HOW Much...

Gimabella

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hey everyone...

just out of curiosity for future goals.........

how much will i need to:

build a small Building with about 6 apts....

i have 50,000USD sitting in a bank and my fingers are itching, i was thinking about investing it in the DR Realty,

and i've inhereted a land, that according to a "agronomo" its big enough to construct a 6 apt. builiding..

i want to invest,,,,right know,..then live off it..comfortably.....

as a first time investor 22 y/o ( ive worked since i was 14 and have managed to save lots of it.)

when would it be a good time to do so?

thanks........
gima
 

Larry

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Mar 22, 2002
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Gimabella said:
hey everyone...



i have 50,000USD sitting in a bank and my fingers are itching



thanks........
gima

Don't let your fingers get too "itchy". At such a young age, making the right decision with that 50,000 dollars could have a very positive impact on your life down the road. I am curious to know more about you, where you live and what your plans are. Also, what percentage of your net worth is the 50K? If you are living in the USA and this is your first major investment, most people ( including me) would advise you to buy a home in the states, preferably an income property, and hold onto it. Anyway, the fact that you are doing research is good. Take your time and don't "leap" into anything. If you do decide to make a purchase in the DR, make sure you are extremely informed before you commit to anything.

Most people at your age make irrational decisions with money due to naivete.If you were to buy a 2 family house in the USA and rent one unit while living in the other, there would be little room for error. Please keep that in mind and revisit that idea while doing your due diligence in other areas. Good luck.

Larry

edited to add...if you decide NOT to build your apartments in the DR and are wondering what to do with the land, I suggest you find out the exact value of the land and then hold onto it. In the future, you could always build your apartments and the value of the land you own would have appreciated over time. If you buy the 2 family house in the USA and it goes up in value, you could take a second mortgage against it and use that to build your apartments on your land down the road. That would have given you plenty of time to develop a good solid informed plan for building your complex. Then you would own a house in the USA AND have your apartment complex in the DR. Don't be too concerned with paying the second mortgage because every year, you will be raising the rents in the 2 family house in the US and as long as you keep 20% equity in the house, the rents should more than cover the mortgages. Just an idea to ponder. Take your time and think.
 
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jalencastro

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yes

Larry said:
Don't let your fingers get too "itchy". At such a young age, making the right decision with that 50,000 dollars could have a very positive impact on your life down the road. I am curious to know more about you, where you live and what your plans are. Also, what percentage of your net worth is the 50K? If you are living in the USA and this is your first major investment, most people ( including me) would advise you to buy a home in the states, preferably an income property, and hold onto it. Anyway, the fact that you are doing research is good. Take your time and don't "leap" into anything. If you do decide to make a purchase in the DR, make sure you are extremely informed before you commit to anything.

Most people at your age make irrational decisions with money due to naivete.If you were to buy a 2 family house in the USA and rent one unit while living in the other, there would be little room for error. Please keep that in mind and revisit that idea while doing your due diligence in other areas. Good luck.

Larry

edited to add...if you decide NOT to build your apartments in the DR and are wondering what to do with the land, I suggest you find out the exact value of the land and then hold onto it. In the future, you could always build your apartments and the value of the land you own would have appreciated over time. If you buy the 2 family house in the USA and it goes up in value, you could take a second mortgage against it and use that to build your apartments on your land down the road. Then you would own a house in the USA AND have your apartment complex in the DR. Don't be too concerned with paying the second mortgage because every year, you will be raising the rents in the 2 family house in the US and as long as you keep 20% equity in the house, the rents should more than cover the mortgages. Just an idea to ponder. Take your time and think.
EXCELLENT response! always think about your investments! $50k is a lot of money, i would also recommend you invest in the US first, but you are the one who will make the decision in the end. I too would love to have some property in DR, but i will wait until i am older and almost ready to retire happily! :beard:
 

Gimabella

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jalencastro said:
EXCELLENT response! always think about your investments! $50k is a lot of money, i would also recommend you invest in the US first, but you are the one who will make the decision in the end. I too would love to have some property in DR, but i will wait until i am older and almost ready to retire happily! :beard:


ok, wow thaty was fast..jeje

well i live in NYC houses extrelemy expensive here, ive thought about buying a 2 family house and actually renting out both apts, and still live with mom,,,but the houses here are really expensive and crappy..

