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I purchased two acres from Paragon in their Phase 1 Heights of Pacifica in July 2004, at $12,000 per acre. I first visited the property in August 2004 at that time, there was NOTHING there.
By August 2005 there were dirt roads and some staking off to show where properties were. My two acres dropped off from the road at a 45 degree angle into a ravine where all the runoff water went.
One doesn’t need to be a civil engineer or construction contractor to know these properties were unbuildable because of the slope. I voiced my concern to Paragon – Bill Gale assured me they would fill the ravine and that the properties were indeed buildable.
I visited again in September 2005, and again was concerned because there had certainly been beaucoup runoff into the ravine that was my property. That same evening I was invited to dinner in San Jose by Bill Gale and his staff, including Julian Siegel and his partner Steve.
I was again assured the property was buildable: “We move dirt, it’s our business, we’re even setting up a paver factory because we have so much red clay dirt”.
In February 2007 my friend Kathy A (also an owner of 1 acre) went down to Paragon in Hollywood Florida and sat for three hours while Bill Gale blew smoke at us, telling how Phase 1 would have completed infrastructure and building could commence within 60 days.
Also how they would have sewer instead of septic, a larger water supply than required by the town of Parrita, roads paved with clay pavers, how all homes constructed would have auxilliary water pumping systems “unlike Los Suenos, where million dollar properties have only a trickle of water from the shower heads”, etc. We asked for a detailed report from their engineers about our three properties. This was supposed to be done by Julian Siegel.
Anyway, long story short, when it got down to it, I was told in May 2007 that those properties were NOT buildable, and certainly NOT subdividable.
I’m attaching a letter I sent to Bill Gale. I sent them back my paperwork, and they were supposed to move me over to Phase 2, Hills of Pacifica. I still do not have my paperwork back here in February 2008.
I think that other owners of Paragon Properties should be told about this situation. Since then, I’ve been passed on to Joni at Paragon, then received a call from Linda Marino (supposedly a customer service rep).
I vented my dissatisfaction to her, she passed me on to David Valentine, whom I spoke with this very morning and who is still waiting for the topographical reports from Paragon’s engineers regarding buildability on lots 70, 71, and 72 in Phase 2.
Gale told me these were lots owned by one of Paragon’s owners, Harry Jordan, and that he had to “beg” Mr. Jordan to switch my unbuildable lots in Phase 1 to these, where he also said “those are in Phase 2, they’re all ocean view”.
Valentine also told me this morning that no sewer system is planned, septic only. Here in Feb 2008 I still do not have my paperwork on the new lots in Phase 2.
Here’s the letter I set Bill Gale, which of course went unanswered.
Mr Bill Gale, Chairman
Paragon Properties
1115 S. 21st Ave.
Hollywood FL 33020
1 May 2007
Dear Mr. Gale,When my friend Kathy A and I purchased acreage in Phase 1, Heights of Pacifica in August 2004, we believed Paragon when we were told that infrastructure (electricity, phone lines, water and sewer or septic) would be completed in 18 months from date of purchase. As you know, that did not happen.
I inspected my acreage (lots 50 and 51, Phase 1, Heights of Pacifica) in August 2005. Those two lots fall off from the road at a 45 degree angle. I questioned whether that land was buildable. I believed you when you told me “the Costa Rican government would not let me sell that land to you if it was not buildable”. I believed you.
In September 2005 I traveled to Costa Rica and once again went to inspect my property. My tour guide was Jeffrey.
We drove down to my property on ATVs. Once again I reconfirmed that my property dropped off from the road downhill at a 45 degree angle, down to a ravine where all the water ran off. At a dinner later that evening, you told me not to worry, “our thing is moving mountains, your land is buildable”, etc. I believed you.
In 2006, back here in Florida, in telephone onversations, I believed you when you told me you had “more dirt that we know what to do with it” and that you had SO MUCH clay dirt that you were “opening a paver factory because we have so much dirt”. You told me you could fill my property. I believed you.
In Feb. 2007 my friend Kathy A and I drove to Ft Lauderdale (a 3 hour trip one-way) to meet with Julian Siegel, and coincidentally, you. I say coincidentally because Ms A and I were walking into Paragon Properties offices at the same time you were. You were surprised to see us.
