So I’ve been aware of this website but have been hesitant to post since I’m working to raise money for an international deal in Costa Rica. However, this section seems to be a good fit.
The background: acquiring a profitable ($1M gross rev) boutique hotel in Costa Rica for $1.4M. Raised $250k from an investor and contributing $35k myself towards the deal. To make the deal happen I’m keeping 3 (out of 10) of the current owners as partners in the new entity, effectively using their $1M of equity to leverage the purchase. The appraised value is $2.8M.
I’m having a hard time finding US based investors in the deal. I’m offering 12% interest only for 3-4 years with a balloon payment. Our business plan is to sell fractional ownership units in the hotel to payback investors.
I do have a mortgage broker who’s been working with me in Costa Rica to find a hard money lender. He charges a 5% broker fee and I’ve checked references. He doesn’t charge any upfront fees and has been helping me for months as we finalize the transaction negotiations. He’s confident he can get us the money but being in another country I would prefer to work with a direct investor in the US and of course save the broker fee.
I haven’t found any US based hard money lenders who are interested and of the few who did take interest declined for the $ amount being too small.
Looking for advice on where to look for the $1.1M as we have some funding raised, a business plan, and marketing already started.
I would highly prefer direct investors who I can make agreements with.
Any and all advice is greatly appreciated.
Lumi Ispas, Real Estate Agent in IL (#475.113981)
Join the Largest Real Estate Investing Community
Basic membership is free, forever.