As baby boomers mature and reach retirement age, building has accelerated in mild climates worldwide to meet the coming demand for retirement housing. Costa Rica was one such locale that has experienced tremendous growth in the last several years as it has exceptional year round weather and is one of the safest countries in the world. Recently, however, the global economic downturn, coupled with the difficulty of obtaining building permits in Costa Rica, have combined to dramatically slow this growth.
There is an American developer, however, who has been extremely successful in obtaining the required building permits from the Costa Rican government. This builder's relationships with the local and national governments, his understanding of local culture, and sheer persistence have enabled him to succeed where many others have failed. He has had several projects built over the last several years in the Central Pacific Coast region of Costa Rica and he now has three current projects that are fully permitted and ready to build.
The projects have been approved to receive a $35M Hedge Fund loan to complete building. However, a $1M bridge loan is required in order to secure the larger loan. Once the bridge loan is secured, the process to fund the larger, $35M loan should take 60-90 days. Once the larger loan is funded, the builder will take the first draw of $5M and with that will pay the entire principal balance of $1M to the bridge investor. With each subsequent monthly building draw, the bridge investor will be paid interest on their original investment. The total interest amount of $300,000 will be paid in even installments over the remaining draws of the $35M loan.
The $1M bridge loan will be secured by the property and will be immediately placed in escrow until it is needed to fund the larger loan.
If you are interested in participating in this project, please contact Glenn Plantone for more details.
gsplantone@gmail.com 702.938.8888 office or cell 702.769.9872
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