The next 3 hours were spent listening to you tell us about how you were concentrating most of your efforts into Phase 1 Heights of Pacifica—roads, infrastructure, water, telephone, cable, electricity, sewer system even. We believed you when you told us and provided documentation that each acre in Phase 1 Heights of Pacifica was worth more than US$70,000. We believed you. We felt GREAT about our land investment with Paragon.
We believed you when you told us that for $400 we could subdivide our lots into quarter-acre lots that should fetch $25K each. We immediately expressed interest in subdividing our lots. Makes sense. I can sell off 1 acre of my property for $100K which gives me money to build my home on the remaining acre.
We believed Julian Siegel when he promised topographical reports on lots 49, 50, and 51 within “a week to 10 days” regarding subdivision and homesites. Subsequent phone conversations were stalling techniques. Our emails went unanswered. Finally, on April 28, 2007 I got a phone call from Julian Siegel.
“I guess, at this time, honesty is the best policy” he said. He went on to say lots 49, 50 and 51 in the Heights of Pacifica Phase 1 are NOT able to be subdivided, because of the slope. They’re happy to give back our initial investment (three years later at face value) or “work something out”. I told Julian I’ve been telling you this for nearly two years now. Accepting my initial investment nearly three years later is not an option for me.
Mr. Gale, please help me with this awkward situation. I believed you. I know you’ll make this right.
Sincerely yours,
Shawn McDermott
Melbourne, Florida USASorry to hear that you have had a tough time communicating with the decision makers at Paragon Shawn, please do let us know how you get on as I get dozens of emails every week from people asking about Paragon Properties and other similar operations.
One question that we get asked a lot – and perhaps you can help?
I believe this Heights of Pacifica was the first Paragon project no?
How many homes exactly have been built there so far in the last five years?
Scott Oliver – Founder
WeLoveCostaRica.comScott,
The Heights of Pacifica Phase 1 was/is indeed Paragon’s FIRST project.
How many homes have been built there in the last 5 years?
NONE. ZERO.
Reason? The infrastructure is still not complete. First Paragon promised infrastructure (roads, water supply, electricity) within a year of purchase.
They then modified that to 18 months. Here I am 29(!) months later. I’ve
supposedly been moved to Phase 2 Hills of Pacifica, and Paragon says Phase 2
infrastructure will be complete by end of April, 2008. I’m not holding my breath.
Shawn, Melbourne, FloridaI have to ask why in the world ANYONE would buy property sight unseen. As you see now you’re at the mercy of the developer. For the speculators and flippers it’s not a problem. They’re in and out before the music stops.I’ve said it before and I’ll say it again! There’s two things I tell everyone that gets the stars in their eyes and wants to jump into the CR real estate market. “Costa Rica is littered with the wreckage of dreamers!”, and “Another dirt road to nowhere!” The developers that spend more time developing their websites, glossy flyers, and getting people to invest sight unseen should be avoided at ALL cost!
This website provides great information for those thinking of investing in CR, read the postings, read the articles, contact members that have some experience, and do your homework!
Paragon is like the Iraqi invasion, everyone thinks it is a disaster because one million Iraqis have been killed and tens of thousands of poor schmucks just like you and I in the armed forces who joined up to fight for democracy (Ha!) are getting crippled and destroyed but the Halliburtons, Dick Cheneys and Rumsfelds of the world are making billions of dollars baby…
Paragon is clearly a disaster for their very stupid (I mean real Duhhhh!) buyers but Tashman who really calls the shots, his son Julian, Bill Gale etc are all making hunderds of millions of dollars baby.
In one of Paragons websites which I saw http://www.buycostaricanland.com/corporate/introduction.htm it shows “Mr. Gale immediately recognized the enormous potential for developing residential communities in Costa Rica, and was convinced he could bring his expertise to acquire land, and to build homes at a realistic cost, while at the same time being in complete harmony with the country’s breathtaking and diverse environment.”
While the boys behind Paragon have probably made hundreds of millions of dollars and are laughing all the way to the bank and probably laughing at us too, Paragon has not built one home on the first project which they have had for about five years?
Sure is an impressive record in building “homes at a realistic cost” and “developing residential communities in Costa Rica.”
