Weekly Update

Here are a few of the updates over the last two weeks.

I bought a bunch of camera equipment so that we can begin capturing Instagram and TikTok content for our rentals. Here is a snippet of some of the first two days content. 

I’m sure over the next few months we’ll get much better with the new equipment. 

We have marked all the property's trees by priority and staked on the current lots. 

I have hundreds of photos like this with the trees marked by priority with ribbons. This will allow us to adjust the grading plan to preserve certain trees and also give us guidance as we are currently designing the first few homes. 

We are also finalizing negotiations on a few line items with our preferred developer and will hopefully mobilize equipment soon. 

Reflections on turning 30 

I turned 30 this week.

At 20 years old, I returned from an LDS mission with 2 goals for the decade.

1. I wanted to create a quality marriage and have a handful of kids

2. I wanted to create enough ‘passive income’ to replace a middle class income

I reached both of those goals.

I had to give up many things to reach those two goals.

• My golf handicap is now much higher 

• I rarely watch the latest movie or TV show

• I can no longer compete in any video games 

• I missed out on some fun trips

Do I have regrets?

Yeah, a few. 

The biggest is when I let goal #2 get ahead of goal #1.

I'm going into my 30s, trying to determine what my new goals should be. I've spent months reflecting on this and decided on the following goals.

1. I want to maintain/strengthen my marriage. 

2. I want my children to go into their teenage years with strong character.

3. I’d like my two partners/employees to replicate my current financial position.

Goal #3 allows me to play my favorite game with the same vigor that I did last decade.

If I accomplish my goals in my current development, I’m very confident that I will accomplish goal #3. 

Those two partners will need to take that win and do it another time or two, but they will get there if we’re successful with this project.

One last goal I have is to finalize my original Goal #2 of creating passive income. 

If I sold everything today and bought treasuries, I could technically provide my needed income. Instead, I have nearly everything invested in this deal. 

I would like to construct a portfolio by the end of this deal that takes the edge off of everyday life. I know my kids need my attention, and it’s hard to do that when I’m playing high stakes games. 

Once this deal is constructed, I believe that, between the rental income and a combination of a few other assets, I can construct a portfolio that would satisfy this desire.

I hope the two being trained now will be in a place where I can ride on their coattails on the next couple of deals. 

Why I moved my business from Utah to Costa Rica Reason’s 9 & 10

Reason #9 Zoning Regulations

I met with a Costa Rica senator who helped transition Grecia into a new manufacturing hub. 

He did this by shifting San Jose's downtown zone eastward, removing Grecia and the surrounding areas. This opened up the opportunity to create more “free zones” since San Jose had run out of opportunities to build more. 

We spent a couple of hours together reviewing the zoning map of the area, and I was salivating over the idea of grabbing a few pieces inside some newly formed manufacturing zone. This quickly changed when I understood that I could essentially turn any of the land into a manufacturing zone. 

The limitation of the change wasn’t about politics, but it was about resources (utilities).

As I explored the idea of buying land all over the country last year, I was amazed to learn how easy it was to create all sorts of different developments for business, hospitality, and residential use. It reminded me of how I perceived the USA as a kid. I was always taught we were so great because we had property rights!

This is pretty ironic because the beginning of my career has been filled with trying to get the local government to approve projects that are already within the written law, which is already unbelievably restrictive. 

I’ve watched two different private schools in my current hometown get run out by the local government because residents didn’t want to either 

1. Allow schools to be built in a residential zone

2. Limit alcohol consumption in their commercial zones

These limitations on freedom make creating new developments and, as a result, better living circumstances very difficult in most of America. 

People don’t realize how much we lose out because of these regulations. It’s not just about building affordable housing, which has become front and center, but it’s also about quality of life.

As the expansion of our suburbs stays bureaucratic and boring, other countries are building cities that will be much more enjoyable to live in.  

#10 Education & Crime

Education

I wanted to keep my list within 10 points, but I also wanted to touch on both of these items.

I moved my business to Costa Rica for economic reasons, which I’ve outlined in the previous letters. When I toured the local school for my development, I suddenly had a strong desire to move my family too.

I toured multiple private schools and was BLOWN AWAY by how much better the experience was compared to what was available in Utah. 

As I’ve considered why that was, I realized it is the same reason home building works: the economic system is balanced. They can hire better teachers and provide better amenities at a much lower cost. 

Now my comparison was only done with Utah and Costa Rica private schools. There are areas in the US where this comparison might not be so dramatic. 

Crime

I have now spent multiple months traveling all over Costa Rica, including a full day in the most dangerous parts of San Jose. I was given a tour of units by someone who builds affordable housing in these areas and got up close and personal with those neighborhoods.

I can assure anyone that Costa Rica feels extremely safe and clean. 

I have seen up close how Costa Ricans deal with homelessness and crime. While nothing is perfect, I can say that I would feel significantly more comfortable with my Daughter living in any Costa Rican city I’ve explored compared to any US urban city that I’ve visited or lived in. 

Countries that prioritize safety will attract people. I know plenty of families that have left cities for safety. Costa Rica offers the upside of more urban benefits like restaurants and social events without the downside of high crime.