How El Nido Works
There is no expectation of you joining El Nido if you visit.
This page is just provided in case you are interested in joining or are curious about how it works.
How do I become a member of El Nido?
The first step is to read the info on this web page which basically describes how the co‑op works.
After reading this info and if you are still interested in becoming a member/owner, identify an existing member who will be your sponsor.
Ask your sponsor to schedule your visit to El Nido in order to get to know Mazatlán, the co-op, and some of the current members.
Airfare will be your major expense because we cover the cost of housing, and food is half the cost of the US.
After fully understanding the opportunity, the next step is to review the bylaws and other documents and apply for membership.
Membership applications need to be approved by the Board.
What is my financial responsibility?
Joining El Nido involves three financial commitments: a one-time Membership Share, a one-time Occupancy Share, and an annual Occupancy Fee.
Each single adult buys one membership share and a couple buys one for each person. Your Membership Share entitles you to participate fully in the co-op, as outlined in the bylaws and the co-op statute of Wisconsin. Membership shares cost $100.
Occupancy shares cover the cost of the purchase and renovation of the units and a reserve for future expansion. Since the labor to develop El Nido has been volunteered, the Occupancy Share cost is very affordable compared to other vacation or retirement options. Each member or couple is required to purchase one occupancy share. The share price is $120,000 until March 31, 2021. The Occupancy Share price increases by $5,000 on April 1 each year, or by another amount set by the Board. The $5,000 per year increase is less than 5% appreciation and lower than the appreciation of comparable properties.
The annual operating expenses for El Nido are very low—currently about $45,000 in cash expenses per year for all seven units. In addition, approximately $15,000 per year is budgeted for capital expenses or reserves. Property taxes are extremely low, the units are energy efficient, and the cost for cleaning and repairs is much less than in the US. Since the co-op runs at cost, the Maintenance Fees will be just enough to cover actual expenses and reasonable reserves. If the co-op has enough cash in reserves, the board may elect to waive or reduce the maintenance fee for the current year.
What do I get back when I leave?
When you leave El Nido, you get back the price you paid for your occupancy share.
What are the risks?
All foreign property ownership carries risk, including changes to property laws. By jointly owning the property with other El Nido members, you reduce your risk. For example, if costs go up unexpectedly, the additional cost will be shared equally among all of the Occupancy Shareholders. We want you to understand the risks. It’s important that you read the bylaws, policies, and other documents (such as description of the “Fideicomiso” property ownership arrangement) and ask questions before you join. Should you join and change your mind for any reason, we offer a no-questions-asked full refund for the first year.
Can I use it as a rental property?
The units are designated for the use of the Occupancy Shareholders and their family and friends. You can make units available to your friends and family during your scheduled time, but you can’t rent them out.