Prestmos. What is the average rate for

Tom0910

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Sep 28, 2015
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I am a private lender in Canada,I only loan up to 60-70% loan to value ratio on real estate. I get 10% interest per year. These are almost always one year mortgages. Almost zero risk and I have averaged an annual net return of over 12% over the last 15 years due to defaults and late payments. We have a saying " it has to go bad to be very good". In other words,I hope the borrower defaults,I charge a 3% additional fee for a default and defaults always come with a few late payment charges of $250. But unsecured loans in the DR,nope. I'll take my 12% in Canada and be happy with that.
 

cavok

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Jun 16, 2014
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For a window into what happens when a supposed top rated finance/investment house goes bad..............Albert Noesi C. por A. (ANOECA). Made money for some on the board and lost far more for others.
I remember Alberto and ANOECA well. Some friends tried to talk me into investing with him. I know two people that each lost several hundred thousand dollars with him. One of them was a frequent poster here years ago. He was offering 12% on USD deposits. He was making somewhat risky investments in businesses and real estate in and around Puerto Plata. Things went pretty well for several years until after the 2007 real estate crash in the US and things went downhill in Puerto Plata and for Alberto and his investors.
 

cavok

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Jun 16, 2014
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A lot of people were bankrupted and lost all their retirement money with him. Pretty foolish to put all, or almost all, of your money in some investment firm in the DR. If it sounds too good to be true - it usually is.
 
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bachata

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Aug 18, 2007
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I know a lot of people who lost everything, when someone offer me too much interest for my money I say to my self as the Americans say... Where is the catch?

JJ
 

malko

Campesino !! :)
Jan 12, 2013
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Here is a good read:


So what happened to Alberto (?) ?
Did he live happily ever after ?
 
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Tom0910

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Sep 28, 2015
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So what happened to Alberto (?) ?
Did he live happily ever after ?
I sat down with him at the old Field of Dreams hoe house years ago and he gave me his pitch,no thanks. One of the guys at the table invested and lost his arse,that guy is living in Puerto Plata on rice and beans living like a pauper. What I have been told is that he did his time in prison here in the DR,was released and is now in hiding living the high life due to a couple properties being put in a family member's name,not sure how accurate the info is but I do know someone that visited him every week while he was in prison. Remember,in addition to a lot of gringos getting screwed quite a few dominicans got screwed too,there were over 200 people in total that lost money.
 

drstock

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Oct 29, 2010
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I lent some money to a girl who worked at a local bar and she offered to pay a good rate of interest, which was lower than she would pay to the guys on the street. Soon, all the girls that worked behind the bar wanted the same deal and it worked well for me, as I would go every pay day and get my repayment. That was until the bar changed hands and the girls became unemployed. They promised to repay what they still owed from their Liquidation money when they received it, but only one of them did. Moral: Never a lender or borrower be. Lending money is a VERY risky thing to do here.
 

NanSanPedro

Nickel with tin plating
Apr 12, 2019
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I lent some money to a girl who worked at a local bar and she offered to pay a good rate of interest, which was lower than she would pay to the guys on the street. Soon, all the girls that worked behind the bar wanted the same deal and it worked well for me, as I would go every pay day and get my repayment. That was until the bar changed hands and the girls became unemployed. They promised to repay what they still owed from their Liquidation money when they received it, but only one of them did. Moral: Never a lender or borrower be. Lending money is a VERY risky thing to do here.

Makes a ton of sense. I would also guesstimate that your warning goes double or triple for gringos. "They don't need the money"
 

Grampa

Banned
Nov 15, 2021
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I had the opportunity to invest if that's the correct word with Alberto. Neither he nor his English associate/partner (What was his name?) could adequately explain why this would make sense, especially in the long run and I eventually passed. I know other people that lost everything and a couple of other people that had also passed up the chance. When or if asked they would warn people off. Also others that had invested but could not live with the risk and got their money out. 2 years or less later the game was over.

Alberto is very luck to be alive. There were some very angry people hunting him. I'm very grateful that I did not get greedy and lose my investment. :D
 

Grampa

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Nov 15, 2021
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I am a private lender in Canada,I only loan up to 60-70% loan to value ratio on real estate. I get 10% interest per year. These are almost always one year mortgages. Almost zero risk and I have averaged an annual net return of over 12% over the last 15 years due to defaults and late payments. We have a saying " it has to go bad to be very good". In other words,I hope the borrower defaults,I charge a 3% additional fee for a default and defaults always come with a few late payment charges of $250. But unsecured loans in the DR,nope. I'll take my 12% in Canada and be happy with that.
Once upon a time I invested a fair chunk of change with my ex who leant money at high interest to "employees in the air travel sector". She had titles to houses, vehicles, all kinds of things. Anything of value really and also held bank cards to those with less to put up for collateral. She charged mostly 15% monthly and we split the profits evenly. Not too many guys can claim truthfully to have regularly received "western union" from a woman in then DR LOL.

I made 60-75% (there were expenses and loses after defaults and having to sell collateral at a loss and paying enforcers) a year on my initial investment plus growth for long time until she got out of it and moved to the US. Those were the days!

For clarity I was not at all involved in the day to day or enforcement, and never would have been. It's a rough game
 
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Grampa

Banned
Nov 15, 2021
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A "prestamo" is a loan, so I don't see any problem with that. Who cares what these loans sharks think anyway? Blood sucking leeches is a better term.
People beg for the opportunity to borrow money. Of course if they would learn to save they could acquire whatever they are borrowing for faster and at 10% of the cost but who wats to wait? Don't blame the lender ;)
 
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johne

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Jun 28, 2003
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"Stay away from prestamos", one poster replied here. Try telling that to a parent that needs something to put on the family table to eat when it's the 10th of the month and he doesn't get paid until the 15th. Money lending has been kicking around longer than Father Time. Here we call it "prestamo". Wall street calls it "equity funding". The street calls it "Call Juan, I need 5000 pesos."
 

Sailor51

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Oct 30, 2018
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Which is why I'm a cash and carry kind of guy. I did recieve a note in the mail for a loan. Tore it up laughing at the 64% intrest.
 
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bob saunders

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Jan 1, 2002
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dr1.com
Which is why I'm a cash and carry kind of guy. I did recieve a note in the mail for a loan. Tore it up laughing at the 64% intrest.
I currently have a car loan at the BHD LEON, 8% annual for 36 months. High, but I remember paying 11 percent for a mortgage in Canada in 1986.