Nosara Beach Surf Shop $100K Loan

Commercial Property Summary

Listing Overview: As is value $400,000. This property is 1000 sq meters and about 100 meters from the beach at Nosara, Guanacaste, a popular Costa Rican tourist beach. There are many hotels, restaurants and shops on the same street. An empty lot across the street approximately 2000 sq. meters was sold for $500,000. The borrower has owned the property for 8 years. He first rented from Municoncha (Hotel Villa Taype) for the first year with the option to buy after this period for $100,000.
Land Area (M2): 1,002
Capital Sought: $ 100,000

Loan Specifics

Loan Summary: Nosara Surf Shop A full service tourist oriented business, located in Guiones, Nosara, 100mts from the beach. Surf shop which was first opened eight years ago. This business had grown exponentially over the last eight years shrinking only in 2009 due to the US recession. Year to Date Gross Sales Sept 2003 - Aug 2004 $224,615 Sept 2004 - Aug 2005 $248,789 Sept 2005 - Aug 2006 $261,545 Sept 2006 - Aug 2007 $334,835 Sept 2007 - Aug 2008 $394,309 Sept 2008 - Aug 2009 $301,260
Loan Amount: $ 100,000
Estimated Collateral Value: $ 650,000
Loan Term: 1 year
Use of Funds: $25,000: Improving and upgrading a public road which leads to his property in Ostional (not the one in Nosara) $20,000: Landscaping this property $25,000: Pay off existing debt Upgrades to existing building for $21,000: Nosara Surf Shop, such as new roof, renovate existing board storage bodega and construct new entrance security fence. Install new computer inventory system as well as anti theft security system. $6,000: Construction of web page for property sales $28,000: Reserve Cash
Exit Strategy: He has income for debt service from the Paraiso Project (Desarrollo Bioresidenciales) and Nosara Surf Shop for $12,000 per month. His plan to pay off the principal is to sell one of his waterfront lots in Ostional project at a very reasonable price of approximately $200,000. Once the entrance road and landscaping are completed in 4 months, he is confident he can sell easily as he already has clients that are interested. The collateral property as described houses Nosara Surf Shop, which even last year recession averaged $25,000 per month.

Site Detail

Location Summary: The collateral property is near the Hotel Cafe de Paris, Nosara, Guanacaste. They are next to the Harmony Hotel and across the street from Casa Tucan Hotel.