Posted by: Len | on May 28, 2017
This is the gist of an email I send out to someone interested in leasing restaurant/bar space at Hotel de Sonrisas, located at 401 Calle El Arsenal. That’s two blocks north of the Calle La Calzada, Granada’s nightlife area, and next door to San Francisco Convent & Museum. It’s also next door to my office… and as a disclosure, it’s my hotel as well. I had to evict the previous restaurant operation over a breach of contract issue.
The restaurant is licensed along with the hotel to sell food and beverages. The restaurant operator will need to apply for a liquor license in the operator’s own name, but can operate temporarily under the existing license.
The monthly rent for the space of approximately 65 s/m, plus use of common area hotel seating, plus a kitchen, plus a unisex bano, is US$250.
An additional US$100 will be paid monthly towards common electricity, water and WiFi. There is a separate booster/modem for the restaurant included in the hotel’s Claro (ISP) account.
Outside seating is available, but the renter must pay the applicable Alcadia (city hall) fee for the number of tables and chairs the restaurant operator wishes to have. The price at the moment is 50 Cordoba (US$1.80) per table, per month.
There are tables and chairs, a ceiling fan, lighting and some decoration included with the rent of the restaurant space. Any additional tables, chairs or decorations the operator requires are the responsibility of the renter.
A beverage cooler belonging to Coca Cola and made available to the hotel is in the restaurant. Currently nonalcoholic beverages are sold to hotel guests. The hotel will cease selling beverages to guests and ask Coca Cola to reassign the cooler to the restaurant operator. A beer cooler was also to be provided by the brewery but delivery was put on hold.
The kitchen is equipped with a stove and fridge. Both are relatively new and in good working order. Also included in the kitchen are various pots, pans, utensils and assorted kitchen items that would be included with the rent of the restaurant. Any other equipment, utensils, flatware, cutlery, pots or pans the restaurant operator may need are the responsibility of the operator.
Natural gas for the stove/oven is the responsibility of the operator.
The restaurant has both an entrance from the street and another from within the hotel for the convenience of guests. Both are gated and can be locked with a padlock to which only the restaurant operator need have a key. If the renter wishes to use the west side of the building for seating, which city hall has given verbal permissions to do, there is a gated doorway to accommodate serving customers seated outside.
There is a unisex bano for use by restaurant guests and staff. The cleaning, supplying of soap, paper towels and toilet paper, maintenance and repairs needed for this bano are the responsibility of the restaurant operator.
Any renovations or modifications to the restaurant space, bathroom or kitchen are the responsibility of the tenant. However, before any renovations or modifications are undertaken the hotel must be informed of what is to occur. This is to make sure there will be no issues with the fire department or INTUR (the agency responsible for tourism, or that the work is not going to require a building permit. If a building permit is required securing one is the responsibility of the restaurant operator. This restriction does not include painting of walls, changing of light fixtures or other cosmetic changes.
A US$150 damage deposit is required from the renter. This amount will be returned provided none of the supplied furnishings, kitchen appliances or bano fixtures are damaged or are missing at the time the lease period ends.
The Alcadia currently permits the restaurant to have a single sign over the south facing entrance, on Calle El Arsenal. Signage is the responsibility of the tenant. It is possible to add a second sign to the west side of the building. It would be the responsibility of the restaurant operator to apply to the Alcadia for the second sign and to pay any applicable fees.
That’s it. Pretty simple and cheap. This is because I want food and beverage service in the hotel as a convenience for guests. Also, properly promoted a bar and restaurant will attract attention to the hotel, and as a full service hotel allows me to maintain higher room rate than a B&B. Currently the hotel is categorized as a B&B because we serve only breakfast and there are no facilities for guests to purchase lunch or dinner. The hotel would stop making breakfasts for guests and purchase them from the restaurant.
If you’re interested in operating a restaurant/bar in Granada, Nicaragua and want to get up an running with minimal investment, this is the opportunity you’re looking for. Contact me and I will send photos.
