LIFETIME
MEMEBERSHIPS
PLAYA HERMOSA, JACO, COSTA RICA
PRIVATE OFFERING/ MARKETING STRATEGY
THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL
OR A SOLICITATION OF AN OFFER TO BUY A SECURITY
Introduction
Las Olas Hotel, Hostel & Beach Club, is a lifetime surf, nature, sport,
and recreation destination.
Playa Hermosa is a world renowned surf Mecca located in the central
pacific coast of beautiful Costa Rica. Surrounded by rainforest hills,
still imbedded within a wetland turtle & wild life sanctuary, Playa
Hermosa shares an amazing 5 miles of golden sunset Pacific Coast
views.
With a focus on low impact, organic-living, Las Olas will facilitate a
lifestyle that is sustainable while contributing to a positive progressive
community that is in harmony with nature. Las Olas members and
community members alike will benefit from the Las Olas philosophy
of sustainability and, through creative branding, will impact the
community at large.
Fractional Ownership
Fractional Ownership is presently one of the most attractive ways of
owning vacation homes, corporate jets and luxury yachts. The
method provides the opportunity to enjoy second home ownership at
a fraction of the cost of a comparable vacation home. It is our
pleasure to extend the private offer of fractional ownership to family
and friends that have made Las Olas their second home. Fractional
owners will become part of a family, business and community that will
help facilitate their part time life in Costa Rica.
Partner, Lifetime, and Annual Memberships
There are three ways to gain Partnership, Membership or Affiliate
Shares by investing in Las Olas:
1) Lifetime Partnership: 1% Owner’s Shares.
• 20 Partnership shares are available.
2) Lifetime Membership Share.
• There are 300 Lifetime Memberships available.
3) Annual Memberships
• There are 3000 Annual Memberships available
1) Lifetime Partner Member
By invitation only, 20 shares of 1% each will become available.
The majority of shares will be held by the board of directors which are
involved in day to day operations. Lifetime Partners will enjoy a profit
share of 1% and be entitled to time share benefits, facility discounts
and more.
2) Lifetime Member
300 people will enjoy special benefits, discounts, promotions,
privileges and VIP status, and receive restricted fractional ownership
dividends*.
1) Annual Membership
3,000 Affiliate card holders will be available to locals and visitors
alike. Card holders will enjoy discounts and some benefits in
conjunction with Las Olas Beach Club facility privileges.
POINT SYSTEM
The point exchange system is based on units measured in point
value.
Each point value unit can be exchanged for accommodations,
discounts and services. Points are automatically awarded on a yearly
basis according to member status.
Point Value
Maintenance Fee
Maintenance Guest
Sky Suites Ocean
Sky Suites Suites Ocean
Suites Beach Suites Ocean
Beach Suites
Sky Box
Cabina 3 & 4
Cabina 1
Cabina 2
Surf Tours
Surf InstrucGon
Surf Rental
Packages/Retreats
22
20
14
12
10
8
12
6
5
4
1 to 3
1 to 5
1
1 to 20
90% discount
90% discount
90% discount 90% discount 90% discount 90% discount 90% discount 90% discount 90% discount 90% discount N/A
N/A
N/A
N/A
80% discount
80% discount 80% discount 80% discount 80% discount 80% discount 80% discount 80% discount 80% discount 80% discount N/A
N/A
N/A
N/A
POINT TOTALS
Partner Members
LifeGme Memebers
150
90
Accommoda'ons
LAS OLAS
IT’S THE LIFESTYLES………..
The Project
The proposed project will consist of the following:
5 Luxury 2 Bedroom Sky
Raw Lounge
Suites
Learning Center
7 Luxury 1 Bedroom
SPA
Suites
Yoga Studio
8 Ground Level Suites
Meeting room
Reception area
30 board lockers
Coffee shop, Bakery
3 terraces connecting to
Retail/ Surf Shop
the existing Main House,
Restaurant Bistro
which has 5 hostel rooms
Total Occupancy: 107 guests
Las Olas Services
• Full Service Front Desk: The front-desk personnel will
greet guests at Las Olas and process arrival needs. Flexible
check in and check out times will be available upon request.
