Financing options for real estate

sonny

New member
Aug 6, 2002
58
0
0
Hello all,

The interest rates on loans in DR are very high. Are there any options for financing through an American bank if I want to buy property. I am an American citizen but unfortunately do not have any assets that I can put down for collateral. I know it seems improbable but I figured I should ask.

Thanks,
Sonny.
 

ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
4,837
0
0
No.

Impossible,not improbable. And really the reason for the loan in this case is moot, without collateral unless you are talking a token amount like $5000 you're out of luck.
 

BostonMary

New member
May 18, 2002
247
4
0
One option is to finance through the seller. Frequently with a large downpayment they may be willing to accept monthly payment for a few years, however it usually is a few years, not anything near 25. You need to have a legal contract drawn up and I would proceed very carefully.
 

Gringo

Bronze
Jan 1, 2002
1,314
58
0
An American 1st. Mortgage is possible.

I have been Involved in several deals and Dominicans will take back a 5 year 1st. @10% or so, depending on your down stroke! (substansial is usually required) and of course how badly they want to sell.....( However these deals have allways been with a Gringo Purchaser)
 
Last edited:

Gringo

Bronze
Jan 1, 2002
1,314
58
0
What I mean is an American Interest rate ( Percent )

Escott said:
I don't think an American 1st mortgage is possible.

Venders will often take back a PRIVATE Mortgage, Interest Rates being low as compaired to a Bank Lender Etc. here in the DR.

Example, I purchased my house here in Puerto Plata thirteen years ago, at that time I paid in US money $25.000. If I came across some Gringo who offered me today lets say $500.000 and he was willing to give me $350.000 Down, I would have not the slightist problem taking back a 1st. mortage of $150.000 @ 10% open for five years.
 

johne

Silver
Jun 28, 2003
7,090
2,963
113
What A guy!!

Gringo said:
Venders will often take back a PRIVATE Mortgage, Interest Rates being low as compaired to a Bank Lender Etc. here in the DR.

Example, I purchased my house here in Puerto Plata thirteen years ago, at that time I paid in US money $25.000. If I came across some Gringo who offered me today lets say $500.000 and he was willing to give me $350.000 Down, I would have not the slightist problem taking back a 1st. mortage of $150.000 @ 10% open for five years.

I'm SURE you would! What seller would have a problem with that deal? What buyer (gringo) would be interested in buying a $500,000 home , that you paid $25000 for, AND to put up $350000??? I don't think there are that many gringos around that have $350000 that are so naive to pay 10% on a 5 year balloon when money can be had here for 6% with a 25 year pay out rate.
But, what do I know, as they say there's a sucker born every minute.

JOHN
 

johne

Silver
Jun 28, 2003
7,090
2,963
113
In addition

Further to the point we lost sight of the o.p. that said she had NO assets.

JOHN
 

Gringo

Bronze
Jan 1, 2002
1,314
58
0
John.....Maybe I'm missing the Boat!

johne said:
I'm SURE you would! What seller would have a problem with that deal? What buyer (gringo) would be interested in buying a $500,000 home , that you paid $25000 for, AND to put up $350000??? I don't think there are that many gringos around that have $350000 that are so naive to pay 10% on a 5 year balloon when money can be had here for 6% with a 25 year pay out rate.
But, what do I know, as they say there's a sucker born every minute.

JOHN

John please tell me where all this money you speak of ( Here in the DR. ) can be had at 6%.
I have been over paying on Interest here in the DR for to many years, I think that its me thats naive..... having not tapped into this 6% money source available here with a 25 year term to pay?

Gringo
 

johne

Silver
Jun 28, 2003
7,090
2,963
113
Missunderstanding

Gringo said:
John please tell me where all this money you speak of ( Here in the DR. ) can be had at 6%.
I have been over paying on Interest here in the DR for to many years, I think that its me thats naive..... having not tapped into this 6% money source available here with a 25 year term to pay?

Gringo[/QUOTE

I didn't mean that there was 6% money in the DR. That I know. What I was inferring was I just dont think an investor would commit for a 10% loan with a 5 year payout, after putting up $350000 for a house in the DR.

The o.p. was asking for a way to buy with no asset. You changed it a BIT by using an example of hugh cash down on a half million dollar house (one family I assume) with a great interest rate to you. Hell, if the person should default you still made 13x on your orig. purchase price.

Like a said before a great deal for you, but it isn't going to happen.

JOHN