Wednesday, August 27, 2014

"Never Make an Investment Just Because There is a Beautiful Tree on the Property"

And watch the name. The name can be a tip-off.*
From The Daily Bell:

The Fate of Galt's Gulch Chile 
Many have wondered about the status of Galt's Gulch Chile (GGC), the libertarian community that was planned and sold in lots as a liberty oasis for those who wished to live freedom before they died. My husband and I purchased an option on 1.25 acres in July 2013. Others bought 10- or 25-acre lots and some invested in the agricultural side of the venture; extremely savvy investors committed small fortunes. GGC has been an unexpectedly wild ride since then.

Shortly after purchasing, I received an unsigned email through the webform of a site I maintain. It informed me that GGC was a fraud. One reason: GGC lacked water rights. In Chile, purchasing surface land and water rights are two separate processes. GGC is desert terrain, rather like California, and water rights are absolutely necessary for a community to be established. I responded to the email but the message bounced back to me. I did a search on the email's IP address and it became apparent that the sender had used an anonymizer....MORE
HT: Economic Policy Journal:
Never Make an Investment Just Because There is a Beautiful Tree on the Property
That was the ruling reason behind a property investment Wendy McElroy made that she now regrets....
*See for example Aug. 2012's "Doug Kass: Beware the Dreaded Triple Top":
Dreaded? Ha! I laugh at dread.
[You learned nothing from the Valley of the Shadow of Death Estates foray? -ed]
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