Full concierge services include car rental reservations, local
transportation arrangements, meetings, catering services,
activity and tour booking such as surfing, yoga, mountain
biking, sport fishing, kayaking, sightseeing, horseback riding,
golf and more.
Restaurant Members & their guests can enjoy the beach front bistro
and bar which serves traditional Costa Rican and International
cuisine 7:00 am to 9:00 pm daily. Arrangements can be made for
special parties. Each share holder and affiliate will have the following
discounts:
Partners (P): 35%
Annual (A): 25%;
Lifetime (L): 35%
Surfers (S): 10%
Note: All guests eating with P, L, and A will receive 10% discount.
Housekeeping: For a minimum fee, daily housekeeping service will
be provided to ensure that the accommodations are always kept in
excellent condition. Housekeeping services are not optional.
Additionally, special services will be provided upon request and a fee
charged based on the services provided.
Maintenance: Las Olas Property Management will handle all
maintenance, repairs, refurbishing, and landscaping. Maintenance
personnel will be available to remedy problems and provide security.
Pre-Arrival Shopping Service: Upon request, and based upon
availability, guests can request that their pantry, bar and refrigerator
be stocked with their favorite foods and beverages just prior to arrival.
There will a minimum purchase requirement and a service fee of 20%
of the total bill will be assessed.
Surf Shop: Discounts are based on retail prices.
Tours All tours will be offered at discounted rates.
Yoga & Massage Studio: Owners will receive discounted rates on
all classes and services through the wellness center.
Car Rental: Based upon availability, Members will enjoy rental
privileges of Las Olas vehicles for personal use.
Personal Loan: Owners will be able to borrow against their
investment at a set interest rate.
DISCOUNTS Retail Locals Annual
Food 10% 25%
Rooms rack rate 10% 20%
Drinks 10% 25%
Alcohol 10% 25%
Surf Rentals 20 per day/100 per week 15 per day/90 per week 10 per day/60 per week
Surf Lockers 5 per day/30 per week 4 per day/25 per week 2 per day/10 per week
Las Olas Merchandise 10% 30%
Surf Shop Retail 5% 20%
Sno and Jo 10% 30%
Smoothies 10% 50%
Coﬀee free reﬁlls
Retreats 10% 20%
Surf Tours 20% 30%
Lessons $60 per person 50 per person 40 per person
Transfers 10% 25%
Massage 10% 20%
Yoga 20% 40%
Learning Center Classes 20% 40%
Farmers Market 10%
Car Rental N/A $60 Personal Loan N/A N/A
Import/Export 5% 10%
Property Management 5% 10%
Real Estate community DISCOUNTS Life'me PARTNERS
Food 35% 40%
Rooms 25% 30%
Drinks 35% 40%
Alcohol 35% 40%
Surf Rentals 5 per day/$30 5 per day/$30
Surf Lockers 1 per day/5 per week 1 per day/5 per week
Las Olas Merchandise 50% 50%
Surf Shop Retail 30% 30%
Sno and Jo 40% 40%
Smoothies 50% 50%
Coﬀee free reﬁlls free reﬁlls
Retreats 30% 30%
Surf Tours 40% 40%
Lessons 30 per person 30 per person
Transfers 35% 35%
Massage 30% 30%
Yoga 50% 50%
Learning Center Classes 50% 50%
Farmers Market 20% 20%
Car Rental $40 $40 Personal Loan 10% 10%
Import/Export 20% 30%
Property Management 20% 20%
Real Estate Las Olas Related business:
Bistro Las Olas
Breakfast, Lunch and Dinner
Raw Food Lounge
Liquor License
Surf Contest Streaming
Las Olas Trading Co.
