Costa Rica is a country that invokes classic images of paradise in the minds of many people – parrots flying up and down white sand beaches, waterfall surrounded by giant rainforest trees, perfect waves for surfing, and a “tranquilo” lifestyle, like Hawaii in the old days.
To a large extent, all these images are true, but the reality is a bit different. While Costa Rica is known for its huge national parks and protection of its ecosystems, the country is continually cash-strapped and unable to enforce its own laws. Local people in many parts of Costa Rica, not yet educated in environmental protection, still dig up turtle eggs, capture parrots for pets, pluck orchids out of the rainforests, and shoot wild animals for sport and meat. Beaches that have few people on them still have an abundance of trash that washes up – much of it from other nearby countries and as far away as China.
Costa Rica is also known as a country of peace. The current president, Oscar Arias, is one of the few world leaders who has won the Nobel Peace Price, for brokering peace treaties between rival factions in Nicaragua and helping with peace efforts in Guatemala, Honduras, and other countries in Central America. Costa Rica is one of the few countries in the world without an army. Kidnappings here are extremely uncommon. Rates of other violent crimes are much lower than most countries in Central America.
All of this has led to Costa Rica being “discovered” by Americans, Canadians, and Europeans as an ideal place to invest or move. Thousands of people, especially from North America, are buying land in Costa Rica, and have either already immigrated, or plan to in the near future. But despite all the investment pouring in, Costa Rica’s government lacks the tax law and enforcement to benefit, and thus funding for most government sectors – including schools, medical services, environmental protection, roads and other infrastructure and police, is severely lacking.
One company that sells Costa Rica real estate, Tropisphere, has come up with a business model that is not only successful, but helps its local community in ways that the government isn’t able. Tropisphere donates ten percent of all its sales commissions to a variety of local charities and projects, such as to improve schools and buy supplies, support conservation organizations such as Rainsong Wildlife Sanctuary, and the local health center.
Tropisphere has found that giving back is not only fun and rewarding, but it has its upsides. One of the owners, Geoff McCabe from Seattle, Washington, says, “We have found all things being equal, almost everyone searching for real estate in Costa Rica will choose us over a competitor that gives nothing back to the community. We get a lot of referrals from the people that live here, and many sellers prefer to work with us because of our values. It helps that the type of person who is thinking about buying in our part of Costa Rica is also the type of person who wants to support the community and is excited about what we’re doing.”
Tropisphere’s four owners not only have backgrounds in business, but also in holistic endeavors. All have immigrated to Costa Rica and have had children here, with no plans to go back to their home countries. Says Geoff, “We all feel a debt of gratitude to the Costa Rican people for allowing us to move to such a wonderful and beautiful place, and we hope that by doing this, we will not only be giving back more than we take, but we will also inspire other businesses to imitate us.” So far, it seems to be working. Several businesses, such as Grupo Lacon, the largest earth-moving and road-building company in the area, have joined with Tropisphere to work towards improving the local schools, some of which are nearly abandoned by the central government. They have leaky roofs and must hold benefits every month just to pay their light and water bills.
Handing out checks isn’t the only way that Tropisphere is giving back. The owners look to be personally involved in assisting the local community and making sure donation money is well-spent. Says Geoff, “Cash that is handed out tends to disappear unless its watched very carefully. We try to buy supplies, rather than giving money for the supplies. For example, when the roof needed replacing on a local school, my partner Rico did it with his construction team, rather than giving money to the school to do it. Many of the rich Costa Ricans in the area are sitting on millions of dollars in cash in their banks but don’t give much to improve their own schools because they’ve seen how their money has been mishandled in the past. We’re trying to show leadership in how to give effectively.”
Businesspeople may wonder how a company can give away 10% of the gross without going bankrupt. After all, people get excited in the U.S. by a company that gives away only 1% of profits. The key is that real estate is a booming business in Costa Rica, with rapidly escalating prices, and low expenses.
Currently, Tropisphere has four offices in a single region of Costa Rica, which is the southern Nicoya peninsula on the Pacific coast. The area is a transition zone between the drier north, and the rainy, buggy south, and so has a climate that many residents think is the best in Costa Rica. White sand beaches, waves for surfing, monkeys and parrots, and waterfalls all are in abundance in the area, which includes the beach towns of Montezuma, Tambor, Malpais and Santa Teresa.
This area is known as a haven for artists, environmentalists, and creative types of many varieties. Several celebrities in the fashion and music business have purchased properties or are building homes, far away from the paparazzi at home, which of course keeps sending prices higher. Many tourists are surprised to see prices that remind them of home, not what they’d expect in a third world country. The owners of Tropisphere see the prices going up until they match that of Hawaii, and then starting to level off. With that in mind, the prices still have two more doubling cycles to go through in the next five to seven years. Says Geoff, “Every property is going up rapidly in price. With the bubble bursting in the U.S. and real estate gurus telling people to buy overseas, we’re seeing more interest than ever. By buying smart, an investor should be able to double his or her investment here within two years.”
What does the future hold for Tropisphere? They are hoping to expand nationwide by offering franchises. Geoff says, “We intend to be the ‘alternative’ brand of real estate in Costa Rica and possibly all of Central America. We can show other businesspeople how they can succeed while doing something great for Costa Rica and their local areas. Every day we wake up feeling proud of what we’re doing and enjoy the respect of our communities. No amount of extra money can replace that.”
“Costa Rica is so beautiful it’s like a dream, says Geoff. It’s the best place in the world to live and unfortunately more and more people are discovering it and coming here. I’m just hoping to attract the right type of people who will help protect the area and not ruin it… maybe wishful thinking but we have to try, and 20 years from now I’ll always know I did my best.”
++++
www.tropisphere.com
Montezuma/Malpais Area Information
Contact Geoff McCabe
Loading...