Who wants to buy our home?

After nearly 2 years since purchasing this property, we are beginning the sales process. 

As we begin to sell the product, it will show if it was all worth it. 

I’ll spare you from too many details, but let me set the stage for our current situation. After locking in our 2 million dollar loan, we have enough liquidity to get through ⅘ of our infrastructure costs if you don’t include the amenities. We are now reliant on home sales to provide another 500K to get to completion. We will need about 5 homes to sell to extract the required liquidity through the deposit on the lot purchase. 

I will need to sell those before the infrastructure is finished, which makes that job much harder.

At this point, the liquidity is a formality as I can personally come up with the remaining liquidity needed. I am now playing a psychological game. 

I’ve bet everything I have on this company and project. 

I have done this in a market that has minimal comps, and the product has limited liquidity. I have also bet that building a high-end product will sell better with larger margins, which has required my cost basis per home to be much higher than I would have hoped for. 

I also convinced my brother and employees to move their families to a new country in hopes of building a business that has a sustainable future. 

If I am unable to sell any homes over the next few months, I will be forced to put the remaining money I have left into finishing the infrastructure and begin to sell personal assets in order to cover interest. I’m nervous that this will allow doubt to creep in that this was sustainable to begin with.

I’m not painting this picture to say ‘woah is me’ or to brag, but I want people to see that this is not easy. It’s also not my first time putting myself in a similar position. People who have read my X posts know that I’ve placed my chips in the middle before. 

If you want to compound your own capital at high rates, then the path you have to pursue is often VERY uncomfortable. 

One month ago, I offered everyone on this email an option to purchase the model home at cost. We have spent the last month refining the details on that model.

I am going to be into the model $800,000. Here is the breakdown on this. 

This home will be a 4 bedroom with 4 en-suite bathrooms. It will come with a 2 car garage. The house will come with a pool and a landscaped yard. It will also have a 1 bedroom casita. I don’t currently have a rendering of the casita, but it is simply a bedroom and bathroom combo, not a full home.

I’ve attached the floor plan with some renderings. We are still making minor tweaks to these plans, but this is very close to what the home will be.

We are going to break ground on this house next month, and I am expecting it to take 9 monhts to build. I believe this home will be worth over 1M when complete. If you’re interested, I can put you in direct contact with Spencer Hart, who is the person on the ground running our sales. 

We will also be staging the model with $50,000 worth of furniture. We would be willing to discount the furniture to the buyer if they decide to keep it after we finish using the model.