Export: hardwood furniture, Rocking chairs, Art, bamboo frames,
wood doors
Import: Surf Products, Technology, used North American goods,
beds, green products
Las Olas Tours, Retreats and Adventures
Surf
Yoga
Pilates
Fishing
Zip Line Canopy
Weddings
Mountain Biking
River Rafting
Surf Groups
Horseback Riding
Stand Up Paddle
Private Parties
ATV Tours
Real Estate
Wavehunters/
Kayaking
Business Retreats
Surfaris Usa
Las Olas Real Estate Group
Sales, Financing, and Property Management
Surf and Eco Communities.
Secret Spot Listings
Las Olas Development
Green Construction
Builders
Green Landscaping
Architects
Organic Interior Design
Green Products
Contractors
Las Olas Learning & Wellness Center
Yoga
Music
Pilates
Dance
Meditation
Art
Massage
Spanish
Martial Arts
Team Building
Las Olas Organics
Produce & Plants
Johnny’s Beer and Wine
Ecotica Organic Market
Sauce Olas
Las Olas Surf Shop
Custom Shaped Boards
Games
Retail
Internet
Rentals
Phone Calls
Tours
Las Olas Art Gallery
Furniture
Photos
Paintings
Surf boards
Las Olas Sno and Jo
Ice Drinks
Sandwhiches
Bakery
Pastries
Coffee
Snacks
Drinks
Las Olas Entertainment Group
Photography
Live Music
Books & Videos
Festivals
Parties
Webcam
Las Olas Philanthropy
Soulstice
SurfRider Foundation
Life Rolls On
www.350.org
Pura Vida No Pro
Marketing Strategy
Communications such as, and not limited to, direct electronic
newsletters, rss feeds, blogs, optimized websites and landing pages,
e-mail, social media, link exchange, entertainment, activity and real
estate directories, worldwide Real Estate listings will be utilized to
offer the project to present & future Las Olas partners, local
community members, affiliates, potential clients, past guests and
friends.
Specialized tour package partners will be qualified and selected,
thereby adding to our in house packages to broaden the scope of our
core surfing business market.
Given that Las Olas already boasts a niche target market of
candidates who are interested in investing in the project, it is logical,
practical and cost effective begin with an aggressive marketing
campaigned aimed at this group.
The current data base of previous clients, social media contacts and
e mail contacts will be addressed accordingly and efforts will
commence to build, expand and organize the existing client and leads
list.
The main objective is to exceed the client’s expectations for
awareness of the scale of Las Olas from beach hostel to high end
beach front boutique hotel.
The prices of the Offer will encompass a grass roots start up price
varying progressively as construction advances.
Limited quantity will be offered in each tranche of the offering.
TARGET MARKETS & INDUSTRIES
• Costa Rican Investors – Those with the resources and a desire
for a partial ownership vacation investment who wish enjoy a
vacation home near the ocean.
• Foreign Investors – North American and European baby boomers
looking for a partial ownership vacation investment opportunity
and/or possible residency.
• Media – Build a comprehensive web presence through an
information rich, interactive, user friendly web site that will become
a vacation portal in Costa Rica.
