Hello.
My last update was on 31 August, so I feel it is a good time for another one.
In my last update, I spoke mostly about the fact that I feel vacation apartments, hotels, casinos, and nightclubs are overbuilt and overdone in Batumi. I think the market is entirely saturated in these segments and will continue to be further saturated. This means anyone investing in these categories will be essentially joining a “race to the bottom”. Meaning, their income will be lower and lower because the only way to attract clients will be to continuously reduce prices. Hence, the “race to the bottom”.
Batumi is a massive property bubble, and this bubble is certainly going to explode.
Even in a saturated market it is possible to earn income. However, this requires more and more investment in services and quality, and I honestly believe the payoff in Batumi is not worth the work, the investment, or the risk.
Let’s look at some interesting facts:
The average nightly rate for a property on Airbnb:
Global = $137 (increasing yearly)
USA = $127 (increasing yearly)
EU = $164 (increasing yearly)
Asia = $150 (increasing yearly)
Batumi = $43 (decreasing yearly)
I listed my first property online for bookings in 2014 in Batumi and back then it was pretty much a guarantee the nightly rate would be $80 to $100. Since then, I have seen the average nightly rate in Batumi drop by over 50%. It will continue to decline as they continue to oversupply the market with more and more and more buildings filled with apartments.
I was a huge fan of Georgia for a long time. Even more of Batumi. When I arrived in Batumi in 2013 the government was doing amazing things. They were pro-Western, pro-EU, and made incredible progress rooting out corruption and establishing an investor friendly environment. When I first came to Georgia, a foreigner could get guaranteed permanent residency by investing $30,000 or more in property and foreigners only paid 5% taxes on earnings. It was easy to open a bank account and even easier to open a business. There was 0% profit tax and 0% property tax. Georgia had a lot of compelling reasons for investment.
Today, it is more difficult to open a bank account as a foreigner. The government is anti-Western and anti-EU. Corruption is returning everywhere, especially in the police and court systems. If you invest $100,000 or more in real estate, you only have the right to apply for temporary residency and most of the applications are denied. Foreigners pay 20% income tax on earnings. Construction is oversaturated, real estate is a massive bubble, and rental incomes are declining. Essentially, there is no compelling reason to invest in Georgia anymore.
The great majority of buildings constructed over the past 10 years are very low quality. They leak, they are filled with mold, cracks appear all over the place on walls and floors, the walls are paper thin, there is little to no insulation, corridors and lifts are cheap and dirty and badly maintained, windows and doors are cheap plastic and have extremely low quality glass, there is no parking. I can go on and on about the low standards in Batumi. I believe the properties are not worth the money people pay for them and the buildings will decay rapidly.
There is an upcoming “election” on the 26th of October, but I am certain the outcome will strengthen the grip Ivanishvili has on the country’s neck. Even if 100% of the population votes against Georgian Dream, I am certain they will announce that Georgian Dream wins the majority of positions. I pray this is not the case, but I believe it will be.
I agree with the US government statements that Georgia is returning to the Kremlin. The country is moving more and more toward authoritarianism and further and further from the EU. The current leadership is tightening their grip on the country and will most likely take the country backwards into Russian control over the next year or two.
During the first part of 2024 there were mass protests in Georgia against the pro-russian “foreign agents” law passed by the Georgian Dream party. In the past, when mass protests happened, the government backed down. This time, they did not. They resisted the will of the people and moved even closer to the Kremlin. I believe this was a test to see if they could withstand any outcry of the people in preparation for protests that may come as a result of faked election results.
We will see what happens. But I think the writing is on the wall. Both the EU and especially the US government are preparing for this fact. And they both feel Georgia is essentially not worth fighting for. It is a tiny country with an insignificant economy and zero natural resources or exports. Essentially the only thing the country had to offer the west was a pro-Western voice in the middle of the Russian sphere of influence. Now that is going away, so the EU and USA have no incentive to bother with it.
