Making Sense of the Market and Turning Today’s Economic Climate into an Opportunity

06.23.2009

Making Sense of the Market and Turning Today's Economic Climate into an Opportunity; American Investors May be Able to Hedge Uncertain U.S. Equity and Property Markets With Property in Argentina

Argentine Property Remains Undervalued; U.S. Currency Still has Power in Argentina

Scott Mathis, Chairman of InvestProperty Group, is Available to Discuss Potential Opportunities and Pitfalls for U.S. Real Estate Investors Looking at Argentina

Investors looking for alternatives to the uncertain U.S. capital and property markets may benefit from investigating property investments in Argentina, according to Scott Mathis, chairman of InvestProperty Group, LLC (IPG). IPG believes that Argentina is today's big opportunity and has produced a whitepaper titled "Argentina Real Estate Investment 2009: Making Sense of the Market and Turning Today's Economic Climate into an Opportunity" which is available for download here.

Mr. Mathis is available to share his views on why Argentina may be a smart diversification play for affluent U.S. investors, as well as on the challenges - and solutions - involved in participating. During a conversation he can discuss:

The case for investing in Argentine property...

  • The decline of the dollar is less significant in Argentina; it's 3.78 pesos to the US dollar.
  • When it comes to hotel properties, there's the potential for capital appreciation and cash flow: Despite the undervalued property market, there's a shortage of luxury hotel rooms, so rates are almost as high as they are in New York.
  • Operating and construction costs are low: Labor costs are a fifth of what they are in the U.S.
  • Tourism is booming, and the tourist crowd is becoming less "backpacker" and more luxury-minded.

The challenges for those interested in participating in the Argentine property market...

  • There is no mortgage financing in Argentina. One needs to invest with cash.
  • Dealing directly with sellers and due diligence can be complicated.

How to overcome the challenges...

  • For instance, look for a U.S.-based conduit to ensure organized, prudent investing.

IPG and its affiliates are developing Algodon Mansion, a luxury hotel in the Recoleta section of Buenos Aires. Scheduled to open at the end of the year, it will have 10 luxury suites. IPG and its affiliates have also purchased and are developing Algodon Wine Estates in San Rafael, Mendoza, Argentina. The property is currently home to a winery, lodge, championship golf course and award-winning restaurant.

About InvestProperty Group

InvestProperty Group, LLC is affiliated with Diversified Private Equity Corp. (DPEC Partners), an integrated company whose businesses bring entrepreneurial, private equity and institutional-quality investments to accredited individual investors. Qualified investors participate in IPG and other DPEC-offered investments via DPEC's wholly owned registered broker-dealer, DPEC Capital, a FINRA member firm. DPEC Capital focuses principally on opportunities created by DPEC companies.

Algodon Mansion
Algodon Wine Estates
Algodon Group
Chateau
  • Relais & Châteaux
  • Château de Messey
  • Wine Chateau
  • The Daily Meal
  • Schiahorn AG
  • Condor Wines
  • The Wine Advocate
  • Decanter
  • Marcelo Pelleriti Wines
  • Wines of Argentina
  • VINUS 2014 (wine)
  • WAWWJ 2014 (Wine)
  • Vinandino 2013 (Wine)
  • VII Concurso Internacional de Vinhos do Brasil (Wine)
  • Mediterranean International Wine & Spirits Challenge (Wine)
  • 2013 International Wine & Spirit Competition (Wine)
  • 2013 Vinalies Internationales Paris d'or (Wine)
  • VINUS 2013 (wine)
  • International Wine Challenge U.K.
  • Finger Lakes International Wine Competition (Wine)