I'm working on cap raise for a 160 acre glamping project in Puerto Rico. We're half funded and working with the local government.
I need a little help on approaching investors. The tourism tax protection incentives are a great way to defer or not pay any capital gains taxes.
The smart play, as I see it, is to get rid of stocks before the market drops and move the money into a tax protected source (ie this project.) After 10 years the investor can realize their gains with nearly zero tax, not to mention the ROI while the funds are working in the resort.
Doea this make sense? Am I missing anything?
@Aaron Seelbinder If the market drops will Glamping in Puerto Rico still be profitable? Sounds like a cool project but I wonder if it insulates you from a market downturn or if it adds more risk.
Sounds like the tourism tax protection incentives is similar to our Opportunity Zones. You can defer your capital gains taxes and after 10 years, no taxes to be paid on the Capital Gains, while earning income from the project.
Sounds ambitious but Glamping is on the rise!
Had no idea this was a thing...
- a form of camping involving accommodation and facilities more luxurious than those associated with traditional camping.
@Scott Jensen All tourism is subject to downturn. I expect that Puerto Rico is going to be on a skyrocket rise for sometime to come. When we talk about glamping there is a range of nightly accommodations $99 to $2000 a night depending on amenities and services offered. These type of resorts are scalable up or down much more easily than a traditional resort. Not to mention the entire project is off the ground for $2M - $3M rather than $50M with similar returns.
Keep us posted on this thread. 👍 Interested to see how this turns out!
"I need a little help on approaching investors."
I think you have a great plan. To add to your approach I'm taking an educated guess that you're getting the land at a great deal, after the hurricane Puerto Rico's economy have been steadily recovering and will continue to be on the rise.
Your buying low hanging fruit.
@Aaron Seelbinder What's the latest on your glamping project?