Tag: tourism investment
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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