Ground-Up Construction Pacific Coast Mexico

[Tyler Peairs]

We're doing a ground-up construction project in a booming spot on the Pacific Coast of Mexico. I'll post updates here in case anyone wants to follow along.

We syndicated in the states to fundraise enough for architectural renders, entitlement, legal, and to pay off the land. 1/4 of total funds required have been deposited in our bank account.

Convinced a world-class architect to do luxury design for us. A-lister who designs for billionaires and celebrities.

In the process of staying on top of our fundraising leads and using our existing fundraising momentum to finish the equity phase and move onto design & sales strategy.

[Tyler Peairs]

We're roughly 1/2 done with fundraising and still have many prospects in our pipeline we need to drive. To assist us, we refined our pitch deck and performed some scenario analysis with our financial models. We discovered margins are high here and not all that sensitive to construction or sales price adjustments.

The design process is getting along well, but there is still much to be done. We have started to get some renderings to use for marketing and fundraising efforts.

Within the next two weeks, we will engage construction firms for engineering services and project RFP's. We have a pool of firms we've already met in-person and with whom we've done some site walk-throughs.

[Tyler Peairs]

We're far enough in our design process to require engineering services, so we've begun submitting RFP's to our pool of construction firms.

Received more funds this week but need to increase momentum to meet our fee schedule. This being said, putting tons of pressure on the team to generate more investor leads.

[Tyler Peairs]

Still waiting on engineering services quotes. Deadlines are almost a foreign concept in Mexico, so we've learned to set them far in advance of our desired schedule.

70% funded. We're considering a mezzanine loan to get to pre-sale phase. The dollar-peso exchange rate benefited us with respect to fees, so we have some extra class A shares we can use as collateral. 

[Tyler Peairs]

We secured a 200k USD senior debt position which allows us to avoid raising so much equity. The 18% rate from the lender is the same as our preferred return.

We consider this more a bridge loan as it gets us to the pre-sale stage, and we can use pre-sale funds to pay off this debt position, essentially refinancing.

[Tyler Peairs]

We decided on an engineering services partner this week. You typically don't want to split up construction and engineering services/planning here, but we did this to let us see how well we work with the firm.

It's probable, if we work well together, they will also be our GC. It's expensive in Mexican development to switch providers after this planning phase.

[Tyler Peairs]

Our engineering team finishes in roughly 2-3 weeks with no major modifications required to our initial architectural plan. We've been working well with them and see ourselves hiring them as a GC.

We have 100k left to fundraise but plenty of investor pipeline to get us there. We see fundraising wrapping up within the next 2-3 weeks.

We're going to begin to put together pre-sale marketing collateral and contracts towards the end of this week. The tourist high season has arrived, so we'll have plenty of demand to accommodate us. The first international route from Houston to our local airport opens in April of next year, so we're going to heavily target US buyers.