BEACH HOUSE OWNERSHIP OPPORTUNITY!
The fractional ownership structure allows us to have multiple owners in the property by purchasing shares in the corporation. An individual's ownership percentage in the corporation provides the corresponding right to use the house for four (4) weeks per year. We have limited the number of owners in the house to a maximum of 13 or at least one month a year in usage to limit the administrative burden and wear and tear on the house. Right now, there are 3 American owners in the property and several additional ownership units pending. We are offering ten (9) Shares in the house for sale, which will contribute towards the construction financing as well as offset costs already incurred.Beachfront land in Mexico cannot be owned by foreigners directly and is typically held indirectly in a renewable bank trust held by the foreign owner called a fidecomiso. However, Mexican Corporations can own beachfront land and the corporation can be 100% owned by foreign shareholders. In order to get direct ownership of the property and avoid the hassles of creating and maintaining a bank trust with multiple owners, Steve Rude formed a Mexican Corporation called SJR Capital BCS, which owns clear and direct title to the land. He also has an American attorney who is licensed to practice law in Mexico that does the company’s corporate and tax filings.
The Legal Subscription documents and Shareholder Agreements are available upon request. Following is a brief outline of these documents:
Shareholder Agreement
• Development of Property and Construction of Residence
• Use of the Property and Residence
• Governance of Corporation
• Operating Expenses of Corporation
• Shareholder Capital Accounts
• Issuance of Additional Ownership Interest
• Transferability of Units
• Right of First Refusal
• Sale of Corporation or Property
• Term and Termination
• Indemnification
• Governing Law
• Amendment
• Notices
• Shareholders Will
• Miscellaneous
Signatures
Subscription Documents
• Representations, Warranties and Agreements
• Indemnification
• Joint Representations
• Entity Investors
• Revocation
• Miscellaneous
• Signature Page
Subscription Schedule
Corporation’s Wire Instructions
Investor Questionnaire
• General Information
• Organizational Information
• Individual Investor Accreditation Requirements
• Institutional Investor & Non-Individual Accreditation Requirements
• Individual Retirement Accounts, Qualified Keogh, Pension or Profit-Sharing Plans
• Accreditation Requirements for Entities with all Accredited Owners
• Trusts
• Investment Representations and Information
