Financing….

[GRETCHEN SOLDAT]

I have been looking into these new beachfront condos in Canoa, built by a contributing editor here, Brent Carlson. It goes without saying we will have to visit first, but I thought it might be prudent to get some financing lined up ahead, so we can make an offer if we decide to pursue this. The condo would be for winter vacations until we retire there in 5 or so years—possibly a  vacation rental as well since management is on the property.

Getting a loan here in the U.S. has turned out to be problematic in the current economy. Though we own our property (5 acres) free and clear, equity loans are tough to get since its very rural and isolated here. On another Ecuador site, a finance co. in Cuenca was suggested. I have been in contact with the owner there (an ex-pat) and can arrange financing through them for the condo, by-passing the need to involve our U.S. property.

I’ve studied the “buying property” section here and it appears hiring one’s own attorney and buyer’s agent is recommended. Is the agent needed if the developer is selling directly to the buyer? I can certainly understand having an English-speaking attorney look over the paperwork.

Any suggestions re this scenario would be greatly appreciated. I’ve devoured everything on this site but need all the advice out there from you experts. Thanks so much!

[SUZAN HASKINS]

Hi Gretchen, you won’t need an agent if you buy direct from a developer – -but an attorney, yes!!

[SUZAN HASKINS]

Gretchen, I’ve not heard about any expats offering financing in Ecuador. Please be very careful. I’ll ask Edd to comment since he lives in Cuenca and may know these folks. I’d be skeptical, but then I’m a skeptic when it comes to believing ‘most’ expats working in real estate or making any grandiose offers in Latin America… 🙂

[SUZAN HASKINS]

I’d also like to set the record straight about one more thing. Brent Carlson is not a contributing editor to International Living or Ecuador Insider. He wrote and contributed a brief article about his life in Ecuador, yes, but he does not work for International Living. I’ve not seen his project and can’t comment on it one way or the other. The advice, as always, is to do about 100% more due diligence than you think you need to. And then do it again. 🙂

 

[GRETCHEN SOLDAT]

Hi Suzan,

Thanks for the thoughtful reply. Here is the website for the finance company in Cuenca: http://cuencafinance.com/

So if anyone has any input…I’d appreciate it. I would not be considering this route if I could get anywhere on a loan here.

Good credit, good income, no debt at all, sitting on $200,000  property free and clear, it’s frustrating. Reason? (whisper, don’t say it out loud—the dreaded “mobile home”) Butt of all the “You know you’re a Redneck if….” jokes. This is a transition area, trailer/mansion/yurt/teepee/mansion…..but people come from all over the world for the scenery.

Anyway, so the developer is not part of Ecuador Insider, just contributed…good to know. A competent local real estate attorney would be able to spot any red flags in a contract, right? I’m spending all my free time researching all this, so doing all the due diligence I can without actually being there, which may be in a month or 2.

Any input from Edd would be appreciated, if he’s heard of this outfit. Thanks!

[SUZAN HASKINS]

Hi Gretchen, some times there is developer financing, too — over a build-out period, etc. Yes, a good attorney should be able to spot any red flags. And Edd knows the financer in Cuenca, but does not know anything about the solvency of the business so I guess you’ll need to do the due diligence and be sure you are comfortable with that, too. Have you been to Ecuador yet to see all this in person?

 

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