Matt Landau has a good read on his blog about the 12 blunders of investing in Panama. I would agree with everything on this list and could add a few more when time allows.
1. Believing someone when they tell you, you can sell a property no problem:
2. Buying a property solely from photos or hearsay:
3. Investing on a piece of real estate with a partner you don't know extremely well:
4. Expecting to get good service from an agency/developer after you've made a purchase:
5. Assuming a project will be ready by the time it is originally projected:
6. Investing big money with a first-time developer:
7. Trying to build or do construction on your own:
8. Waiting too long to invest:
9. Trying to go around an agent or middleman to get a better deal:
10. Seeing one property and falling in love:
11. Becoming obsessed with beachfront:
12. Choosing a big shot lawyer:
If any of these titles apply to you then maybe you should read this first.
