Investment return comes in two forms: appreciation in value and income from rental. Nobody can predict the future for either and we are not going to promise you a profit.

What we can state as fact is that land with good views and within walking distance to the beaches, restaurants, and facilities of San Juan del Sur is in very short supply. This is obvious to anyone who stands on the beach and looks up. Much of the land that is available for building is at the South end, where the new pier and most of the existing homes and shops stand. Views can be excellent, but the slope is often too steep for a comfortable walk.

Bahia del Sol is located on a paved road at the north of the bay, on a gently sloping site, whose lowest point is only 200 meters from the beach. Our area is exclusively residential, with several homes valued over $1US million, near estates of some of the wealthiest families in Nicaragua. We think all san Juan will prosper, but believe that this more exclusive neighborhood should appreciate at a higher rate.

The Bahia del Sol Operating Company will manage the property and be responsible for maintenance of all communal areas. As an owner, you have first choice regarding what time of the year you would like to use your villa. The operating company will operate all units not being occupied by owners as a hotel. We will use all available sales and marketing channels to obtain the highest possible return on your investment.

The potential for rental income was one of the primary reasons we selected San Juan del Sur as the location for Bahia del Sol Villas. It is already a leading tourist destination in Nicaragua and is certain to benefit from any general increase in tourism.

Furthermore, the Calvet study indicates the current demand for quality accommodation in San Juan del Sur exceeds supply. Occupancy rates and average rates in existing hotels are already high - but we deliberately designed our villas to make our potential income even higher.

Most condos in Nicaragua are designed for North Americans and Europeans. a unit of 1000 - 1400 square feet is definitely very spacious for this audience. However, in Nicaragua, tourism from Latin America and wealthier residents of Managua exceeds that from the United States and Canada combined. With the largest units in San Juan del Sur, Bahia del Sol is uniquely capable of meeting the needs of Latinos whose families typically are large. Bahia del Sol's villas are currently the only ones able to house a family with three bedrooms of privacy and also have a small quarter available for a maid or cook.

Bahia del Sol will be operated along the lines of what in the United States is referred to a condo hotel.

However, there are several features of the Bahia del Sol rental program that typically are not available elsewhere in North America:

1. Due to specialized legal restrictions, condo hotel units in the United States are each completely separated for rental purposes. That is, an owner receives rental income only if his or her particular unit happens to be rented. This sounds fair but often may not be the optimum system. For example, even if 90% of the units in a property are rented, there will still be 10 owners who received nothing at all for the time.

At Bahia del Sol, Rental revenues and expenses directly related to rentals will be pooled for all units in which the owner is not in residence on a given night. This ensures absolutely fair distribution of income with no potential for favoritism. If there is any revenue at all, each owner will get their fair share.

2. Like many resorts, Bahia del Sol will operate commercial activities. These include a restaurant, bar, and possibly the rental of ATVs and a boat to owners and renters. Unlike most resort condominiums, Bahia del Sol owners will receive all income from these activities subject to the same commission charged by the operating company for rentals.

3. Pursuant to Law 306 as described below, owners pay no income tax in Nicaragua on their rental income.

The operating company will aggressively market rentals on behalf of owners for a commission of 30%. Our team includes people with extensive, high-level experience in the operation and optimizing rental of condominium size vacation properties. We feel confident that we can attain a strong market share in the current competitive environment.

Bahia del Sol will be structured and operated along the lines of a condo-hotel project in the U.S. It is planned specifically and has already been approved - to take advantage of Nicaragua's Law 306, this law provides:

• 80 to 100 percent income tax exemption, depending on the type of activity provided
  
• Total property tax exemption for a period of 10 years
• Sales tax exemption on building design and supervision contracts
  
• Import and sales tax exemption for 10 years on design and construction materials and equipment
• Import and sales tax exemption for 10 years on furniture, equipment, vehicles and accessories.

You can sell your unit at Bahia del Sol at any time during the ten years and still pay no capital gains tax in Nicaragua!

In order to qualify for this special incentive for tourist development, the developer is required to make the accommodations available for rent approximately nine months (or 225 days) a year. (They do not have to be rented, just available and not being used personally.)

Title Insurance

The First American Title Insurance Company of Miami will provide Bahia del Sol owners with title insurance equivalent to that received in the United States.

For more information contact Tuey Murdock at - tmurdock@firstam.com.

Escrow Procedure

All deposit monies will be held in a United States bank and administered by first American Title pursuant to the escrow agreement instructions.

Bank Financing

Bahia del Sol buyers from the U.S. or Canada may elect to finance their purchase with a conventional mortgage from a leading Nicaraguan bank.

We are the only new condominium project in Nicaragua that can provide a mortgage secured only by the property. Others require you to pledge U.S. assets as collateral.

Pre-construction Funds and Deposits

Most real estate purchased prior to completion outside of the United States is sold on a system of progress payments. For example, the buyer deposits 25% on signing the contract, 25% when the structure is 25% complete, 25% when it is 50% complete, and so forth. The developer uses these funds from buyers to build the unit.

We place all deposits into a US bank escrow account. We receive our funds only after we meet the terms and conditions of the purchase agreement. If we can't deliver your units as specified, your money is safe.

Condominium and Operation

All operating costs are shared among owners in the proportion of their ownership interest.

All Villa owners will receive a percentage of all rental income from all Villas rented while they or their friends and family are not in residence.

All Condominium owners will receive a percentage of all rental income from all condos rented while they or their friends and family are not in residence 

Any questions? Contact Us!

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