Leverage ROI with Multiple Income Streams (USA and Costa Rica)

6 Replies

REI can be risky, so adding additional revenue generators into the project can lessen the risk.

I'm working on a project in Costa Rica that has investor opportunities in Real Estate (vacation homes etc) Some of the development includes an Event Center with revenue streams from GROUP Travel, Tourism and Events, such as Golf Clinics, Yoga Retreats, Business Education and Corporate Team Building etc. Although the Real Estate will be in Costa Rica, some of the revenue generated will be from the Travel, Tourism and Event Business. (primarily in the USA but also globally)

Your Thoughts?

I think you know my thoughts on this from your last couple posts on this idea.  

Seems like this investment should only be open to accredited investors or they may be violating securities laws....  With that being said - it doesn't seem like a good idea for a new investor.  Could be a good idea for someone who has the money, completes enough due diligence, and is looking for a hands off approach.  Could also work for someone who wants to purchase a timeshare for personal use.  I haven't met anyone yet who considers their timeshare an investment.

@John Woodrich - yep, it appears your thoughts are pretty much set. :o)

However, I don't know that you're not taking into consideration the Event Marketing element.
(I'll be looking into the securities laws for non-accredited investors.)

Unlike a "timeshare" that houses only a few guests at a time, the Event Venue and Cabins/Villas will be housing "in groups", from small groups of 7-10 to larger groups of 50-100s.

Also, the Event element is separate business from the Real Estate element.

I think the event side of it could be good however I look at that primarily as a marketing function to get people to the resort.  The events may be large enough to get people out there alone, I don't know, not my wheel house.  It would seem easier to setup profitable events locally than trying to get people to update their passport to attend one.  If you try and setup events where people can go for continuing education it may be worth them paying extra for "education" at a nice resort.  I went to continuing education in Vegas one year, was a nice split trip.

It is interesting how they could house groups of 50-100s..  I am imagining a room with bunk beds similar to hostels...  Most vacation rentals will  house groups of 5-10 and may offer a more private feel but there may not be properties like that in the area.

I agree there are two components - the real estate investment and owning part of a business.  The mixed component make it a more sophisticated investment.

If you look into securities law in an effort to see if you need accredited investors take what you read with a grain of salt.  MN passed a MNVest package to loosen up investment registrations however I am not sure if or how it affects investments abroad.  It may not be an issue but would be worth discussing with the promoter.  

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