Individuals and corporations can start looking into investing in Panama real estate mortgages.  Investors will surely find a haven in this country where real estate is starting to be a boom industry for deals in properties.  This is one investment where one will most likely receive generous returns and come home smiling after earning the profits from becoming a lender for real estate mortgages.

First Thing to Do

An investor can acquire legal representation from a reputable law firm in the country first.  The investor will then utilize a corporation located outside of Panama and acquire a bank account in one of several tax haven countries.  Under these circumstances, Panama will not tax the investor on any income derived from loan payments. The investor also benefits by avoiding getting taxed in the country where the corporation and the bank account are registered and acquired.  One could have the funds transferred to a regular bank account if anonymity is not an issue. 

Conditions on the Contract

One could gain an anonymous status with the bearer share corporation to cover his identity. The borrower would be able to acquire the residential property using an anonymous Panama bearer share corporation.  Loan underwriting will be applicable for the property alone.  Along with this bearer share corporation, identities will be kept anonymous, which means there will be no credit reports pulled up nor will financial information be divulged.  The investing lender gets the stock certificates of the corporation buying the property as a pledge, which technically gives the lender control of the purchased property in case of default in loan payments.  Usual foreclosure measures can be avoided with this action.

Contracts or mortgage agreements between lender and borrower would stipulate that in case of three consecutive failures of loan payments by the borrower, the lender should be able to gain control over the property and have the option to resell the same to another party.  This is not a hard and fast rule but can be amended according to the lender and borrower’s negotiated discussions.  No rental agreements will be provided for the borrower.  Lending investors can change the number of times one can miss his loan payments but this too has to be amenable to the borrower as well. 

Loan arrangements can be arranged according to the investor’s preferences or the law firm can help on this as well.  The law firm can also take care of taking action against the borrower in case of default payments as well as annually provide inspections while maintaining anonymity of the investing lender.