Infrastructure Bid

Last week, I wrote about how I've decided to focus on my first deal for now and drop out of my properties that were under contract.

This has been a painful transition because I was excited about the possibilities I was creating on these different projects. There are many reasons that I decided to pivot, but if I had to summarize, I could see that my performance on each project was going to suffer because I was expanding beyond my current capabilities.

My newsletter will shift from high-level information on potential new deals to more detailed information on our current deal.

As of now, our primary focus is selecting the company to handle our infrastructure needs.

When making this decision, several crucial factors need to be considered. Naturally, the total cost is very important.

Additionally, the company's experience and overall attitude are important.

Decisions of this nature often rely on intuition. Our goal is to find a company with the right balance of experience without being too large to prioritize our project.

We're currently getting six different bids. We've already received two of these bids, and as usual, in Costa Rica, there's a significant disparity between them.

The initial bid we received totaled 3.9 million, surpassing my initial expectation by 1.5 million. This figure was higher than expected, considering my discussions with other builders and evaluations of similar projects.

Conversely, the second bid came in at 2.5 million, aligning more closely with our expectations.

Bid comparisons can be complex due to variations in itemization. We have to spend hours combing through to ensure we compare apples to apples.

Overall, it appears our initial expectations are on track, with infrastructure costs likely to be closer to the 2.5 million mark. Staying within the budget of the second bid means we're poised to complete our lots for around 5 million, factoring in all costs, including land cost.

This is a win for us, considering that we believe the value of these lots will exceed $200,000 each upon the completion of the infrastructure. Our total value would be $8,400,000 before building the homes.

We'll continue to assess incoming bids and plan to select the company that best meets our requirements.