Tag Archive | "craftsman"

Vilcabamba Ecuador Small Hotel


Madre Tierre is a small Ecuador hotel in Vilcabamba. Here is the entrance to this small Ecuador hotel.

vilcabamba-small-hotel

We have been sharing this series on Small Ecuador Hotels.

There is an Ecuador small hotel business opportunity in Vilcabamba now.  This message reviews this opportunity in a moment.

First, the subject of Social Security rules about working and owning a business abroad (that could reduce Social Security) and Ecuador’s new asset reporting regulation has sent many of you to the keyboard!

Yesterday’s message on Ecuador & Privacy raised many questions that I cannot answer personally.  As a financial publisher I cannot give individual legal or investing advice.

I can answer tax questions in general if I send the reply all readers. For example, one reader just ask: Gary, Re the continuing discussion of foreign & domestic taxes,

In the 1980s, my husband was working for an American corporation in Saudi. One incentive – at least back in the day – was that income earned there was exempt from US taxes unless the employee broke the contract and left early.

I realize that the situation of being an employee is different from being a business owner or being self-employed.  And I have no idea whether the arrangement described above applied to all US companies or some (the corporation in question was Bechtel).

That said, if earnings are taxed in the country where they are earned and then taxed again in the country of residence or citizenship, this constitutes double taxation – kind of like getting taxed on your income tax refund. Do your tax experts have any comments on whether international law allows or prohibits double taxation?

The answer is that there are tax treaties between the US and many countries, including Ecuador, so if you reside outside the US and are under another tax jurisdiction in another country, then you do not have to pay double tax.

In many instances there are even tax benefits… called the Foreign Earned Income Exclusion. The IRS code says: If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to $87,600 of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts.

There can be even greater tax benefits when you have a correctly structured business abroad. This is explained in the tax portion of our Tangled Web… How to Have an Overseas Business course. Joe Cox wrote the tax portion for me and the excerpt below explains how the benefit can be achieved.

The excerpt begins: Seven Taxing Levels

International business people have at least seven levels to choose from when they start their international business:

#1: Sole Proprietorship
#2: U.S. Corporation
#3: Overseas International Business Corporation or Limited Liability Company or Limited Partnership
#4: Foreign Sales Company
#5: Overseas Trust with Overseas Company
#6: Multiple Overseas Corporate Structure
#7: Overseas Corporate Structure with Genuine Non U.S. Shareholders

Over the duration of this course we will review all of these structures and when each works best. But whenever it is possible to attain, the seventh structure is always the best from a tax point of view.

This generally is the best from a business point of view as well because it means you have someone abroad helping you with your business.

Merri’s and my new business in Ecuador was this situation. We created a business using partners who will help us build the center, run it and provide the valuable knowledge.

This assistance is invaluable. We could not do this business (which I believe will so well as do good for the clients and community) without their help and involvement.

The tax key is that any business owned 50% or less by a U.S. person and 50% or
more by non-U.S. persons pays no U.S. tax. Such a company does not have to even file a U.S. tax return.

This is a complicated law, filled with land mines and I would not hope to understand or explain it all. Instead in this lesson I have asked my tax attorney to explain the legal aspects of this tax law. I will add my comments along the way to help you understand more in lay terms.

Essentially CFC law aims at stopping investors from putting money into an overseas corporation and not paying tax. This is because in general overseas corporations that do not do business in the U.S., do not have to file with the IRS and never owe U.S. tax. Subpart F of the Internal Revenue Code aims to stop investors from simply putting capital and investments in overseas companies and thus avoiding tax on the income from these investments.

Essentially the law creates three concepts. First, it creates the concept that income such as rents, royalties, interest, dividends and portfolio income are unearned and are different from income earned by business activities in a company.

Second, it creates the concept of when an overseas company is controlled by an
American. An American is any U.S. citizen, green card holder or resident.

