Dominican Republic real estate Punta Cana villas and Bavaro Beach villas designed, built, sold and rented.

Dominican Republic real estate will double in 12 to 18 months.

We used to live in the U.S. and began planning our exit about five years ago because I saw the housing bubble, decreasing property values, increasing property taxes, increasing homeowners' insurance rates and exploding adjustable rate mortgages.  Got sick and tired of the traffic to work, traffic from work, tolls, high car insurance rates, perpetual bank fees such as cash deposit fees, ATM fees, over limit fees, high-interest credit card debt, telemarketers, junk mail, general liability insurance, workers' compensation insurance, health insurance, State unemployment tax, Federal unemployment tax, matching Social Security payments, matching Medicare payments, Federal withholding, intangibles tax, Sales and Use tax, personal property tax and the death tax.  Did I leave anything out.

The bureaucracy is expanding to fit the needs of the expanding bureaucracy.
unknown

I didn't want anymore speeding tickets or speed traps, random stops and D.U.I.'s, illegal search and seizures, asset forfeiture, frivolous prosecutions, fines, penalties on fines, interest on penalties on fines, junk lawsuits, the legal system, blah, blah, blah.  I could go on.  These are all revenue streams which your government will gladly tell you better education, increase police presence, hire more firefighters, blah, blah, blah, blah, blah.

Life, liberty and the pursuit of happiness.
Thomas Jefferson

My wife's a teacher and they've been promising her a raise for years, but every year the Superintendent and the suits get raises, but not the rank and file.  Politicians and unions simply eat up any of the benefits intended for the hard working people through back-door arrangements synonymous with the days of the mob.  Politicians are not in it for you, and neither are unions.  The direct result of millions of jobs going overseas is because corporations circumvented the extortion tactics of unions.  Unions which padded their own pockets at the expense of the American worker.  You are now seeing the repercussions.  Oh, let me add that corporations are definitely not your friend.  Corporations have been running politics in industrialized nations for generations.  It has been this 3-pronged attack from business, government and unions that have once successful Americans reeling to find a better quality of life fast.  Do you remember the mafia of the 30's, 40's and 50's?  They now have suits and use lobbyists to change laws to their favor and extort citizens for higher prices, all sanctioned by your wonderful government.  Hint: The pharmaceutical industry.  Why are drugs so much cheaper in Canada and elsewhere.  Maybe because they actually value human life over excessive profits in other places and have struck a balance between industry and the people rather than allowing industry to rape the people.

Corporation, n. An ingenious device for obtaining profit without individual responsibility.
Ambrose Bierce

Add all of this to the exporting of American jobs to low-wage labor countries and the constant influx of illegal immigrants driving down wages in our own country because of the lack of a reasonable minimum-wage and fair-paying jobs, the sheer lack of opportunity without capital, and the increasingly hypocritical and immoral acts of our politicians at home and abroad.  Did I leave anything out?  The point is, the country was heading up @#$!'s creek without a paddle.  Furthermore, I never got to spend any time with my lovely wife because we were always working.  Since just e-mailing my elected officials doesn't resolve anything, and since I am not going to spend $20,000.00 to have a dinner with my senator, and since I do not believe in violence or terrorism, nor shooting a bunch of innocent individuals, I did the next best thing.  I protested financially.  We sold all of our possessions including our home, and came to live a tranquil life collecting rent from our apartments which I built with the equity we took from our home and other previous investments.  You see, I don't mind paying taxes.  I believe a flat tax of 25 to 30% would be excellent if we could just do away with all the tax rules, deadlines, loopholes and so forth.  But that will never happen because it would make the I.R.S., tax lawyers and accountants that live off of this sham to close and find new jobs and their lobbyists are not about to let that happen.  Even if it brings sanity to a broken system affecting millions of taxpayers.  There again, the needs of the few have hampered the needs of the very many.  And the few that prevailed were not even people, it was industry.

No taxation without representation.
Reverend John Mayhew

I thought I read something somewhere about government by the people, for the people, but maybe I'm just crazy.  Anyway, any individual wanting to start a business in the Divided States of America must first learn business law, tax law, accounting and must also function as his own bookkeeper for most of his time rather than performing the primary sales function which was the primary purpose of opening the business.  He could pay someone, but then he's working for Uncle Sam, your lawyer and your accountant.  You better make money fast.  Remember the rent is due.  Do you catch my drift.  Corporate execs don't worry about these things and are therefore free to increase profit and cut costs.  TRANSLATION: Raise prices, fire staff, relocate all factories and support operations overseas.  Problem solved.  That's until all Americans are broke and can't even pay attention.

