Purchase Property in Costa Rica by uiz16265


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									     Punta Leona
  Jaco, Costa Rica
Spec Home Investment Opportunity
Punta Leona is located on the central Pacific Coast of Costa Rica at the mouth of the Gulf
   of Nicoya. The private community comprises 800 acres of lush tropical rain forest
   opening up to two beautiful white sand beaches. Twenty minutes north of Jaco, Punta
   Leona is the closest beach city to the main airport of Costa Rica. With the completion of
   the new highway in early 2008, the drive time from San Jose to this beautiful community
   will be cut in half at just under one hour.
Punta Leona
We are proposing to buy land within Punta Leona’s private community and build 7-10 spec homes between
   3,600 and 5,000 square feet. Costs for a well built house equipped with wood flooring & ceilings,
   granite & stainless steel appliances, pool & jacuzzi average $100/sqft.
Neighboring property to the north of Punta Leona is Carara Bay’s fresh water protected marina. With construction
already underway, this development including 5 Star Hotel, 250 boat slips, 200 dry dock boat storage, commercial &
residential real estate is expected to dramatically increase the real estate prices in Punta Leona as the marina has
done in Los Suenos. With gorgeous white sand beaches, rain forest setting and a beautiful marina, we expect the
projected real estate prices will continue to rise.
Pre Eng. Tests:                     $10,000         Soil, Hydro & Topography Maps

Land:                               $1,066,800      We are expecting to spend roughly $152,400 per lot.

Closing Costs:                      $19,469.10      3.65% paid 50/50 buyer and seller

Title Insurance:                    $7,467.60       .7% up front. Credited back at sale of homes.

Hard Cost Construction:             $2,800,000.00   7 homes. 4,000sqft each. Based on $100/sqft.

Architecture & Engineering:         $105,000        We plan to use the same architect & engineer for all
                                                    homes. This will reduce costs all the way around
                                                    including time to design & build.

Permits:                            $21,000         Permits average about $3,000 per house.

Legal/Accounting:                   $35,000         Legal Fees to form LLC, Audit books, Tax Accounting
                                                    Costa Rica Attorneys to split lots, create CC&Rs and
                                                    sales & escrow.

Travel:                             $75,000         We are budgeting for about 30-40 Trips to complete the
                                                    purchase of land, architecture/egineering, permits, and over
                                                    see the building process.

Developers Fee:                     $232,940.33     Roughly 4.5% Developer Fee

Contingency:                        $291,315.00     Roughly 5% Contingency Monies

Construction Management:            $50,000.00      We propose to hire GCI to monitor day to day construction,
                                                    budget, scheduling, permits & quality control.
                           Total:   $3,212,550
                     Comps & Projected Profits
Current Local Comps:
   Los Suenos - $875/sqft
   Punta Leona - $360/sqft

Projected Comps for Punta Leona with Carrabay Construction Underway:
    Punta Leona - $600/sqft (Based on Conservative Median Price between current
    comps of Los Suenos & Punta Leona)

                             Projected Profits

Projected Gross Profits:
    $600/sqft Sale: 28,000sqft X $600/sqft = $16,800,000
    $450/sqft Sale: 28,000sqft X $450/sqft = $12,600,000
    $360/sqft Sale: 28,000sqft X $360/sqft = $10,080,000

Projected Net Profits:
    $600/sqft:       $16,800,000 - $5,589,404.03 = $11,210,595.97
    $450/sqft:       $12,600,000 - $5,366,646,53 = $7,233,353.47
    $360/sqft:       $10,080,000 - $5,232,992.03 = $4,847,007.97
                              Proposed Relationship
                                    50% Equity / 50% Promote

Equity Members will receive 50% of the membership interest in the LLC. All capital
invested in the LLC by equity members will be paid back in full before profits are
distributed. If the profits in the end do not give equity members at least a 50% return on
cash investment, promote members will reduce their share of the profits till this 50% return
is met. We are seeking to raise approximately $4,500,000.00 from equity members. This
number should fully fund the LLC to purchase the land and build seven 4000sqft spec

   Projected Net Profits:
   $600/sqft: $16,800,000 - $5,589,404.03 = $11,210,595.97
   (Approximately 125% return on $4,500,000 investment for equity members)

   $450/sqft: $12,600,000 - $5,366,646,53 = $7,233,353.47
   (Approximately 80% return on $4,500,000 investment for equity members)

   $360/sqft: $10,080,000 - $5,232,992.03 = $4,847,007.97
   (Approximately 54% return on $4,500,000 investment for equity members)

                 Note: These projected profits and returns on investment are pre tax.
If you are interest in equity membership interest in our Punta
   Leona, Costa Rica spec home project, please contact us.

                      Tim Sears
                Tel: 858.945.0132
             Email: tim@searsparty.com

                      Austin Birch
                   Tel: 858.864.7719
              Email: cannongc@aol.com

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