Archive for the 'Brazil' Category

08 30th, 2011

The coconut plantation investment project is sold out and no new investments can be accepted in this project. The project owner will start a new investment project in a neighboring piece of land, but currently we do not have more information about this new project.

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06 14th, 2011

Our contact with the coconut plantation investment in Brazil indicated that he understands our concerns about the parties involved in this investment program. They shared many documents regarding the investment program and the partners involved. We are currently reviewing these documents and we will get these documents reviewed by a Brazilian lawyer as well, before any investment is made. Since we now have the possibility to clear up our concerns about this investment opportunity, we will give a preliminary green light for this investment program.

To summarize this investment program: The investor buys 2 hectares (4.94 acres) of land in Brazil. The cost of the lands is 35,000 USD, and the investor will acquire the title of the land after 6 months. The management company will use this land to plant coconut trees and installs modern systems needed to grow these trees as efficient as possible. After about 3 years the trees start to produce coconuts, but not yet at the highest level. After 5 years the trees should be producing at highest level, at this moment the expected net return is 20,000 USD. Note that the actual payout is in Brazilian Real. At this point the management company also offers to buy the land back at double the purchase price (20% per year). Although this is a nice guarantee, we think it is more profitable to keep the land and gain the yearly income.

Any people interesting in this investment, please let us know ([email protected]). We will put you in contact with the sales partner involved in this project. If there is sufficient interest, we may also be able to accept smaller investment in this program by pooling funds of different people together. In the case of pooling you will not own the title of the land. In this way we can create a crowd funding project for this green investment opportunity.

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06 12th, 2011

We received additional information regarding the coconut plantation investment we talked about before. The number look really good and it is an interesting investment. Even if the coconut production is lower than the forecast and after Brazillian taxes (15%), the return will still be good. You also will own the land in your name, you will always have this asset as security.  However the title is transfer after 6 months, this is not great but it seems to make the transfer of the land a lot easier regarding to local regulations. All with all this is investment is interesting. After the 3rd year you can expect quarterly payouts resulting from your lands coconut production. After the 5th year you can expect to reach the full output of coconuts.

Now the question remains how reliable is the company offering these investments. Here we currently have some doubts. At this moment we found out that there are 3 partners involved in this investment program. These are the management company who is selling the land and will manage the plantation. An official registered real estate agent in Brazil. And last the agent  who offer the investment to us, who seems to be selling internationally. We send an inquiry to the first two partners, which did not lead to a response. This could mean either these website are managed by the same person (scam alert!) or that these companies are not interested in selling or customer service. Since the investment opportunity is good, we will try get more information about the people behind this. We would not want these people to run away with our and your money.

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06 4th, 2011

At the moment we are looking into a coconut investment plan in Brasil. We do not usually take much notice of Brasil because this country is a little difficult to handle. Exchange controls make it more difficult to move money out of the country. Therefore Brasil is not the most interesting country for small investors, as one would need to hire expensive lawyers to make sure that the money can be taken out of Brasil at a later time.

However we received an offer to invest in coconut plantations that may be interesting, even though this is in Brasil. The main idea is that you buy land which will be used to plant coconut trees. The current price offered is 35,000 USD for 2 hectares. A management company will take care of the planting of the trees, the harvesting and the selling of the crops.  It is expected that the yearly revenue for selling the coconuts is about 35,000 USD. However the management company will take a part of the profit and 25,000 USD remains for you. Note that you will own the land the trees grow upon. Another good part of this deal is that in this case the management company is responsible for paying out outside of Brasil. This means you will not have to deal with this issue your self.

The trees start to produce coconuts after 3 years and after 5 years they start to produce the full amount of coconuts. This means that the first 3 years there will be no revenues, the two years thereafter partial revenues. After 5 years to complete revenue should be available. The trees produce coconuts for about 60 years. This makes this a great retirement investment that produces a steady income every year.

You may ask why coconuts? The coconut is a crop that can be used for different things, which should make sure there is demand in the future. The coconuts can be used for consumption, productions of coconut waters and bio fuels. Especially the bio fuel is an interesting one, as many cars in Brasil already run on bio fuels. In the rest of the world bio fuels are also becoming more popular. To ensure good prices for the coconuts the two markets to sell them are important.

When we researched this opportunity further it is likely that we will write more about this investment in the future.

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