Posted by: Len | on March 23, 2017
A Deterrent To Some – An Opportunity For Others.
Nicaragua banking laws are always in flux and changes are common. This is due to the fact the Nicaragua banking system is dependent upon the USA banking systems providing clearing house and transaction forwarding services. Basically the US Federal Reserve dictates what Nicaraguan banks can and can not do. Although there are ongoing efforts to reduce this dependency, for the foreseeable future nothing is expected to change.
So what does this mean for an investor in Nicaragua real estate or an entrepreneur planning on doing business in the country?
Each case is different… However, a rule of thumb for all transactions is the need for a clear paper trail detailing where money is coming from, and where it is going to. Likewise, the purpose of the transaction has to be clearly spelled out. This is not a problem for retirees purchasing a home. Nor is it a problem for an investor purchasing a business. But for transactions that are not as simple as a straight out, single payment purchase, there can be some challenging hoops to jump through.
In most cases, someone buying a lot will agree on a price, transfer funds to a US bank escrow account or to a Nicaragua lawyer. When confirmation of funds are in hand the sale is completed. Then the purchaser’s lawyer then registers his or her lot. The challenge, if it’s going to manifest itself, will appear when the new property owner wishes to construct a home or other building on the property.
I’m not talking about red tape hurdles. They exist, but are dealt with in due course and are little more than a hindrance. The challenge can be in paying for the necessary architectural and survey work, the buying of building materials, and paying a contractor and/or subcontractors. Every transfer of funds over US$10,000 is flagged and must meet specific disclosure rules and regulations. A succession of transfers under US$10,000 is usually identified as suspicious and flagged as well. I strongly advise against trying this tactic as it will great further problems.
If possible, it is best to have a very exact construction estimate and transfer the entire amount at one time, placing it with a local bank or lawyer. Both have to adhere to the same requirements though, so only which option is more comfortable is the deciding factor. This transfer will require the same reams of documentation, but once the compliance department at whatever bank is receiving the funds is satisfied, the funds are made available. If for some reason a transaction is not deemed kosher, the transfer of funds is reversed and the cash returns to where ever it originated from.
The issue gets complicated for people buying a lot and intending to build as funds are available. A once popular investment strategy, it is now a lot of work to manage… even for Nicaraguans living and earning abroad, then applying their income to the construction of a home in Nicaragua.
The same situation can thwart an entrepreneur wanting to build up a business in Nicaragua. Actually, it has in the case of a client of mine. If a property is to be leased or purchased, that is one transaction. If money is needed to do renovations, alterations or construct premises, that is another transaction, perhaps numerous transactions. All will need to be reviewed by the transacting banks, both in the USA and in Nicaragua. My client had a tight deadline so abandon his efforts to develop a business in Nicaragua because of the difficulty the banking system presents. At least 30 full time jobs and millions in investment walked away with him.
The banking process obviously stymies money laundering, but it does more to stymie legal development. However, there are a couple of solutions…
The first solution is to have a foreign bank guarantee a domestic loan for their client, basically cosigning a locally managed line of credit. The investor can draw on the cash locally and the investor’s own bank abroad pays off the amount each month. Interest in Nicaragua runs between 9% and 25% per year, so paying debt off as quickly as possible is recommended… even if that means borrowing abroad to do so.
A second solution is something a client surprised me with. Through his credit card issuer he set up a massive line of credit, and instructed his bank to pay any amount off that came due. He took out significant cash withdrawals to pay contractors and suppliers, and used his credit card to buy locally any building supplies, fixtures, appliances and so on that were needed. The transaction fees were less than the international bank transfer fees, and he had no need to declare credit card purchases because each transaction was well documented. Large cash advances did require some documentation, but it was enough to bring in facturas (invoices) that had to be paid. The invoices were very detailed, included the local value added tax, known as IVA, and clearly identified the recipient of the funds. It was a very smooth, and virtually problem free process.
If you have a building project or business acquisition that you may require advice on, feel free to contact Nica Investments.
