Another Delay

I haven't written anything for the past 2 months. It’s been a combination of working very hard on getting my social media idea off the ground with end-of-summer family vacations sprinkled in.

The month of August delivered 2 major setbacks for the project that I wanted to write about today.

1. Our project experienced another delay

2. My largest investor asked to exit the deal

#1

I often hear that to get deals approved in Costa Rica, you had better be prepared to pay government officials under the table.

Now, I'm not saying I’m some Boy Scout who is unwilling to do what it takes to get my project approved, but I also have no interest in playing games that aren't sustainable. If I conclude that grift is a requirement in Costa Rica, then this deal will be my first and also my last.

I believed we would get our CFIA approval at the end of August. Instead, we were informed we would need to pull two more permits, which we were unaware of.

The first was to ensure we would not disrupt a nearby airstrip and the second was to follow procedures ensuring the integrity of the power grid. These permits are supposedly going to take 3 months to get approved (we became aware of them in August).

While this is very frustrating, I believe that all the issues that have delayed this project have been preventable mistakes, not systematic problems from within the Costa Rica government.

While I'm sure I could speed the process up by making some sort of payment to the right people, I would prefer to work through the system. This way, for my next project, I can get my approval within the first year by simply eliminating my previous mistakes.

We currently have the ability to mobilize equipment on the site even without our final approval, but we are now in the peak of the rainy season. We are planning to wait until the site dries out and when we have more clarity on when our final approval will be complete before we mobilize.

#2

My largest investor reached out last month and asked if she could exit the deal. I decided it would be best for me to buy her out. This, combined with our delayed approval, has made me second guessing my decision to rent units rather than sell them.

Previously, I could easily get to the end of the project with no problem, but since outlaying more capital, I am only capable of living for three years without a cash injection. I am also feeling more pressure as I have doubled down on the project, and I will certainly feel relieved when I can begin selling homes at profitable prices.

I am not planning on changing anything about the home if I am selling or renting at this point, so I will not make any final decisions yet.