[nera]

Hi Fision,

Sorry, nothing new to report since my last post to Denny on 12 October. I e mailed Costa Developers this afternoon and asked for a project update ; I haven’t received one for some time now.

I did get an e mail from their Florida sales office today mentioning that the Hyatt Corporation is going to build a new Hotel at Esterillos. Maybe Scott can confirm that piece of infomation.

As far as their legitmacy is concerned, they do appear to have everything in order. However one must be aware that being legit doesn’t mean they are going to fullfull the obligations of their contracts. I took a chance just like any other investor in that this development is going to succeed.

My best,
NERA

[nera]

Hello Denny,

Can’t say anything smells just yet. I firmly agree their sales staff are persistant and do put a lot of pressure on perspective buyers. However, their saleries for the most part based on commission so I wont fault them for trying to earn a buck. The real question is: what is going on at the Esterillos project?

When I was there at the end of July the roads inside the development were graded (not paved) and some drainage was currently in place. I was promised monthly updates via e mail but only received one to date. Hopefully the project is progressing at a steady pace regardless of the weather. To be honest, I’ll feel a little more at ease when the water lines are installed to individual lots (not the front enterence) of the development. I’m not certain if this work has been started to date (Question to ask). What about electricity and telephone? Haven’t got any info yet, although it may not be scheduled until later this year or next. (I’ll look at my sales contract tonight and get the construction schedule they signed when I made my purchase)

One important question you may want to ask your boiler room buddy: I was told that Costa Developers was in the process of purchasing 1 hector of beachfront property for construction of a recreation center excusively for residence only. The contract for sale was to be finalized NL than August 18th. To date I have received no confirmation either way of the pending sale. This is an important facet because having access to the beach with ammenities such as changing rooms/showers and a place to eat is very important. (demand the folio number)

I’ve been out of town for a while and havent had much of a chance to follow up on progress at the site. If you get any additional info please pass it along, I would greatly appreciate it.

NERA

[nera]

Recieved my TRIM notice a couple of weeks back…I have a second home in Cape Coral which I intend to retire at in 2 years. I was stunned when I saw that my property taxes increased another 1,200.00 in 2006. Since I’m not homestead eligible, my tax bill was $35.00 less than my neighbor who just built a 4,300 square foot, 650,000 dollar home two years ago (my house is 1,800 sq ft). If these increases stay the course, I won’t be able to afford the property taxes when the time comes, with or without homestead.

Anyway my wife and I just purchased a lot near Jaco and are beginning to rethink are long tem plans. I feel the only draw back in moving to CR would be bordom setting in within a few months.

I Would like to hear from other active “early boomers” who have relocated to CR, and how they keep themselves busy.

Regards
NERA

[nera]

Hello Scott;

The invitation extended by Mr. Bonilla appears genuine and it would be reassuring knowing that an individual such as yourself visited their offices in Escazu. If you do have a little free time I’m certain the readers of this bb would appreciate any feedback that you may offer.

Sincerely,
NERA

[nera]

Rebecca,

I also became very concerned upon reading this post and immediately E mailed CD and requested their response. Apparently my e mail was forwarded to Mr. Bonilla who did respond. However I was disappointed that Costa Developers did not respond personally with a simple yes or no answer considering I purchased two lots in the Costa Esterillos project myself.

Your information regarding Elis Kahn is correct. Aside from his past (which was not real estate related), I couldn’t find any valid reason for not purchasing this property. The people developing this project appear to have all the right answers. But as I mentioned in one of my previous posts, I would advise any prospective purchaser to have your own CR attorney review the purchase contract before signing. “There are certain addumdums that could be included that may provide additional protection to the buyer should something go wrong.”

NERA

[nera]

Costa Developers and Costa Land Developers share the same CEO. I am not aware of any project, or pending project that Costa Land Developers is involved in. Maybe someone else can shed some light on this marriage.

NERA

[nera]

Costa Developers and Costa Land Developers share the same CEO. I am not aware of any project, or pending project that Costa Land Developers is involved in. Maybe someone else can shed some light on this marriage.

