We own approximately 10 acres of land in the Punta Perfecta Beach area of Mexico (the âLandâ). We have two (2) partly completed houses on the Land and plan to build up to 17 more, as well as use some of it for common areas and infrastructure for the development (the âProjectâ). We have an onsite experienced construction manager, so we are acting as our own general contractor, which we believe will reduce our costs in finishing this development. The Project is near recreational activities, including excellent surfing, skin and scuba diving. For most people who live in California, Arizona, Utah and Nevada, it is a 2 or 3 hour flight to the international airport at San Jose de Cabo, Mexico. Also, people living in western Canada often vacation in this area during the winter. We plan to sell timeshare units in the houses that we will build. Because it is almost impossible to get a mortgage to buy a house in Mexico, timeshares become a good alternative to buying a house that may only be occupied for part of the year. Also, the developer of a project, such as we are, can finance timeshares on a short-term basis. Assuming we have the capital to do this, we plan to offer timeshare financing to qualified buyers. We believe this will help sell units and will provide interest income to our company. We believe that since we already own the land for our project which was acquired at very reasonable prices and because we are acting as our own construction manager, we can pay good wages to our day labors and skilled craftsman and still have a cost advantage over other developments in the area. We believe our fully-build costs for the houses will be approximately $200 to $225 per square foot.
