Click any term to learn more. Hover over abbreviations throughout the site to see their full form.
Investment Structure
Fractional Real Estate
FRE
Owning a percentage share of a property rather than 100% of it. Traveling Wahoo's planned program would let investors buy fractions of individual properties, receiving a proportional share of rental income and appreciation. It lowers the barrier to entry and enables diversification across multiple properties.
SRL
Soc. de Responsabilidad Limitada
The Dominican equivalent of a US LLC. In Traveling Wahoo's planned program, each investment, whether a property, hotel or business, will be held inside its own Dominican SRL, and investors will own their shares (cuotas) directly in that SRL.
PPM
Private Placement Memorandum
A formal legal disclosure document provided to prospective investors before any securities offering. It covers risks, financials, management structure, use of proceeds, and investor rights. Any future Traveling Wahoo offering will be made only through formal offering documents.
Reg D / Rule 506(c)
SEC Regulation D
A US Securities and Exchange Commission exemption that allows companies to raise capital from accredited investors without registering the securities publicly. Rule 506(c) permits general solicitation (advertising) but requires the company to verify each investor's accredited status. Any future Traveling Wahoo offering is expected to be made under 506(c).
Accredited Investor
An individual (or entity) that meets the SEC's financial sophistication threshold: net worth exceeding $1 million (excluding primary residence), OR annual income exceeding $200,000 ($300,000 joint) in each of the last two years with expectation of the same. Certain professional certifications (Series 7, 65, 82) also qualify. Only accredited investors would be eligible for any future Traveling Wahoo offering.
Return Metrics
IRR
Internal Rate of Return
The annualized rate of return that makes the net present value of all cash flows (in and out) equal to zero. IRR accounts for the time value of money: a dollar returned in Year 1 is worth more than one returned in Year 5.
ROIC
Return on Invested Capital
The total cumulative return expressed as a percentage of initial capital invested.
Equity Multiple
Total distributions received divided by capital invested. An equity multiple of 1.85× means every $1 invested returns $1.85 over the hold period.
Cap Rate
Capitalization Rate
Annual net operating income divided by property value. A measure of rental yield independent of financing. A 7% cap rate means a $500,000 property generates $35,000/yr net income.
Cash-on-Cash Return
Annual pre-tax cash flow divided by total cash invested. Unlike IRR, it doesn't account for time value. A useful quick measure of annual income yield on your investment.
Dominican Republic: Legal & Tax
The Dominican Republic's Tourism Development Law, enacted in 2001 and extended through subsequent legislation. It offers approved tourism projects incentives that can include exemptions from property transfer tax, the IPI property tax, certain income taxes and import duties, generally for up to 15 years. Benefits depend on project approval and current law.
Pensionado Visa
Law 171-07
A Dominican permanent residency program for retirees and passive-income earners. Qualifying income sources include Social Security, pension payments, and investment distributions. The program has offered benefits such as customs exemptions on household goods; confirm current benefits with an immigration attorney. US military veterans may qualify through pension or VA disability income. See the For Veterans section for details.
IPI
Impuesto al Patrimonio Inmobiliario
The Dominican Republic's annual property tax, assessed at 1% of the value above an exemption threshold that is adjusted each year. Properties in CONFOTUR-approved projects may be exempt from IPI during the certification period.
Title Certificate
Certificado de Título
The official Dominican land title document issued by the Title Registry (Registro de Títulos). The DR uses a Torrens title system, so clear, government-registered title is what you want. Traveling Wahoo plans to verify clean title on every property before purchase. Foreign investors have the same title rights as Dominican nationals.
Property & Management
A furnished property rented nightly or weekly, typically through Airbnb, VRBO, or Booking.com. In the DR's tourism areas, STRs can earn higher per-night rates than long-term leases. Properties in the planned program are expected to operate as STRs, with professional property management handling bookings, cleaning, and guest services.
Occupancy Rate
The percentage of nights a rental is booked over a given period.
HOA
Homeowners Association
A community management organization that maintains shared amenities (pools, gardens, security, common areas) and collects monthly fees from owners. Most condo developments in the DR have HOAs. HOA fees should always be factored into a property's net operating income.
Pre-Construction
Purchasing a property before or during its construction phase, often at a discount to its expected completed value. Pre-construction buyers accept delivery risk (timeline, quality) in exchange for appreciation upside from Day 1. Both completed and pre-construction properties can be considered opportunities.