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I am a current investor in Costa Rica and in the process of starting an investment company that will raise money in the US and buy various types of real estate in primarily the Los Suenos south to Dominacal area.
I will need a variety of consultants and attorneys (as well as Realtors) to assist me in this process. What do you recommend as a starting point to identify the most honest and competent individuals.
Thank you
Howard A.Don’t even think about Realtors yet….
If you want to raise money in the USA and be domiciled here and invest US investor’s money in Costa Rica real estate, and if you want to do this LEGALLY this means you A: fall under the very watchful eyes of the SEC in the USA and also the SUGEVAL (our equivalent) in Costa Rica.
You need to start by consulting with US attorneys regarding the legalities of soliciting monies in the US to be invested here and AFTER that has been resolved (because that’s where your chances of getting in SERIOUS legal problems are the highest) then start talking to Costa Rican attorneys …
Some people might suggest that you simply form a Costa Rican corporation for each investment and place the investors as signatories in that company, that would work BUT, with the legal climate the way it is in the USA, with the Patriot Act et., you could EASILY be accused of helping US citizens to illegally evade taxes, of money laundering and also wire fraud.
THESE CHARGES COULD PUT YOU AWAY FOR A LONG TIME SO PLEASE DO NOT TREAT THIS LIGHTLY. YOU REALLY MUST DO THIS RIGHT OR THE CONSEQUENCES COULD BE LIFE CHANGING.
I know some of the best attorneys and asset protection specialists in the WORLD and as a professional investment advisor with over 20 years experience – I would not dare to accept money from US investors.
Scott Oliver – Founder
WeLoveCostaRica.comAuthor of ‘How To Buy Costa Rica Real Estate’ and ‘Costa Rica’s Guide To Making Money Offshore.’
Scott:
Thank you for your advice. I will obviously take it VERY seriously. I simply see a great opportunity for a company with high integrity and competent managment to offer investment opportunities to people such as myself without having to go through “high pressure boiler room” operations. My strategy was as follows: Solicit X number of investors to raise X amount of money that would be placed in an interest bearing escrow account until the appropriate development or real estate project could be identified through Costa Rican realtors or developers. A Costa Rican corporation would be set up and purchase the real estate and the investors would own the shares (and the real estate) in the Costa Rican Corp. I obvously do not want to violate any laws, but I am very enthusiastic about the Costa Rican opportunity. I currently own two lots just north of Los Suenos with ocean views. They are approximately 5000 square meters each and the development has the infra structure complete and is currently finishing the roads. The name of the development is Costa Montana next to the main highway by Tarcoles. I paid $80K each for the lots and currently finalizing the financing to build a home on one of the lots. Banco Nacionale is doing the home financing. The lots have appreciated enough so that the bank is not requiring additional money down. My plans are to build the house and put it on the market to sell during the construction phase. Simply put, it seems to me that if one is honest with high integrity there should be a way to help others out there who would like to invest in this great country.Please advise. Thank you: Howard ArmstrongScott:
One more comment on your advice; which I greatly appreciate. I obviously would retain US attorneys and disclose everything to any potential investor. I would probably set up limited partnerships and not a US Corp. I realize that the SEC would be concerned if I started selling shares in a US Corp. without the proper and legal documentation. I believe one is limited to 25 or less shareholders before having to register with the SEC. Once again, I simply want to help people invest in Costa Rica, and get a better return on their investment than they can get from traditional investments in the US, but if it isn’t legally feasible then I will have to take another approach. I love CR and would very much like to move there with my family some day soon. I will be making my 4th trip to CR in February to check on my home construction and would like to meet some honest developers and realtors. I personally like to area south of Tarcoles to Domincal. Please advise. Howard Armstrong
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