Frequently Asked Questions

This is only a sampling of some of the questions we have received from prospective buyers over the past few weeks that this site has been live.  If you would like further explanation or have other questions about The Ranch, please don’t hesitate to send us an email, inquiry using the form, or give us a phone call.  We are here to help.

What are the terms on the “owner financing” that is offered?

We are willing to finance the purchase of The Ranch at 8% interest with 20-50% down, on approved credit.  Why, you ask?  We originally financed our endeavors here in Nicaragua with the same terms, so we figure that it is our responsibility to pass on the same opportunity to others.

What about the term of the loan?  From our experience with the loans that we took out to get our businesses going here in Nicaragua, we have some pretty strong opinions on the term of the loan.  Ours was only 3 years, and it loomed over our heads like a dark cloud, shaped the way we did business, and kept us up nights.  We were making interest only payments with the principal of the loan due after 36 months.  The short term of the loan eventually resulted in the short-sale of our successful business in an effort to get out from under our debt.  That said, and because we are certainly NOT a bank, we are willing to offer a term of up to 10 years on approved credit.

We are all about mutual success if we are to carry a loan on the property, so it is a matter of negotiating directly to ensure success on both ends.

What is the deal with access to The Ranch?

Access to The Ranch is one of three ways.  1. Across the estuary from Puerto Sandino by boat, and then across the tip of the peninsula (5 minutes ride or 10 minute walk) to the Pacific side, where The Ranch is located.  2. From Salinas Grandes (to the north), down a basic road that parallels the beach, 15km down the peninsula to The Ranch.  The road is currently being worked on as it has traditionally become impassable in the rainy season, but expectations are that it will be passable year round in the future.   3. Down the beach from Salinas Grandes, on low tide, which is the fastest and most fun way to arrive!  All of this will make sense if use Google Maps and search for “The Ranch Nicaragua.”  It’s a great way to familiarize yourself with the area.

What would it take to get The Ranch up and running?

The Ranch would be THE premier hotel/lodge in all of Central America and beyond for a variety of businesses (surfing, fishing, yoga, eco-tours, kiting, destination weddings, Spanish school, voluntourism, Permaculture , etc), but for now, it is lacking the investment that it needs to realize its full potential.  At this point, it is essentially unused, but sits in one of the most beautiful spots in all of Central America.  There are 3 existing buildings: a beachfront Rancho, the Kitchen building with 3 suites and the Long Lodge with 2 giant rooms and 2 smaller rooms.  All the buildings are in need of renovation, but especially the long lodge.  The others need floors and roofs and that is about it.

The quotes we have received for a full remodel, infrastructure (well & water system, septic, solar/wind system)  and full landscaping and pool installation range from $75k to $100k, depending on the level of luxury, type of wood, materials, fixtures, furnishings, and other bells and whistles that you decide to go with.  With that type of investment, I would foresee that The Ranch would compete with any of these existing ecologically minded hotels/lodges here in Nicaragua. http://www.labahiabeachhotel.com/
http://www.jicarolodge.com/ http://www.morgansrock.com/

Did you have a business model for The Ranch?

The business model that we were planning to implement for The Ranch was called the Wagon Wheel Model.  The Ranch in the middle as the hub of the wheel with a Surf Tour business, an Eco Tour business, a Yoga Retreat business and a Sport Fishing business as the spokes of the wheel.  As well, The Ranch would naturally operate as an Eco-Lodge/Hotel and Restaurant as the fifth spoke of the wheel (with the destination wedding, kite surfing, voluntourism, Spanish School, Permaculture demonstration facility ideas not yet having evolved much, but still very real possibilities).

How did the business projections look using the Wagon Wheel Model?

Projections for The Ranch have a pretty wide range.  With the right people to operate the 5 businesses we think that it is not outside the realm of possibilities to keep The Ranch full at 16 capacity for 50 weeks a year.  At an average of $1,000 per person per week for all-inclusive packages, you can see that the numbers get quite large…

16 rooms x 50 weeks x $1000 per person =  $800,000 annual gross

Is that optimistic in the beginning?  Yes…but is it doable in the longer term?  Absolutely!  From each of the 5 tour companies, you would only need to have an average weekly booking rate of 4 guests.  Even if you dropped down to only 50% capacity, we are still talking about $400,000 gross revenues.

Over 4 years of operations of our own Surf Tour company, we averaged a margin of over 50%, but we were renting the operating location.  Of course, with additional capacity and expanded offerings come higher costs, but it is not outside the realm of possibilities to assume a margin of not less than 40%.  So, at 50% capacity, we are still talking about net profits around $160,000.  Considering that the cost of living in Nicaragua is about 30% of what it is in the US for the same quality of living, that same $160,000 is more like $400,000 – $500,000. Pretty awesome, right?

What are the prospects for tourism in Nicaragua?

Nicaragua’s tourism industry has been growing steadily for the past 5 years, something that cannot be said for any its neighboring countries, including most in the western hemisphere.  With “Survivor” having filmed 2 seasons worth of their English version TV program and a season each of their Spanish and Italian versions, Nicaragua is certainly getting its fair share of exposure on a world-wide scale.  Many predict that Nicaragua’s tourism sector will “explode” as a result of the exposure on Survivor while others are more skeptical.

We believe that the end result will fall somewhere between boom and bust, and that Nicaragua will stay on its steady tourism growth pattern that it has been on for 5 years. Guided by the support of the Sandinista government’s tourism agency, INETER, who desperately want Nicaragua to become a tourist destination on a scale that could compete with Costa Rica to the south, the fact that Nicaragua has the most tourism and investment-friendly environments of any of the Latin American countries, and the fact that Nicaragua’s tourism industry has been on a growth path for over 5 years, it would be surprising if tourism doesn’t become one of Nicaragua’s leading economic sectors.

Note: if only 1% of the United States-based viewership of Survivor Nicaragua’s first season (English version) come to visit Nicaragua, tourism will double from 2010 to 2011.  That is not considering the second season, the Spanish version or the Italian version.  Even if Nicaragua only catches a fraction of a percent of the viewership from 2  English version seasons, an Italian version season and a Spanish version season, the stage is STILL set for what could be the largest single year-to-year growth in tourism anywhere in the world.

With such incredible prospects for The Ranch, why are you selling it?

I found the love of my life who wants to live in the US to be closer to her family, I sold my business that I built from the ground up, I miss my family, and most of all…I miss the good ol’ United States of America!  I am originally from Oregon, which is one of the most beautiful places on earth, and I would like to get back there and reconnect with the people who are most important to me.  In short…my adventure in Nicaragua has come to a close.