Owner occupied loan overseas

Board Topic: cash loan puchase property/land Indonesia
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cash loan

Posted by: NISIBETO Mar 16 2004, 05:01 AM
I am an british expat lady with a business in Lombok Indonesia ( Island next to Bali ).

Can anyone advise me where I can apply for a loan so that I can purchase the building I am at present renting for my restaurant/bar/nightclub business as the rent is high and I would like to buy this property.

I cannot obtain a loan in Indonesian Banks as the business has only been opened for 2 years.



Posted by: loanuniverse Mar 16 2004, 11:17 AM
NISIBETO:

I am sorry, but cannot help you. Normally when talking commercial real estate you want to go with a local lender {preferably a bank}. You will find it difficult to find a lender outside Indonesia to look at this as a purely CRE loan when the collateral would be overseas.

There is a small amount of business done by mainstream lenders that involve real estate collateral in other countries, but usually it falls within the following categories:

The collateral for the loan is in one of the G7 countries: I am certain that a lot of lenders have crossed off Indonesia as a desirable place to do business as a result of all the recent turmoil.

The collateral is easily accessible and there is a comfort level with the market I can see how some commercial US banks in the border states would make loans secured by Mexican real estate. I doubt it is common, but I am sure it happens.

The collateral can be anywhere, but the strength is the borrower: This is when the borrower is one of those large multinationals and they are opening a plant in the third world. It does not really matter that much where the collateral is since the plant is really not a significant exposure in the big skim of things.

In your case, I would look harder at lenders in Indonesia or in the case that you have any assets in England see if you can borrow against those to buy the property where you live now.

Sorry I couldn’t help, but this one is a tough one and I am really more US centric when it comes to commercial lending.
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