[URRACA]

The Oxford Club

We could all use some happy news these days -- especially when it comes to our global fight for freedom and democracy. Thankfully, we were rewarded this week with the election of Nicaragua's new president, pro-free-market businessman Enrique Bolanos. In case you haven't heard, Bolanos won by a wide margin, beating out the Sandinista leader, Daniel Ortega.

With this election and its outstanding voter turnout (over 80% participation!), the Nicaraguans asserted their intolerance for corruption and socialist policies in the region. Nicaragua confirmed to the world that it is a democratic nation. The new President, with a 6-year term in front of him, is highly regarded and foreign investment friendly. Former supporters of the Sandinista regime, Russia and Cuba, are strapped. Ortega, who has lost three elections is the last 12 years, is done.

This is not only wonderful news for the Nicaraguans, but for many Oxford Club members as well. A number of us have spent the last three years visiting this beautiful country to get in early before the world catches on. I've invested in land there, and I've made several great local friends and reliable contacts. Together, we've created a beautiful 4-bedroom Mediterranean-style Clubhouse overlooking the Pacific in the southern part of Nicaragua, just north of Costa Rica. Of course, you, as a fellow Oxfordian, have an open invitation to stay there anytime.

Other Oxford Club members have also bought land adjacent to where our Clubhouse is located on a 1,700-acre private community that is being expertly developed by International Living Properties. Several members have already built stunning seaside homes - some of them easily worthy of a feature spread in Architectural Digest. Prices are already on their way up, but it's not too late to get a good deal on land with access to pristine beaches and a view that shames anything you would find on the southern coast of California.

After last Sunday's elections, my Nica friends wrote to tell me that the mood there is exuberant. Everyone is expecting great things to happen very quickly. As you may know, many Nicaraguans fled their country in the 80s under Sandinista rule. Many have since returned and are leading the country's entrepreneurial revolution. Given the election results, they tell me more are sure to come back home. They'll bring more capital and more America know-how with them.

Since my own first visit there in 1998 I've seen a dramatic transformation take place. Sprouting up in Managua are Mercedes dealerships, five-star hotels (with internet access), large western-style shopping malls, fine steak and seafood restaurants, popular franchises like the Hard Rock café, a new expressway, and more. The airport was expanded and modernized, and top cruise lines are just beginning to make ports of call in San Juan del Sur.

Despite all the good news, Nicaragua faces daunting challenges, including grinding poverty, corruption, and declining exports. Nicaragua is bankrupt, crushed under the weight of millions of dollars in foreign debt. But under the "Heavily-indebted Poor Countries (HIPC) agreement reached last year with the IMF/World Bank, Nicaragua will have much of that debt waived...a lucky break for the new President. However, the fact remains that Nicaragua started from literally nothing (except whatever the Russians gave them) just 11 years ago. Now Nicaragua is on the fast track. And since Oxfordian investors like to buy on momentum, this presents us with a timely investment opportunity, especially in real estate.

Remember Costa Rica in the 1980s...when it was "the" haven for foreign retirees, travelers, and investors the world over? Today, Costa Rican prices are at a peak. That means greater investor attention will turn to its neighbor to the north, Nicaragua. If you've already invested there, congratulations! If you haven't...you may want to consider this yet-to-be- discovered paradise, as I and many other members have. Even though prices have been rising steadily since 1996, Nicaragua still offers the best oceanfront property deals in the Americas.

"If you don't at least check it out, in another 10 years, you'll be kicking yourself. Consider what could happen over the next five years. U.S. stocks might not go anywhere, as stocks are more expensive than they've ever been. Yet you could double your money in a smart Nicaraguan real estate investment. It's not unreasonable to expect Costa Rica-like returns. I believe some investors will turn $20,000 into $200,000 over the next 20 years."

We both recommend you spend some time and learn more about Nicaragua. And definitely, go down there before you buy anything and see it for yourself.

I hope you'll participate in this remarkable adventure -as an investor or just for the cruise. Everyone knows what an enjoyable destination Costa Rica is, and how well real estate investors have done there. On the other hand, Nicaragua is largely misunderstood (people still ask me if there's a war down there!). This perception will undoubtedly change quickly. And when it does, just remember, you heard about it here first.