Western governments broadcast their positions through gradual and progressive statements and you can already see the writing on the wall if you follow the news:
The USA has frozen all military cooperation with Georgia:
https://jamestown.org/program/united-states-freezes-military-cooperation-with-georgia
https://www.bbc.com/news/articles/c511xrg3g4eo
The USA has halted Georgian/NATO cooperation:
https://oc-media.org/nato-declaration-cuts-reference-to-georgias-membership-prospects/
The EU has halted Georgian membership process:
https://www.bbc.com/news/articles/cql82we090vo
https://www.lemonde.fr/en/international/article/2024/07/12/georgia-s-eu-accession-process-frozen-in-wake-of-foreign-influence-law_6682413_4.html
The EU will soon halt visa-free travel for Georgians:
https://www.reuters.com/world/europe/eu-may-suspend-visa-free-travel-georgians-if-election-not-free-fair-2024-09-20/
https://www.politico.eu/article/eu-georgia-visa-free-access-schengen-zone-democratic-backsliding/
The EU has voted to sanction Georgia’s top government leaders:
https://www.occrp.org/en/news/eu-parliament-calls-for-sanctions-on-georgia-and-its-leaders
https://www.barrons.com/news/eu-parliament-urges-sanctions-on-georgia-ruling-party-oligarch-385c825e
The USA has prepared sanctions and travel bans on Georgia’s top government leaders:
The EU and the USA are both preparing for sanctions and travel bans that will target the entire country (general banks and citizens):
Georgia is assisting Russia in evading sanctions which is drawing attention from the west:
https://eurasianet.org/georgia-kyrgyzstan-face-scrutiny-over-possible-sanctions-busting
The USA has halted funding for Georgia:
https://apnews.com/article/us-georgia-blinken-aid-2bc63a85d39d126b023658e6787a7f15
https://www.state.gov/united-states-to-pause-assistance-to-the-government-of-georgia
The EU has halted funding for Georgia:
https://www.politico.eu/article/eu-georgia-130-million-funding-democratic-backsliding
The USA and Georgia are essentially behaving like enemies rather than allies in foreign relations events:
https://www.rferl.org/a/georgian-elections-united-states-relations-sanctions/33151278.html
https://www.azernews.az/region/225483.html
The EU has halted high level contacts with Georgia:
https://euromaidanpress.com/2024/10/04/european-institutions-halt-contacts-with-georgias-government/
https://news.az/news/eu-suspends-high-level-contact-with-georgian-authorities
The USA, UK, and others essentially believe Georgia is going to Russia by plan:
I can go on and on. As you can see, the news out of Georgia is getting worse and worse.
To the west, Georgia is a fairly insignificant bump on the map. It is a tiny country with a tiny population. It is geographically insignificant, politically insignificant, and economically insignificant. The entire country has a GDP equal to a village in remote France. Therefore, the only reason the west took any interest in Georgia was because it was a tiny foothold for pro-democracy in a region mostly dominated by authoritarian regimes.
Georgia is much more valuable and useful to the Kremlin than it is to the USA or to the EU. Therefore, both the EU and the USA will probably not waste much time or energy on Georgia as it slips back under Kremlin control.
Anyone who understands western politics and foreign relations knows the west progressively broadcasts the future in order to lay “I told you so” groundwork. In other words, they progressively prepare the public for what is coming so that policies are not a shock and so nobody can say they were not warned. Both the EU and USA have been progressively ramping up their negative positions toward Georgia for 2 years now.
I have many friends I care about in Georgia, so, I hope it is not the case, but the writing on the wall tells me the USA and EU have decided Georgia is a lost cause and they are laying the groundwork for Georgia becoming an enemy of the west rather than an ally.
Anyone who has invested in Georgia needs to at least consider this as a possible reality. It is better to be prepared than to ignore the facts and be caught without recourse. If things go in a positive direction, all will be ok anyway.
If Georgia continues to back-slide to the Kremlin, and especially if Ivanishvili continues to move the country into an authoritarian regime, it will have grave and overwhelming consequences for foreign investors. Especially investors whose bank accounts are closely tied to global and western systems.
During this process, the west will step-by-step cut Georgia off from travel through visa restrictions. They will step-by-step cut Georgia off from international banking through ever-increasing sanctions. It will become more and more difficult to sell property, do business in Georgia, and withdraw funds from Georgia.
