roof off and evicted dozens of bats.

Sounds like things are moving right along. How lucky you are to have a wife who knows how to prioritize. No offense intended, but I think it is good that she took over the construction schedule. Merry Christmas to both of you. Please tell us her name next post.