Third, it creates the concept that if an overseas company is controlled by an
American, then that American has a personal tax liability on parts of the unearned income earned by that overseas company. You can see in Joe’s outline below as he clarifies the specifics in great detail.

Foreign Corporation Tax Issues by JOE B. COX, ESQ.

A. CONTROLLED FOREIGN “CORPORATIONS (“CFC”)

1.  The principal purpose of Subpart F of the Internal Revenue Code (IRC) is to frustrate U.S. taxpayers’ attempts to defer the U.S. tax on income falling within Subpart F.

2.  Generally, Subpart-F income is “portable” income, which can be manipulated by U.S.

Taxpayers through the use of foreign corporations.

Gary’s Comments: This is one of the most interesting areas of tax law for the international businessperson. This outline will explain why sharing my business with Ecuadorians will create a tax paradise.

End of Excerpt.

Do not be confused.  Income tax planning does not necessarily create good Social Security planning.  If you have not reviewed your Social Security regulations and you plan to live and work abroad… see a tax attorney about this.

I have reviewed these rules with both my attorneys in the US and Ecuador.

My US attorney and very good friend, Joe Cox wrote:  Gary, I have set it up so my personal assistant April Barza can answer calls and e-mails and schedule a no obligation, no fee conference call on the questions that come out of your newsletter or seminar.  I would not want to give the government of Ecuador a listing of my international holdings.  I would think they would have no security with that information.  Joe.

You can reach Joe Cox at jcox@coxnici.com or his personal assistant April Barza at abarza@coxnici.com

You can reach my Ecuador attorney, Floridalva Zambrano, at FLORIFLORI58@YAHOO.ES

Back to small Ecuador hotel opportunity in Vilcabamba.

Recent messages have looked at Vilcabamba real estate.

When we began investigating Ecuador back in the mid 1990s.  Joseph Garzozi, the Ecuador Economic Consul in Miami was one of the first people we visited.

One of the places he recommended we visit was the village of Vilcabamba.

vilcabamba-small-hotel

The Madre Tierra restaurant at this small Ecuador hotel.

I researched this Ecuador village and became fascinated with the fact that some of the residents there lived to extreme ages.

Further research brought us to an article written in the January 1973 National Geographic entitled, “Every Day Over 100 is a Gift” written by Dr. Alexander Leaf. This article was written about the three valleys-one in Georgia (then USSR), one in Pakistan (Hunza) and the valley of Vilcabamba, where 1,080 people per 100,000 lived on average to be 100. The article compared this to three per 100,000 in the United States. More important those who reached a ripe age (even over 100) remained vital, sexually active, still work and participate regularly in the community.

This greatly peaked our curiosity and we started looking for ways to visit this valley.  This was easier said then done.  One reason the population was long lived was because they were isolated from the rest of society. Few people knew how to get to Vilcabamba.

Finally we found a national guide, Eduardo Quito, who could take us.   We flew to Cuenca where we met Eduardo and then drove south along the Andes for an entire day to Loja.   A Quito Loja flight would have been faster but we wanted to see this part of the world.

We spent the night in Loja and Eduardo drove us next day to Vilcabamba where we stayed at a small hotel, Madre Tierra.   This small Ecuador hotel was owned at that time by an Ecuadorian, Jaime Espinosa and his French Canadian wife.

Madre Tierra was a popular spot for Israelis  and other backpackers hiking along the Gringo Trail at that time.  There was a sign in Hebrew Letters that said “Shalom, Jaime’s Hideaway” and the room rate then was $9.00 per night for Israelis and $10 to $15  for all others.

The rooms were little thatched cottages sprawling down a steep hillside with rich gardens and killer views.  Breakfast and dinner were served on the terrace.

Backpackers were not very profitable guests.  It is hard to develop much revenue with $9 a night rooms.  Jaime and his wife were in the process of creating a spa.  They had just installed a spa, massage room, hot tub, steam and clay baths and special cold and water accupressure treatment.

