Like many people who find that they can not control some aspect of their lives, the government of Puerto Rico has started on the road to recovery.

The governor admitted what almost everyone in Puerto Rico has known for years - there just isn't enough money to pay the billions of dollars of debt that they have incurred for decades.

While this has caused reactions from confusion to panic among bondholders and investors - it is actually a very important step in forming a bottom to the real estate market.

Now that government has recognized the problem - they have to make difficult decisions on the enormous public payroll, underfunded pension funds, inability to control budgets, political influence throughout the economy and hiding problems in endless bureaucracy.  

The bottom will start to solidify now that many people may be willing to sell 'at any cost' - as long as buyers have cash to bring to the table.

If you have cash and a 5-10 year investment horizon, this may be a once-in-a-lifetime buying opportunity.  

This opportunity will end as soon as banks start to give mortgages, federal incentive programs start to revive the business sector, Law 20/22 investors relocate businesses and the exodus of the middle-class subsides.

Puerto Rico a small island market where prices can fall quickly and rebound just as quickly as soon as demand returns.

This process should take about two years as soon as government has to truly balance spending - so now is the time to start considering investment and carefully looking for the right opportunity as Puerto Rico works its way through the steps to recovery.

Are you a contrarian investor with a long-term horizon?