Posted by: Len | on March 20, 2017
Nica investments does not maintain “listings” of the same Nicaragua real estate offered for sale by every realty company or individual in the country. Nor does Nica Investments tack a sign on the wall of a house that already has one, two, three or even four other signs stating the obvious… this property is for sale and I want to be the person who sells it.
What Nica Investments does is locate well priced properties in ideal locations that our clients would do well purchasing. One such purchase opportunity is about to become available.
There are five adjoining lots in the initial phase of a subdivision that were previously considered sold. The term of the existing agreement to purchase is about to expire, and the seller has already moved on to phase two. They will be offered for sale at the end of this week.
The lots are on a paved road, are fully serviced, flat and ready to build on. The lots are about 58 meters deep and the approximate frontage of each is 30 meters.
The seller is asking US$34,900 per lot. However, he would be open to negotiating with a purchaser interested in buying all five lots. It is possible the seller would even consider a joint venture partnership with a developer willing and able to construct five homes. Assistance with marketing would be provided, and construction would have to begin within 60 days of an agreement being reached.
My personal recommendation to clients is to purchase all five lots at as good a price as can be negotiated, then resell them… with houses constructed on each. Why do I suggest this? Because this subdivision is not one of the pie in the sky developments that dot the Nicaragua landscape. All of the seller’s available lots in phase one are sold except for these five. Within the first phase there are already homes built and occupied, and others are under construction. These lots front a quality paved road, with water, electricity, and streetlights already in place… not promised and unfulfilled, as is so often the case in Nicaragua.
Soon the infrastructure for phase two will begin, and soon after the marketing of phase two lots will commence. It’s a sure bet that when prospective phase two purchasers start to drive past these few remaining phase one lots they’ll not last long.
To find past editions of the newsletter, as well as subscribe to future editions, visit Nica Investment Newsletters.
Posted by: Len | on March 10, 2017
I was approached by a gentleman who asked me to represent him in the purchase of a property in Nicaragua. OK… that is what I do. So I laid out my standard terms, US$100 per diem plus expenses, one week paid in advance.
Once retained, I asked what I’m to be tasked with. What follows is the most novel approach to getting a house in Nicaragua for free I’ve heard yet. I say ‘yet’, because this is not the first time a client has earned a house for free. The usual approach is for a client to buy land, subdivide, and then sell off enough lots to pay for the initial land purchase and construction of the client’s own home. Although this seems like a simple approach, and is pretty much a sure thing, it can take years to reach one’s goal. This client said he’d already sold seven of the eight houses. He’d live in the remaining home himself and it would be his for FREE.
Apparently my new client thinks outside the box. Read on to appreciate just how far out of the box he is…
Initially, I was asked to find land. It had to be large enough to accommodate four 1000 s/m lots. Done.
The next undertaking was to have the parcel subdivided. That’s in the works too.
At the same time, the preferred house plan is to be reworked by a Nicaragua architect to meet the code here and incorporate local construction materials and techniques. That too is already in the works.
The initial house plan is for very attractive duplexes, each side having three bedrooms, two bathrooms, large kitchen, dining area and living rooms, with space for a garage, atrium or dipping pool.
The Novelty Of This Approach
The architect is to provide my client with a list of building materials, mostly American standard plumbing fixtures, lighting fixtures, gas appliances, cabinetry, and so on that isn’t available locally, or is available but cost prohibitive. All of the items on the list, up to US$45,000 per house, will be imported duty free using an incentive available to pension retirees applying for residency status. All of the new home owners are over 45 years old obviously, and qualify to take advantage of a one time importation of building materials duty free.
It seems my client had done his research. As the ‘general contractor’ he expects to be able to build his home and own his parcel of land for free. He will collect US$70,000 per dwelling, and expects the entire development to cost less than US$490,000. My preliminary number crunching, which includes the cost of materials purchased abroad, shipping of the eight containers, construction and land acquisition appear to make this dream a reality.
An added plus is that each new resident is able to import a vehicle with a value up to US$25,000, provided it is less than ten years old, and US$20,000 worth of personal household items. The car can be sold after 5 years without any penalties.