This will also affect people who are earning income through property rentals. As the west tightens down on Georgia, the country will rely more and more on tourism and remittances from non-western countries. Tourism and rentals may shift toward pro-russian and pro-chinese countries, but the flow of funds will be difficult. So, even if you can rent your property to non-western tourists, you may find it progressively difficult to actually receive your money.
In addition, tools such as Airbnb, Booking, and other resources that help property owners fill their calendars may decline or become unavailable altogether.
If things go the direction the western media is prophesying, investors could find themselves in a predicament where it is impossible to withdraw funds from Georgia. As an investor, this is something you should seriously consider as a possibility and prepare for it.
I have personally experienced the corruption of Georgian courts and the gradual progress of the government toward the Kremlin.
I came to Georgia in 2013 and my experience in the country was nothing less than incredible for several years. I used to believe Georgia was the most amazing opportunity on earth and I put all my energy into promoting the country and helping people invest in Batumi. I was a firm believer in Georgia.
Today, I feel duped. I feel misled, manipulated, lied to, and stabbed in the back. Especially by people who I thought were my friends.
I feel sick in my stomach every time I think about the fact that I personally encouraged others to invest in Georgia. If I had known Covid was coming and Georgia would go backward to authoritarianism and the Kremlin, I would have never spent $1 in the country or wasted 11 years of my life.
From 2013 through 2020 Ruebush Hospitality Group LLC delivered so many properties to investors that I cannot even remember them all. The company rented numerous properties to tourists and consistently paid out rental income to investors. For several years, the success of the business was incredible. People purchased properties, the company delivered them, registered them, and rented them daily to tourists. Every 3 months, the company sent out income payments to property owners like clockwork. The picture grew and grew more and more positively.
Before being unjustly abused by corruption in Georgia, Ruebush Hospitality Group LLC never missed a payout. All invoices were paid on time and in full. All taxes were paid on time and in full. All salaries were paid on time and in full. The company even paid frequent bonuses.
Trouble arose when builders failed to deliver projects to Ruebush Hospitality Group LLC, especially during the pandemic. Midtown Paradise, The Midtown Hotel, Black Sea Blue Hotel, and River Park Hotel were all projects where builders went belly-up and left Ruebush Hospitality Group LLC in a dire predicament. The company sold investments in these projects and paid the funds to builders. The builders failed to deliver and would not return funds back to Ruebush Hospitality Group LLC.
Over the past few years I have learned how excessively evil, immoral, unethical, and corrupt the courts and enforcement systems are in Georgia.
The police, courts, and entire judicial system in Georgia are overflowing with corruption and are the single greatest tool for Ivanishvili to root out western influence and guide Georgia quickly back into the hands of the Kremlin:
https://transparency.ge/en/blog/alleged-cases-high-level-corruption-periodically-updated-list
https://civil.ge/archives/579180
https://civil.ge/archives/608331
https://civil.ge/archives/590288
I am an American from Texas. So, I guess you can say I was profoundly naive when it came to doing business in Georgia. I had no concept how incredibly evil and corrupt and oppressive the Georgian government is. I can honestly say I would not wish the burden of trying to run a business in Georgia upon my worst enemy. From my personal experience, Georgia is the absolute worst place on earth to invest or attempt to operate a business. Especially a startup.
There are many stories I can tell you of how terrible it is to try to do business in Georgia. I cannot tell them all here, but I will tell you a few.
In late 2022, an investor from India who had purchased a property through Ruebush Hospitality Group LLC came to Batumi on a Monday morning to register his property. He had paid fully for the property. Ruebush Group had paid the builder in full for the property and had already completed the fit-out, furnishing, and decoration of the property. The property was completely fulfilled according to the agreement and was ready to host nightly guests. All that remained was to register the buyer’s name on the title deed. He was planning to fly home the next morning.
We printed off the documents and went to the Public Service Hall to perform the registration act. We presented the documents to the officer and waited and waited. Normally this is a 10 minute process. However, this time, the officer and our senior staff member kept talking in Georgian and I could tell something was wrong. Eventually, our administrator told me there was some technical issue and we could not register that day.
I invited the investor to return to our office with us while we sorted it out. The investor expectedly became very defensive and nervous. He hesitantly returned with us to the office.