They hired us to consult with them about how to upgrade their market so we spent an enjoyable day talking, thinking about how to get a higher grade of guest and enjoying the spa.

After working with the couple we headed back to Cuenca fully expecting to return to Vilcabamba with a group.

Then as the saying goes, “life happened.”  Vilcabamba is remote… an extra day’s journey when reaching Ecuador and this spectacular valley never worked into our plans.

However Vilcabamba did take off and we hear from many readers that they are moving or have moved to Vilcabamba.

We also heard that a retired actor and his wife had purchased this small Ecuador hotel.

Due to this background and the fact I am always looking for ways that readers can earn income in Ecuador, I perked up when I received the note below.

“Gary,  This is an emergency message for YOU and Merri.  You may recall that my husband and I own the Madre Tierra Hotel (Spa, Restaurant, craftsman
Conference/ballroom dance floor/theater Center) in Vilcabamba.  This is to
notify you, in case you have potential buyers or you would be interested
yourself to buy and/or make a commission, that we are putting the hotel, and
our home and guest houses, and our 360 degree view farm with mansion and
sugar cane mill, all adjacent and minutes walk to the village, up for
emergency sale.

This wasn’t an emergency until TODAY…as a family member has to go in for surgery tomorrow morning.

I do not want to handle the stress of anything else right now.  So I’m writing to tell YOU that we’d even be willing to sell both properties for the price of one.

In other words, this has suddenly become an illness, desperation emergency sale.

We left most of the main furniture there so someone could move in
immediately…and the hotel is turn-key  (World Travel Awards nominated it
for the third year in a row in the category of Best Hotel and Spa in Ecuador
category…it’s truly a paradise!).

vilcabamba-small-hotel

Here is the spa in this small Vilcabamba hotel.

Our six acre home/mansion with the most spectacular views of all time has three craftsman fabulous guest houses and stables, etc.   We are selling the 43 hectare farm that has a 360 degree view mansion and worker house and a working sugar cane factory, etc.

vilcabamba-small-hotel

View of the farm from the house.

We’ll take an offer from you or anyone and will offer a discount to any reader who comes down and stays at the hotel.

I have followed your work for many decades…and so appreciate you and
Merri.  Now, I’m letting you know about this…as I feel it would be a great
opportunity to add to your successes, and a wonderful deal for one of your
friends or contacts.

Perhaps you can find a buyer we’d love who would love owning our beautiful
properties as much as we have loved them. We know a lot of people would love
to live in the Valley of Longevity.   Again, these properties are adjacent
to each other and just minutes walk to the village…location location
location…the farm is located along the river (never flooded! And possible
for development or farming…)…has a pure water well and various
additional water sources available, too, and so much more.

vilcabamba-small-hotel

Madre Tierra conference room and theater.

Thank you for all you do for others and the world.  Much love to you both, Carol Rosin.

As mentioned I have not been to Vilcabamba nor Madre Tierra for at least 15 years. A lot appears to have changed and Madre Tierra appears to have dramatically upgraded its market.

This offers an opportunity for readers who live in or are thinking of moving to Vilcabama and want a business.  The seller offered a commission and we explained we do not accept commissions so this savings may help this make this a better deal for our Ecuador Living subscribers.

You read a full report on this offer with contact details as an Ecuador Living subscriber.

I have no updated knowledge of the property, income, profit and any buyer should use all normal due diligence in looking at this offer.

Regards,

Gary

We hope you’ll join us to learn more business and investing opportunities globally as well as Ecuador.

July 4-8 Ecuador Export Tour

July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course

Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador

Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Ecuador Export Tour


Ecuador Exports Tour

July 2-6, 2009 – $499 Single Order. $749 for two. Couple Order.

This tour starts July 5th. You should arrive in Quito July 3rd.  Spend the night in Quito. (We’ll make the reservations at a 5 star hotel for a 2 star price.) The tour starts July 4th in Quito when you travel to Cotacachi and visit markets July 5th, 6th and 7th.

