Eco BambooLot in Nicaragua
I have been approached by an agent who aggressively wants to sell me 1.23 acres of bamboo plantation with free title to the land in a company named EcobambooLot in Nicaragua. They are projecting positive cash flow in the 3rd year after ownership and successively growing then on. The upfront cost including the maintenance fee is $11,000. Starting in the 3rd year the maintenance fee is 16% of the revenue from sale of crop.
I am not sure if this is another such 'too good to be true' scheme, or a real investment opportunity with perpetual returns.
Standing on the sidelines for now.
Stephane from Guadua Bamboo replied:
There is only one thing I can say, ask the company in questions how and to who they are going to sell your bamboo crop. Growing bamboo is one thing but selling it is something completely different. Most of these brand new forestry companies have absolutely no experience or network before they start planting and "think" the sales part of the crop in x amount of years is just a 'detail' to deal with once the time is there. Unfortunately though both aspects need to be covered BEFORE they put the first plant in the ground or you will probably never see any return on investment.
For example we only plant 50 hectares of bamboo when we have signed contracts from clients who need 50 ha worth of bamboo every year. This means we know exactly at what price we can sell the crop and who will buy it. How else is it possible to calculate the returns to the investor?!
Most of these bamboo companies project their numbers based on very superficial research online, but the problem is that bamboo as a raw unprocessed material has very low value. Only when the company can add value to the raw material and sell the finished product it can become profitable for the investor as well.
The first Eco BambooLot owners have already received in year two! Revenues from inter-cropping, 45 years of family agriculture experience to your order. Climate, labor and cheap land makes Nicaragua one of the best choices to invest in bamboo. Now the groundbreaking has begon for the Nicaraguan Canal it seems that for the construction only 12,000 m3 tons of bamboo is needed!
Femmie van Efferink replied:
NEVER TRUST ECO BAMBOOLOT IF YOU WANT TO INVEST!
Indeed, their promises are to good to believe! You better stay on that sideline.
I have been approached too, in 2014 by Jos van Veen, husband of the owner Daynara and employee in her company Eco Bamboolot. He promised me a lot, it was unbelievable. So I did not believe him, but he garanteed me there was no risk, he would even pay me back all the 14.000 euro I lost with his former company (Groenewoud in Costa Rica) etc. etc. And he told me such pathetic stories that I pitied decided to help him. Also because I had a kind of admiration for the good aims Daynara tells us she is striving for. So I borrowed them some money, only too help, not for gaining any money. I only expected them to pay me back the amount of money I have send to them, no more.
Untill now I have been promised month after month I would get my money back the following. BUT UNTILL NOW I HAVE NEVER SEEN A PENNY BACK.
NEVER TRUST THOSE PEOPLE. I AM REALLY VERY DISAPPOINTED. NEVER DEAL WITH BAMBOOLOT OR WITH JOS VAN VEEN, BECAUSE YOU WILL END UP IN BITTERNESS.
Femmie van Efferink, Holland.