The biggest international real estate failures stem from partner problems: developers who don't complete projects, attorneys providing poor advice, property managers collecting fees while providing minimal service.
CHORD Real Estate addresses this through systematic vetting before adding any partner to their Panama network. Here's the actual process.
Developer Vetting Criteria
CHORD only works with developers meeting specific requirements:
Completed Project Track Record: "You're looking at financials and track records just like you would here," Steve Luther explains. "Are they completing projects? How many doors are the property management firms managing?"
Minimum requirement: At least two fully completed projects demonstrating ability to deliver. Marketing renderings are easy. Finished buildings prove capability.
Financial Investigation: CHORD investigates financial backing, ownership structure, and debt levels. Developers under financial stress often cut corners or fail to complete projects. "In terms of developers, are they completing projects?" Steve emphasizes the primary question.
Client References: "You're looking at financials and track records just like you would here." CHORD contacts investors who purchased in previous developments. What was promised versus delivered? Were timelines met? Quality as expected?
Ongoing Monitoring: Vetting doesn't end at initial approval. CHORD continuously monitors construction progress, financial health, and buyer satisfaction throughout project lifecycles.
Real Estate Agent Requirements
Partner agents must demonstrate:
Local Market Expertise: Deep understanding of specific submarkets, pricing dynamics, rental potential, and appreciation factors. "You definitely are doing a lot of research on the front end, but I think you also have to get boots on the ground," Steve notes.
US Investor Experience: Background working specifically with international investors, understanding their concerns and expectations. Cultural bridge between American buyer expectations and Panama market realities.
English Fluency: Native or near-native English ability for clear communication without translation uncertainty.
Fiduciary Approach: Willingness to recommend against purchases when properties don't fit client goals. CHORD values agents who occasionally lose sales by providing honest advice.
Attorney Network Standards
Legal partners undergo rigorous screening:
Residency Expertise: Extensive experience with investor residency applications, understanding realistic timelines and process requirements.
Real Estate Specialization: Focus on real estate transactions including title review, purchase agreements, and closing procedures.
Track Record: Years of successful transactions without client complaints or legal issues. "You're going to get referrals. You're going to have interviews and conversations and see who you get a comfort level with," Steve explains.
Property Manager Evaluation
Property management makes or breaks remote investment success:
Communication Standards: Regular reporting, responsive to owner inquiries, proactive problem identification. "How many doors are the property management firms managing?" indicates scale and experience.
Maintenance Networks: Established relationships with reliable contractors for repairs, renovations, and emergency issues.
Financial Reporting: Clear accounting, timely rent payments to owners, transparent expense documentation.
The Boots-on-Ground Requirement
"You've got to set foot on the ground, get a feel for it, look around, talk to a bunch of people, interview a bunch of people," Steve emphasizes.
CHORD doesn't vet remotely. Team members visit Panama regularly, meeting partners face-to-face, touring properties, and evaluating operations directly. "It's just like when you're vetting your real estate agent here in the States."
This hands-on approach reveals issues that paperwork and video calls miss.
Thailand Example
Steve uses Thailand to illustrate why vetting matters: "There are a lot of developers in Thailand that do not complete projects."
Without proper vetting, investors risk deposits on projects that never finish. CHORD's process eliminates developers with questionable track records before clients encounter them.
Continuous Improvement
Partner networks aren't static. "You want to see what kind of a track record they've got," Steve notes, implying ongoing evaluation.
As Panama's market evolves, partner capabilities must evolve too. CHORD regularly assesses whether partners maintain competitive standards and removes those failing to perform.
What This Means for Investors
CHORD's vetting provides several advantages:
Reduced Research Burden: Instead of spending months researching developers and interviewing attorneys, investors access pre-vetted networks immediately.
Risk Mitigation: Not eliminated, but significantly reduced by working with partners having proven track records and strong financial positions.
Accountability: Partners know network position depends on continued performance. Client satisfaction directly impacts their access to future CHORD referrals.
The vetting process isn't perfect, no process eliminates all risk, but it substantially improves odds of successful international investment by filtering out problematic partners before clients encounter them.
Meet CHORD's vetted Panama partner network
Invest Panama Summit | May 28-30, 2026
https://chordrealestate.com/investpanamasummit
[email protected] | 615.988.1001