Another of my duties will be to monitor the importation of both the building materials and household furnishings, then arrange inland transportation to the building site. I understand the new homeowners are going to be driving their vehicles to their new homes, which will be completed and fully furnished when they pull into their driveways for the first time.
This is actually going to be a fun project. I’m sharing it because I would like to work with similar groups to do the same thing.
If you wish to discuss any sort of investment in Nicaragua, please contact us.
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Posted by: Len | on February 27, 2017
I don’t think I’ve shared my story as to why I’m in Nicaragua in the first place, nor why I’m so positive about this nation’s future. A brief history…
I was traveling from Canada, via a flight to Mexico City, then overland to Montanita, a town on the Santa Elena Peninsula in Ecuador that’s known for its surf beaches and bohemian vibe. A friend and client wanted to purchase a small beachfront, surf resort for his daughter and asked me to go scout out some options. I decided to take my time and make it a vacation/business trip since I wasn’t on a deadline. This turned out to be a bad idea that eventually ended well.
I was robbed in Honduras by four banditos, right at the frontier. Long story made bearable… I didn’t win the day but I did damage one of my assailants and his friends fled. I left Honduras, entered Nicaragua, and the next day informed the Canadian Embassy of what happened. I worried I’d caused a minor international incident. The embassy informed the Honduras government I was available should they wish to talk with me, and asked that any inquiries go through official channels… nothing ever came of it.
I was expected to stay in Managua until money, credit and debit cards, and documents that were stolen could be replaced. I was not enjoying my time in Managua, so I contacted a travel writer friend who has spent a lot of time in Central America. He suggested I head to Granada, assuring me that since I liked Antigua, Guatemala, so much I’d enjoy its Nicaragua sister city. I was in Granada only a couple of days before I realized I could live stress free, affordably, and make some money if I stayed. Other than visa runs I’ve been here since July 26, 2014. My client and friend had a heart attack and passed away soon after I arrived in Nicaragua. Since I was no longer committed to go to Ecuador I started looking at opportunities within Nicaragua.
I discovered Nicaragua was very pro foreign investment, especially in the tourism industry. I’ve done reasonably well in Nicaragua, and the Nicaraguan people I’ve met are wonderful. Appreciative, I decided to give something back. Through the two hotels I have interest in, Hotel de Sonrisas and Hotel La Calzada, I’ve started a program in which the children of single mothers can attend English classes at a private school. Tourism is the industry with the greatest employment opportunities, and it’s already the nation’s second largest employer after agriculture. However, to be deemed employable by tourism industry businesses, a Nicaraguan needs to speak some English. Most do not because it’s not a subject offered in public or church run schools. Solution, offer the opportunity to learn a second language myself. Classes started this past week for a handful of kids. More enrollments will follow with new students being added each 3 month semester.
At the moment this is an on the books scholarship or sponsorship program funded by the two hotels. We will later offer those children that stick with the courses an internship, maybe even permanent employment. If I calculated the need correctly, the demand for English speaking young people in the industry may make it necessary to increase pace and seek funding. We’ll see.
A second means of giving back… I’ve adopted as my cause assisting the local hospital with basics; bedding, pillows, equipment, etc. I had a mild stroke brought on by soft tissue swelling from an inner ear infection. Most expats, myself included, go to private clinics and hospitals. However, the closest hospital was not one of these. Known as the Japanese Hospital because it was Japan that build it for the Nicaraguan people, I was admitted, treated and released to the care of my personal doctor. The entire process cost me US$192.00 and I’ve made a 99% recovery. My right ear and the surrounding area have limited feeling, and although no one else seems to be able to see it, I swear I have some disfigurement around my right eye.