i can use the rent of the 2 apts, to get the mortgaged pay off? ir maybe i can use that to start my complex,

yeah since im sooooo young, and still ins chool ill probably jsut let the land sit there.........

i actually plan on relocationg as soon as i finish school here in NYC, i already have a place to stay so thats not the issue,my issue is avoinding haveing to work for someone else,

since its been so hard to find companies, ive been researching employment in DR for the past 2 yrs, and still no luck as to possible employers, even ewith an AAS degree in Business and finishing my BA in economics,,,,,,,,,,
 

jalencastro

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Gimabella said:
ok, wow thaty was fast..jeje

well i live in NYC houses extrelemy expensive here, ive thought about buying a 2 family house and actually renting out both apts, and still live with mom,,,but the houses here are really expensive and crappy..

i can use the rent of the 2 apts, to get the mortgaged pay off? ir maybe i can use that to start my complex,

yeah since im sooooo young, and still ins chool ill probably jsut let the land sit there.........

i actually plan on relocationg as soon as i finish school here in NYC, i already have a place to stay so thats not the issue,my issue is avoinding haveing to work for someone else,

since its been so hard to find companies, ive been researching employment in DR for the past 2 yrs, and still no luck as to possible employers, even ewith an AAS degree in Business and finishing my BA in economics,,,,,,,,,,
it sounds like you have a plan my dear! I am glad you ahve some good capital saved up and you are very young indeed! best of luck with that! also living at home with mom is a great thing! i did it too for a while but unfortunately i dont even have half the capital you got! so i envy you LOL [kidding]
i think definately the best move is to invest here, make more money on top of it and slowly look into doing something abroad. i too have thought about working in DR but i have no idea what the job market has out there. now that i am going back this friday and there through 2005, i will look around.
methinks a good place to start is the hotel industry, and with a good economics major and english in your resume im sure you can land something good there! i will look around....but you definately are going to succeed! :beard:
 

Gimabella

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Larry said:
Don't let your fingers get too "itchy". At such a young age, making the right decision with that 50,000 dollars could have a very positive impact on your life down the road. I am curious to know more about you, where you live and what your plans are. Also, what percentage of your net worth is the 50K? If you are living in the USA and this is your first major investment, most people ( including me) would advise you to buy a home in the states, preferably an income property, and hold onto it. Anyway, the fact that you are doing research is good. Take your time and don't "leap" into anything. If you do decide to make a purchase in the DR, make sure you are extremely informed before you commit to anything.

Most people at your age make irrational decisions with money due to naivete.If you were to buy a 2 family house in the USA and rent one unit while living in the other, there would be little room for error. Please keep that in mind and revisit that idea while doing your due diligence in other areas. Good luck.

Larry

edited to add...if you decide NOT to build your apartments in the DR and are wondering what to do with the land, I suggest you find out the exact value of the land and then hold onto it. In the future, you could always build your apartments and the value of the land you own would have appreciated over time. If you buy the 2 family house in the USA and it goes up in value, you could take a second mortgage against it and use that to build your apartments on your land down the road. That would have given you plenty of time to develop a good solid informed plan for building your complex. Then you would own a house in the USA AND have your apartment complex in the DR. Don't be too concerned with paying the second mortgage because every year, you will be raising the rents in the 2 family house in the US and as long as you keep 20% equity in the house, the rents should more than cover the mortgages. Just an idea to ponder. Take your time and think.


the land is worth about 2 millones. more or less....

good inheritance..right....? but in order for me to get it in my hands,,i need to firstly finish college and get a MAsters degree , so i wont be able to do anything funny until another 3 yrs or so...i guess between know nad then the land will have more value , and i will have more $$$$
 

jalencastro

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damn!

Gimabella said:
the land is worth about 2 millones. more or less....

good inheritance..right....? but in order for me to get it in my hands,,i need to firstly finish college and get a MAsters degree , so i wont be able to do anything funny until another 3 yrs or so...i guess between know nad then the land will have more value , and i will have more $$$$
damn good inheritance...can i buy it off you? LOL
where is this land again? exact location...
hey, finish school, you'll be better off! :beard:
 

Larry

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Gimabella said:
i can use the rent of the 2 apts, to get the mortgaged pay off?

