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Reinhold & Asociados SA Website. Assisting Investors in Costa Rica Since 1995.
Offering services in Trouble Shooting, Asset Recovery, Due Diligence and Crisis Management. REINHOLD & ASOCIADOS TRACK RECORD
Erik ReinholdManaging director Born 1962 in Amsterdam – The Netherlands. Living in Costa Rica since 1993 and is a resident of Costa Rica.
1995-1997 Mr. Reinhold started out as a representative of a number of US landowners in the southern zone. The safety of Americans in the area was an in jeopardy at that time due to an invasion of about 150 squatters and their families who took possession of land owned by US citizens and others after an expropriation decree was filed. This created a very violent situation. Mr. Reinhold - with the support of the US embassy and it’s Consul (Lic. A. Schandelbauer at the time)- negotiated with the Minister of Agriculture and the Secretary of IDA involved in the decree. At the same time he (pre) negotiated with the squatters. These negotiations finally resulted in the withdrawal of the expropriation decree affecting the client’s land and a settlement with the squatters claiming and living on the land. Mr. Reinhold relocated the squatters elsewhere and thus obtained free and clear title for his clients. The shooting death of Max Dalton –a seventy year old US landowner- in an incident with squatters in 1997, ended all further negotiations at that time. Years later, the example set and mechanism used by Mr. Reinhold were again used by landowners in that area which is now relatively free of conflict.
1997-2003 In 1997 Mr. Reinhold worked as a consultant for a small group of Dutch developers. He helped buy the land needed for a residential gated community and oversaw the master planning, the design of infrastructure plans and obtained all permits for this 100-hectare development close to Jaco Beach. In 2000 Mr. Reinhold became the general manager for the developing company that was then called Lomas de Carara SA and he opened the local offices in San Jose – Escazu. The office and project soon employed a staff of over 35 people. Mr. Reinhold then oversaw the complete construction of all roads and other infrastructure, the construction of the main gate and entrance, construction of a master villa, condos and townhouses. He also implemented the marketing & sales structure that was needed for a project of that size.
In 2003 the company was taken over by one of its main shareholders and a completely new concept was introduced and a new management team took over. Mr. Reinhold helped the new owners make the transition together with the new management team until the contractual relationship expired in December of 2003. The Lomas de Carara project has since been re-named “Nativa resort” and is now a very successful, very beautiful gated community with tremendous views and with great potential. The total investment in this project from 1997 until the end of 2003 was approximately $8,000,000.
2003- 2005
2003- 2005
Mr. Reinhold started negotiations with the developer and Trustee on behalf of the investors in 2004 with the principal objective of restarting the project. When -in 2005- it became clear that a re-start was no longer feasible, Mr. Reinhold brought in the associated law firm, Alvarez Jimenez DePass and started litigation in Costa Rica on behalf of the investors. He also provided all of the research and support necessary to start secondary legal action in The Netherlands. A settlement was finally reached in May of 2007 resulting in Mr. Reinhold’s clients becoming the new and sole owners of the land in question as well as receiving substantial payment for damages suffered. The outcome of the conflict was seen as a major success by all of the investors involved. The land is currently still under the administration of Mr. Reinhold on behalf of the investors.
2004
In May of 2004 Mr. Reinhold became the representative of the Association of investors “Teak Bestand” a group of 230 investors with a multimillion-dollar investment in teak bought through “Green Capital”; an organization that no longer exists. The investors needed to change their legal position in this project, as they did not have enough control over failing management nor did they have clear title to the 180-hectare property. The project in question was basically abandoned. In order to regain control over the plantations a complete takeover was needed. Mr. Reinhold negotiated this take-over on behalf of the investors and the land was finally titled to the clients. Mr. Reinhold then re-organized the management of the project and became the –interim- (crisis) manager. Starting in 2005 the plantation was completely cleaned and much needed back maintenance and inventory was done. In 2006 and 2007 the first harvests were executed under the new management and projected harvest and cash flow goals were reached. At the end of 2007 interim or crisis management was no longer needed and therefore the participation of Mr. Reinhold was concluded. At the end of 2007 Mr. Reinhold resigned as the manager and transferred management of the project to the investors who now completely own and control their investment and project.
2007
In 2007 Mr. Reinhold became the representative of a group of Dutch investors who have invested approximately $5,000,000 in a Project called “The Tripple Garant Fund”. The project is mainly an agricultural enterprise that grows lemons for export but a number of lots for construction were also sold. The company had planned to develop hotels and other such concepts as well but, unfortunately, the project seemed abandoned and the investors wanted to have strong measures taken. After researching the project and doing a due diligence the investors were advised by Mr. Reinhold to take legal action against the project in order to strengthen their position and prevent the company from selling any assets. Mr. Reinhold –in cooperation with the associated law firm Alvarez, Jimenez, DePass- started criminal proceedings against the owners that resulted in successfully annotating most of the real estate held by the project and that also resulted in an investigation by the criminal court and prosecutor’s office in Costa Rica. In 2008 Mr. Reinhold started negotiations with the project’s owners on behalf of his clients and those negotiations continue up to this day.
Smaller varied projects:
2004 In 2004 Mr. Reinhold became the representative of a private U.S. investor who wanted to build his second “dream” home in Costa Rica, The 500 square meters home is located on a lot that lies very close to the Hotel Villas Caletas near Herradura. Both the hotel and the lot have, arguably, one of the most beautiful views in the Jaco area. Mr. Reinhold oversaw the hiring of the architects and engineers; permits and bidding documents. He worked closely with the architects and inspectors during construction in a capacity of owner’s representative and the villa was delivered in 2007 at which time Mr. Reinholds involvement ended. A number of hidden construction faults have come up since and Mr. Reinhold now assists the owner in correcting these mistakes wherever possible and assists proper legal protection against wrongful claims by the builder until such time that the owner is satisfied with the work delivered. Comment: This is one of the few –if not only- projects were I am absolutely not satisfied with the final results. Total investment: not disclosed. Status; after-care – not completed yet.
2006
In 2006 Mr. Reinhold worked as a consultant for the Dutch Association of investors in Vanilla who made a $6,000,000+ investment in a Costa Rican plantation growing and selling Vanilla. He helped the investors to clarify their (legal) position and the general state of their investment. After a study of the project Mr. Reinhold recommended that an aggressive stand against the current management should be taken -and legal proceedings be started if necessary- to obtain a much higher degree of control over the project. This course of action was not agreed upon by the investors. Due to the conflicting opinions on how to proceed, the consultancy was terminated. NEW ACTIVITIES AND SERVICES Investment opportunities. Due to the current economical crisis there is an urgent need, within the legal community as well in the real estate community, for short term financing for –mostly foreign- clients. These clients are homeowners in Costa Rica and need to borrow against their local assets for the short to middle term for different reasons, such as financial obligations in their country of origin or having to make unexpected extra payments on a primary residence. The client bought excellent property -free and clear- in Costa Rica, he/she now needs a temporary loan, but local banks will or can’t help because the clients are –for instance- not residence in Costa Rica or another reason not necessarily having anything to do with their credit rating. This type of financial service –short and midterm is typically not –or hardly- available to them through local banks. We want to bring a solution to our clients and -at the same time- provide you with an excellent investment opportunity. Interest rates charged to the clients by the fund range between 2% - 3% monthly. The returns to our investors –after costs- are projected by us at around 15% and 20% per year. |
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