I was approached by an associate of a friend who was looking for a private money loan secured by property in the DR. From what he states the property is worth "a few hundred thousand" and nothing is owed on it. Of course I would have an independant appraissal done with title. My question is is anyone familiar with this type of business dealing and/or would be able to refer me to an attorney who is specializes or at least is familiar with this. I have done these types of loans in new york and am quite familiar with the process here, however am very hesitant to do this in another country. Thanks.
- Thread starter GeeDee
- Start date
Private Money Loan in the DR
I would think that after you quote him a loan rate for this type of high risk loan HE will be very hesitant to do the deal.
john
On the contrary the guy calls me everyday. Seems to me that a 16% private money loan is quite appealing over there. Again... anyone with informative advice can referr me to an attorney who specializes in this would be appreciated.:tired:
PIensalo bien......
Send Fabio Guzman a PM and I am sure he will point you to the right direction.
Again, DO NOT move a muscle without a lawyer even if the guy is "painting Picassos in your head" and calls you 50 times a day!.
Whatever you do, DO NOT do it without a lawyer sitting right next to you!.
Send Fabio Guzman a PM and I am sure he will point you to the right direction.
Again, DO NOT move a muscle without a lawyer even if the guy is "painting Picassos in your head" and calls you 50 times a day!.
GeeDee,
Unless you are a resident of this country with FULL Residencia & good influential friends around you PRIOR to the borrower having a CHANCE of defaulting, I would advise extreme caution due to the cost/frustrations & time scales for recouping anything by legal recourse that you have put into any contract.
Many contracts have stalled out in the judiciary here leaving some people a lot richer & others a lot poorer!! Take GREAT care & be 150% sure of your borrower AND of your ability to enforce any default. ~ Grahame.
Unless you are a resident of this country with FULL Residencia & good influential friends around you PRIOR to the borrower having a CHANCE of defaulting, I would advise extreme caution due to the cost/frustrations & time scales for recouping anything by legal recourse that you have put into any contract.
Many contracts have stalled out in the judiciary here leaving some people a lot richer & others a lot poorer!! Take GREAT care & be 150% sure of your borrower AND of your ability to enforce any default. ~ Grahame.
Thanks Grahame. That is my reasoning for being hesitant to do this type of transaction over there.
Gracia...
Very true Miguel... I figure I will attempt to research this as much as I can in order to give the person a fair "no... sorry we cant do it" with some logistical reasoning behind it.
Very true Miguel... I figure I will attempt to research this as much as I can in order to give the person a fair "no... sorry we cant do it" with some logistical reasoning behind it.
Oye.....
Make sure he knows you have NOT made up your mind yet.
Make sure to make him aware that you WILL be consulting a Lawyer and that you WILL only follow your Lawyer's advice.
He calls you every day, huh?......Ummmmm, "ese huevo quiere sal".
Lastly, be VEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEERY careful in investing in a country you don't reside in!!!!!!!!!!!!!!!!!!!!.
Btw: Did you sent Fabio a PM?.
Just make sure you are not leaving any doors opened when he calls you.
Make sure he knows you have NOT made up your mind yet.
Make sure to make him aware that you WILL be consulting a Lawyer and that you WILL only follow your Lawyer's advice.
He calls you every day, huh?......Ummmmm, "ese huevo quiere sal".
Lastly, be VEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEERY careful in investing in a country you don't reside in!!!!!!!!!!!!!!!!!!!!.
Btw: Did you sent Fabio a PM?.
You're trying to be very nice about this, aren't you? I understand. But in the DR it's perfectly OK to say 'it's too risky' - garners you respect. I've had certain business propositions made to me which seem exactly that, too risky, & I've responded with what we used to call in UK 'an old fashioned look' (the one which says 'do you take me for a real fool?') And within minutes the other person has been smiling with me & saying 'Yeah, I know, but I had to give it a try'. A lot of that goes on down here - bluff & counter bluff.
Right now in DR banks are keen to lend money so your friend shouldn't have too much of a problem with a bank loan. I know this route takes time - what most borrowers do in the meanwhile is get a bridging loan from a finance house (much more expensive) until their bank loan comes through. Ask him why he hasn't gone this route & see what sort of a response you get.
