Buying Real Estate in Puerto Rico

International Real Estate
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Buying Real Estate in Puerto Rico

Zach Adams
Investor · Vista, CA · Member since 2015 · 163 posts · 58 votes

OK, so it's not international but I may be moving there for work and would be interested in purchasing a SFH or MFH to house-hack. May furnish part of it and Air BnB. Can I get conventional financing in PR? FHA? Any input would be helpful -

Thanks!

Zach

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Ariel G.
Investor · Fort Lauderdale · Member since 2014 · 51 posts · 15 votes
11y

Hi Zach,

I just came from PR a couple of months ago. I went there to check on a few properties to use as a vacation rental as well. Although I didn't close a deal this time, I checked with a few lenders in the US and none of them do loans for PR.  You are better off working with a local bank there, but the goods news is that you can take advantage of your income in the US and the interest rates are almost the same. I got pre- qualified from one called Fembi Mortgage, I went to their offices and they seemed legit, but there is also Oriental Bank and Banco Popular. It's good time to buy there, just watch out cause they are about to default on the creditors pretty soon and that may leave their economy tumbling for a while. But as some say; "where there is crises there is opportunity".  Where in PR are you thinking about buying?

Best,

Ariel 

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  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    11y

    Dying to know this myself. Can't wait to see the responses. 

    0Reply
  • Yashira ZavalaPro Member
    Investor · Madison, WI · Member since 2015 · 51 posts · 13 votes
    11y

    I am from PR and the answer is yes, you can do conventional loans and FHA. I have been thinking about investing in the west coast.

    1Reply
  • Zach Adams
    OP
    Investor · Vista, CA · Member since 2015 · 163 posts · 58 votes
    11y
    Originally posted by @Yashira Zavala:

    I am from PR and the answer is yes, you can do conventional loans and FHA. I have been thinking about investing in the west coast.

    Thats good news. Thanks. Now looking for a realtor and mortgage broker. Do you if brokers on the mainland can do loans for PR? 

    Thanks

    Zach

    0Reply
  • Yashira ZavalaPro Member
    Investor · Madison, WI · Member since 2015 · 51 posts · 13 votes
    11y

    I do not know... let me know what you find! Enjoy PR!!!

    0Reply
  • Ariel G.
    Investor · Fort Lauderdale · Member since 2014 · 51 posts · 15 votes
    11y

    Hi Zach,

    I just came from PR a couple of months ago. I went there to check on a few properties to use as a vacation rental as well. Although I didn't close a deal this time, I checked with a few lenders in the US and none of them do loans for PR.  You are better off working with a local bank there, but the goods news is that you can take advantage of your income in the US and the interest rates are almost the same. I got pre- qualified from one called Fembi Mortgage, I went to their offices and they seemed legit, but there is also Oriental Bank and Banco Popular. It's good time to buy there, just watch out cause they are about to default on the creditors pretty soon and that may leave their economy tumbling for a while. But as some say; "where there is crises there is opportunity".  Where in PR are you thinking about buying?

    Best,

    Ariel 

    2Reply
  • Zach Adams
    OP
    Investor · Vista, CA · Member since 2015 · 163 posts · 58 votes
    11y
    Originally posted by @Ariel G.:

    Hi Zach,

    I just came from PR a couple of months ago. I went there to check on a few properties to use as a vacation rental as well. Although I didn't close a deal this time, I checked with a few lenders in the US and none of them do loans for PR.  You are better off working with a local bank there, but the goods news is that you can take advantage of your income in the US and the interest rates are almost the same. I got pre- qualified from one called Fembi Mortgage, I went to their offices and they seemed legit, but there is also Oriental Bank and Banco Popular. It's good time to buy there, just watch out cause they are about to default on the creditors pretty soon and that may leave their economy tumbling for a while. But as some say; "where there is crises there is opportunity".  Where in PR are you thinking about buying?