Join our Ecuador Export Tour hosted by our staff and delegates who have attended previous courses and are exporting from Ecuador now.

This tour visits the main export markets around Cotacachi and Otavalo, Ecuador markets.

Meet the artists, designers, creators, craftsmen, wholesalers and visit them in their workshops, homes and markets.

Improve the quality of your life, expand your horizons and reduce the tax you pay as you increase asset protection by having an overseas company and overseas income!

Join other like minded souls in Ecuador.  Learn how to gain freedom and self fulfillment through an Ecuador export business.

See Ecuador export potential  in Ecuador.

In wood products.

In Ecuador’s art.

In jewelry.

And all types of exports.

This tour goes to the high Andes. You’ll see products from Zuleta where they create handmade “green” cotton-one-of-a-kind tableware, shirts, specialty items. You’ll travel everyday to see different markets, crafts people and masters who create special products that will make your eyes gleam with delight…both for their uniqueness and attraction.

In addition, over the years we’ve combined this knowledge and experience with contacts in the form of American and European readers who now live and work in Ecuador. Working with them we have set up office and business facilities to create an export support service that we can now offer to you.

Alberto Verdezoto  and our staff, plus delegates who have attended our tours and regularly export from Ecuador will guide you.

Here is  Alberto Verdezoto guiding one of our previous tours.

ecuador-information-tours

You could not be in better hands.  Alberto was in the Ecuador travel business for more than 10 years and has been our main real estate researcher for three years plus has helped conduct all our previous export expeditions.

Here is Alberto (left) leading our staff at International Living’s Ecuador seminar in March.

ecuador-tours

We have even purchased a 180 year old hacienda that is a charming hotel to turn into your business center!

Here’s the hotel. This is where we will conduct the course when we are not visiting markets. Rooms are only $59 a night + tax.

Plus we have an experienced English-Spanish speaking business people who live here and can act as your local backup for the business.

This combination makes it possible for you to have your own Ecuadorian import/export business, which can be run from your home or in your own Ecuadorian hideaway you’ll be able to buy with your extra profits.

Timing for such a business has never been better!

Exporting has already created fortunes for a few entrepreneurial individuals. Now because of our knowledge, experience and contacts, a special business is available for you. Until recently, operating an overseas business took a great deal of time and effort to start. This is no longer true.

Technology makes it possible to take your business where opportunity is best and allows you to run this business from anywhere in the world. You can run your export business from an office or at home! The internet makes this more possible than ever before and at the course we’ll share ideas on how to develop and use your website to enhance sales.

The internet is the Colt 45 of business, the great equalizer. If you choose to have your own import-export business you too can let the internet help your business grow for wealth and freedom.

The Ecuador Export Expedition lets you visit the markets plus entitles you to a $499 discount when you attend any of our International Business Made EZ courses that teaches the marketing theory of exporting and running an internet business.

The International Business Made EZ course that I conduct is designed to teach the marketing end of Ecuador exports.  The tour which takes place separately gives you hands on experience in the actual markets.

You can attend our International Business Made EZ course before or after you join the export tour.

This export tour last three days.

Because Merri and I will not be on this tour we have reduced the fee from our normal $999 – $1,399 to only $499 or $749 for  a couple.

You will learn directly from the contacts we introduce to you.

Then you can join Merri and me before or after the tour at one of our International Business Made EZ  courses.  The Business Made EZ course mission is to help you learn how to start, organize and develop your own internet business that can help you in publishing, exports or any type of business.

The tour’s mission  is to help you actually find products that:

#1: Can be sold to easily identified markets.

#2: Can be marked up many times while allowing a fair trade for the indigenous.

#3: Can be imported in a suitcase.

The tour lets you see in a practical way  how to achieve the goals we teach in the course.

On the tour  you learn from tour leaders who have practical experience from the shipments that they have actually incurred in their own Ecuador export business.

