Dear Member,
With all the turmoil in the markets, it's so tempting to daydream about sitting on the pink sand beach in the photo below, cold drink in hand, relaxing to the mystical rhythms of the waves...
Please join me for a few moments. I want to take you where beauty and extraordinary investment opportunities co-exist, to a place I call my second home. It's where I'm investing more of my own funds, and where over 20 of your fellow members already own land. Several have stunning homes looking right down on this very beach. (That's a Chairman's Circle member's seaside estate out on the point.)
This pink sand beach is in walking distance to a well appointed Clubhouse I designed about eight years ago for Oxford Club members.
In these anxious times I thought I would remind you of this lovely place where members go to get away from it all. It's called Rancho Santana, on the Pacific Ocean in Nicaragua. It's where many members made a substantial investment 10 years ago. They've been amply rewarded with more than 700% returns. I'm personally investing more money there myself... because today Rancho Santana begins a new chapter in its development. And once again, there's a great opportunity to get in cheaply and wisely.
That is why I asked our Research Team to help me to create an urgent Special Investor's Report for you called: Buying Up Bargains Overseas: Why We Love Nicaragua. I've attached a copy for you - free - no strings attached. We want to give you an idea of a highly attractive alternative investment right now... like we've done in the past with collectables like gold coins, fine art and undiscovered real estate in places like Nicaragua and Costa Maya, Mexico. All of these recommended alternative investments have appreciated very nicely over the past five years.
In this report before anyone else - you get the straight story about investing in this secret destination - a place we believe represents the last, great Pacific frontier in the Americas. Take a look, and you'll see why so many members took the risk a decade ago, and how you can make ample returns for even less risk today.
Without a doubt, by owning oceanfront land, a second home, or a top-quality beachfront condominium in up-and-coming coastal regions like Nicaragua, you significantly preserve your wealth over the long term... and even dramatically increase it in the short run. It's a hard asset akin to hedging with gold, but with a less volatile downside and a nice upside. Part of its intrinsic value comes from the enjoyment of owning your own piece of paradise, as well as learning about the local culture, experiencing a new environment and being part of a private enclave of like-minded folks. Pioneer investors reap their rewards on so many levels.
The upside profit potential gets even stronger when you consider that Nicaragua's Pacific Coast is reminiscent of Costa Rica, Northern California and even Hawaii, but for a fraction of the cost.
I also feel safer investing in a community backed by people I know. In addition to Oxford Club members, several respected colleagues own land and houses there as well, including Bill Bonner, author, founder of the Oxford Club, and editor of The Daily Reckoning. Bill and several other colleagues of mine are fortunate enough to be in a position where they can buy property in some of the most beautiful and vibrant places on earth - and they have. They will tell you that Nicaragua is one of their favorite places.
Bill recently finished building a majestic Spanish colonial house with gorgeous views. It is set above a nearly mile-long beach, and on a clear day you can see Costa Rica in the distance.
How We Discovered Nicaragua
Let me tell you how we found this place - 2,700-acres of rolling hills, nestled against five spectacular beaches along the Pacific. (The first time I visited this property I had to come in on four-wheel-drive and horseback. What a transformation!).
It was back in 1997, when a number of trusted colleagues associated with Agora, Inc. and International Living decided to develop an expansive "beach ranch" along over a 3 km coastline that sits 40 miles from the Costa Rican border in Nicaragua. Soon after, they invited The Oxford Club to build our first offshore Clubhouse there. Many members took advantage of the opportunity to buy beach property for pennies on the dollar... Some of those investors fell in love with Nicaragua, built homes and reside there a good part of the year.
Look at the map in the attached report, and you'll see that Nicaragua is only a couple hours in the air from Miami via American Airlines, Houston via Continental, or Atlanta via Delta. You can get to Nicaragua quicker than going from one U.S. coast to the other.
This Central American pacific coastal area's sunny, bright and dry season is our U.S. winter time. There is a rainy season each year, but unlike the Caribbean, there is no hurricane season. (Another plus for the coastal homeowner.)
