Fractional Vineyard Ownership

LA VIDA BUENA VINEYARDS How many of us have dreamed of owning a vineyard, picturing ourselves leisurely walking among our very own vines, hand picking grapes at harvest …

LA VIDA BUENA VINEYARDS

How many of us have dreamed of owning a vineyard, picturing ourselves leisurely walking among our very own vines, hand picking grapes at harvest time and watching them carted of to a Bodega to be magically turned into a delicate, delicious wine?

Pondering the possibility of owning a vineyard is a universal dream shared by millions of people around the globe and has been occupying their fanciful thoughts for thousands of years

But as we well know reality often smothers the flames of fantasy and by the time we are ready to make our move, for example buying a vineyard in Napa or Sonoma, the price for that “dream” can have already soared beyond the reach of our pocketbook and outside of our comfort zone of what we consider a “prudent investment” for our hard earned dollars.

Fractional Ownerships have become very popular for many reasons and understandably a viable alternative to traditional real estate ownership. Knowing that one will not be using a home or condo 52 weeks a year but still being expected to pony up and pay 100% for the item followed by 100% annual expenses has motivated many investors not to abandon their dreams, rather to take a serious look at another approach of capturing that dream, the “Fractional Ownership”.

Fractional Ownerships are now offered for:

  1. Luxury Condos and Homes
  2. Luxury Automobiles
  3. Luxury Yachts
  4. Luxury Jet Airplanes
  5. Luxury Art (yes, you can have a Picasso or Renoir on your wall part of the year)

La Vida Buena Offers 1/25th Vineyard Fractional Ownerships

Here is your opportunity to “put your toe” in the water and later on if you want to take the proverbial “plunge” and purchase 100% ownership of a La Vida Buena Argentine Boutique Vineyard your initial investment in the La Vida Buena Fractional Ownership will be fully credited plus an additional 10% profit. That is how confident La Vida Buena is about the value of its Fractional Ownership Program.

US$12,000 Investment for a 1/25th Vineyard Fractional Ownership

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La Vida Buena Vineyards has made it possible for you to own part of a professionally planted and managed 10 acre Malbec vineyard that is nourished by the melting snow from the nearby Andes Mountains and where the water is delivered by the meandering Atuel and Diamante rivers.

What can I expect my US$12,000 investment to produce in income?

This is an excellent question and the answer depends of many variables, however, there are certain equations that can be utilized to arrive at realistic income estimates and that are employed by many large, long established vineyards.

Before you delve into the figures below bear in mind that enhanced vineyard profitability requires 50+ acres (the major reason behind the La Vida Buena Vineyard’s 108 acre development) plus a worker’s house, tractor with implements, several vineyard workers, Vineyard Manager, Agronomist, Accountant and an Enologist to help produce great wine.

It may sound daunting, however, attractive returns can be realized by a smaller vineyard, like a La Vida Buena 10 acre fractional plus a 2 bedroom 2 bath Casita that adds both charm and additional income through its rental program and when available, can be used by the fractional vineyards owners at no cost when visiting their investment.

IRA Qualified

Yes, the investment is IRA qualified, however, if your IRA owns the Fractional Vineyard Investment you cannot use the Casita, take grapes and make wine or accept wine made from the fractional vineyard’s grapes. But there are plenty of other wines to enjoy and lovely rentals to stay.

US$12,000 Per Investment Increment

Newly Planted in 2010  –  10 Acre Malbec Vineyard

Grape Yield Kgs.Price Per Kg. Gross Income USD
2011 Year #1-0-N/A
2011 Year #2-0-N/A
2011 Year #320,000AR Peso 2.5  US$12,820.00/PI*$513.00
2011 Year #430,000AR Peso3.0  US$23,077.00/PI* $923.00
2011 Year #5 40,000AR Peso 3.5 US$35,898.00/PI *$1,436.00 

*Per Individual Investment

A Vineyard Can Offer A Quite Respectable ROE, 15.5% and ROI, 25.5%

In Year #5, after deducting vineyard expenses of maintenance, water, taxes, harvesting costs (someone has to pick 88,000 pounds of grapes and cart them of to the Winery) your investment of US$12,000 would yield an annual net income of $908 for a ROE of 7.6% and a ROI over 17.6%.

If we factor in the Casita Net Income at year 5, although it is cash flowing at year #1, a single investment increment of US$12,000 would generate US$1,898.00 in annual pre-tax income for a combined ROE of 15.5% and ROI o 25.5%.

Now that is something to consider especially with exports of Argentine wine are enjoying solid returns and exponential growth: USA ranks #1 for imports that increased 43% in 2008, 41% in 2009 and is up 19% the first five months of 2010. Canada ranks 2nd for imports and is Brazil now 3rd.

Robert Parker Jr., Rates Argentine Malbec Wines 95+ points

Add to the latter robust figures the fact that Robert Parker Jr., world renown Wine Critic, has graced many Argentine wines with ratings from 92 – 99 points and Wine Spectator that just recently released a long list of Argentine wines, red and white, that ranked between 87 – 90 points, the stage is set for you to take advantage of this opportunity..

If you would like to see how the Vineyard planting process evolves (42 color slide power point) and the “bottom line” numbers on a Pro-Forma for a 10 Acre Malbec Vineyard with Rental Casita please respond and I will send them to you by email with attachments.

Sincerely,

Tom Phelan
La Vida Buena Vineyards and Wine Club
 

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