    Best,

    Ariel 

    Thanks Ariel. Good info. I've seen Banco Popular when I was working down there. What about mortgage brokers that are local? I'm looking for something on the west side. Around Rincon. I'd like to get maybe a 2 unit/duplex arrangement and Air BnB half of it so I'd like to be in a good location. 

    Zach 

    0Reply
  • Ariel G.
    Investor · Fort Lauderdale · Member since 2014 · 51 posts · 15 votes
    11y

    I think that is a good idea, check out Aguadilla as well, it's right next to Rincon but a bit underdeveloped. If you go on clasificadosonline.com you can find local brokers.

    Good luck!

    1Reply
  • Victor Chico
    Investor · San Juan, PR · Member since 2013 · 71 posts · 50 votes
    11y

    Hi Zach:

    Agree with what has been said. If you are thinking Rincon, definitely check out Aguadilla. It's underdeveloped near beaches and great food.

    1Reply
  • Kara Haney
    Investor · new york, NJ · Member since 2014 · 137 posts · 13 votes
    11y

    it is in the US so I think this forum should move, but it isnt one of the states, nor is DC

    just keep up with the PR fiancial crisis - 

    BPOP is almost BK so dont know what kind of loans it gives out - but it might actually offer good deals - Doral is already dead.

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    11y
    One note of caution is Puerto Rico is almost bankrupt. Where do you think they will get there $ from. I do not anticipate a bailout without them having to drastically increase taxes including property taxes. Just something to be aware of.
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    WebsiteView Page
    1Reply
  • Anthony Benjamin
    Carolina, PR · Member since 2015 · 15 posts · 5 votes
    11y

    Hi guys I am from Puerto Rico. Another places that you can check are Isabela, Cabo Rojo and obviously San Jua . You can find good vacation rentals. Economy is bad right now,  but if you have cash you can find good deals. I am trying to get started myself. 

    1Reply
  • Dominic Jones
    York, PA · Member since 2015 · 199 posts · 58 votes
    11y

    This is very interesting. Going to follow the topic to keep up with any new developments in this conversation.

    0Reply
  • Jay R.
    Brooklyn, NY · Member since 2012 · 12 posts · 3 votes
    10y
    Is mortgage interest paid in Puerto Rico deductible for US income tax purposes? Same for property taxes?
    0Reply
  • Anthony Benjamin
    Carolina, PR · Member since 2015 · 15 posts · 5 votes
    10y

    Jay R. I know that mortgage interest paid are deductible from Income Tax, but don't know about property taxes.

    0Reply
  • Mark Rider
    Investor · Philadelphia, PA · Member since 2016 · 9 posts · 3 votes
    10y
    Hello Everyone. I'm new to this blog and am intersted in moving to Rincon, PR. We have travelled there several times and are considering packing up and not returning. I would like to start a business as well. How are you all making out with your Real Estate plans? Has anyone closed a deal recently? I'm looking at residential, commercial, and land. My timeline to close a deal is between 6-18 months. can anyone share some insights into thier experiences so far? Thanks, Mark
    0Reply
  • Steve Haight
    Las Vegas, NV · Member since 2014 · 732 posts · 137 votes
    10y

    @Mark Rider

    Welcome to BP,

    I have heard from some of my sources that real estate in Puerto Rico have crashed!  Make sure you do your homework, check it out before you buy rent in an area first. There is a good internet connection regarding international property it is called International Living, they have a newsletter and would sure have the info you are looking for.

    Good Luck,

    1Reply
  • Mark Rider
    Investor · Philadelphia, PA · Member since 2016 · 9 posts · 3 votes
    10y

    Steve,

    Thank you for your input. Yo bio with regards to land investing is intriguing. I'm drawn to the mountainside land opportunities in Puerto rico. With very low taxes it looks to be a good buy and hold strategy until we are ready to build. I'm in the planning and research phase so we'll see what my homework shows.