Banking establishments are more dangerous than standing armies.
Thomas Jefferson

Am I some kind of nut to just pack and leave.  Absolutely not.  I did my research.  I began researching international countries where an investment could be made that was inexpensive, yet would double or triple in value in a fairly short amount of time allowing me the option of either renting the investment for monthly income or selling the investment in order to flip it and repeat the process.

It had to be someplace that had freedom, privacy and whose government would not be bogged down by social programs, which ultimately lead to high-taxation, waste, fraud and mismanagement.  Don't think I am against helping people who need help.  To the contrary.  It's just that the government squanders this money.  I don't want to worry about terrorism either, or Holy wars.  I want to spend quality time with my wife and family while I see people smiling all the time.  Like when their vacationing.  Where could I get all of these wonderful benefits without buying an entire island and installing my own form of government?  Just kidding.  But you get the point.

Those Who Sacrifice Liberty For Security Deserve Neither.
Benjamin Franklin

God Bless the Dominican Republic and John Schroder of Ascot Advisory.  He is a former Wall Street investment banker who now lives in the Dominican Republic and advises clients on tax free offshore investing, offshore trusts, corporations and international real estate, I bought his publication, The Dominican Republic Report.  To this day I have never met the man since he lives on the opposite side of the island and I hate Santo Domingo, but I include the link to his book as a courtesy to him.  He is very informative.

Anyway, after reading it, I found a lot of the information somewhat hard to believe, such as the high rates of interest paid on Certificates of Deposit, the fact that investment income was tax-free, (HERE! Not in the U.S., You have to pay Uncle Sam) and the fact that the influx of capital into real estate development surrounding tourist areas was creating new millionaires.  I told my wife and mother that I was packing up and heading to the Dominican Republic in search of opportunity.  Dumb move.  They quickly replied that any search for opportunity in another country was a vacation for them, and that they were going.  I told them that they would be sorry if they came with me because I was on a mission to drive the entire island looking for investment property, but they were weren't buying it.  I immediately bought three plane tickets and reserved a jeep for a week so that I could explore the island like some kind of Conquistador.  Don't laugh.

We started in Puerto Plata which is entirely on the other side of the island.  I began looking for the following factors to gauge the town strength:  amount of new luxury developments being built, amount of luxury developments completed, distance from beach, distance from airport, distance from a major town, the amount of tourism, so forth and so on.  It was a constant drive looking for property, driving down dirt roads, horse trails, good roads, bad roads.  We drove to Sosua, Boca Chica, San Pedro De Macoris, Santiago, Santo Domingo, La Romana and Higuey.  By the time we reached Higuey, I was disappointed with most of what I saw.  Where were all these beautiful villas and hotels that everyone always talks about.  My mother and wife were ready to kill me.  But me being the relentless Conquistador of opportunity that I am, I was able to quell the revolt just long enough to reach BavaroPunta Cana two days before our return flight home.

There it was.  Beautiful palm trees and luscious greenery amidst a blue sky and waves crashing in the distance.  And look over there.  Golf courses.  Some completed, some still being built, but it all meant one thing.  Where ever there's golf, there is money.  And wherever Jack Nicklaus builds a golf course, there is money.  Add to that beaches, palm trees and tourists and you have a recipe for investment nirvana.

There were buildings and villas going up left and right, heavy equipment and machinery buzzing back and forth, huge casinos and 5-star resort hotels full of people scurrying to catch their next excursion, all laughing with jumbo Presidente beers in their hands, there were water parks, helicopter tours, fishing charters, parasailing, scuba diving, snorkeling, the list goes on and on.

I didn't hesitate.  I made my first investment by purchasing a preconstruction apartment on a golf course just blocks from the beach.  My development has since then been listed in several large real estate investment periodicals and continues bringing in more investors.  By the way, these apartments are $145K retail for a 1 bedroom, 2 bathroom, so your getting a steal at the current pricing.  Anyway, I used this apartment as a base of operations to look for land to develop, and as soon as I found our little piece of heaven, I financed the land with a business loan and my wife sold her home to pay for the construction costs.  We've been here ever since.  It's not that I don't like the U.S.  I love the U.S.  To visit two or three times a year and stay for one to two months at a time, but not to work and not to sit in traffic.  We still do have an investment in Miami which allows us to go 3 times a year.

But hey, it's not all positive.  Living in the Dominican Republic does have its negatives.  My neighbor has a helicopter and I don't.  Talk about trying to keep up with the Gonzales'.  You can take a look at some of the photos of me, my wife and my family.  There's even some photos of us with some famous people we have met in the Dominican Republic.

Now, the opportunity.

See you in the D.R.,

Raul Martinez Jr.
Project Manager