Is there hope for Cabarete? (Investing in Property)

maurmcgee

Member
Dec 9, 2005
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I am interested in finding out the word on the street as to the future of Cabarete as a tourist destination. I am aware the North Coast has been hurting in recent years, many hotels closing, etc. This seems to have resulted in many smaller boutique hotels, apartment building, etc. coming up for sale at very decent prices. As a person looking for something to invest in and run as a retirement business, would it be insane to even think of buying one of these properties? I appreciate the advice of those who are living there.
 

windeguy

Platinum
Jul 10, 2004
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Everything is for sale here all of the time. When more than everything is for sale, that is when you can find a bargain. As for your idea of purchasing something to run as a retirement business my first question is are you ready to retire? Next can you afford to lose all of the money, or almost all until you sell years down the road, if it does not work out? How are your marketing skills , and lastly what is the location, location, location and who would your target clients be ?
 

maurmcgee

Member
Dec 9, 2005
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0
6
Answers:
1. Yes ready to retire (but a young retiree) :)
2. No, of course not...just want to make enough to live on while I run it...
3. Pretty good.
4. Cabarete
5. Tourists...adults only probably.

Really just wanting to know if there is ANY possibility of a well run business making it there, or if that is just a pipe dream.
 

zoomzx11

Gold
Jan 21, 2006
8,367
842
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nope, no hope for Cabarete. Now, Sosua, on the other hand-heh,heh,heh.
Vast majority of expats who open a business in the DR lose their money. The "business model" here is not what is normal in the rest of the civilized world. Free advice. Forget it.
 

oceanspear

New member
Nov 23, 2012
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First of all I mean no disrespect to anyone on this forum. I am Spaniard of dominican descent, spent a lot of time in The D.R. and have many dominican friends. I am Dominican first, Spaniard second, I am not an EXPAT, I know whats up here. The short answer to your question is YES, you can invest IF you happen to do a lot of research and find a NICHE business. There are oportunities here, I would advise you to first get to know the island and how things roll around here, second don't trust anyone or let anybody control your money regardless. 3 have acces to a great lawyer and legal advice.
Keep your expenses down when downhere, mingle with the locals, don't be flashing money or being boastful,....listen tenfold and speak once. Patience is key downhere. There are plenty of ways to make money here. Can you lose your shirt??? Hell yes.... btw 9 out 10 business in the USA go bust within the first 3-5 years...so just because a fool has money to open a business does not translate into being succesful running one.
just my 2 cents.
 

Chip

Platinum
Jul 25, 2007
16,772
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Santiago
There are plenty of foreigners that have made it here. Apart from luck I expect they had the capital and knowhow, ie viable business plan, to make it happen.

My advice is to expect less profit but that could be offset by the lower cost of living.

I would also take with a grain of salt any comments by anyone who has never run their own business.

BTW, I've been a business owner since 2004.
 

oceanspear

New member
Nov 23, 2012
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Hey Chip I agree with you 100%, I really laugh when people come over from Europe or the U.S and get fustrated when they realize this is a whole new ball game with different rules, I lived in the states for 20 plus years, and oh boy was it a learning curve, being frugal, conservative and careful with your money is a must. I learned it the hard way but it was worth every dime since it taugh me to control my own money and run the show myself so when the **** hits the fan I can look at the mirror and say I did it. Usually when these guys come down here and lose their asses the cause is 1- they let someone else run their money, listen to some sweet old bs that WAS too good to BE TRUE with great profits. 2-They get executivitis and grandeur habits of hubris, you have to be on top of your biz or they will rob you blind....3- when they finally wake up and smell the coffee...they are broke and done...then leave the island and talk **** about it because they were not man enough to own up to their stupidity and admit THEY screwed up....
Even selling sugarcane out of a tricycle is a business, you have to watch for your own back.
Ive been reading postings here for a while and most of the comments are negative when it comes to investments. I disagree with most of them, If you do your homework and find a Niche you can prosper here with realistic expectations.
 

frank12

Gold
Sep 6, 2011
11,847
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Well, i can only think of two shining examples of new businesses thriving beyond people's wildest expectations and imaginations...and what great examples they are:

1. Gorditos in Cabarete is doing an amazing business--and for damn good reason. They're putting out an excellent, well priced product that is consistent, fresh, and excellent in every single way. They've cornered a niche market and the owners are always on hand. And many, many people are driving daily from Sosua just to eat there.

2. Mojitos on Cabarete beach is the same story as Gorditos, and again, doing an amazing business that would make any restaurant/bar owner the world over envious. They've got people knee deep, and coming from far away just to get a fresh drink or sandwich there.

These two shining examples should be at the top of any well conceived business model.

