Lending for boutique Eco hotel in the bahamas

[Robert Kramer]

Hello, 

I am looking into purchasing a 3 acre waterfront property in the bahamas that has a house and guest house on the property already.  Was thinking about adding about 15 modular structures to create a boutique eco resort.  Lending in the bahamas is very hard for non residents.  Anyone have tips for finding lending elsewhere?   I have a bunch of friends that want to help finance the deal but i would rather keep friends out of the business.  

[Robert Kramer]

First,  that HGTV resort is in Andros which has no Commercial Flights and very small and sporadic container ships.  I wouldn't under take that either unless i had my own cargo planes and ships leased out with a work permits and housing for a US crew.

I have owned businesses and built commercial and luxury home properties in Turks and Caicos and the Bahamas.  Both very similar in the building and legal processes but completely different in the lending.  I currently do no have an active income stream in the Bahamas anymore so local financing for a non resident is extremely expensive.  

Also the ROI can be exponentially greater since it keeps people who are scared of doing business in another country from coming in and being the competition. No one wants to deal with the hurdles and loop holes that i already have experience in. My island business friends and i have a saying "You don't have to be smart you just have to be patient" Not to mention what you can get price wise cant even come close to the US.

I had just bid on an old rundown motel in the keys that was 9 very small rooms on a little less than an acre on the ocean side, no onsite concession allowed and huge building permit hurdles, that would have been all in for about 5m.  The property i am looking at is 3 acres on the water will have 14-18 rooms, a 3000 sqft club house, cliff side infinity edge pool and on site food and beverage.   All in cost of 3m, a slightly lower Occupancy rate since more seasonality (you can close for 2 months for vacation and repairs) but an ADR of about double and added revenue streams vs just room sales. 

Also i've owned businesses and built projects in south florida and its almost Harder.  Id rather deal with the stress with people who may not be as skilled but want to work while enjoying an amazing view and weather doing so.