16% a month is not a bad rate, but a paper stating if he defaults for 2 months, you can sell his property or own it. i have lent money for more interest.
Lambada,
Thanks for your input. Its kind of a situation where a very good friend of mine is pleading a case for a business associate of his. This is the reason I would like to give some type of an answer to my friend as to my reasoning. Which I do believe I have received, specifically, the answer about the judicial court system not working should there be any type of default. Also this person has dual citizinship, here and in the DR.
Dogstar,
That is an interesting concept that someone else had informed me about. Basically do a contract that the owner of the property is selling the land to me for X amount of dollars. He has until such and such date to purchase the land back for X amount of dollars. Worth exploring more... however, i am curious to know should he default and then try and fight it what would happen in the dominican courts. I would appreciate your experiences with this or referrals. Thank you.
Johne,
Thanks for accepting my apology. We would surely have him personally guarantee the loan. However, even though he has dual citizenship, A personal guarantee would offer little protection because he has no assets here in the states. Our only collateral would be the land.
Thanks for your input. Its kind of a situation where a very good friend of mine is pleading a case for a business associate of his. This is the reason I would like to give some type of an answer to my friend as to my reasoning. Which I do believe I have received, specifically, the answer about the judicial court system not working should there be any type of default. Also this person has dual citizinship, here and in the DR.
Dogstar,
That is an interesting concept that someone else had informed me about. Basically do a contract that the owner of the property is selling the land to me for X amount of dollars. He has until such and such date to purchase the land back for X amount of dollars. Worth exploring more... however, i am curious to know should he default and then try and fight it what would happen in the dominican courts. I would appreciate your experiences with this or referrals. Thank you.
Johne,
Thanks for accepting my apology. We would surely have him personally guarantee the loan. However, even though he has dual citizenship, A personal guarantee would offer little protection because he has no assets here in the states. Our only collateral would be the land.
Dear "GeeGee", DON'T DO IT!!!!"
At ANY interest rate!!
Dominicans DON't pay back loans!!!!It will be up to YOU to collect!
I can "produce" any "Title" to Anything you would like to see from the DR!
"Clear Title" is an "OXYMORON" in the DR!!!
I garantee you will lose your $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
When it sounds to good to be true,it's because it is!!!!
Don't tell the guy ANYTHING! Just don't answer his calls!!
YOU WILL LOSE YOUR MONEY!!!!!!!
I HOPE I have made this VERY CLEAR!!!!
I have lived in the DR for over 12 years. In all that time I have only heard of one loan ever being paid back! And that was a loan I made to my beast friend!
It was also the only loan I have,or ever will,make!
Cris Colon
At ANY interest rate!!
Dominicans DON't pay back loans!!!!It will be up to YOU to collect!
I can "produce" any "Title" to Anything you would like to see from the DR!
"Clear Title" is an "OXYMORON" in the DR!!!
I garantee you will lose your $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
When it sounds to good to be true,it's because it is!!!!
Don't tell the guy ANYTHING! Just don't answer his calls!!
YOU WILL LOSE YOUR MONEY!!!!!!!
I HOPE I have made this VERY CLEAR!!!!
I have lived in the DR for over 12 years. In all that time I have only heard of one loan ever being paid back! And that was a loan I made to my beast friend!
It was also the only loan I have,or ever will,make!
Cris Colon
Here is some information.
A lot worth millions can be mortgaged at 22% APR by a bank. They do all due diligence and so do their lawyers.
That is why your 16% looks so good. You could ask for 30% and get it.
However, as much as CrissColon looks nuts, he is pretty much on the mark...
I would approach this with the proverbial 10 foot pole....
Ahem, did I forget to say LAWYER UP???
That is your best advice.
HB
A lot worth millions can be mortgaged at 22% APR by a bank. They do all due diligence and so do their lawyers.
That is why your 16% looks so good. You could ask for 30% and get it.
However, as much as CrissColon looks nuts, he is pretty much on the mark...
I would approach this with the proverbial 10 foot pole....
Ahem, did I forget to say LAWYER UP???