For a moment, forget about nation-state boundary lines and you'll see that as you move northward up the coast to the Baja peninsula, to Malibu, Santa Barbara, Big Sur, into Oregon - with their dramatic cliffs and long sandy beaches - the scenery looks more and more like Rancho Santana, only less tropical. But unlike those northern places ($20 million per half acre), you can buy in Nicaragua for $50,000 - and even that low amount gives you easy beach access (no crossing any busy U.S. coastal road or highway to get to the beach).
Today in Nicaragua, you can buy a secure, stunning villa unit that sits back on the sand staring directly at the Pacific for less than $300,000. This is a luxury unit in a private compound with many amenities, real barrel-tile roofs and thick walls so you only hear the ocean speak to you while you watch the evening sunsets. Nothing between you and the water but sand. And these units are being constructed at Rancho Santana right now. They offer the owner a great opportunity for extra income because the rental pool there is limited, but the demand is growing all the time. As an example, we quickly sold out our upcoming Oxford Club Editors and Member Retreat there because we had to strictly cap attendance at Rancho Santana... there currently aren't enough rooms to accommodate the growing demand. The rental income opportunities there are evident.
The resort Clubhouse I helped design for Oxford Club members is a mere 40 yards from these condo units, and has top-notch dining that looks directly out at the ocean.
Best of all, by buying at Seagate, or anywhere at Rancho Santana, we get to mingle with investors and travelers just like ourselves... other Oxford Club members, sports and nature enthusiasts, and international adventurers with a global, free market perspective who like privacy, professionalism and the best life has to offer.
An Ideal “Second-Phase” Opportunity
I mentioned that Rancho Santana is entering a new chapter in its development, and that we have a new early-in opportunity unlike ever before. I say this because Santana is beginning what we call "the Second Phase" of development. Phase 1 is what we call the "Raw Land Phase." That is where investors took the risk 10 years ago to invest in a country where decade-old memories still lingered from its former internal civil strife (stirred by the old and now defunct Soviet empire). That is where fellow members were able to get in for $20,000-$35,000 per beachfront lot, now worth well over $200,000.
But in our analysis, every ocean development has four phases, and it's the first three that offer the biggest profit opportunities:
Phase 1 - The "Raw Land" Phase: This is the most contrarian phase and the most risky... therefore it could hold the greatest potential for big returns in the short run. At Rancho Santana, and in all of Nicaragua's southern Pacific coast, Phase 1 is over.
Phase 2 - The “Basic Infrastructure” Phase: This is the phase that Rancho Santana and much of Nicaragua is in right now. Think the Baja Peninsula or Costa Rica in the 1970s. Dirt roads... the first investors are already there so there's life... a couple of restaurants... a handful of homes. But the boom has not yet arrived. More and more footsteps are quietly moving in its direction. The paved roads are not there yet. But it's wired for internet and cable, there is security and construction. Even a spotless, professional health care facility sits half a mile away.
This is the time where you "build it and they will come." This is just starting to happen in Nicaragua... tourism is up substantially in recent years, the economy is improving and the current political environment continues to favor foreign investment (all detailed in the attached free report).
Phase 3 - The “Coastal Road” Phase. The Coastal Road project for Nicaragua was approved, but the funds are not earmarked yet. I don't expect they will for be a few more years, but they will. And when the paved Coastal Road begins construction along the Pacific, up north by Managua, all the way down to Costa Rica, you know everything will change overnight. Development will explode along the coast and new, large hotel chains will come in, just like they always do, just like they did on the Pacific in Mexico, on the Baja Pensinsula and in Costa Rica.
I'm glad we're not in Phase 3 yet. It's inevitable... and yes, when it begins that is when we will see the next huge appreciation in land values, but personally I'm enjoying the charm and unhurriedness of Nicaragua today as it is.