Absolutely! I am going to give you an idea to explore. Drive 100 miles upstate NY into the Catskills and look for a 2 family house in a town or small city up there. Real estate is much cheaper there as the extremely high prices in the 5 buroughs are making their way north but have not reached up this far as of yet. Your 50K will be enough to put down on a 2 family house there and you can rent out both units while still living in NYC with your mom. You will also be close enough to keep an eye on things and take care of any problems that may arise. Additionally, the rents you collect from the house will cover your monthly mortgage bill, property taxes, insurance, etc. AND assuming the 2 units are always rented, you should see a positive cash flow of a couple hundred dollars per month.

Over the course, of time, the value of your house (and the rents your are collecting from it) should go up. (You do need to determine your time frame however because a dip in housing prices is quite possible. I am not an economist but assuming you are willing to hold onto the house for at least 10 years, this should not be a factor IMO). As I stated before, you could then take some of your profit out of the house in the form of a second mortgage and use that to build in the DR.

You have to realize something, you can buy something worth $250,000 in the USA with $50,000 due to your ability to mortgage. You would then have $250,000 worth of real estate working for you. However, that same $50,000 will most likely only get you $50,000 worth of property, etc. in the DR because the banking system there dosen't provide the same ability to mortgage. So in that case, you would only have $50,000 working for you. Bottom line is if your 2 family house in NY doubles in value, you make a quater million dollars. If your complex in the DR doubles in value, you will only make 50K.

Larry
 

Larry

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Gimabella said:
the land is worth about 2 millones. more or less....

good inheritance..right....? but in order for me to get it in my hands,,i need to firstly finish college and get a MAsters degree , so i wont be able to do anything funny until another 3 yrs or so...i guess between know nad then the land will have more value , and i will have more $$$$

Ok, now you are revealing more. Are we talking dollars or pesos? How much land are we talking about?

Larry
 

Gimabella

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wow,,,thanks everyone for ur qick responses :eek:

i will let u all know how i did wirth my 50,000USDollares..

Cincuenta Mil Dollares Americano

sorry Jalencastro i dont think my Abuela would be to thrilled in her grave ..if i see the land....sorry. ;)

Larry the land is in S.Domingo Este right behind the MegaCentro mall, and i belive its in Res. Amapola..i dont know for sure...u know , its hard to give exact addresses from the DR
 
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Gimabella

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jalencastro said:
it sounds like you have a plan my dear! I am glad you ahve some good capital saved up and you are very young indeed! best of luck with that! also living at home with mom is a great thing! i did it too for a while but unfortunately i dont even have half the capital you got! so i envy you LOL [kidding]
i think definately the best move is to invest here, make more money on top of it and slowly look into doing something abroad. i too have thought about working in DR but i have no idea what the job market has out there. now that i am going back this friday and there through 2005, i will look around.
methinks a good place to start is the hotel industry, and with a good economics major and english in your resume im sure you can land something good there! i will look around....but you definately are going to succeed! :beard:


ay manita good luck in ur search, i was ther in Nov and didnt have much luck,,i have the youth, desire academic background but no conections which really sucks :cry

i will defintly give Dr a try in living ,,after the economyh and situation decides to settle down...hopefully 2006........

good luck manita................
 

Gimabella

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definitvamente amigo

jalencastro said:
hey, finish school, you'll be better off! :beard:

oh im defintly going to finish school

hopefully i'll be done next December 2005.......and then lets see what happens from there............

trust me i really want to finish,. ;)
 

johne

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Check your PM

Gimabella said:
hey everyone...

just out of curiosity for future goals.........

how much will i need to:

build a small Building with about 6 apts....

i have 50,000USD sitting in a bank and my fingers are itching, i was thinking about investing it in the DR Realty,

and i've inhereted a land, that according to a "agronomo" its big enough to construct a 6 apt. builiding..

i want to invest,,,,right know,..then live off it..comfortably.....

as a first time investor 22 y/o ( ive worked since i was 14 and have managed to save lots of it.)

when would it be a good time to do so?

thanks........
gima

I have sent you E Mail-check it.
 

jalencastro

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Lol

Gimabella said:
ay manita good luck in ur search, i was ther in Nov and didnt have much luck,,i have the youth, desire academic background but no conections which really sucks :cry

i will defintly give Dr a try in living ,,after the economyh and situation decides to settle down...hopefully 2006........