You learn the problems encountered and how to avoid them. (This alone will save you far more than the course tuition.)

Which products? On the tour you visit carved wood, architectural and decorative woods designs in San Antonio de Ibarra.

Textiles from Otavalo.


Here is one of the vendors in Otavalo photographed by delegates at an Import-Export course.

Religious Santos and Icons from San Antonio de Ibarra

Jewelry from San Goqui.

Paintings from all over Ecuador.

Here is an example of one type of art that a previous course delegate is having made from recycled paper and a metallic paint. Their Reiki symbol line of art is sold as fast as they c0uld get it produced.

Leathers in Cotacachi.

ecuador-export-leather

Here are flowers I imported that were grown in Imbabura.

ecuador-roses

I regularly import roses from Ecuador at a fraction of the price you normally pay. Here I am with 250 roses we had delivered to our home in North Carolina for our own home.

You will visit many of these places and more so you can start your business directly from the tour.

Before or after the tour, you can attend our International Business Made EZ course (at a $499 discount)  to learn the fundamentals,  where you have visited these places, seen the goods and met contacts who can back you up (or even act as a joint venture partners).

Learn how to enjoy the finest things in life because of international friendships plus how to develop them.

We have developed contacts with top Ecuador businessmen, bankers, accountants, attorneys, marketing experts, business consultants, agents all over the country that can help you, large or small, full or part time.

There you have it, valuable contacts and knowledge about timely and fulfilling business opportunities that you can cash in on now. Regardless of whether you want your business to make millions, or just add excitement and adventure in your life, to reduce tax or even live abroad, the Ecuador Export Tour can help you get involved with something you love and turn after tax costs into tax deductible expenses.

Whether you have a successful business, want a part time business for change or as job security, this course can be of enormous value to you.

The three day course can be combined with our International business and investing courses or taken on its own.

The $499  is nominal compared to the incredible education you gain and the importance of the knowledge for you and your family’s wealth now.

One delegate who attended our Ecuador export expedition wrote:

Our business of selling Ecuador products is still going well. We are now appointing Agents across Australia and should have the whole country covered by mid-August. Our initial shops continue to re-order on a regular basis. The best shops seem to re-order every two weeks.

We have also received inquiry to provide buying services for people in a few other countries. So we will be seriously thinking about starting our own brand name to market globally. If successful, it should help many Ecuadorians.

Another couple who attended this expedition sell the goods they export at flea markets.

They wrote: Good Evening Gary/Merri.  Speaking of a small business, we have opened All American Enterprises, LLC (AAE) which includes selling products from Ecuador at a trade days operation about 200 miles East of Dallas.  I don’t know if we are off to a “bang” but we are sure having fun.  See attached pictures to include our model Consuela trying to look indigenous.

Please tell Merri we have made profit on our inventory and the big sellers are alpaca silver jewelry and Octavalo alpaca ponchos.  We will visit  at the end of September and would like to restock to include blankets/ponchos/throws from Hilana.

ecuador-export-leather

Space makes it impossible to explain everything in the course, but I am convinced if you try it, you will find it improves your entire way of life! There has never been a time when the risk of higher tax, greater unemployment and investment dangers were higher in North America , but neither has the opportunity for small businesses abroad been so outstanding.

Here is one of the silver workers we visit.

ecuador-exports-silver

Another jewelry workshop does interesting work in silver and ostrich eggs!

ecuador-export-silver

Another craftsman does incredible wood carvings covered in gold leaf like this horse.

ecuador-export-crafts

and incredible gold and bejeweled wooden Faberge egg.

ecuador-exports-faberege-egg

Todd Smith, another attendee, wrote this:

Recently Gary recommended a printer in Cotacachi, Ecuador, for me to use to print my photographic greeting cards.  I was quite skeptical about doing business in Ecuador, both for the hassle of sending money, shipping the product, and most importantly the quality of the printing.  As a photographer, I am quite picky about printing.  But, after three years of good experience with Gary, I decided to take another risk and try the printer.  The results were outstanding–better than many press jobs I’ve seen in the US, and the price was terrific.