I bought in at $12K an acre–I’m wondering about others who bought in at $60K+ per hectare (2.47 acres) who have the funds to build NOW but can’t because of lack of infrastructure. Paragon assures me Phase 1 Heights of Pacifica is being completed by end of February and Phase 2 Hills of Pacifica will be complete end of April 2008. I told David Valentine just yesterday that “Lies come out of Paragon like fumes from a bus”. I can’t believe I’m the only buyer with this predicament–anybody else out there?
From [ https://www.welovecostarica.com/members/566.cfm ] which was published in 2004
Their ‘Reservation and Purchase Agreement’ states that ‘The infrastructure of roads, electricity and water will be substantially in place within 12 months from the date of this agreement.” So does that 12 month period start with your signature or the signature of the first of the supposed nearly 200 people that have previously purchased land?
The following would apply to the purchase of land anywhere …
Buying land anywhere in the world from someone you don’t know without seeing it first is simply insane no matter how good the ‘deal’ might sound…
* You must check out the property in the land registry to make sure the people asking you for the money are the people that actually own the land? No legitimate real estate sales professional would refuse this request?
And you should know that:
* If the land has not been legally divided into lots, you will not be able to find an individual title number for your land but…
* Unless you have the title number of that land, you can NOT determine whether there are any liens or encumbrances that may affect that land.
* Never, ever work with the seller’s attorney. Work with an attorney that protects you – the buyer and not the seller.
* Why are there no ‘people’ or ‘faces’ on many of these Costa Rica land for sale websites? What are they hiding?
* You do want to walk on the land and see ‘who’ and ‘what’ your neighbours will be right?
* Have you seen soil tests done by a qualified engineer? Do you know the area is not prone to flooding during the rainy season?
* Please also bear in mind that the Parrita area is prone to earthquakes too …
* Are there any possible drainage and erosion problems? Where will the rain water drain?
* If the property is on a hill that has been cut, get a ‘compaction test’ be done to ensure that the land is stable and can be safely built on.
* Get a ‘perk test’ done because you will probably have to put in your own septic system and this must drain properly right?
* Have you checked out the track record of the ‘developer?’ Have you spoken with some of their previous ‘satisfied’ clients?
* Have seen written ‘proof’ that the water, electricity and telephone lines are in place or shortly to be put in place?
If not, then run away! There is plenty of land for sale in Costa Rica.
Scott Oliver – Founder
WeLoveCostaRica.comA Florida USA lawsuit is NOT an option–would need to be a class action suit, with many people involved. My $24K investment would get eaten up by attorney’s fees in a blink of an eye, and you know how it is in the US legal system–he who has the best (ie MOST EXPENSIVE) attorney wins, just like he who has the most money wins. I think my only option at this time is to wait things out, however long it takes, and see if I can resell my holdings AFTER the infrastructure goes in, hopefully at a profit. Meanwhile, I’ll continue to enjoy all that Costa Rica has to offer by using my unlimited timeshare weeks at the four Occidental/Allegro hotels in CR 🙂
Resell to who?
Who on earth would want to buy this land from you?
Or are you going to lie to people too and tell people they can build on it knowing that they can not?
Turkish, I don’t lie to ANYBODY. After roads/water/electricity go in (supposedly by end of April 08) the property can be built on. My UNbuildable lots in Phase 1 have been swapped out for BUILDable lots in Phase 2.
Have you seen the new lots they want to give you? Have you checked them? Have you checked the title on these new and improved lots?
So now you believe them when they say that after five long years they will have the roads done by April 2008?
Why would you believe them now?
1. Hasn’t been 5 years–read the posts above, 3.5 years
2. If the title on these 2 lots are the same as the ones I swapped out (which I had, including plot map etc issued by CR title office) they’re legit
3. What’s another 90 days after 3.5 years? I can wait–patience is a virtue.
Did you have a bad experience with Paragon?What is interesting to me is that Shawn is looking for other people who have bought with Paragon to share experiences. Whenever one of these threads start, it’s like this deafening quiet from the hundreds or thousands of people who have bought these lots. Maybe it’s the inevitable people who call them stupid or threats of retribution from Paragon. There are other groups that have started websites that give people a forum to talk about bad developers. One of those is http://www.ventanasdelpacifico.biz. Maybe your only power Shawn is in numbers and finding other property owners who aren’t afraid to stand up to these guys. As Scott will tell you though, be careful because Costa Rica has strong anti-defamation laws.
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