Over a period of several hours our staff worked to understand the problem. Apparently, the government of Georgia had placed a mortgage on 100% of the company assets. Millions of dollars worth of real estate assets were mortgaged. Nobody could understand why.
After hours of work, we finally discovered that a package had arrived for our business at the border at 6 PM on Friday. Our purchasing department had declared the package and paid the import fees. However, there was some miscalculation and the government said we owed an additional 8 GEL (approximately $3.50). Since the package arrived after 6PM on Friday, we were not informed until Monday about the discrepancy. Our purchasing department promptly paid the $3.50 difference when they learned about it on Monday morning.
However, the government had already placed a mortgage on millions of dollars worth of real estate. This entirely prevented the company from registering any property, including the property belonging to the investors from India. All of this over a tax discrepancy of $3.50 on a border declaration.
By the time we discovered the reason for the mortgage and supplied the bank receipts showing we had already paid the massive $3.50 obligation to the government, it was already too late to register the property. Needless to say, the client was extremely angry. He was flying out the next morning.
He promptly accused me of being a scam artist and stealing his money. He said he would hire a lawyer, file fraud charges against me personally at the police station, and he demanded an immediate refund. Ruebush Hospitality Group LLC had already paid the builder for the property and completed the fit-out and furnishing of the property. Our profit from the sale was less than $2500. The company was not in a financial position to make a full refund.
As you can imagine, I went through a great deal of personal stress and complications during this ordeal. I was accused of scamming someone. I was accused of being a fraudster. I was accused of lying and cheating and doing all sorts of bad things. All because the evil and oppressive Georgian government mortgaged 100% of the business assets over a tax discrepancy of $3.50 which arose at 6PM on Friday and was resolved by 11 AM on Monday.
This is what it is like to do business in Georgia.
I have many stories like this. So many that I am considering writing a book about them.
Over the past several years I have faced incredibly difficult challenges, all of them brought upon Ruebush Hospitality Group LLC by extremely evil, immoral, unethical, and corrupt courts and enforcement systems.
In 2022 a builder failed to deliver property to Ruebush Hospitality Group LLC and would not return funds the company had paid the builder. One client filed a lawsuit against Ruebush Hospitality Group LLC for approximately $275,000. He had purchased property in the project. The company had paid the funds to the builder and was fighting in court to recoup the funds. As an American, I realize I was naive and did not comprehend the absolute destruction this $275,000 court case could cause.
During the past several years, Ruebush Hospitality Group LLC has had an average yearly turnover of over 8,000,000 GEL ($3,000,000 USD). The company had real estate assets over $6,000,000 and other assets over $3,000,000 all of which were reported on the company books. A lawsuit of $275,000 is manageable when a company has over $3 million yearly turnover and $9 million in assets. At least I thought so.
Unfortunately, this business was not in the USA. You see, in the USA, the government and courts are ethical, moral, and practical. They strive to resolve matters in a way that is not destructive to either party and especially not to society as a whole. The courts in America are not corrupt and the judges do not take under the table payments from parties involved in a case. Which I fully believe happens in the courts in Georgia.
In the USA, the resolution most likely would be to establish reasonable monthly repayment terms and secure this with appropriate assets as collateral. Unfortunately, Ruebush Hospitality Group LLC is in the country of Georgia where the courts are extremely corrupt and unethical, and the judges are all too willing to take bribes.
The day the lawsuit was filed, even before Ruebush Hospitality Group LLC was notified, the judge issued a mortgage on over $6,000,000 of real estate and issued a court order that the business could not borrow money against the assets, dispose of the assets, or essentially do anything that would allow it to raise the funds needed to settle the obligation.
Imagine if you were in this situation. Someone sues you for a manageable amount equal to less than 3% of your assets, but the court orders 100% of your assets to be frozen and orders that you cannot do anything possible to pay the debt. This is exactly what a corrupt Georgian judge did to Ruebush Hospitality Group LLC. Personally, I believe the lawyers or the party on the other side of the case paid a bribe to the judge.
The interesting thing is that they did not freeze the company bank accounts, yet. Instead, they allowed the business to operate apartments, hotel rooms, cafes and other segments for a while. So, the company was able to continue to generate enough revenue to essentially pay salaries, taxes, and vendors. But profits were so severely constrained it was impossible to pay any debts. The business was restricted from utilizing any of its assets to obtain financing or do anything that would allow it to settle the court case or pay other debts or obligations.