good luck manita................
actually my dear, yo me llamo Jaime [hi-meh] that makes me un macho! LOL
dont worry no offense taken, i get it all the time online or in forums. i need to post a pic of myself up! if you click on my profile does my url come up? webpage? at least there you can see who i am! LOL
i will see what i can find when i go up there soon! cant hurt to look around!
in the mean time, i am not sure where that land is at! i will look around while i am there! LOL
as for me, i like the campos better than the city, more quiet and so relaxing! :beard:
 

iluvdr

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Invest in a CD at Central Bank at 26%

Hi Gambella,
My younger brother Richard just called me with the same question, except he only as $20k saved up... Well I strongly suggest that you diversify, part in mutual funds preferably an index fund, you can't go wrong there ! Part bonds, and gamble on a Dominican CD at 26% at the Central Bank.
Real Estate might be over glorified. I have had some bad experiences with tenants, renovations, plumbing etc... and at your young age, being a female (I guess) and all , I am not sure you are cut out to be a landlord just yet!
Also remember, what ever profits you make in the US , you will end up paying 1/3 of that in taxes... a CD at the Central bank is tax free!
$20K on a CD, if the pesos remains stady will pay you close to $6000,00 US a year! Not bad... as far as security is concern your money today is safer at the Central bank then in most US banks and if you would like me to expand on that last comment p.m. me!
Hell! put in the whole $50k, you will earn up to 35,000.00 RD$ a month, that's the salary of a top executive in DR!

Good Luck!
 

Mr_DR

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iluvdr said:
20K on a CD, if the pesos remains stady will pay you close to $6000,00 US a year! Not bad... as far as security is concern your money today is safer at the Central bank then in most US banks and if you would like me to expand on that last comment p.m. me!
Hell! put in the whole $50k, you will earn up to 35,000.00 RD$ a month, that's the salary of a top executive in DR!

Good Luck!

That is also well above the avg cashier pay in the US without having to pay taxes.
 

TEHAMA

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The BEST advice I ever received regarding living arrangements in the DR came from a DR1 poster several years ago. I pass this on to you, "Figure out a way to make your money in the US and live in the DR."

After much careful planning it can be done.
TEHAMA ;)
 

Toronto2inDR

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Lots of very good advice being given here. Fifty thousand dollars is a lot of money but at the same time it?s too little to build apartments or even a house here in the DR or any other place worth living.

Sitting the money in the bank and living off the interest is another idea but that?s a short term plan because when you factor in inflation then your income (in pesos) will slowly lose buying power and in the end you?ll still have your original fifty G?s that also buys you less.

Investing in homes or apartments for the rental income is full of problems, tenants being the main one and the repairs and maintenance costs many times eat up all the profits and then some. (talking for bad experiences in Canada).

To make that fifty thousand work for you in real estate you?ll have to have a good eye for deal, leverage it with other investors or a bank to create more buying power, accept that you?ll need to split profits, trust no one (unless they put their money where their mouth is and sign a contract), have a great lawyer, excellent timing and a lot of good luck. That?s not to say it?s impossible because I?m doing almost the same thing right now.

Good luck!
 

Gimabella

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Mr_DR said:
That is also well above the avg cashier pay in the US without having to pay taxes.

so ur saying that while my 50K is sitting in Bancentral it will earn more or less that amount of interst...of 35 mil pesos Domincano...

not bad.......

honestly u guys after reading many of ur responses, since im soo young and am really not in the need to use the money gracias a dios,,ill probably consider going to Bancentral sometime in 2005 and opening a CD ,a nd just let the $$ sit there.........

right.........
 

Gimabella

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TEHAMA said:
The BEST advice I ever received regarding living arrangements in the DR came from a DR1 poster several years ago. I pass this on to you, "Figure out a way to make your money in the US and live in the DR."

After much careful planning it can be done.
TEHAMA ;)

so u would somehow have ur money work for u here in the US and live off it in DR...........

the only way my $$ can give me profit here is if i invest in a 2 family home ,...have the mortgaged payed by the tenants, and then have some left over for me..........

i've thought about his , and some of my people here have suggested this aswell

but i'm not really crazy about dealing with crazy tenants right know.......

tenants can get really nasty, both here and in DR