Collaboration with International Living to gain exposure to many
International Markets
Connect with the various media outlets in print, radio and TV to
build awareness
Use affiliate partnerships, SEO and social media strategies
• Potential Partners- Nurture partnerships with real sports
operators, local vendors, and internet marketers
TACTIC OVERVIEW
The key strategic initiatives we plan to implement are focused around
the following objectives:
Create Brand Awareness
• Advertising
• Web Presence
• Direct Marketing
• PR Programs
• Improved overall community image
• Consistent messaging
Generate Leads
• Events
• Direct Mail
• Advertising
• Telemarketing
• Electronic newsletter
LIFETIME MEMBERSHIPS
PLAYA HERMOSA - JACO, COSTA RICA
THE OFFER / PRIVATE OFFERING
THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL
OR A SOLICITATION OF AN OFFER TO BUY A SECURITY
PRIVATE OFFER
(20) Las Olas Partner Members (P)
(300) Las Olas Lifetime Members (L)
Las Olas Lifetime Surf Club
Current Partners/Members
Jason Garris-Management
Cameron Mott-Management
Christian Roca-Management
Ed Kim-Hotel/Legal
David Stoehecker- Investments
Jonni Benson-Real Estate
Deleware Dave-Real Estate
Kirk Hess- Real Estate
Ethan Huemmer
Megan Reindhart- Marketing
Rodrigo Miranda- Tours
Kyle Hayes-Philanthropy/Tours
Marswell-Vibe/Tours
Partnership, Lifetime & Annual
Las Olas Surf Network Members
We are offering the opportunity to own a piece of the Las Olas
Dream. The business is growing into a 20 room boutique surf
hotel, including a new three story building with an open rooftop
deck, a new surf shop, learning center, health spa, and a real
estate and property services office.
Rica, and your new home.
Invest in Las Olas, Costa
The plan is to start building in six
months and finish the project. Las Olas Is proud to announce
the new member discount card, through which friends, visitors,
and locals alike can enjoy ownership, VIP status, special
privileges, awards, and discounts. Se which membership option
fits your Las Olas lifestyle.
Las Olas Annual Member
The goal is to reach 3000 annual members by the end of the
year.
The onetime matriculation renewal for your Las Olas Annual
Membership Annual Discount card is $50 and the annual
renewal is $50 for a total initial premium of $100.
Each year thereafter, the renewal fee will be $50.
Each new member will receive complimentary Las Olas branded
merchandise in conjunction with their membership.
Las Olas Lifetime Member
300 Lifetime Memberships available
Come join the surf club of the future!
Help build and own a
piece of the new Las Olas.
Pre Public Project Launch October 31st
Public Launch Thanksgiving November 27th
Break Ground Start Date April 2012
Finish Date June 2012 *Grand Opening Soulstice Event 2013
Lifetime Memberships start at $6000
Pre Public Project Launch October 27th
Buy Before Thanksgiving the cost is $5,000 plus you get a Las
Olas custom shaped surfboard waiting for you in Costa Rica
Or
Three payments of $2,000
1st $2,000 by Thanksgiving
2nd $2,000 Ground Breaking April 2013
3rd $2,000 Finishing work April 2014
Public Project Launch Thanksgiving
5000 Las Olas Facebook friends and public
Cost of Lifetime Members $6,500
Pay in full by January 1st the cost $5,500 plus a custom shaped
Las Olas Surfboard
or
Three payments of $2,165
1st Payment by January 1st of $2,165
2nd Payment Ground Breaking April 2012
3rd Payment Finishing Work April 2013
Cost of Lifetime Membership beyond January 1st 2012 $7,000
Payment Plan $7000
1st payment $3000 deposit
2nd payment $2,000 Building Start Date
3rd payment $2,000 Finishing Work
Cost of Lifetime membership beyond building start $7,500
Cost of Lifetime Membership after building is finished $8,000
Each Lifetime member will enjoy ownership, VIP status, special
privileges, awards, and discounts. Your free annual week in the
new Las Olas project. Refer to the points and discounts page in
the business plan
Memberships are refundable and transferable.
Las Olas has first right of refusal on sales and transfers.
Refunds are based on six month reimbursement of original
purchase price.
Up to 3 additional friends and family can be added to Lifetime
Membership an additional $100 per member.
Partner Member
Partner memberships are for Las Olas employees and businesses that help direct
Las Olas in a sustainable way.
Partner membership cost starts at $25,000.
After completion cost: $45,000
Partner memberships are by invitation only, please contact Jason or Cameron.
