How easy is it to get a small business loan ?

masculinist

Just exploring my options here and not interested in selling anything.

The business case is as follows.

I own residential land in Dubrovnik for well over ten years. To obtain official planning permission with specifics concerning whether the structure is apartments or houses which will be walk in the park since the whole area is zoned residential, will cost about 10 grand. 13 Max and that value will be then added to the market value of the land and then some so its a recoverable expense.
I then have a very experienced builder on standby who owes me a lot of favors and who will supply and build the materials and labour for the structure, the walls and roof etc (but not the kitchens etc) at no cost to myself. This is the internet after all so I dont want to hear anyones paranoid delusions concerning any scams. I am being very careful here. The builder genuinely owes me big time for favors and the architect and planning permission etc will be a totally separate procedure. The builder only needs to know what to build and he will proceed.

What would you guys do ? Would a credit union be interested in giving me some finance ? I took out a few credit union loans less than 10 years ago and paid them all back. However Ive avoided the CU for over 5 years. Is it possible to get a loan secured on land owned abroad ? As time goes by I am saving up the money I need anyway. I just wondered what anyone here might think about my situation. Basically a very small sum would kickstart a huge return. However I foresee myself possibly retiring there one day and renting out apartments from the same site I live on. Its' a very sustainable sort of plan from rents alone.

duploelabs

As far as I remember the planning in Croatia, specifically Dubrovnik, is extremely antiquated and still in a shambles from the war. Especially when it comes to ownership of land. Has that been resolved? Will the lender see that as an issue?

masculinist

duploelabs wrote: »

As far as I remember the planning in Croatia, specifically Dubrovnik, is extremely antiquated and still in a shambles from the war. Especially when it comes to ownership of land. Has that been resolved? Will the lender see that as an issue?

Like I explained, there are no issues whatsoever in the backstory. I have no idea if a lender would indulge in conspiracy theories based upon country. If so then thats valuable info to know. Otherwise its a waste of time to discuss. That would seem rather strange to me. The title of my land went straight from the original owners to myself.The planning in Croatia has been streamlined a lot over the years. EU entry has made it cheaper and easier. I just wonder if an Irish bank for example would lend a small amount of money which is secured on an asset held within the EU ?

pedroeibar1

You might think there are no issues in the ‘backstory’ but any lender would run a mile. Nor would it give a s#1te about how title passed to you, what supposed favours are owed to you by some builder or your retirement plans. Why should a lender here get up to speed on planning, transfer of title, etc. in Croatia for a tiny loan? No lender anywhere would lend to some randomer on an asset situated in a country in which it has no physical presence (even before taking regulatory requirements into account). You want to borrow for an overseas asset, you borrow in that market or you borrow here and charge it on an asset in this jurisdiction. If you are creditworthy. Not having even a poxy 10k as seed money says it all to a lender.

masculinist

What's with the swearing at me ? I want to know how easy it is to get a business loan . I didn't say I needed one . This is the type of response I find useless

duploelabs

masculinist wrote: »

Like I explained, there are no issues whatsoever in the backstory. I have no idea if a lender would indulge in conspiracy theories based upon country. If so then thats valuable info to know. Otherwise its a waste of time to discuss. That would seem rather strange to me. The title of my land went straight from the original owners to myself.The planning in Croatia has been streamlined a lot over the years. EU entry has made it cheaper and easier. I just wonder if an Irish bank for example would lend a small amount of money which is secured on an asset held within the EU ?

I merely mentioned the crazy napoleonic land laws they have there in Croatia, I didn't mention anything about any 'conspiracy theories', yet the fact that you brought it up now leads questions to it...
Legacy issues pertaining to house building overseas in general from the celtic tiger era (remember the Overseas Property show that the majority went wallop) would ring alarm bells with any creditor, no matter how you present it.

dbran

OP I think you have your answer and as the thread is going nowhere healthy I am going to close it.

dbran