I did not notice much when I was a patient, but later I had occasion to visit a hotel guest in the same hospital. I was shocked to find that there were no pillows, few sheets for the beds, and very little in the way of incidentals needed by staff to do their jobs at peak efficiency. Apparently everything was stolen by patients, visitors and staff over time. Petty theft is a problem in poorer countries, and Nicaragua is no different. Anyway, once I’ve worked out with hospital administration what they need and how they intend to thwart future thefts, the plan is to seek donations of whatever it is the hospital needs and have it shipped in.
My reason for sharing my personal story and the causes I support is to highlight how little effort and money it takes to make a huge difference in this country. It’s the same with investing. A small investment in any business venture that creates jobs will have a positively impact on the lives of employees and their families. This is why foreign investment is sought by the Nicaraguan government, and why the country’s leadership is so pro business.
Opportunities are abundant here, so there is something for everyone and every budget. For more information contact Nica Investments.
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Posted by: Len | on February 24, 2017
Back in November Daniel Ortega won the election and is President of Nicaragua for five more years. I’m not going to give any sort of political commentary, just state my personal opinions… Nicaragua faces new challenges so the continuity in government administration is a good thing. No matter what one may think of him personally, or his political leanings, Daniel Ortega has repeatedly proven he’s capable of dealing with external and internal challenges. Enough politics…
Daniel Ortega has publicly stated that tourism will be the industry that lifts the Nicaraguan people out of poverty. To this end, he has initiated decrees that assure tourism continues to grow at close to 10% annually. Therefore, investors considering investing in real estate or entering into a business venture in Nicaragua should put their money in the country’s tourism infrastructure.
The incentives offered to investors in tourism are the best in all of Central America, probably in all of the Americas. Besides tax relief and utilities subsidies, the government agency responsible for tourism administration, INTUR, has proven itself to be an excellent partner in my personal experience.
I’ve been involved in three separate hotel operations in Nicaragua, and currently operate two of those hotels. So my knowledge and advice is based on first hand experience. Because of my intimate knowledge of the tourism industry here, I recommend anyone looking for a business venture consider something tourist related.
If real estate investment is what interests an investor, consider real estate related to tourism. My first and foremost recommendation is hotel, hostel, resort or even B&B properties. One does not need to be an experienced hotelier to capitalize on an investment in accommodation properties.
Property investments that would lend themselves well to taking advantage of all the perks available to tourism industry investments fall into two categories for investors not interested in actually operating a hotel, hostel, B&B or resort. These are developed and undeveloped properties…
Tourist accommodation facilities an investor purchases but does not wish to operate can be leased to an operator. In fact, these are probably the best rental income returns one can generate in Nicaragua.
A hotel, hostel, B&B or resort property can also be managed by a professional hospitality company. In most cases a fixed rent amount is more attractive as a ROI. However, it depends on the property and the term and condition of the management contract itself. Some high end, and/or well situated properties can prove very profitable, thus generating excellent returns.
There is still a abundance of undeveloped real estate in Nicaragua that would lend itself well to tourism use, and much of it is available at reasonable prices.
An investor seeking to invest only in land, but wanting to take advantage of the perks available to tourism infrastructure investors, can do both. I recommend an investor in land suitable for a tourism development enter into a joint venture partnership with a hotel or resort developer. The joint venture partnership would be structured so that the investor contributing the land shares interest in the competed facility, reaping a share in any benefits available. It would be the responsibility of the joint venture partner to develop the property. Once completed the JV partner can operate the business or a third party management company can be introduced.
I’m currently working on one of each of these two scenarios… One is a closed up hotel/hostel property with huge potential that, if purchased by a client, would then be leased out to an established operator for a fixed amount per month. The other is an impressive ocean view, hill top property. My client will purchase the property and then transfer interest in that property to a joint venture partnership. The partner in the joint venture will develop the property. Once construction is completed, the JV partner will operate the resort, sharing income and any perks with my client.
If you have any questions about investment in the Nicaragua tourism industry or investing in Nicaragua in general, feel free to contact me.
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Posted by: Len | on February 6, 2017
It’s Been Raining – And That’s Good News
December, January and February have historically been dry months in Nicaragua. However, this year these months have seen rain the likes of which no one can remember. It’s over now, but after 5 years of drought the unseasonable rain was welcomed. Lake levels are back up, the aquifer is improving, and agriculture and ranching are less strained.
