Financing

[hooligan202]

OK guys don't laugh! I've noticed how negative some of you are.
I have an opportunity to purchase a B & B property in Cabarete, but I will need to finance about 40%, it seems impossible to get a US institution to give a mortgage in the DR, Any body have any constructive sugestions or tell me the best route to go, I would also consider a partner, active or non active.

[frank alvarez]

Financing would have to be done locally and DR interest rates run between 30 to 40% per year! Unless you can obtain a loan outside the DR but not contingent on holding a DR mortgage. Otherwise, the alternatives may be
a partner but then you would have to be accountable to someone else. Hope you can work it out.

[Ken]

If you take a partner, I would recommend that it not be a Dominican.

Will the seller finance it? This sometimes happens, depending on how eager he is to sell.

[Camden Tom]

What does 40% equate to in dollars? What kind of interest are you willing to pay?

[Porthos]

Originally Posted by Ken

If you take a partner, I would recommend that it not be a Dominican.

Will the seller finance it? This sometimes happens, depending on how eager he is to sell.

Thanx Ken, that's exactly the kind of advice one would like to hear in a DR related forum about business. Oh wait! that's unless you're dominican, as I am, in wich case things like that really aren't too welcome.

[hooligan202]

Originally Posted by Camden Tom

What does 40% equate to in dollars? What kind of interest are you willing to pay?

40% equates to $80,000, as for interest I would have to abide by the going rate in DR or the US up to prime + 10, for 24 months

[ricktoronto]

If the Central Bank is offering 60% on government debt, wouldn't mortgage rates be higher than 40%? I recall reading rates were in the 52% range and that was some time ago.

[Wales]

Originally Posted by hooligan202

40% equates to $80,000, as for interest I would have to abide by the going rate in DR or the US up to prime + 10, for 24 months

Are you saying you need to borrow $80,000 US to complete this purchase.
Some Questions :
What is the value of the property?
Where is it?
What size is it?
Are there any financial performance details for the last Three Years from the present owners?
Why are they selling?
Do you have experience in the catering trade?
Do you have working Capital to run the business?
Wha is your personal financial situation i.e. assets over liabilities.
e-mail me privately with indication of interest rate you are willing to pay. We may be interested. Maybe as long as the above adds up.