[gundas]

Don't EVEN go there, por tantas buenas razones.....

[Alexunda]

I repeat: Do not even think of going there!

People are killed here every week./month over uncollectible debts or non-payment of outstanding debts. The law is no back up, there are no collections agencies.

Unless you are a part of the Russian mafia that is now in the country, I would strongly suggest you look elsewhere for your investments. Mortgages are good, most of the time...and if you do a thorough title search before lending one penny!

There are well established people that will lend out at 1% per day for commercial uses.
Say you have a "deal" to get a container of cooking oil "no questions asked"...You can get the money, at that 1% per day rate.

Unless you are willing to kill and maim, I would not suggest that you, as a foreigner, get into money lending. Not so long ago, a woman who lent workers money on a Monday and collected on Friday @ 10% of course =>1000 on Monday = 1100 on Friday. She was killed on a Friday.

I know a guy that will lend you 50,000, no problem, at 10% a week...for ever. And he walks the streets...

HB

[DoctorNelsonOnten]

I repeat: Do not even think of going there!

People are killed here every week./month over uncollectible debts or non-payment of outstanding debts. The law is no back up, there are no collections agencies.

Unless you are a part of the Russian mafia that is now in the country, I would strongly suggest you look elsewhere for your investments. Mortgages are good, most of the time...and if you do a thorough title search before lending one penny!

There are well established people that will lend out at 1% per day for commercial uses.
Say you have a "deal" to get a container of cooking oil "no questions asked"...You can get the money, at that 1% per day rate.

Unless you are willing to kill and maim, I would not suggest that you, as a foreigner, get into money lending. Not so long ago, a woman who lent workers money on a Monday and collected on Friday @ 10% of course =>1000 on Monday = 1100 on Friday. She was killed on a Friday.

I know a guy that will lend you 50,000, no problem, at 10% a week...for ever. And he walks the streets...

HB

Haina is full of prestamistas that are the same. Their practices are simply unbelievable.

One of my employees has been paying interest on a loan for the last three years, and still owes the entire amount of the loan.

I went to his prestamista once(I know her well) to try to negoitiate some sort of deal for the poor sucker, and she had HUNDREDS of employee bank cards on her desk.

The girl is pulling down some serious scratch. Everybody is counting her days.

[Freedjome]

If you want to lend in order to help someone, you can use them - Kiva - Loans that change lives , they fully serve their mission...if you wish to have an income from lending in the DR then ay attention to the posts above

[Alexunda]

What did you say? The "fiscal" is your back up?? Sh!t, he will be one of your defaulters!!

this is a bad, bad idea.

Think agriculture if you want a high return on your money and like taking a little risk. Find someone to go partners in a few greenhouses. It all goes to export and everything is in dollars or €uros...

Come on dude, please listen to guys like JD Jones, they deal with these issues on a near daily basis...

HB

[UpperMan]

Fiscals can be and are bought daily.

[DoctorTDent]

haha okay. anybody else with experiences?

Yes Thank you. Quite a number of them many years ago when I was very Naive & thought Proper Accounting principles & legal paperwork etc would rule the day!!

The loans were to friends, acquaintances, business contacts & ALL had security for my investment ........ I think I have JUST about broken even on the loans & got my money back. Putting it in a CD or mortgage loan is much more sensible. The Fiscal idea is ............... amusing!

The one thing I did get my money's worth on during these years of lending was the art of finding excuses that one can use to prevent paying for a week or two (or three or four or .......). To this end I am able to spot an 'excuse' / 'downright lie' a lot more quickly now!

Lawyers should be instructed to put a warning on all 'Loans' contracts ................
"Lending can (& normally is) injurious to your health". ~ Grahame.

[alecoplesosse]

A couple of weeks ago the neighbor WatchyMan came to me on a Sunday morning (clue#1=Sunday) asking for 500 pesos b/c the property dog was sick.

I asked about the vet being open on a Sunday.... Si, Senor - seguro (clue#2)

He promised his "Donia" would have the money the next afternoon... of course, she is not and never is, in residence.... will be wired to him.