I Modified The Nica Investments Business Model
I’ve been tardy with my newsletter recently, and I apologize for that. The reason, or maybe you’ll want to call it an excuse, is that I’ve been busy launching a new business model… one that was a gamble, but seems to be working beyond expectations.
As I have mentioned in earlier newsletters and on the Nica Investments website, Law 360 offers foreign investors in tourism infrastructure the most generous incentives in all of Central America. Also important is that President Daniel Ortega has decided it will be tourism, not agriculture, manufacturing or outsource call centers, that lifts his people out of poverty. Therefore tourism is the sector of the economy given the greatest attention by the administration.
Rather than simply advising on tourism opportunities, Nica Investments has step up to the plate and become involved with our clients in tourism related ventures, or gone it alone on others. I’ve kept the core business as it was, consultation relating to real property and business investments, but now take an active role in the acquisitions and management of properties and business that fall within Law 360.
With fellow Canadian, long time business client, friend, and now business partner, Sandra Shimmin, we’ve opened Hotel de Sonrisas, formerly Hotel Casa Caprichio. The hotel operation is developing nicely… but not without hiccups.
Hotel de Sonrisas has an in-house spa that will be doubling as a hands on educational facility to empower women from all over Nicaragua. The purpose is to teach women marketable skills they can apply to their own small business ventures in their home towns. The women will be taught how to give therapeutic massage, manicures and pedicures, facial treatments, and perhaps later we’ll include hairdressing.
The restaurant was opened briefly with an experienced operator, and under a rather unique and fair partnership arrangement. A breach in the contract that was given ample time to be addressed and rectified never was, so at the end of the review period notice to vacate was given. The space is now available and we are considering operating the food and beverage service ourselves. If a trustworthy, experienced restaurateur wanted to take over the virtually turnkey indoor space, and develop the potential of the outside seating area that is already approved but the city, we’ll listen.
A second option became available that was too good not to pursue. Hotel La Calzada is probably one of the most unique boutique hotels in all of Nicaragua, in Granada for sure. With it’s collection of art and collectibles, many people walking though the front doors think they’ve walked into an art gallery dedicated to world famous Granada artist Tony Kulusic. Five years under renovation, the upscale hotel was designed by Mr. Kulusic as well, and is a work of art in itself. No expense was spared to provide guests with the very best stay possible.
The hotel bar is the Hogs Breath Saloon, which is to open this month. When it does, it too will be unique. However, it won’t be open to the general public. Instead, the bar will function as a members only facility, with hotel guests granted temporary membership during their stay. The plan is to open only Thursday through Saturday as a bar with food service. Members though may use the facility any day of the week for business meetings, a family get together, or celebrations of any kind. There will be a minimum and maximum number of people permitted, but members will not find the restriction too difficult to comply with since there’s ample indoor and outdoor seating.
More Opportunities Seem To Rain Down
It would appear Nica Investments’ new business model has caught on. A number of hotel, hostel and people with properties ideal for tourism activities, or existing tourist related ventures, have approach us to discuss areas of cooperation.
Our team is small. So unfortunately, not every opportunity presented can be pursued, even though all warrant serious consideration. We’re trying to include more team members, but totally trustworthy people with the necessary skills, experience and abilities are few and far between. Plus no one is invited on board without making a commitment they’re contractually bound to.
At the moment there are three opportunities, one a hostel, another a tourist attraction/activity, and the third an excellent long stay vacation rental property are under consideration. All have huge potential. However, like all tourism related businesses, they’re hands on operations. The simple fact is, without trusted extra hands these opportunities remain “under consideration” until there is an expansion in personnel.
The point of basing this current newsletter on what appears to be self promotion is to give notice to potential clients that Nica Investments not only advises on investment opportunities in Nicaragua, but actually follows through ourselves. If you’re a hotelier, restaurateur, tour operator or experienced event planner looking to resettle in Paradise contact Nica Investments. It is very likely we have a perfect match for you to become involved in.
