FAQ
How are the the properties insured?
Before we decide on a project we have already figured in the cost of insurance for our proposals. We have an umbrella insurance policy in the US and full coverage property insurance in Costa Rica that covers any damage and incidentals, including flooding, volcano eruptions, and any other occurrence. We employ a team of attorneys and insurance professionals both domestically & on the ground in Costa Rica who help ensure our investment property and investors or protected.
How are owner weeks prioritized?
Each investor can request their preferred dates and will be granted first come first served. We will offer to save dates before opening up the portal for renters. Obviously the main goal here is to make money, so if we open the rental up and an owner requests a date that is reserved we will let them know so they can choose another time. This is an investment first and foremost, but we will do everything possible to accommodate our investors without damaging our ratings.
What are the responsibilities & obligations of TREI as Managing Partners?
We have an amazing team of attorneys that ensure we are SEC compliant and that our investors are protected. They work with our highly reputable team of attorneys in Costa Rica. We don't mess around on this!
TREI is responsible for all management decisions and responsibilities. Investors can sell their percentage at any time, but TREI gets first right of refusal and must approve anyone else interested in buying that percentage so we remain SEC compliant. (Basically, we must show we did our due diligence and that new investors aren't money launderers.)
Are the properties setup as US or Costa Rican entities?
It's important that investors understand they are owners in a United States company. The company invests in foreign real estate, kind of like when you invest in Fidelity but choose foreign stocks.
Each investor is a member in an LLC based here in the US. Each property has its own LLC. TREI will always be one of the members. This means that each January the members will receive a K-1 showing any income they've received for the previous year. Dividends are paid quarterly. This is passive income and will be taxed as such - no capital gains!