Needless to say.... it took 2 weeks.... I pass him on the road every day.... he wouldn't even look at me.
I began to refer him publicly as Senor Quinientos and point and blow my horn at him regularly.

Surprise, surprise.... he finally paid..... but I consider myself lucky.

Thats my last loan !!

I have loaned to employees but have their pay and liquidation as insurance... never a problem.

The consensus here is ...... DON'T DO IT !!

WW

Nice to have your input BB..... hope you're well

[Blolover11]

A couple of weeks ago the neighbor WatchyMan came to me on a Sunday morning (clue#1=Sunday) asking for 500 pesos b/c the property dog was sick.

I asked about the vet being open on a Sunday.... Si, Senor - seguro (clue#2)

He promised his "Donia" would have the money the next afternoon... of course, she is not and never is, in residence.... will be wired to him.

Needless to say.... it took 2 weeks.... I pass him on the road every day.... he wouldn't even look at me.
I began to refer him publicly as Senor Quinientos and point and blow my horn at him regularly.

Surprise, surprise.... he finally paid..... but I consider myself lucky.

Thats my last loan !!

I have loaned to employees but have their pay and liquidation as insurance... never a problem.

The consensus here is ...... DON'T DO IT !!

WW

Nice to have your input BB..... hope you're well

Never loan anyone money unless you consider it a gift. If they pay you back it's a bonus. :
As for deducting it from an employee's liquidation, legally a no no.

[alecoplesosse]

It may... or may not... be legal, but I have them sign a note with the amount and the repayment schedule.

Worked so far..... but I don't enjoy it.

I also make sure that they have a good amount of equity in the deal.

WW
Amateur loaner

[Trotoleterm]

Depend if you talk to lend 5,000$us or 100,000$us.
If a owner of the motel ask you for 100,000$us for his business,no problem.
Just go see a notary and make a good contract.

But if you want make business with people under the table,you're dead.

[fedordzen]

If done properly you can be quite lucrative. Take the example above an a large scale. On a smaller level here is another example. Chopo needs $10,000. Brings his free and clear BMW X5 worth $20,000. Gives matricula and keys and signs contract that MY attorney prepares. BMW stays with me in a secured facility. Chopo Pays 5% monthly interest. Term can be 1 month, 3 months, 6 months, 12 months, or even longer. Whatever Chopo wants... it dosn't matter. As long as Chopo pays I collect 60% interest annually on my money. If Chopo defaults I stay w/ BMW X 5. And yes... happens all the time.

Are there risks involved... of course. There are risks involved in any business in the DR where you make money. You alway have to be worried about who is following you... who is looking to set you up... etc etc. This goes for anything.. food business, bar business, chimmychurry business. Even Rico Hot Dog has to worry about being set up. Its the chance you take if you are doing business here. It is a personal decision not for everyone.

[OwdBKKHO]

If done properly you can be quite lucrative. Take the example above an a large scale. On a smaller level here is another example. Chopo needs $10,000. Brings his free and clear BMW X5 worth $20,000. Gives matricula and keys and signs contract that MY attorney prepares. BMW stays with me in a secured facility. Chopo Pays 5% monthly interest. Term can be 1 month, 3 months, 6 months, 12 months, or even longer. Whatever Chopo wants... it dosn't matter. As long as Chopo pays I collect 60% interest annually on my money. If Chopo defaults I stay w/ BMW X 5. And yes... happens all the time.

Are there risks involved... of course. There are risks involved in any business in the DR where you make money. You alway have to be worried about who is following you... who is looking to set you up... etc etc. This goes for anything.. food business, bar business, chimmychurry business. Even Rico Hot Dog has to worry about being set up. Its the chance you take if you are doing business here. It is a personal decision not for everyone.

Chopo shoots you, pays your attorney 30k RD$ to shut up about your only connection to him.. nobody knows why anyone would shoot gringo so case goes unsolved FOREVER. (They put down it was an atraco and keep whatever you had in your house/pockets anyways) Chopo keeps car, your loan, and any future interest you would have ever made.

