E X E C U T I V E   S U M M A R Y

WHY VENEZUELA -

For the past decade, Venezuela has been a byword for political problems, putting lots of companies out of business ... a big currency upheaval, slashing two-thirds of the exchange rate ... inflation ... hardships ... record emigration ... and plenty of investment opportunities as a result.
Almost every asset class in the country was all of a sudden available for pennies on the dollar.

WHY OCEANFRONT -

With so many good deals, risk-seeking investors zeroed in on something which was more undervalued than anything else, and which had less downside potential than other investments.
What they found to offer most value for money was quality beachfront real estate.
Here's why:

[1.] When cash is tight, most people sell off their vacation home first, before they sell their main residence. This creates a glut in vacation property with no buyers around, driving down prices even more.

[2.] If local buyers are unavailable, quality beachfront real estate appeals to an international market, both for purchase and for holiday rental.

[3.] International rentals offer a hard currency income, with the option to be paid out directly abroad by the platforms on which they are listed.

WHY ISLA DE ORO -

Having decided on high-end oceanfront, we then decided to concentrate only on secure, gated communities within easy driving distance of a large metropolis. What we found and finally decided on was an exclusive Beach Club conceived 45 years ago as a presidential weekend getaway, designed by architect Jack Dornbush, who throughout his entire career worked with the Hilton Corporation and who was also the largest shareholder of Embassy Suites in Venezuela.

WHAT THE CLUB OFFERS -

Isla de Oro (Island of Gold) is a self-contained, gated haven with its own water treatment system, backup water supply, backup electricity plant, and 24/7 staffed security. It sits between a lagoon, canals and the Caribbean Ocean, and has an inhouse marina, inhouse restaurants and a bar, apartments, villas, fast internet, a gym, swimming pools and jacuzzis, a BBQ area, and restaurant service on the beach with members-only deck chairs and shades. The Los Canales Golf Club is five minutes away by the beach or by boat, through the canals.

LIMITED AVAILABILITY -

You've heard the adage for investing in oceanfront: They aren't making any more of it. In the case of Isla de Oro, this is true. Literally. Isla de Oro is the largest private gated resort complex in the area. Nothing like it will ever be built again: After Isla de Oro was completed, a new law ('Ley de Costas') was passed to prevent any other oceanfront highrises of this size to be built ... anywhere in the entire country.

LOWER-THAN-CONSTRUCTION COSTS -

Due to politics, anyone buying into Isla de Oro is acquiring property at far less than construction costs.
Adjusted for inflation and the current exchange rate, the construction value of the complex is approximately USD 47 million, averaging $190,000 per standard apartment and more than $920,000 per single-level penthouse ($1,840,000 for its only existing duplex).

However, in the depressed market that is Venezuela today, existing real estate anywhere in the country changes hands for far less than anyone could build for; a fact which holds even more true for second homes in resort areas.

For condo ownership facing the Caribbean Ocean, nowhere offers the risk-reward ratio of Venezuela right now and few places in the country offer a value proposition to rival that of Isla de Oro.

DISCREET OWNERSHIP OPTIONS -

Choose what works best for your privacy preferences:

[1.] IN YOUR NAME. Transfer full ownership and get the deed in your name. Non-resident foreigners can do this too, either as physical persons or corporate entities. If you are not in the country, choose a local lawyer to steer the paperwork. Expect to pay from 2% to 4% of the purchase price in government fees and lawyer fees, depending on the price of the property and what the lawyer charges (more if the buyer is a company/trust).

[2.] IN YOUR COMPANY. Hold ownership through a company or trust. Domestic companies are easier for this purpose, but foreign entities are also OK. Will involve more paperwork so costs can go to the wrong side of 5% of purchase price. A local lawyer is required.

[3.] EXISTING OWNER AS YOUR NOMINEE. Sign a notarized sales contract privately but don't file it with the property register until you want to want the deed in your name. Meanwhile, and for as long as needed, keep the current owner on the paperwork as your nominee placeholder while in practical terms taking over full control and use of the real estate. This is the John D. Rockefeller's "Own nothing, control everything"-approach to wealth and asset management. Also get a notarized internationally-valid power of attorney in case the nominee one day becomes unreachable/unresponsive. Since ownership doesn't change place at the property registry level, there are 0% in fees for this option.

[4.] THIRD-PARTY NOMINEE. Assign another nominee of your choosing, blending options 1 and 3. Regardless of whose name is on the paperwork, you are the beneficiary owner: You have the keys, you pay the bills, you have full power of attorney, you are the point of contact with the beach club administration and you use the place as you see fit, until such time you decide to sell it again. Fees will be similar to option #1 plus whatever you agree to pay the nominee that you choose.

Either of these options are available. Venezuela doesn't do AML/KYC and doesn't require non-resident, foreign owners to file tax returns on any assets held in the country.

Approximately two-thirds of ISLA DE ORO owners own outright in their own names. The remaining third use the nominee option with a power of attorney: by technically not owning but maintaining sole and exclusive control over their assets, protecting wealth from potential creditors or legal challenges while still benefiting from and directing the assets.