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.

BudgetPre 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

CompsCurrent Local Comps:

Los Suenos - $875/sqftPunta 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

Comps & Projected Profits

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 homes.

Proposed Relationship50% Equity / 50% Promote

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.

Chris Andreoli

Tel: 858.342.4444

Email: chris@advantagex.com