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    6 Replies Latest reply on Oct 14, 2011 9:28 PM by CorpCons08

    Financing sought for a bed and breakfast in Costa Rica

    sfarigary Wayfarer

      I am not certain why this posting disappeared however I am still seeking some ideas re financing a B&B in Costa Rica. I have a successful Travel Business with a proven track record and now want to combine this with a B&B that I have found in Costa Rica. This is a turn key five ensuite bedrooms right in a major tourist area. I have a complete business plan and $50.000.00 to invest. I require a further $200.000.00 over a one year period. I am unable to attain financing through the conventional channels due to the project being out of the country. I am currently attempting to acquire financing through the banks in Costa Rica however it appears to be a catch 22 situation as I need to have established myself first. My thoughts currently are to have someone invest in the acquisition of the company and then I would apply for a loan through a Costa Rican bank and use the business and property as collateral to repay the loan, making it a short term high interest loan for the investor. Does this make any sense? Any ideas and discussions would be greatly appreciated.

       

      Thanks

      Gary

       

      www.shumbatracks.com

        • Re: Financing sought for a bed and breakfast in Costa Rica
          LUCKIEST Guide

          Yes it does make sense. The problem is finding the investor.

          Value (or investing) is like beauty, Is in the eye of the beholder.

          Anyone who has ever been involved in buying, selling or financing, knows that you perceive the value

          as much higher than the potential investor.

          Then there is the Costa Rican bank.

          Good luck

            • Re: Financing sought for a bed and breakfast in Costa Rica
              CorpCons08 Ranger

              If you are making the money you are saying, why not just go through a commercial bank in Costa Rica?

              I was reading about Scotia Bank in Costa Rica and they have good commercial lending programs.

               

              Regards,


              Dan

                • Re: Financing sought for a bed and breakfast in Costa Rica
                  sfarigary Wayfarer

                  Hi Dan

                   

                  Thanks for the update and taking the time to reply. In brief the plan below.

                   

                  I was down in CR a few weeks ago with the owner of the B&B taking a look at the area etc including the banks. I was introduced to the Scotia branch manager in San Ramon and had an extremely informative conversation. My plan is to move my entire operation to CR, purchase the corporation which is the B&B, land, building vehicle, phone service, internet service web site etc etc then roll the touring business into the corporation.

                   

                  I would then build a report and credit with the Scotia Bank, take out a mortgage with the bank on the B&B property and repay the loan to the investor.

                   

                  We have done well with the Safari Business and it is a natural transition to operating tours in Costa Rica which as we all know is safe, booming and a stable environment without all the stringent regulations, high taxation and costs of North America. I could send you the business plan in a PDF format however it is quite a large document. This being said it would be helpful if someone in the know could look at it and let me know what else it may require.

                   

                  Once again many thanks for the tips.

                   

                  Take good care

                  G

                • Re: Financing sought for a bed and breakfast in Costa Rica
                  sfarigary Wayfarer

                  Hi Luckiest Thanks for the response, much appreciated, in these times even a good investment seems shaky and I appreciate the investor/lenders apprehension. There was a time where bank managers were given some form of "discretion funds" but I suspect those days are over. I have banked with our branch for six years, have a good reputation, had the same manager for the past four and have had two of the staff go on one of my tours to Africa. They certainly appreciate the business I do there and even admit that this is a great idea but cannot get it past the decision makers to do the financing. It is rather unfortunate we recently purchased our first home in North America, recent enough we do not have enough equity to raise the capital we need.

                   

                  In the words of Sir Winston Churchill; "We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills, we shall never surrender".

                   

                  One must fight for ones dream and never surrender.

                   

                  Cheers

                  G

                • Re: Financing sought for a bed and breakfast in Costa Rica
                  sfarigary Wayfarer

                  This is not really a reply but more of a god sent post. I am new to this site and really like the discussions, comments and so far what I have read by many in this community.

                   

                  As those of you who have read my post for investors and or financing for this dream project of mine. I knew it was a great idea, I had traveled to Costa Rica to visit it, met with the owner and the banks in Costa Rica. I returned home and put together a business plan, sent the deposit to Costa Rica not certain I was going to receive the funding required but determined that I would make it happen somehow. I approached the very same bank I have banked with for six years, contacted local investors almost went down the money upfront game but chose to hold off and fish a little further and see what would happen all came to naught.

                   

                  A couple of open responses and two private responses directly through my website but nothing concrete after 278 views. I have an extremely lucrative business and this would be the natural addition however what the end result is, no-one knows who is posting and what they are like really. Are they good business people, are they honest, will they repay on time, why do they not go through regular channels? The answer is quite simple no face time.

                   

                  It is my opinion that there is no lenders in a forum like this for non conventional loans, maybe there are for regular run of the mill loans but for something slightly tricky with moderate to high risk you have more chance of getting the help closer to home.

                   

                  I started approaching clients who have traveled with me to Africa, business owners who have dealt with our business over the years, these are the people who will assist you. If you have treated people fairly and are in good standing in your business community, have a reputation of doing what you say when you say it, ostensibly be known as a person of integrity some one will step up to the plate and bat for you.

                   

                  I had one face to face meeting with a business acquaintance this afternoon and before I completed my pitch he said "I have known you for as long as you have lived here (10 years), heard nothing but good, had a great time on our tour with you, how much and what terms. After an hour or so we came to an agreement and the papers are being drawn this weekend and I have the financing.

                   

                  I am not sure if this is the correct forum to post this however I believe it is a story where anyone who is trying to finance a dream, start nearer to home, put some thought into your business plan and lead with passion and the money will follow. Never give up on your dreams and never settle, success is in each one of us.

                   

                  I look forward to posting articles about the trial and tribulations of working in foreign countries and in foreign languages.

                   

                  If this has helped, I am pleased, if this has offended, it was never intended.

                   

                  Take care

                  Gary

                   

                  www.shumbatracks.com

                    • Re: Financing sought for a bed and breakfast in Costa Rica
                      CorpCons08 Ranger

                      Gary,

                       

                      I just wanted to take a moment to congratulate you on successfully obtaining the financing you were looking for. Unfortunately, you are correct in that most of us do not provide direct investments on here. I know in my case, I do have a network of investors that if the situation calls for it, I could rely on them to back up a client of mine. In respect to your venture, unfortunately, I didn't have anyone that invests in projects outside of the United States.

                       

                      I am very excited for you though, and think you are going to have an amazing time with this venture. I wish you nothing but the very best and hope you will keep in contact to let me know how you are making out.

                       

                      Warmest regards,

                       

                      Dan