Fulfilling The Dream Of Owning An Island

Imagine waking up to the sound of waves gently lapping against the shore, a soft breeze rustling through the palm trees, and the sun rising over a horizon that belongs solely to you.

​​Owning an offshore island, once thought to be a luxury reserved for the ultra-rich, has become a more attainable dream for many. And one of the keys to unlocking this dream is through owner-financing, a method that can make island ownership accessible to a broader range of buyers, including foreigners who may not have access to local lending options.

Understanding Owner-Financing

Owner-financing, also known as seller financing, is a transaction where the seller of the property acts as the lender to the buyer. Instead of going through traditional mortgage lenders, the buyer makes payments directly to the seller according to agreed-upon terms. This method can offer several advantages, especially in unique real estate markets like private islands. Owner-financing in a country like Belize is especially beneficial for foreign buyers who may not have access to local mortgage financing.

Benefits of Owner-Financing

(1) Easier Qualification.

​​Traditional lenders may be hesitant to finance the purchase of an island due to its unique nature and the perceived risks involved. Owner-financing can bypass these hurdles, as the seller may be more flexible and understanding of the buyer’s financial situation.

​​Structured correctly, seller-financed loans can protect the seller or lender principally from the security of the island itself.

(2) Quicker Transactions.

​Without the need to go through a lengthy mortgage approval process, seller financing transactions can be completed much faster.

(3) Reduced Closing Costs.

By avoiding traditional lenders, buyers can save on some of the fees and closing costs associated with obtaining a conventional mortgage.

Finding Your Dream Island

The journey to island ownership begins with research. Prospective buyers should consider factors such as location, size, accessibility, local laws, political stability, the economic environment, and the legalities of owning property in a foreign country.

​​Websites and real estate agents specializing in island sales provide listings worldwide, offering everything from untouched parcels of land to fully developed retreats.

The Process of Owner-Financing an Island

(1) Initial Agreement.

​​Once you find an island and a seller willing to offer owner-financing, the first step is to agree on the basic terms, including the purchase price, down payment, interest rate, security, choice of law, and repayment period.

(2) Legal Due Diligence.
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​It’s crucial to conduct thorough due diligence, including understanding any local regulations that may affect ownership.
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(3) Contract Creation.

​A legal contract should be drafted by professionals that outlines all the terms of the sale and financing arrangement. This contract should clearly outline the understanding between the parties and should protect both the buyer’s and seller’s interests.

(4) Down Payment, Transfer, and Repayment.

​Once the buyer makes a down payment as agreed and the loan is finalized, regular payments should begin accordingly with a clear understanding between the parties in case of default.

Considerations and Challenges

While owner financing can make island ownership more accessible, it’s not without its challenges. Buyers should be prepared for the responsibilities that come with owning an island, including maintenance, development, and environmental stewardship. Additionally, understanding and complying with local laws and regulations is crucial, especially when it comes to building and development.

Owning an island is no longer just a pipe dream for the few but a reality for many, thanks in part to the availability of owner-financing. This approach can break down the barriers to traditional financing faced by foreign nationals, offering a path to private paradise ownership.

​​With the right research, a clear understanding of the process, and a willingness to navigate the complexities of island stewardship, the dream of island ownership can become a reality.

​​Remember, the journey to owning your slice of paradise begins with a single step—or, in this case, a single wave breaking on your very own shore.

An investment into any fund managed by Belize Asset Management, LLC may not be suitable for all investors; this investment opportunity is only available to accredited investors. Please read the PPM and the attachments before making an investment decision. As with any investment, there exists a risk of loss. The information contained herein is for general information purposes only and does not discuss the risks associated with real estate investments in general or with respect to an investment in the Fund. These risks can be significant and can result in, among other things, the Fund not realizing its objectives, including the payment of the preferred return and other cash distributions to investors, and may also result in the loss of all or a portion of an investor’s invested capital. Please refer to the PPM for a more thorough discussion of the risks related to an investment in the Fund. The information contained herein may constitute “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” or words of similar comportment. Forward-looking statements by their nature address matters that are, to different degrees, uncertain and actual results could differ materially from those presented. This is neither an offer to sell nor a solicitation of an offer to buy any security, which can be made only by a Confidential Private Placement Memorandum (PPM). Securities offered will only be offered by the officers and directors of the general partners of in accordance with and pursuant to available exemptions from the registration requirements of applicable securities laws. However, the Fund has reserved the right to engage registered broker/dealers in connection with the offering. All statements made and description of documents referred to herein are qualified in their entirety by reference to the PPM. Neither the Fund nor any of its affiliates provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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