Reallocation of funds date:
July 1st 2012
Allocation of financing
1. New building
$1,500,000
2. Shareholders debt
$200,000
3. Old building
$50,000
4. Working capital
$50,000
Budget
$1,800,000
3 Year Projection
Income Centers
1st Year
Hotel
$
Restaurant F&B
$
125,000.00
$
36,000.00
$
36,000.00
Real Estate
Retail
80,000.00
2nd Year
$
92,000.00
$
143,750.00
$
41,400.00
$
41,400.00
3rd Year
$
101,200.00
$
158,125.00
$
45,540.00
$
45,540.00
$
Tours
10,950.00
$
Rentals
14,600.00
$
Transfers
10,950.00
$
Yoga/Pilates
4,000.00
$
Massage
4,000.00
$
Philanthropy
3,000.00
$
Organics
2,000.00
Property
$
Management
18,250.00
Share Management $
$
Sno & Jo
36,000.00
$
Learning Center
10,950.00
$
Import/Export
12,000.00
$
Art / Furniture
6,000.00
$
Total Gross Income 409,700.00
!
Employees
Power
Phone/Internet
!
SocialSecurity
Taxes
Kia
-
$
$
$
-
43,200.00
$
$
$
-
11,000.00
8,000.00
2,200.00
4,000.00
6,000.00
$
12,592.50
$
16,790.00
$
12,592.50
$
4,600.00
$
4,600.00
$
3,450.00
$
2,300.00
$
20,987.50
$
$
41,400.00
$
12,592.50
$
13,800.00
$
6,900.00
$
471,155.00
-
$
$
$
-
80,000.00
$
$
20,000.00
$
-
6,000.00
5,000.00
2,200.00
6,000.00
$
13,851.00
$
18,459.00
$
13,851.00
$
5,060.00
$
5,060.00
$
3,795.00
$
2,530.00
$
23,085.00
$
$
45,540.00
$
13,851.00
$
15,180.00
$
7,590.00
$
518,270.50
$ 100,000.00
$
5,000.00
$
2,200.00
$
$
$
-
25,000.00
7,000.00
6,000.00
Maintenance
10,000.00
Water
$
$
$
Total expenses
$
Fuel/Septic
14,000.00
250.00
$
$
$
300.00
$ 15,000.00
$ 14,000.00
$
300.00
92,650.00
$
145,500.00
$ 174,500.00
8,000.00
Best Gross Income
2006-2008
Wave Hunters
Hotel Rooms
Rentals
Tours
Merchandise
Commission
Restaurant
Best Gross Total
2007
2006
2006
2008
2008
2007
2008
$159,032
$68,173
$6,877
$14,800
$8,837
$2,414
$114,416
$375,549
12,000.00
LIFETIME
BOUTIQUE HOTEL, HOSTEL
& BEACH CLUB
PLAYA HERMOSA - JACO, COSTA RICA
PURA VIDA FACTS / PRIVATE OFFERING
THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL
OR A SOLICITATION OF AN OFFER TO BUY A SECURITY
PURA VIDA FACTS
• In the Hermosa Beach area along the Central Pacific coast, real
estate had doubled in value every year from 2005-2008.
Condominiums at the 5 star Los Sueños Resort & Marina near
Hermosa have gone from $200,000 to $1,300,000 in the last 6
years. Bill Gates (who bought Four Seasons in February 2007)
and many other resort developers have purchased land as fast as
they could with plans to build resorts in order to meet the sky
rocketing demand for this area..
• Known as the “Switzerland of Latin America,” Costa Rica has
enjoyed a stable business climate with its 170 year old democracy.
• A United States Protection Treaty is in place (Costa Rica abolished
its military in 1949). Instead of spending money on defense, they
have spent it on education (95% literacy rate) and healthcare (first
rate).
• The Central American Free Trade Agreement (CAFTA) was voted
for by the citizens of Costa Rica in 2008 and is bringing huge
amounts of foreign capital, explosive growth and jobs into Costa
Rica.
• Dell, Intel, Wal-Mart and other U.S. companies have had facilities
operating in Costa Rica since 1995. Electronics is the #1 export.
The tourism Industry is flourishing and is the #2 industry.
