Someone investing in Puerto Rico (west side)?

Question

Hi there!

I’m about to start investing in a rental property in Puerto Rico. Looking for any advice on what to expect from banks, lenders, rehab, etc. I lived in the island for 23 years but I’ve been in mainland for over 3 years. Any advice? Thanks!

Aaron T. · Answer

-you will have to use a bank or credit union that has a physical location on the island.

- It takes roughly 60+ days to close. roughly 30 days for the bank, and 30+ for the municipality to sign and stamp.

-hire a lawyer.

-understand the heir laws

-there is no MLS, so use sites like point2point or realtor websites

-dont expect quick responses from anyone

-everyone has their hand out. you will pay for everything at every turn

-closings are more expensive, see my comment above.

-rincon is super expensive. Investors own most of the properties near the coast, so dont expect deals.

-days on market makes no difference in PR.

Derek Stalhut · Answer

Hey Xavier,

My wife and I are looking at investments on the west coast of the island. One thing we recently learned is that local lending institutions will not lend on buildings made of wood frame. The building must be concrete or block to get financing. Also, I have learned that most "mainland" banks will not lend for property in Puerto Rico. There are obviously some exceptions... What part of the island are you looking? Maybe one of our contacts can help you out.