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Posted by: Len | on December 23, 2016
North Americans, Europeans and a great many others are taught that ownership of real estate is one of the best ways to grow wealth. The rise in real estate value adds to one’s personal net worth. It also provides tax benefits that can be used to shield other sources of income.
However, in markets were rents are low and property values are high, such as they are in some Nicaragua real estate markets, purchasing a property may not be the most financially prudent approach. This is especially the case in commercial applications. Why invest hundreds of thousands of dollars to purchase a building when you can rent the same property for a few hundred dollars a month? True, there is no depreciation of the structure to offset profits, but the rent paid is a business expense and the cash saved by not having to purchase the property can be working for you elsewhere.
Why is this so? To understand why a building with a price tag in the hundreds of thousands to millions, such as a hotel property, can be rented for just a few hundred dollars a month, a few thousand at most, you need to understand the Nicaraguan mentality towards real estate investment.
Most Nicaraguans do not trust banks, and with just reason. Recent Nicaragua history is littered with instances of bank failures. Plus there are few trusted investment opportunities. So to safeguard inheritances and money earned, Nicaraguans will hold onto real estate they inherit and purchase real property whenever they can. The average Nicaraguan with land holdings is not a sophisticated investor and doesn’t need to be for a property to serve its purpose… safeguarding his or her money.
This mentality means that appreciation and even rental income is of secondary concern. In many cases Nicas will purchase acres of raw land for cash and make nothing at all from it. They’re happy knowing they have land that will never be worth nothing, as many bank savings turned out to be. Imagine being someone who inherited a property that was sold and the money banked or all of your savings was deposited in the bank, only to find you were left with nothing when the bank failed. Now you can appreciate the Nica mindset.
So it’s possible to find a property for farming, manufacturing or to use as a hotel, B&B, restaurant or retail outlet for very little per month. Offer the owner of a locked up colonial house, warehouse, commercial building or land a set amount for 5 to 10 years and in all likelihood they’ll agree to rent it to you.
The property owner continues to safeguard his or her savings and the tenant gets a property at an affordable monthly rental amount. In all likelihood the property will require some leasehold improvements, in which case the owner gets improvements made to his or her property. Plus he or she knows the property is being maintained. On the tenants end, he or she can write off leasehold improvements and the cost of maintaining the property as business expenses. It’s a win win…
To learn more about rental opportunities in Nicaragua, contact Nica Investments.
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Posted by: Len | on December 7, 2016
The Deal Of The Week
The inventory of affordable homes in downtown Granada, Nicaragua is growing smaller by the day. It is not so much that affordable homes are being bought up… although that is certainly part of it.
The reality is that owners of affordable houses in Granada know prices are on the rise so they are unwilling to sell their property now for a low price. Most can and will wait until prices go up. Occasionally there are deals though, and this is one of them…
This two bedroom, three bathroom home has an indoor swimming pool and large kitchen. The massive master bedroom with en suite is on the second floor. The second bedroom, that could also be a den or office, has its own private bathroom as well. There’s a third bathroom for guests.
The home has been recently renovated. In fact, the fridge and gas stove are still shrouded in the protected plastic they were wrapped in at the factory, and the washing machine is still in the box it was delivered in.
The home is located on the north side of Calle La Calzada, just a few blocks from Central Park and Granada’s nightlife and tourist area.
If purchased as a revenue property, or a vacation home that would be rented out when not required by the owner, the property would easily rent for US$500 plus utilities.
The owner is asking US$149,500.00 for the property. Title is clear and there are no encumbrances to interfere with the transfer of the property. The vendor is not prepared to provide purchase financing but financing is available. To learn more, contact Nica Investments.
Are You An American Anxious About Your Future?
I was recently contacted by someone I had never had the pleasure of working with until now. I am restrained by the terms and conditions of a Non Disclosure Agreement, so can not say more than the person is someone who does not feel comfortable remaining in the USA. This person, I can not even divulge gender, feels there may be other citizens who are having similar feelings of angst.