• Almost 1,000,000 North Americans, Canadians and Europeans
are currently living in Costa Rica either full or part time. 20% of the
population are expatriots.
• Baby Boomers, the “Silver Tsunami” are just now starting to move
to Costa Rica to retire due in part to the fact that the cost of living
is lower than in the United States or Europe. They enjoy modern,
first-rate medical and dental systems. There are 77 million
Boomers in the U.S. alone retiring over the next 17 years and are
set to inherit $100 billion, the largest transfer of wealth in the
history of the world.
• Costa Rican law allows foreigners to own free simple title to the
land, with no restrictions, unlike Mexico and other countries.
• Costa Rican Banks allow foreigners to obtain Mortgages and
Financing. Through our banking contacts, we can get you 80%
financing at great rates!
• Costa Rica is the greenest and happiest country in the world,
according to a new list that ranks nations by combining
measures of their ecological footprint with the happiness of their
citizens.
• Britain is only halfway up the Happy Planet Index (HPI),
calculated by the New Economics Foundation (NEF), in 74th
place of 143 nations surveyed. The United States features in
the 114th slot in the table. The top 10 is dominated by countries
from Latin America, while African countries bulk out the bottom
of the table.
• The HPI measures how much of the Earth's resources nations
use and how long and happy a life their citizens enjoy as a
result. First calculated in 2006, the second edition adds data on
almost all of the world's countries and now covers 99% of the
world's population.
• NEF says the HPI is a much better way of looking the success
of countries than through standard measures of economic
growth. The HPI shows, for example, that fast-growing
economies such as the US, China and India were all greener
and happier 20 years ago than they are today.
• "The HPI suggests that the path we have been following is,
without exception, unable to deliver all three goals: high life
satisfaction, high life expectancy and 'one-planet living'," says
Saamah Abdallah, NEF researcher and the report's lead author.
"Instead we need a new development model that delivers good
lives that don't cost the Earth for all."
• Costa Ricans top the list because they report the highest life
satisfaction in the world, they live slightly longer than
Americans, yet have an ecological footprint that is less than a
quarter the size. The country only narrowly fails to achieve the
goal of what NEF calls "one-planet living": consuming its fair
share of the Earth's natural resources.
• The report says the differences between nations show that it is
possible to live long, happy lives with much smaller ecological
footprints than the highest-consuming nations.
• The new HPI also provides the first ever analysis of trends over
time for what are supposedly the world's most developed
nations, the Organization for Economic Cooperation and
Development (OECD).
• OECD nations' HPI scores plummeted between 1960 and the
late 1970s. Although there have been some gains since then,
HPI scores were still higher in 1961 than in 2005.
• Life satisfaction and life expectancy combined have increased
15% over the 45-year period for those living in the rich nations,
but it has come at the cost of a 72% rise in their ecological
footprint. And the three largest countries in the world – China,
India and the US, which are aggressively pursuing growthbased development models – have all seen their HPI scores
drop in that time.
• The highest placed western nation is the Netherlands. People
there live on average over a year longer than people in the US,
and have similar levels of life satisfaction – yet their per capita
ecological footprint is less than half the size. The Netherlands is
therefore over twice as environmentally efficient at achieving
good lives as the US, Nef says.
• The report sets out a "Happy Planet Charter" calling for an
unprecedented collective global effort to develop a "new
narrative" of human progress, encourage good lives that don't
cost the earth, and to reduce consumption in the highestconsuming
nations
– which it says
is the
biggest barrier
to
sustainable
wellbeing.
LIFETIME
BOUTIQUE HOTEL, HOSTEL
& BEACH CLUB
PLAYA HERMOSA - JACO, COSTA RICA
Q&A / PRIVATE OFFERING
MEMBERSHIP OWNERSHIP
THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL
OR A SOLICITATION OF AN OFFER TO BUY A SECURITY
Membership Shares Ownership
QUESTIONS AND ANSWERS
What is a Las Olas Membership Shares Ownership?