That is your best advice.
HB
Reading the OP's posts here, I get the impression he kind of has his mind made up: He is trying to find a nice way to explain these guys why he may just no feel so comfortable to do this.
Well Sir, If you are experiencing difficulties to say "NO" plain a simply, I don't think that the loan biz is for you. It takes a very decisive and self centered state of mind to play loan shark... ANYWHERE... but especially here.
I mean what are you going to do not to fear to offend this people when they will start to serve you all sorts of heart breaking stories... in monthly installments instead of your interest bearing payments?
I know people who do this, here, elsewhere, anywhere. Successfully too. But they will not be bent any which way. That's not the kind of people they are. If they feel not 100% in control, they won't do it... and will just say NO.
Believe me, that it is not my intention to offend you in anyway, but from your initial question and your posts here I must say, I believe you are not that kind of person, so, don't try to play it.
So, if you want to place money at high rates... find somebody who is experienced at doing it or just tell you friend's friend you will NOT do it, period. Don't even say you are sorry or make explanations as to why not, it will only make them come back with new stories.
If he doesn't accept your "NO" and keeps calling you to tell you all sort of new stories... you will have a taste of all you would have been faced with, would you have given in.
With money, you don't give in anytime. You do what YOU want only, at your terms. Always, or you will be taken as a sucker.
... J-D.
Well Sir, If you are experiencing difficulties to say "NO" plain a simply, I don't think that the loan biz is for you. It takes a very decisive and self centered state of mind to play loan shark... ANYWHERE... but especially here.
I mean what are you going to do not to fear to offend this people when they will start to serve you all sorts of heart breaking stories... in monthly installments instead of your interest bearing payments?
I know people who do this, here, elsewhere, anywhere. Successfully too. But they will not be bent any which way. That's not the kind of people they are. If they feel not 100% in control, they won't do it... and will just say NO.
Believe me, that it is not my intention to offend you in anyway, but from your initial question and your posts here I must say, I believe you are not that kind of person, so, don't try to play it.
So, if you want to place money at high rates... find somebody who is experienced at doing it or just tell you friend's friend you will NOT do it, period. Don't even say you are sorry or make explanations as to why not, it will only make them come back with new stories.
If he doesn't accept your "NO" and keeps calling you to tell you all sort of new stories... you will have a taste of all you would have been faced with, would you have given in.
With money, you don't give in anytime. You do what YOU want only, at your terms. Always, or you will be taken as a sucker.
... J-D.
Lo mismo......
I think the OP is being "pulled by both arms".....One arm is being pulled by the friend and other by the friend's business associate.
Talk about pressure!!.
I will say it again "ese huevo quiere sal".
Or as SOME people like to say: "something smells FISHY here".
I was thinking the same.
I think the OP is being "pulled by both arms".....One arm is being pulled by the friend and other by the friend's business associate.
Talk about pressure!!.
I will say it again "ese huevo quiere sal".
Or as SOME people like to say: "something smells FISHY here".
Thanks for your response JD,
Its kind of an exploration of this type of transaction in the DR. I appreciate your advice and do not take any offense. Its very risky to conduct any type of business in another country without looking into it and doing some due dilligence. As for playing loan shark... something i would never do... My attorney who is paid well does that for me. Unfortunately, he dosnt practice in the DR, hense the original post. As for saying no to someone, i have absolutly no problem with that, but if u read the posts you will see that a good friend happens to be involved. And i have no problem whatsoever giving a friend an explanation as to why the answer is NO. You dont always have to be a hardass in this business. Thats what attorneys are for.
Its kind of an exploration of this type of transaction in the DR. I appreciate your advice and do not take any offense. Its very risky to conduct any type of business in another country without looking into it and doing some due dilligence. As for playing loan shark... something i would never do... My attorney who is paid well does that for me. Unfortunately, he dosnt practice in the DR, hense the original post. As for saying no to someone, i have absolutly no problem with that, but if u read the posts you will see that a good friend happens to be involved. And i have no problem whatsoever giving a friend an explanation as to why the answer is NO. You dont always have to be a hardass in this business. Thats what attorneys are for.