This business is extremely lucrative but it is exclusively reserved for PN, family of PN, or extremely well connected business people that are PILLARS of their community.. I'm talking about people that if they even sneeze everybody knows about it. I.E. Gonell of Gonell Auto in La Vega, he has out about 10mil RD$ in loans every given month, and has over 20 PN members employed that go around collecting debts.. Does he make a lot of money doing this.. sure, but he's been shot twice in the last 10 years and been arrested multiple times.. If you are a gringo and anyone is trying to convince you to get into this business.. Please do not.. or you will become a part of the thread titled "why ex-pats are leaving this country?"

[Uzezqelj]

Interesting thread.

How about setting up a family business with you as a silent partner.

I've thought about it a lot and have many cunados/primos in the GH area, military, PN, fiscales and judges. There is one among them that seems well respected (judge/politico) with whom I might consider it.

[kictainiSot]

Recovering loaned funds by withholding severance pay or vacation pay is illegal, there is no doubt about that. All you can do is have a good contract and, while paying them their full severance/vacation, you demand back the money they owe. Legally they can tell you "bite me" but often this tactic will result in them paying you because they would rather have something vs nothing.

Loaning money here will make you a very popular person up until you want to get repaid. Then you are invisible!

(p.s. don't rely on the fiscal to do anything at all, most of them I've met are too lazy to think about it)

[Esmeralfaf]

What did you say? The "fiscal" is your back up?? Sh!t, he will be one of your defaulters!!

this is a bad, bad idea.

Think agriculture if you want a high return on your money and like taking a little risk. Find someone to go partners in a few greenhouses. It all goes to export and everything is in dollars or €uros...

Come on dude, please listen to guys like JD Jones, they deal with these issues on a near daily basis...

HB

Not to deny your assertion Hillbilly but even that is a roll of the dice. I wasn't going to comment on this thread but when I saw your response I must say you must be careful with greenhouses also. Coming from an agro-family, a farm family who has farmed in the Mao regions and more recently in the Constanza-Ocoa-Jarabacoa regions I'd say be very careful with greenhouses. They are sprouting all over the place within the DR and they don't come cheap. I'm not trying to dissuade the OP by telling him not to do it but let me tell you a very quick story.

Recently, an acquaintance neither family nor friend was in the greenhouse business. For years he was raking in the bucks. He had SUVS, a couple of pistols which is a sign that you've made it, houses, wives and children. He poisoned himself in a successful suicide attempt. WHY? As all businesses the cash flow is never consistent. He was in a serious financial bind and was unable to follow through with payments concerning his greenhouses. Lately, that's the latest fad in the mountains and they are sprouting up all over the place.

I'm hearing of over saturation to the point that too many are following too little. I can't give anymore details concerning this because I am not privy to all the details concerning this young greenhouse entrepreneur. Lately though all throughout the Cordillera Central mountain regions there are reports of suicides occurring on if not on a daily then on a weekly basis. There are many well established farmers that are not making it and unlike past times they are opting to take their lives.

This is a new occurrence. In the past, suicide was not so common. As a child coming up we never heard that so and so DR farmer hanged himself, poisoned himself, blew his head off, drove his SUV off the Casabitos road and plunged thousands of feet into the valley below. I don't know what is the difference between now and then but suicides are a common occurrence up there now.

If you want take a little pocket change like a thousand dollars or so, convert and lend and get the feel for what it really is like in the DR, try that out. If you lose it, you won't die and if you make it you can keep going with your profits and such. But do listen to all the advice here. The regulation-LESS environment which you find so entertaining and freeing also has a price. It could be late payments, no payments, robberies, theft or your life. Regulations sometimes are excessive but they are there for a reason.

[AdobeCreativeSuite]

Listen to these people they know what they are talking about, wish I had asked this question 6 years ago. Loaned money to a doctor, had two office's, a pharmacy, and a hardware store. Rode a moto bike, drove a lexus and built houses on the side. I lost everything after 6 years. He left the country for fear of his life, so his brother tells me. Apparently owes lots of money to lots of people. Bounced checks and lied to people but then thats what these kind of people do. His brother told him if he returns to the DR he will be lucky to get away with a long jail term, not to mention the obvious. Good luck your call.