Membership Shares Ownership is evidenced by stock certificates
representing ownership of a Costa Rican corporation.
Each share holder can vacation at Las Olas throughout the year, as
often as he/she wishes, subject to the share holder ownership
reservation policies and procedures.
Why is Membership Shares Ownership being offered?
• To provide ownership at a price that is a fraction of the cost of a
comparable vacation home
• To enhance the vacation experience by offering a variety of
services
• To remove the burden of vacation home management
Who establishes the assessments and controls the affairs of the
Las Olas?
Day to day business affairs will be conducted by Las Olas
Management. An advisory board of directors will be composed of 1%
owners.
How is ownership in the Membership Shares Ownership
evidenced?
Each share holder will receive a stock certificate representing
ownership in the corporation.
How many shares will be sold?
(30) Shares Las Olas 1% Beach Club Lifetime Owners
(160) Las Olas Beach Club Lifetime Members shares
Which members of the owner’s family have owner privileges?
All family members have privileges during planned vacation periods.
Spouses, domestic partners and dependent children under age 25
who are living at home or who are full-time students have full casita
use privileges on a space available basis.
May Membership Shares Ownership arrange guest privileges?
Owners may invite “Designated Lodging Guests” to use their
confirmed Planned Vacation periods paying a guest lodging fee.
Do Membership Shares Ownership pay housekeeping charges
when they stay at the casitas?
Yes. A housekeeping fee will be charged for each visit; presently
$20.00 per day for owners and $30.00 per day for designated lodging
guests staying in luxury casitas, and $10.00 and $20.00, if you stay in
an existing cabin.
Can a Membership Shares Ownership be resold?
Yes. Like any other form of corporate stock certificate, a Owner’s
interest can be sold or transferred by the Owner. There will be a
10% owner transfer paid to the Las Olas Corporation.
What will a Fractional Owner receive upon the resale of his or
her Ownership interest?
The net proceeds from the sale of the stock after commissions, taxes
and transfer fees.
Process and terms, for sale of Owner shares, memberships and
affiliations.
Owner shares: Only resold back to Las Olas Corporation at 20%
discount of market value.
Memberships: Money back with a 20% discount price at market
value.
Affiliations: Forfeited by non renewal or cancellation of affiliation.
FAQ Regarding Las Olas Ownership
Why is the fractional ownership therein being purchased
through a Costa Rican corporation?
A Costa Rican corporation, or anonymous society (hereafter referred
to as S.A.) is the usual and customary entity in Costa Rica used for
acquiring and owning real estate. Costa Rica imposes a 4% transfer
tax and costs on real estate transfers (which includes the transfer tax,
registration rights and other related tax stamps), but there is no
comparable tax on the transfer of shares in an S.A. The Developer
has transferred title to each casita and each membership ownership
to an S.A. and has absorbed the initial real estate tax on that transfer.
When the owner of an S.A. decides to sell his interest, the transfer
tax will not be imposed on the transfer of the shares in the S.A.
What does “S.A.” mean?
S.A. means Sociedad Anonima (Anonymous Society). Although there
is no exact match with any U.S. corporation, the S.A. is most similar
to the U.S. Corporation. The S.A. will have to pay a minimum of 10%
fixed income tax rate on any income generated within the territorial
boundaries of Costa Rica in addition to a fixed corporate tax which
amounts to U.S. $100.00/year and maintenance cost such as filling of
a tax return.
What is a membership ownership?
A fractional ownership is where one owner, the S.A., owns an
undivided interest in Las Olas with other S.A.s, entitling all of the
owners of Las Olas to the use, enjoyment of its services. It is an
interest in real estate and is freely transferable. A Co-Ownership
Agreement governs the relationship of the S.A.s.
If the owner of the S.A. is a United States citizen, will there be
any taxes due under the Internal Revenue Code?
U.S. citizens should consult with their own tax advisors.