This is what it is like to do business in Georgia. This would never happen in America.
In America, if a business owed someone $275,000 and displayed the capacity to repay the debt through a reasonable repayment plan, the court would almost certainly allow the plan to move forward. Most likely they would secure the obligation by collateral valued roughly the same as the debt. In other words, an American court would generally mortgage $275,000 of assets for a $275,000 debt. It would be highly unlikely for an American court to mortgage $6,000,000 of assets and hundreds of thousands of dollars in cash for a $275,000 obligation. It would also be highly unlikely for an American judge to take under-the-table bribes from a party in the case.
In Georgia, if a foreign owned business has even a slight bit of trouble, the oppressive regime will act almost immediately to put overwhelming conditions upon them which will start a domino effect that leads to the demise of the business and the distribution of company assets to evil oligarchs for pennies on the dollar. Several businesses in Georgia have gone through this. Essentially, the government forces businesses into bankruptcy when a problem arises that could reasonably be solved.
In the case of Ruebush Hospitality Group LLC, the abuse of a corrupt and evil court system has caused over 100 people to lose their jobs. Over 100 families have lost the health insurance they depended upon. Many of these families now have bank problems, health bills, and other financial troubles due to the actions of the corrupt and immoral Georgian courts and the unethical lawyers and parties involved in the case.
Personally, I believe the system is designed this way by powerful people who are moving the country toward authoritarianism and away from the EU. It is a creative way to bring western funds into the country and then push out western investors when they have milked as much as possible from them.
First, they attract western investors with visions of paradise claiming things such as low taxation, ease of doing business, personal safety, etc. They allow the foreign investors to build up assets and cash within Georgia. They wait until the business has a slight problem due to an accounting error, economic downturn, or a court case. They use the courts or tax enforcement to put oppressive and overwhelming circumstances on the business. Then, due to these overwhelming conditions, the business faces further problems and the government repossesses all the assets and sells them to wealthy oligarchs at a discount through government auction.
It is an ingenious and creative system of corruption for certain.
Look at what happened to Ruebush Hospitality Group LLC.
A man sued the business for $275,000 and the corrupt judge and opposing lawyers saw the business had over $6 million in real assets and $3 million in other assets. So, the judge issued orders that the business cannot register properties, sell assets, borrow against assets, or in any way pay off the $275,000 obligation. Then, when the business could not pay the obligation due to the court restrictions, the court found the business in default because they essentially ensured the default.
Then the court placed further restrictions on the business, such as freezing all bank accounts. They waited a few months. During the time the bank accounts were frozen, the company could not pay vendors, salaries, debts, obligations to investors, and especially TAXES! Because the court made it impossible for the company to pay its taxes on time, they found the company in tax default and they repossessed all the company assets and sold them at auction.
Essentially, they wiped out a business with $9 million in assets and over $3 million yearly turnover and forced over 100 people to lose their jobs because 1 person sued the business for an amount equal to less than 3% of the company assets or 9% of the company’s yearly turnover.
This is what it is like to do business in Georgia.
The entire system is evil and corrupt. But, it is a very ingenious design for the powerful oligarchs. I am certain it is one of the ways Georgia helps the Kremlin fund their war in Ukraine and evade sanctions.
It is sad for the Georgian people. Foreign investors come and establish businesses. Jobs are created. Evil and corrupt lawyers and courts steal the assets and force western-backed businesses into bankruptcy. People lose their jobs. The cycle happens to other foreign investors. There is no real progress or stability for the average person. They are just pawns in an endless cycle of corruption.
Of course, the founders and directors of the businesses are blamed. They are labeled as scammers and liars and thieves because they cannot pay vendors or salaries or investors or rents or anything at all due to the abuse of corrupt courts.
This is what it is like to do business in the country of Georgia.
Ruebush Hospitality Group LLC never missed a single payment before the courts froze the business accounts. The company always paid invoices on time and in full. The company always paid salaries on time and in full. The company always paid out earnings to investors on time and in full. The company always delivered and registered properties. The company always paid taxes on time and in full.
