You are permitted up to 90% combined-LTV between lender- and seller-financing. 

@Alex GarridoInvesting in Panama City would work out for short term rentals because you could pay for the holding costs and maybe profit nicely while hopefully the value of your property increases over the long term.Unfortunately, it’s illegal to rent for less than 45 days and personally I’d never suggest anybody gets into an illegal business overseas.I’ve come across a couple rare buildings in Costa del Este who have a permit but, as you could expect, it’s reflected in the price.

not everyone's lifestyle or family situation permit but it's a great way to get started.and i agree with the others... 100% leverage is very risky. 

He has acquired the land, gotten the permitting, has construction financing lined up but needs ~20% cash equity / home.I know very little about his particular real estate market, and I've never built anything myself. 

Unfortunately I don’t qualify for the free option and finding a contractor that actually wants to jump through the hoops for the permit waiver is another hurdle.

I did not know this about registered contractors on the permit.

Even then the expat will need a work permit to legally sell anything in Panama. 

How many permits do I need to apply for a commercial project, and how many plans will I need from the engineer? 

I originally purchased this house to be nearby my grandmother in her last few years but realized quickly that it was a prime area for short term rentals as there are no zoning rules or permits necessary etc.

The costs involved are about $100.000 all in (permits, engineering, architects labor , materials ) - I’m thinking that would be a better long term Investment than another SFH .