Resort Financing in the Dominican Republic
**Please note we are not currently offering any financing in the D.R.**
One of the hotter real estate markets we now offer commercial financing is the Dominican Republic. The DR offers Caribbean real estate at prices which make investment more attractive. Developers can stretch their dollar a lot further in the DR than other similar locations in the region. This upside however is somewhat offset by the challenges of sourcing financing in a Spanish speaking country; the good news is we can help!
The resort and development financing we offer in the DR is very similar to what we can offer in other English speaking countries. Our funding sources are primarily private capital which is slightly more costly than traditional bank financing (if it were available in the Caribbean at this time), however the availability of capital make these options much easier for developers to finance their projects.
Requirements for Development Loans in the DR
Qualifying for a development loan with our private capital is similar in many ways to qualifying with the bank without a lot of challenges. You must still have your share of the equity in the project (usually 25%), and the documentation to prove your wherewithal and experience in these types of properties.
The usual due diligence will also be required for your loan. This may include an appraisal, feasibility study, site visit, legal work to confirm ownership etc. These fees (in part or in whole) will often be requested by the funding source upon signing the term sheet. By doing this they verify that you have the funds to complete the due diligence process and make sure you are committed to going ahead with the financing and are not simply ‘shopping’ your loan around.
Mortgage Terms for Your Dominican Project
Financing terms can vary quite significantly from client to client. Depending on the ratios, strength of the client, location etc. Not to mention we do work with a number of lending sources who are all trying to achieve different levels of return. As a general rule however, the rates are usually between 8-11% (plus lender/broker points) for our commercial loans in the Dominican Republic. We do not offer any residential loans in the DR at this time.
When you work with Carib Capital, we will also try to source more than one quote for your loan, giving you a range of options which allow you to tailor the financing for your situation.
There are many challenges to developing a project in a Spanish speaking country such as the DR, however financing does not have to be one of them. Talk to us today about our resort and development options in the Dominican Republic!