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A S
New member
Username: Nohotnocold

Post Number: 2
Registered: 7-2006
Posted on Monday, July 24, 2006 - 12:01 am:   Edit PostPrint Post

I assume there is a need for short term property financing. Typically, what rate would people pay for this and are there laws in place to protect the lender?
thank you
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Roberto
Board Administrator
Username: Admin

Post Number: 623
Registered: 12-2004
Posted on Monday, July 24, 2006 - 8:35 am:   Edit PostPrint Post

Hi AS, it was mentioned at the forum that most transactiones are handled in cash. I am not sure about the present state of affairs and if mortgage loans are becoming more frequent... You can probably find private lenders if needed -so called 'usureros', a derogatory term- and I imagine they protect their loans with aggresive tactits. I'll try to find out more.
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A S
New member
Username: Nohotnocold

Post Number: 3
Registered: 7-2006
Posted on Monday, July 24, 2006 - 8:49 am:   Edit PostPrint Post

Thank you Roberto. As usual, this forum is a wealth of information. I have a financiero license in two other countries and have been doing this type of work for 25 years.
I don't need money myself. I was interested in financing property for others on a short term basis and was wondering what interest I could get for lending money.
Thank you again.
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Roberto
Board Administrator
Username: Admin

Post Number: 624
Registered: 12-2004
Posted on Monday, July 24, 2006 - 10:17 am:   Edit PostPrint Post

Oh... then, you might have a great opportunity down in Buenos Aires. I highly encouraged you to explore this. I have known countless people making small fortunes on such business. Usually, private lending rates are very high because of the risk for 'incobrables'. And as one might expect in such private dealings... anything goes (read aggresive repo procedures).

Argentina is still a nightmare when it comes to bank paperwork, so even in cases where lending is available and at a good rate, you can expect a large portion of the population -in need of rapid cash- to go through private lenders. Also, microlending at a professional level seems to be totally unexplored or forgotten in South America. But this may not be property financing, only very small loans. There is money to be made for sure.
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Tom Woodson
Member
Username: Diverdown48

Post Number: 91
Registered: 6-2006


Posted on Tuesday, July 25, 2006 - 1:11 pm:   Edit PostPrint Post

What legal protections does a lender have when he is financing the purchase of real property?

Hasta Luego
Tom
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Apartmentsba.com
Member
Username: Saint

Post Number: 74
Registered: 5-2005


Posted on Tuesday, August 08, 2006 - 1:50 am:   Edit PostPrint Post

Mortgages or financing for foreigners is really widely unavailable. For the locals it's coming around again. The terms aren't great with 50% equity down, 12% APR over 10 years and keep in mind the loans are in PESOS which isn't the best option if there were some kind of drastic movement with the exchange rate.

The banks are all itching to get back into mortgages. I know some Presidents of Large banks here in Argentina and they are all wanting to bet back into them.

For a foreigner, pretty much forget about getting a mortgage here. Your better opportunity if own own real estate in the USA or Abroad is to get an equity line of credit to purchase down here.

Honestly, I don't think that everyone is a candidate to invest in South America. I've turned plenty of people away as clients that I didn't think would be a good fit.
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xxx
New member
Username: Panchovidal

Post Number: 1
Registered: 8-2006
Posted on Tuesday, August 22, 2006 - 3:16 pm:   Edit PostPrint Post

A S and Tom, instead of providing short term property financing, you should construct those properties. Buenos Aires is a very competitive market, you pay high prices for land and construction that reduces profits margin. You should take into acount other markets such as Cordoba (second major city in argentina). If you construct duplexs (middle class) they cost you u$30.000 aprox (building 4 or 5), the market pays u$60.000 if you pick the correctr area.
I made a cashflow and a location study, so i know waht I am talking about.
Hope this help.

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