I’ve learned that Gary likes to push his students to try things they thought were too risky.  Gary lives on the cutting edge.  But, interestingly enough, I don’t think he is really a risk-taker, because his feet are always firmly planted on the ground.  I’ve learned over time that I can trust Gary’s thinking, and that he really does come up with some unusual, and very effective, solutions to problems that I’ve tried to solve on my own.

My suggestion is simply to try out Gary.  You may have to risk some money, but my experience has been so positive that feel safe in saying that the risk will be well worth it.  Of the $1000 or so that I invested , I have earned many thousands in return, and have created a lifestyle for myself that is far more fulfilling than anything I had previously.

I did the import/export course last year in Cotacachi, though I was in Ecuador mainly for photography.  While I was there, I met one of Gary’s contacts in the rose business.  We went to his plantation and he was very willing to work with any of Gary’s students to export flowers to the US or Canada.  He showed us prices that appeared to me as if they would form the basis of  a very profitable floral business.  He also explained how the flowers are shipped FedEx directly to you, and they are cut fresh before the shipment.  This means that the flowers you resell will last much longer than those that have been sitting in a florist’s shop forever.  This could be a significant advantage over the competition, and could generate some very satisfied customers.  Sincerely,  Todd Smith

Here I am with Todd Smith trying new tailor made Ecuador suits  that cost $135 to $200…an excellent Ecuador export.

Ecuador-export-suits

Expand your borders now! Increase your economic security freedom, independence and success. Gain a fortune, enjoy life more and help those who are less fortunate.

Here is Bonnie Keogh who attended the export expedition enjoying an open air breakfast at El Meson de las Flores, the center of our expeditions. Bonnie wrote:

ecuador-exports-bonnie

My name is Bonnie Keough. In March 2006, I went to Ecuador to attend Gary and Merri’s import/export course.

I was hoping to find items to bring back to the States and sell. I love to travel and was looking for business ideas that would enable me to do that.

I had never been to South America (never even considered it) before so it was an adventure. I didn’t know what to expect, but I had been reading Gary’s newsletter for a while and I was impressed with the Scott’s honesty and integrity. They don’t promise overnight success or try to sell you a business opportunity. They share their wealth of experiences, open doors for you and educate you on the possibilities and opportunities available. It’s up to you to implement what you learn.

I found so much more than high quality products in Ecuador, the people I deal with are kind, hard-working folks who truly appreciate my business and I appreciate their honesty and skills. I have returned to Ecuador 6 more times since my first trip and each time I leave I’m anxious to return.

I always personally select all of the items I sell. By doing this, I’ve learned a lot about quality, prices and sources and I enjoy interacting with the people. But it is hard work and not everyone enjoys that aspect of the business. You will have to decide how much you want to participate.

Don’t expect to find mass produced items in Ecuador. If you have an idea for a product, it is a great place to have items custom made. It’s possible to find high quality labor intensive pieces, such as hand knit sweaters or hand woven rugs, at very reasonable prices.

If you have a genuine interest in pursuing an import business, whether in Ecuador or elsewhere, I’m sure you will benefit from the import course. It’s a great introduction to the country and opportunities available there and provides a background on the nuts and bolts of the business. It opened a doorway to a new life for me.

We stress that this is a course combining theory and practicality…but this is a true expedition! You’ll be having fun as you view products, interview, bargain, meet, search and many will even buy. Those who are just looking for a “classroom experience in a hotel” should not attend. Everyone will be out in the field looking and examining and finding. Bonnie.

Enroll in our Ecuador Export tour today.

July 2-6, 2009 – $499 Single Order. $749 for two. Couple Order.

Gary

Ecuador Exports Expedition