A builder took funds from Ruebush Hospitality Group LLC, failed to deliver the property and would not repay the funds back to Ruebush Hospitality Group LLC. Ruebush Hospitality Group LLC could not recoup the funds and pay them back to an investor, so the investor sued Ruebush Hospitality Group LLC and would not agree to reasonable monthly payments. The corrupt lawyers and judges mortgaged millions of dollars of company assets. And the corrupt system step by step forced the business into bankruptcy. Over 100 people lost their jobs. But honestly, the immoral lawyers, judges, and oligarchs manipulating this system don’t care for even one second about the 100 people who lost their jobs.
This is what it is like to do business in Georgia.
This is a country rapidly returning to the Kremlin. This is a country that may eventually be facing sanctions from the west and sending their young men to die in Ukraine.
I pray this level of corruption and systematic abuse by the courts will never happen in America.
Over the past several years I have noticed there are several construction companies in Georgia who are actually illegally shadow-owned by high-level officials in the Georgian government. For some reason, when construction companies owned by Georgians are sued, they never seem to have any problems. They really do not suffer at all from the courts. But when a construction company owned by a foreigner is sued, the entire judicial system is brought against them immediately to drive them into bankruptcy and steal all their assets through government auction.
In 2022 Ruebush Hospitality Group LLC filed a lawsuit against a builder who failed to deliver property where clients had invested. The company simply asked for the funds it paid to the builder to be returned so they could be further returned to investors. Upon filing the lawsuit, Ruebush Hospitality Group LLC asked the court to mortgage the bank account of the builder for the exact amount the builder owed the company.
Unlike the immoral and unethical people who mortgaged millions of dollars of Ruebush Hospitality Group LLC assets for a $275,000 claim, Ruebush Hospitality Group LLC only asked the court to mortgage the actual amount owed.
In 2023 Ruebush Hospitality Group LLC resoundingly won the court case. The judge ordered the builder to pay $225,000 to Ruebush Hospitality Group LLC either in cash or through real estate assets. Ruebush Hospitality Group LLC had a mortgage on the builder’s bank accounts and there is estimated to be over $100,000 in the accounts. Additionally, the builder owns hundreds of meters of real estate.
The builder immediately asked Ruebush Hospitality Group LLC to accept part of the roof of the building as settlement for the debt. First, this property does not belong to the builder and cannot be registered in the company name. Additionally, it is useless property and is not worth half of the amount the builder owes. Why would Ruebush Hospitality Group LLC accept a portion of a worthless roof on a building when the builder has over $100,000 in cash in the bank accounts Ruebush Hospitality Group LLC already mortgaged, and the builder owns hundreds of meters of valuable real estate?
In 2024, the company’s lawyer took the court order to the government enforcement offices to enforce the claim and receive the mortgaged cash. The enforcement office rejected the court order because there was a typo on the form.
So, the company’s lawyer went through the difficult weeks-long process of scheduling time with the judge and having the court order reissued with the typo corrected. Again, the enforcement office rejected the court order because there was a different typo on the form.
So, the company’s lawyer went through the difficult weeks-long process of scheduling time with the judge and having the court order reissued with the typo corrected. Again, the enforcement office rejected the court order because there was a different typo on the form.
So, the company’s lawyer went through the difficult weeks-long process of scheduling time with the judge and having the court order reissued with the typo corrected. Again, the enforcement office rejected the court order because there was a different typo on the form.
This exact same process occurred over 20 times during the period of a year.
Over a year has passed. The company’s lawyer has gone through the process of trying to enforce the judgment of the court over and over and over again. Every time, the court makes a different “error” on the forms. Every time the enforcement office rejects it.
Has someone paid the judge under the table? Is the judge related to the party being enforced upon? Is someone at the enforcement office a shadow owner of the construction company? To me it is obvious some sort of corruption is going on. I think it is impossible that over 20 times the court “accidentally” made a typo on a standard form they issue several times per day.
For more than a year the company has been trying to enforce a court order to claim the cash the company has already won in court, already mortgaged, and is already sitting in the bank ready to be dispersed. For more than a year the company has needed these funds to pay taxes, rental incomes to investors, salaries, buy-backs, and other obligations. Over and over and over again, the corrupt system prevents it.
