Joint Venture Development Opportunity In Nicaragua
Joint Ventures are not common in Nicaragua and those that do launch are usually through agreements between foreigners. That said, there are some clever local Nica landowners who see the financial advantages of working with developers. I know of a few such situations, but I recently came across a very exciting opportunity.
I was asked to view a property on Lake Nicaragua, on the Granada shore. It’s 2.8 Manzanas (4.844 acres), or for the metric folks like myself, 19,772.5 square meters. Lake frontage is approximately 40 meters. Depth is 200+ meters.
The only development on the property is an attractive stone and concrete jetty, sea wall, boat launch ramp, and a small building where outboard boat motors are serviced, maintained and repaired.
The title is clear, and the seller is the sole owner on title.Most of the nearby properties are owned by foreigners. The attraction is the closeness to Granada, while being tucked away in a quite, forested bay looking out upon the Granada Isletas. The isletas are a collection of 365 small islands formed long ago when Mombacho volcano blew its top.
What makes this property most exciting though is the open mindedness of the seller. He’s willing to sell the property outright of course. However, he’ll also consider working with a developer to subdivide the land and construct individual homes, condominiums or rental units.
Personally, I would go for a joint venture development arrangement. The owner will want US$200,000 to compensate himself for waiting to receive his sales proceeds. My initial take would be to subdivide the land into eight large (2000+ square meter lots) and build individual homes on each. Of course the lots can be made smaller to increase the number of lots and potential profit. But my gut tells me buyers interested in property at this location are looking for a private, green sanctuary, and that will require a decent sized lot.
Both construction and pre-approved, retail mortgage funding is available through local lending institutions.
It is a rare opportunity in Nicaragua, a cash society, to find a vendor willing to work with a purchaser to the financial benefit of both. For this reason alone this opportunity will not last long.
If you miss this property, there are other joint venture opportunities available throughout Nicaragua. Many are much larger though. This one is a nice size and allows for a decent profit to be made on both the sale of lots and/or the sale of completed homes.
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