Frank
 

maurmcgee

Member
Dec 9, 2005
47
0
6
This is some great discussion. Are their any business owners out there who might be willing to message with me privately and provide some mentoring advice (or recommend someone who might be willing to do this?) I am not looking to make a fortune and have no delusions of grandeur. I am just too young to wither away in Canada, ha! I need to be challenged. I have an idea for what I think is a niche market but don't want to put it out here for someone to steal, ha ha. I also have Dominican connections which may help me from being gringoed too much :)

Oh, and where are the best places to go to avoid the crazy ex-pats when I come to visit? I have experienced a few of the crazies already and would like to stay clear of that!
 

maurmcgee

Member
Dec 9, 2005
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6
So, Harleysrock, are you just living on investment/retirement income or do you work in the DR? There must be some expats there that are not independently wealthy and have to do something for an income, aren't there?
 

tomas2

Member
Nov 29, 2005
188
25
18
Well, i can only think of two shining examples of new businesses thriving beyond people's wildest expectations and imaginations...and what great examples they are:

1. Gorditos in Cabarete is doing an amazing business--and for damn good reason. They're putting out an excellent, well priced product that is consistent, fresh, and excellent in every single way. They've cornered a niche market and the owners are always on hand. And many, many people are driving daily from Sosua just to eat there.

2. Mojitos on Cabarete beach is the same story as Gorditos, and again, doing an amazing business that would make any restaurant/bar owner the world over envious. They've got people knee deep, and coming from far away just to get a fresh drink or sandwich there.

These two shining examples should be at the top of any well conceived business model.

Frank

But what is their opportunity cost Frank? If they have tons of customers, work their butts off, invest to produce a great product, and end up with $100 in profit at the end of each day, is it worth it? They could make that working at McDonalds in the US or Europe.

From what I saw, the people with businesses were there because they met a woman (or man) and wanted to stay, or they were running from something in their own countries. If you open a business in the DR you are competing against lots of DESPERATE business owners. And if you are lucky enough to come up with a successful business, everyone will just copy it, and undercut you in price until it is no longer viable. Not exactly how I would want to spend my retirement years.

If you want a little play-thing business that can lose money, and it is no big deal, heck go for it (I saw alot of them in Sosua...little bar\restaurants that were owned by expats that wanted places where they could hang out with their buddies...terrible food and service...but that wasn't the point). But if you need to make money, it is much easier in the first world. Or just put your money in a savings account and get your 1%.
 
May 29, 2006
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I remember Cabarete from 15 years ago. $100,000 of property back then could have made some serious money. Most of what is available on the North Coast now has already been bought and sold and they want unrealistic prices. There is other property to invest into in the DR which have not been "discovered."
 

Chip

Platinum
Jul 25, 2007
16,772
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Santiago
But what is their opportunity cost Frank? If they have tons of customers, work their butts off, invest to produce a great product, and end up with $100 in profit at the end of each day, is it worth it? They could make that working at McDonalds in the US or Europe.

What you are referring to is margin or profit, not opportunity cost.

Any viable business plan takes into account the expected profits and costs. If somebody were serious about opening a restaurant they could count customers on a weekly basis in the high and low seasons and also research all the associated business costs. This isn't complicated really.
 

arrugala

Bronze
Nov 7, 2010
967
2
0
I have lived in Cabarete for over 8 years .it has got slower each year for tourists,and aside from the two businesses mentioned above , i have not seen Any Others to tempt you . you had better live where you are considering first and speak with as many people as u can and experience the destination to see if it even appeals to you . the only other businesses i have seen survive in Cab are longstanding 20 years or more in the business .i am in the same position as you , older but 8 years here i have found nothing that i would consider!!good luck
 
So, Harleysrock, are you just living on investment/retirement income or do you work in the DR? There must be some expats there that are not independently wealthy and have to do something for an income, aren't there?

No we don't work, we are living on investments etc... My Wife will do some music stuff online eventually once we get more settled.
If you opened a Taco Bell I'm pretty sure I alone could keep you running for a while ;-)

I'm really interested to know your business Idea's, but obviously I know why you won't share it!!
If you do decide to open a business here I wish you the BEST!!!
 
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tomas2

Member
Nov 29, 2005
188
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What you are referring to is margin or profit, not opportunity cost.

Any viable business plan takes into account the expected profits and costs. If somebody were serious about opening a restaurant they could count customers on a weekly basis in the high and low seasons and also research all the associated business costs. This isn't complicated really.

Regarding opportunity cost, my point was if you are talented enough to come up with a successful business (or have a professional job) in the DR, you would probably make many times that if you had it in a first world country. That is your opportunity cost. You are giving that up to live in the DR. And again, that is fine. I am not judging anyone that has made that decision. But I didn't see any business or job in the DR that would be compensated (even adjusting for cost of living) at the nearly the same level as in the US or Europe.
 
May 29, 2006
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The people who are successful in the DR tend to be pretty quiet about it. There is money to be made, but you do actually have to work for it. Most of people who come to the north coast want to do yet another bar(because it will be "fun"), which it has in abundance and the majority of would-be bar owners have never worked in the industry, much less owned a business or done a business plan. They come at the peak of tourist season and think every spot in town is a year round money-making machine.