Subsequent to my last newsletter in where I informed everyone about the financing package that I secured for the project I took a few hours and took that information and created a NEW FINANCIAL SUMMARY based on this drastically changed program. This I have attached as the actual spreadsheet in Excel which means you can see all the formulas that I used and how I arrived at these results which is quite important as many may not believe the incredible results. I am happy to say all that is here is indeed quite true and accurate. with the actual spreadsheet you can go in and adjust the formulas to do your own what if scenarios. Now if you cannot open this as you do not have the software to read a spread sheet you can also get it off the website once Tom gets it posted, it is under the project pro forma button as Financial Summary in the left column. Now back to the last newsletter subject of occupancy, this is the only area in which we have to make estimates so what I have done here is provide a worst case scenario at 35% occupancy which I think any sane person would agree is quite ridiculously low considering we now have here a high season that starts Dec. 15 runs until April 15th then a second one starts June 15th and runs until Aug. 15th so that gives us a full six months of great occupancies. You will also not the 64% average occupancy figures which is still what I base the basic returns on as I have always done except here I am not even rounding it up to the 65% round figure. I have also shown a 75% occupancy which is where I think we will be in our 2nd year of full operation. So as it were I have demonstrated a worst, average and best case summary for your perusal. Most importantly you will note that someone buying a unit on a 30 year mortgage now has a break even on their unit once they meet an occupancy of only 35%. This means that each year any rental after May is all money in the owner's pocket. Now just to deal with the fist questions I have received from the readers that previewed this summary, the rental rates quoted are the net net to the owners with all fees and expenses subtracted the only thing not included since it is not actually spent money is the $25 Capital Cost Allowance that goes into the owners association's reserve each month.

The method I would recommend one to employ is take out a 30 year with this locked in rate of 8.5% hence you can have no interest surprises for the life of it unlike what is the case that is causing the collapsing of the California market at this very moment. Then as your cash accumulates in your account you can do pay-downs on the mortgage at will without any penalty what so ever. This puts you in the drivers seat of when and how to manage the unit. No I certainly would not recommend one stay with the thirty year amortization but this method gives you the best of both worlds a low break even point and the flexibility to manage your units cash-flow as you see fit not how the financier sees it.

As a result of safe leveraging here you will also note what this method does to explode the returns on your actual cash investment even I the creator was surprised at how this strategy has boosted the potential cash on cash returns of each unit to over 30%. That my friends is no return to sneeze at plus the fact that you have a place to vacation in for free during the life of the investment. I never speculate on what a unit will appreciate in value over the years but I know two things A) it does not matter when you have cash-flow like this and B) a unit that does have proven cash-flow like this always sells easier and faster than those that don't. As our kids would say "DAH". I am most confident in stating that I fully well believe that Robert Kyosaki the author and best financial writer of our times would call this one a keeper and way out of the Rat Race.

A note on the pricing of units which now includes the basic legal structure fees of $700 the only additional fees is for those that elect to wisely use the Panamanian corporate structuring which will add $1,500 in costs or the full blown Private Interest Foundation and Estate Plan for $5,500. All of these you can discuss with Simon our specialist that works in this specific area of estate planning, asset protection and tax control for those wanting more information on this specific area of expertise Simon Shaw can be contacted directly at: executiveoffice@amnet.co.cr. You will be impressed with his in-depth knowledge of the offshore field and international financial structuring. One note these costs are the actual costs discounted by the providers for our group of owners we do not mark up these services this is simply a value added service to our clients that buy property from us. On a similar note if you plan on renting a car when you come down I have negotiated a 30% discount with National Car Rental for all our clients that book under our name hence you will not beat their rates anywhere or even on their own website plus I like the fact that they do not have drop charges so you can get a car in Jaco after you are done with us and drop it back at the airport, this also avoids airport taxes. Another value added service.

Pricing Pricing

You may also have noted that we have set the prices for the entire build out of our project. The third tier pricing that you see here is set to expire at the end of this year from there we move into the final tier pricing that will be in place for the build out. Hence if you have been sitting back in the wings debating this, now is the time to take action, now that all the structures are in place and construction has started. What is necessary to reserve a unit is a 10% deposit plus $700 into the lawyer's Escrow account. The terms of this deposit are open ended meaning you can back out without penalty at any time if you change your mind up until the date of construction on the specific unit you have reserved. Hence you have zero risk to reserve now and lock in your price as you can see from the attached sales agreement. I know many are planning on coming down here in the high season to see for themselves which is quite understandable but sorry to say that does not work for us we have to set our construction schedule hence need to know what is committed and what is not so now is time for action for the astute buyer. Our sales have been very brisk and we have received a lot of attention since we broke ground thus I am most confident that the units at this price will be reserved prior to Christmas in fact they may well go sooner than that. Many of you have been on my newsletter list for months so between those that have been waiting and looking not to mention the realtor market, that is now waking up to our reality and our extremely competitive offer that has as yet no competition in the market, the speed of reservations is taking off. Just last night I spent an hour talking to such a realtor in California (from where we get 300 individual visitors a month to our site) that is now ready to really push our product after seeing this new financing package, together with the projected results. The ball is in your court and I have done my duty of forewarning you of what I see happening in the near future.

Have yourself a great day.

Trevor