FAQ

1. What are Fractional-Ownership Clubs?

Fractional Ownership Clubs are organizations designed to let individuals have actual titled ownership of an exclusive piece of a large property. Markinch Realty Corp. (MRC) is uniquely applying the Fractional Ownership Club concept to Hotels.

2. How does your Fractional Ownership concept work?

First the Real Estate professionals at MRC acquire Hotels in high profile, high traffic tourist areas. These Hotels must either be high profile luxury Hotels or have the obvious potential to become 4 or 5 star establishments.

They then divide these properties into Fractional Ownership Units (FOUs). Each FOU represents a particular suite for a specified period of time per year. Each FOU is actual titled ownership and is held by MRC’s wholly owned subsidiary Business Vacations International Holdings (BVIH). BVIH holds these units in trust for the individual owner and issues a legally binding Trust Document representing the units. With this unique structure the operation management and maintenance may be done at no cost to the members and they may have the opportunity to place their unit in a rental management arrangement when the unit is not being owner occupied. The Club members have options as owners, they may;

• Make use of their luxury hotel suite or residence.
• Have the opportunity, through a rental agency, to have the unit rented and share in the hotel revenue from that unit.
• Rent or give their unit to friends or relatives, subject to the minimum maintenance requirements if not rented through the rental agency.

3. Why apply this concept to Hotels, what is the advantage?

The Hotels that MRC focuses on are, or will be, at the luxury end of the scale in high profile, high traffic tourist areas and are going concerns before acquisition. The infrastructure of a successful hotel makes it possible to continue to manage and operate at a profit while offering fractional units that will increase cash flow and provide funds for upgrading and improvements. Imagine having your second home that includes maid service, room service, valet service and all the amenities of a luxury Hotel at your disposal. The concept is being very well received and growing quickly.

4. Is there a financial advantage to me in being a Club member?

Yes. Your membership not only has privileges but also has good upside potential financially. Your FOU represents ownership of the property and the asset (Hotel). As the property increases in value the value of your ownership does as well. As the asset increases in value through upgrades and popularity the value of your FOU should as well. FOUs are also becoming more valuable as the concept gets understood and demand exceeds supply.

5. Why participate in your Fractional Ownership concept versus investing in commercial or residential income producing properties?

Management has identified trends in the economy which are conducive to hotel/resort development and are concentrating efforts in this area. Of course hotel profits, while subject to the nuances of shifting economic times, tend to provide an above average IRR for the principals or shareholders. ROI can usually outperform most mutual funds with less perceived risk for the investor. Add to this formula, the ability to fractionalize the units’ results in additional cash flow which is used to pay off mortgage debt and purchase more property. We do not shy away from good income producing properties or land banking opportunities that offer almost tax free income or profits for us and our “associated investors”.

6. What is an “associated investor”?

Once an individual or corporation becomes either a shareholder of MRC or a BVIH Club member, they are entitled to all the privileges of that ownership and as such may become “associated investors” through participation in various offshore income-producing realty investments. BVIH has strategic alliances with many entities and the Off-Shore Equity Builder Fund (OEBF) is one example. BVIH conducts seminars and awareness campaigns regularly where investors can learn more about these opportunities.

7. Is there another way to participate in this concept, I think it is viable but don’t want to travel?

MRC is undergoing an aggressive expansion campaign to capitalize on current opportunities in the Caribbean Real Estate market. To finance this campaign MRC is planning to offer treasury shares in the Company by way of a Private Placement, there is no current offering available. NOTE: A private Canadian company offering treasury shares to the public is not required to be registered with a provincial securities regulator, but is required to register the name, address, and shareholdings of any and all shareholders upon closing of a treasury issue, within each province where individuals, or corporations, acquire such treasury shares. Canada's securities regulators limit the distribution of Treasury Shares in MRC to 'Accredited Investors' only, at this time.

Do you qualify?

The narrow definition of an 'Accredited Investor' is an individual with a net worth of over $1,000,000 or an annual income, from all sources before taxes, of over $200,000 for each of the last two years.

If you meet one or both of these criteria please contact our Investor Relations department to discuss our company.

8. Why the Dominican Republic?

We chose the Dominican Republic. We examined and rated many, many locations and carefully considered many factors from weather patterns to political stability in our rating system. The DR came out on top so we decided to concentrate there. The DR’s beauty and appeal is only now being ‘discovered’ by North Americans. American hospitality companies and celebrities are starting to pour their money into DR real estate. Developers like Trump, celebrities like Brad Pitt and Hotel behemoths like Hilton, Hyatt and others are getting a foothold in the DR now. And why not? The beaches are among the finest in the world and land values are still very affordable compared to other parts of the Caribbean. Modern infrastructure blends with local colour to appeal to just about everyone.