This is what it is like to do business in Georgia.
Of course, because the corrupt courts have systematically abused Ruebush Hospitality Group LLC and frozen all the company funds, the company has been unable to make payouts for rental incomes. The company has been unable to buy back shares or properties from investors who wish to exit. The company has been unable to pay taxes or salaries or vendors.
Because of this, some people have taken to social media to label myself and others as scammers and liars and thieves. Some have even gone so far as to make the same false accusations to police and government agencies. It is an extremely difficult situation. It is very painful and depressing.
The only solution the company has left is to watch assets be sold off step by step and the proceeds used to pay obligations. This process is already in progress and over the next year or two it will be completed. The entire process is extremely corrupt and one-sided in favor of the local regime.
I can go on and on with stories about how corrupt and evil the government is in Georgia. The entire system is unjust and immoral. It is impossible to build an honest business in Georgia, other than a teeny tiny private entrepreneur operation. I would not wish the pain and torture of doing business in Georgia upon anyone.
If I could go back in time, I would never ever enter the country of Georgia. I would run from it like the plague. I would never invest even one penny in Georgia. I lost my entire life’s savings in Georgia. I lost 11 years of my life. I worked tirelessly to build a business that provided over 100 jobs. I personally donated tens of thousands of dollars of my own money to people in need in Georgia. I invested my entire life savings into Georgia trying to build an honest and good business filled with honest and good people. In return, evil and corrupt people took every penny I ever had to my name.
If you sat down and listened to the details of the hundreds of other issues I have faced over the past few years in Georgia, you may begin to understand 10% of the hopelessness, despair, depression, disappointment, and pessimism I have been feeling. I wasted 11 years of my life in Georgia.
So, where do we go from here?
I will work every day and continue to manage the properties currently managed in Batumi and continue to send quarterly income payouts to investors. If you own an apartment or a hotel room in Seagull, your property is still being booked and your rental income will be paid out consistently. Actually, it can now even be paid out daily, as soon as guests check out.
I want to STRONGLY urge you to sell your property if you own property in Georgia. I am 90% certain Georgia will return fully to Kremlin control over the next year. If you own property in Georgia you would be wise to sell it now and get your money out of Georgia. There is an extremely high risk sanctions will target Georgia in the future and you will not be able to get your money out of the country. I hope this does not happen, and if it doesn’t then there will not be any problems. But if it does happen, and you have not prepared for it, you could find your entire investment forever lost in Georgia.
My only advice to anyone who has invested in Georgia is SELL ANYTHING YOU OWN IN GEORGIA AND GET YOUR MONEY OUT. In my personal opinion, Georgia is extremely risky and there is a very strong possibility you will lose any property you own in the country. Hire a real estate agent, sell your property, and get your money out of Georgia as fast as you are able.
I am working now to raise capital in Texas and build an American corporation with potential to generate highly scalable revenues in the vacation rental ecosystem. If you are trying to exit your investment in Batumi, I am willing to discuss the possibility of buying out your investment. Contact me and I will discuss this option with you.
Also, regarding properties we currently manage in Batumi…
Over the next several days I will be reaching out to all owners of apartments that are actively under management and investors in hotel rooms in Seagull. We have a new international payout system, and we can payout your earnings in much faster and more affordable ways. We even have a new option where you can receive your rental income on a daily basis. Essentially, it is possible to get your payouts on the day your guests check-out, instead of waiting 3 months for quarterly payouts.
I will set up a call with each person who owns an apartment or a hotel room in Seagull and get you onboarded quickly to this new payout system. I think you will appreciate the ability to get your rental income instantly upon each guest check-out rather than waiting for quarterly payments.
I personally think the future of Georgia looks bleak. I am convinced Ivanishvili will sell the country back to the Kremlin and will become an authoritarian pawn of Putin. I am sad about this, and I pray it doesn’t happen, but I cannot ignore all the writing on the wall. Georgians could be cut off from the world in the same way Syria, Russia, North Korea, and other enemies of the west are cut off. Travel can be restricted, and banking can be restricted. These things are coming. In my opinion it is inevitable.
Stay tuned for my next update…
Sincerely,
David Ruebush
Contact me: d.ruebush@ruebushgroup.com