    Renting in an area before buying is very wise advice. I can remember on several occasions that the first deal looked like the best deal at the time and after digging deeper it was a bad deal and a better one presented itself. I'll check out "international living" as well. stay in touch. Mark 

    1Reply
  • Steve Haight
    Las Vegas, NV · Member since 2014 · 732 posts · 137 votes
    10y

    Hi Mark,

    Yes I am always interested in finding a land deal in another country and market to future expats or whoever that is why I like international living to keep my ear to the ground. I have been looking at Cabo have some friend developers that did good in Cerritos Beach just outside of Cabo when the market was hot. Tell you what get in touch with me and I will tell you about some land flips closer to home, what kind of returns are you looking for and how fast ROI?

    0Reply
  • Lawrence Johnson
    Lender · Camuy, Puerto Rico · Member since 2016 · 56 posts · 52 votes
    10y

    I'm a lender here on the island.Financing is fully available here and rates are still low. This is an area of expertise for me and I'm glad to answer questions anyone has about the process. 

    0Reply
  • Robert S.
    Contractor · Milltown, NJ · Member since 2016 · 297 posts · 213 votes
    9y
    Looking to rejuvenate this thread, having family in PR and visited there several times (San Juan and surrounding area), I was told my other investors, Rincon is a great place to make things happen. I know of two investors from my home state of NJ that experienced and continue to experience great success in that locale. Does anyone on BP own vacation or long term rentals there?
    0Reply
  • Alejandro Herryman
    Investor · San Juan, PR · Member since 2016 · 31 posts · 14 votes
    9y

    @Robert S., not me. I am concentrating in San Juan: I own multifamily and currently looking for vacation rentals or buildings with 20+ apartments in it. Good luck.

    0Reply
  • Mark Rider
    Investor · Philadelphia, PA · Member since 2016 · 9 posts · 3 votes
    9y

    @Robert Soto, the market in Rincon is saturated with AIRBNB. Check out Isabella near Jobos Surf break and Shacks Beach. Note that many public beaches could convert to private owned as PR is trying to raise money. This could mean loss of beach access in some areas. Stay abreast of the news and politics and developments as things can be shady down there.

    0Reply
  • Robert S.
    Contractor · Milltown, NJ · Member since 2016 · 297 posts · 213 votes
    9y
    Mark Rider Yes indeed, the situation is quite disturbing, and will continue to be until they create and enact a plan for recovery. I totally agree about Airbnb saturation, and with Tripadvisors'/Flipkey's massive customer service issues on both the renter and owner side, not having a solid property management company in place could be devastating. That being said, nothing can replace natural beauty, ease of travel to and from is incredibly easy from anywhere on the east coast, so the allure will remain. One thing I will say that would most certainly and quite seriously hamper tourism in PR, and pretty much most of the Caribbean, a lifted embargo with Cuba.
    0Reply
  • Alexander Castro
    Realtor · Vero Beach, FL · Member since 2016 · 72 posts · 18 votes
    9y

    Hello to everyone,

    Great to meet you all!!  I'm a Real Estate Agent here in Puerto Rico. Even though the economy is bad with the highest unemployment rate or like the news point out in "bankrupt". With the Tax Act law Act 20/22 & so on. It's been atracting New comers to PR. I've talked with investors looking into Real Estate investing & relocating here.

    Due to the economy, It's sad to see our locals leaving because they can't pay their Mortage payment. 

    But the Miilllion Dollar question is, If Puerto Rico Is as bad as what we read & hear in the internet/News, Why are investors around the globe buying, Investing & or Relocating to PR?

    0Reply
  • Victor Ayala
    Residential Real Estate Broker · FRISCO, TX · Member since 2014 · 45 posts · 37 votes
    9y
    Zach Adams I lived in PR many years. Not only do I have knowledge of the land, how to conduct business on the island and many connections... I also have a mixed use property for sale in the town of Fajardo which is highly sought after tourist destination since it's where the port to Vieques and Culebra is located. Right on the coast is where you want to be. 45 mins from San Juan. Let me know how I can help you. Feel free to reach out any time.
    0Reply
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