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Dominican Republic

Buying a small hotel - how to finance it?

Looking to make the move!

Postby D R novice » Sun 9 Jul 2006 13:33 GMT

Hello, We have been researching locations worldwide, and have come to settle on the DR as our fav for relocation.

We intend to buy a small hotel and would appreciate any advice you have on financing the purchase. i.e. is it best to use a local DR bank or one from the USA or UK.
:shock:
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Postby DRAddict » Sun 9 Jul 2006 17:04 GMT

Hello DR Novice & welcome to British ExPat forums.

I am delighted to hear that the DR is featuring highly in your investigations & if this continues, that I might have the chance of welcoming you personally to the DR at some future stage!

The QUICK answer to your question is "Borrow from outside the DR wherever possible"! Interest returns on hard currency (U$D, Pound Sterling, Euros etc.) on capital invested run from 5% or 6% p.a. (in banks) or 10% in private finance houses. Investing RD Pesos get a return of 12% p.a. upwards. You can imagine therefore that BORROWING money here is much more costly than borrowing from outside the country. CAN you raise the equity required by re-mortgaging your house in the UK??

I hope you are at the very early stages of considering opening a hotel over here - NOT the most secure method of getting a return on investments I would have thought ............. & EXCESSIVELY hard work for the return you will make. Dominican Laws, culture, work ethics are just some of the problems you are likely to encounter - daily (& nightly) visits from the local police wanting their slice of your 'liquid' or 'edible' profits, will be another!! Please think VERY carefully before committing yourself to this method of getting a return on your money as it could prove very costly to you!

Good luck in your investigations & if you feel I can help further with the "Warts & All" information from over here, get back on this thread or PM/e-Mail me.

Where are/were you from in the UK?
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DRaddict advice

Postby D R novice » Mon 10 Jul 2006 09:14 GMT

Thank you DRaddict, for your responce. All that you have said makes good sense.

The finance advice confirms our beliefs.

We are still at the early stage of planning, and the points you raise with regards to Local laws and cultures are something we had considered but did not have much knowledge of, so thank you for that.

We did try to contact you via PM but were unsuccessful.

P.S: We come from Devon and its raining...... :roll:
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Postby DRAddict » Tue 11 Jul 2006 14:29 GMT

I will send you a copy of this via e-mail D R Novice & attach my e-mail address should you want to make direct contact with me.

Glad to hear you found the information sane & reasonable - I tend to call a spade a Bl**^y shovel at times but this has generally stopped (some) people from making the basic mistakes. Having said that, the last ones we had out here from Devon just did not listen (wanted to buy NOW & chose the wrong builder, area etc) & now don't seem to want to stay in touch!

Have you been into the 'Articles' section of ExPats?? There are a couple of articles written by Ginnie Bedggood that might help a bit on understanding the DR Culture. If you like them I will ask what else she has written on this subject (other Boards or Journals) to see if she has originals to send you by e-mail. There are a couple or three books I could recommend too if you want the info.

Sorry to hear about your rain ............... Sunny as HELL here right now
:twisted: :twisted: :roll: :? :twisted: :twisted:

OK - will copy this to the e-mail section now.
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Postby Dave » Tue 11 Jul 2006 17:56 GMT

DRAddict wrote:Have you been into the 'Articles' section of ExPats?? There are a couple of articles written by Ginnie Bedggood that might help a bit on understanding the DR Culture.


You can find Ginnie's articles here, in our Expat World section on the main site:

http://www.britishexpat.com/Dominican_R ... 902.0.html
British Newspapers Online - your handy guide to the UK's national, regional and local press!
ErgoGuides - Great travel and business eBooks from British Expat!
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Postby DRAddict » Wed 28 Mar 2007 06:13 GMT

There have been a number of other articles written by "She who must be Obeyed" & we have now opened our own web-page to show them. We have tried to include most other important info. Have a browse at www.casabush.org & let us know how you feel we might improve things as we are beginners at web-page construction! ~ Thanks .....:?.... Grahame.
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