Phase 4 - The “Townships and Retail” Phase: At this point, you either end up with tourist traps or tasteful communities, depending on the investors and the politics. By this stage, everything is bid up already. Rancho Santana will get there, too... there will be a day when it will be considered pricey to buy land there. That is a good thing... the U.S.- style Home Owners Association (“HOA“) at Rancho Santana is strong. The owners and developers believe in protecting home and land values, and they are building everything with high standards and good taste. There's nothing stuffy about Rancho Santana but it is a well-to-do resort. Knowing the people I do behind it, it will remain so. The advantage for you is that you can buy early on... today... in Phase 2, while it's still very affordable.
Creative Incentives for the Early-in Buyer
Here's the best news for anyone considering resort development real estate - especially overseas. With the U.S. economy on the skids, and the busted housing market, you can be sure that real estate developers are getting creative to incentivize investors. Of course this is the case in Nicaragua, which is still a misunderstood market to many North Americans. (As you'll see in the enclosed report, unlike the U.S. market, there is no real estate balloon to pop, but rather the air is just beginning to fill the balloon. It's a buyer's market.)
Some of the incentives I'm seeing for the resort real estate buyer range include getting a second lot free, reimbursement of travel expenses, inclusion of title insurance (available in Nicaragua by major U.S. firms), deeper pre-construction discounts, even financing (also available at Rancho Santana).
Given the strong standing we have in that community, the developers at Rancho Santana are making Oxford Club members in particular an exceptional deal. I already own land there, but with all these new incentives I'm also considering buying a condo unit at Seagate that sits right on the beach. Ten of the 24 units have sold in pre-construction. So there are 14 left, along with some great land available in other sections of Rancho Santana. Seagate already broke ground, and the word on the special deals is already getting out to investors.
I have a lot of faith in Nicaragua and this project. That is why I helped start a non-profit health clinic there over six years ago, and that is why we are holding our upcoming Regional seminar in Managua with Alex Green and our Investment Advisory team. We want members to see how wonderful the country is, while it's still a secret. And that's why I urgently put together this Special Investor's Report for you, attached to this letter.
I've noticed one undeniable fact: Anyone who visits Nicaragua will, at the very least, have an experience they will cherish the rest of the lives. And often they are inspired to invest in the country's future. No one we're aware of has lost a dime investing in Rancho Santana to date. Those who choose to spend time there simply love it. That is why I feel great about recommending it to you as either an investment and/or a second home.
You won't regret making one of the following moves today: First, read the attached Special Investor's Report. Second, contact Juan Munoz at jmunoz@oxfordclub.com or 973.687.4676 - a trusted colleague based Stateside organizing small group trips over the next several months for Oxford Club members who would prefer to travel with a group. He will accompany you, provide free transport, be your personal and private guide, and best of all, you will get a very cheap group rate. If you buy you will be credited for your room and all breakfasts up to three nights. And you will get up to $1,000 of your airfare deducted from any purchase. You can e-mail him now with interest and he'll follow up with you shortly. Juan can get all your questions answered.
But please don't wait... Phase 2 is in gear, and the word is getting out, especially for Americans who want to diversify outside the United States and retirees looking for a more affordable, stress-free lifestyle in an incredibly beautiful setting. Prices for land are on the increase again, and tourism is up every year.
Read the attached report, and give our contact a call. Tell him you are an Oxford Club member and you want the best deal.
I hope to see you at a sunset reception at Rancho Santana someday soon.
Julia C. Guth
Executive Director,
The Oxford Club
P.S. I'll leave you with some words from resident members who would love to welcome you to Rancho Santana, and a photo of another Oxford Club member's home there:
“There are many reasons why we like Rancho Santana, but the primary reason is the people. We have made many Nicaraguan, Canadian and American friends there while enjoying the magnificent scenery, the wonderful beaches, the scenic hiking trails and the many other amenities of the community. We have found the developers to be reasonable, fair and anxious to please.”
Agnes & Edward Brady
Chairman's Circle Members
Brewster, NY
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