I was tasked with finding prime properties in Nicaragua upon which housing can be build to provide displaced Americans.
Now doesn’t this sound like someone is trying to capitalize on Trumpaphobia? Of course it does. But the reality is far from it!
The deal is simple. Homes will be constructed for displaced Americans of any religion, race, gender, age, sexual orientation, income bracket or lack of employment. No matter who someone is or what their personal financial situation is at the moment, they will be accommodated. No one will be refused refuge… except for racists, religious bigots, and convicted felons.
So what does this mean exactly? It means what is says… No one who fears for their personal safety, the safety of their family, or their right to live life as they wish is going to be unable to relocate to Nicaragua and live a much more idyllic life.
If your means are limited, a solution will be found. So do not worry.
If you have children, there are acclaimed schools throughout Nicaragua that cater to foreign students. Or enroll your children in the local schools so they can learn Spanish quickly and make a great many new friends.
In closing, I want to reiterate that this offer is available to everyone but racists, religious bigots and felons. Everyone else, regardless of who you are, can move to a tropical paradise. The only thing that will hold you back is fear, and that fear will mostly be based on misinformation or outright propaganda. That, and your own fear of change… the fear to step outside your comfort zone.
To learn more contact Nica Investments
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Posted by: Len | on November 13, 2016
Clarification Of What I Do
It’s important that subscribers to my newsletter, and prospective clients in general, understand what services I provide and which I do not. Likewise it’s important clients understand how I’m compensated, and by whom.
I’M NOT A REAL ESTATE BROKER/AGENT… I’ve explained in articles and an earlier newsletter that not only am I not a “real estate agent or broker”, but that such a person a North American or European would understand he term to describe doesn’t exist in Nicaragua. If you want to know about the unique differences in real estate laws that govern the industry in Nicaragua I welcome your inquiries.
What I am is a consultant. I advise clients and often act on their behalf to assist with the purchase or sale of a property or business, coordinate land use changes, oversee developments, or negotiate leases, either for the leasee or leasor. It would take far to long to cover the myriad of tasks, duties and functions I carry out in the interest on my clients, and that’s not the point… What is the point is that I represent a client and assist that client in accomplishing defined goals or completing specific tasks.
I work on a per Diem, meaning I’m paid by the day. My fee is US$100 per day. This may sound expensive but like a good accountant, my services save clients far more than my services cost. I require a US$700 retainer that is applied to the first week billing. The initial consultation is free of course, and once I know what a client’s needs are, I can accurately quote what a specific undertaking will cost a client.
A Cheap Bed & Breakfast Opportunity
I was recently approached to find a leasee for a small hotel in the center of Granada. The property has been closed for quite some time but has been well maintained and is in remarkably good condition, clean and able to be reopened reasonably quickly.
It would not be the best use to operate a hotel at this location however, even though it is still licensed as such. What this property is ideal for is a Bed & Breakfast.
Operating as a B&B the property would have 5 rooms with private bathrooms, each with both street and courtyard access. The operator would have the option of having an upper floor two bedroom suite to live in, or create a sixth room and live in a one bedroom apartment.
The building is for sale but can be leased for US$1500 a month for 5 years. The owner is open to offering the tenant an option to purchase the property during the term of the lease. Currently the asking price is US$250,000. A tenant would be required to pay the first and last month rent up front, and a security deposit of US$1500. Thus the buy in is US$4500.
What makes this opportunity even more attractive is that I have a hotelier client willing to work with whichever client leases the space. My existing client has a small boutique hotel close by and often requires additional rooms to accommodate group bookings. The exact details of such an arrangement would have to be negotiated, but the opportunity exists.
Although this property is not advertised, I’m sure I am not the only person who has been approached to find a tenant or buyer. November is the start of the busy tourist season in Granada, so anyone seeking a tourism based business will be motivated to act quickly, so it is reasonable to assume this opportunity will not remain available for long.
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