NERA

[nera]

Just returned from CR last week and toured Costa Esterillos site with one of their sales staff. The project was recently just started and therefore very little infersteructure has been built to date. Your correct in saying that Costa Developers Marketing does run a “boiler room” type sales office in the states however, their San Jose staff consisting of civil engineers, attornys and sales personal appear to be upfront individuals determined to complete both of these projects as planned.

I have also done some investigation, and aside from a CEO that has had legal problems in the past, everything thing about this project checks out. If completed as planned, Costa Esterillos will be a premeire community that could appreciate in value 2 fold once completed. The big question is, will they complete this development? I’m betting yes and thus purchased a couple of lots myself. Like with most pre development projects there always is a chance that something could go wrong but in this case I believe the odds are in my favor. A word of advise, before signing any sales agreement, have your own attorny read the fine print because a few changes will be in order.

NERA

[nera]

Good point David about a purchase option pending registration. The Property we’re discussing has selling documents pending in the National Registry. If I understand correctly the transfer documents have been annotated and are going through the process of registration.

However as was mentioned previously in this forum, the developer could cease development of the property and leave the buyer with nothing prior to making the finial payment in two years. Any thoughts?

NERA

[nera]

Hello Maravilla,

I understand what you are saying but I feel as though I’m being looked at like some idiot who has no business purchasing property outside their own neighborhood.

But just for the record I am certain that in the US, there are numerious land developers who sell properties without owning one square inch of dirt. I don’t understand the mechanics of such dealings but one case in point is Pelican Bay near Naples Florida. From it’s conception in 1973 one company owned the entire 10 square miles of this development. Many developers competed for the right to build in different sections of this community. And my folks ended up purchasing their home from such a developer who in turn gained release of title from the owner company upon closing.

Does the US work the same way as CR? Absolutly not! That’s why I am on the forum trying to gain as much knowledge as possible prior to making such a big decision.

NERA

By the way property in Pelican Bay goes from $600,000 US to well over 35,000,000.

[nera]

Yes; in answer to your question Scott.

However it’s important to note that Mr. Fernandez mentioned that the “property in question does not pose any major concern to a possible buyer.” However he did add that the buyer must exercise care and complete the necessary steps in order to secure title.

Any additional thoughts, comments and or personal experiences would be appreciated.

NERA

[nera]

Hi:

I did ask if I could purchase the lots outright without extending payments for two years. I would feel more secure in this type of transaction becaue as Scott mentioned, should the developer decided to pack up and leave town, at least I would have a piece of property registered in my name. The road may not be paved and the water may not be completly installed…at least that piece of dirt is mine.

To answer your question, Costa Developers hesitantly agreed to accept payment in full, however I was made to feel as though I was insane for asking such a question.

Don’t get me wrong this outfit may prove be a good developer, time will tell. However since they do not own this property coupled with the possibility that something could go array within two years; I’m either going to either opt out of the deal or purchase this property outright. We’ll see what my attorney recommends.

NERA

[nera]

Jill & Scott,

Please provide your thoughts regarding Costa Developers Costa Montana and Costa Esterillos projects. I was told by their Attorney that “the lots are in the process of registration. What I will receive when I sign the contract is an original master plan, which shows the subdivision and exact location of each parcel. At closing (when I pay in full in two years) I will receive all the rest of the documents.”

Scott, I read your book and I don’t believe you covered this type of transaction. Is this type of purchase common with land developers and without a registered survey and folio number, how do I know what I’ve purchased?

Sincerely,
NERA

[nera]

Hi Violetta;

I have a little more info which I can share so I’m going to authorize Scott to forward you my E mail address. I believe the mutual interest we share would be better discussed outside the forum. Thanks and talk soon.

Nera

Haven’t heard from you as of this date. Did Scott forward you my address?

Edited on Jul 19, 2006 11:47

[nera]

Hi Jillstowe,

I’m getting more confused with each new post regarding Costa “whatever”. Considering I intend to purchase two lots from Costa Developers upon my inspection next month,I would like to make my decision from an educated standpoint. So please end my confusion…I need facts.

1. You implied that Costa Developers is connected to Costalandsales.com/. Yes, they have the same link on the web, but how is this company tied with Costa Land Developers?

2. I couldn’t find the name Debbiesurf anywhere. Maybe I’m not looking in the correct place. What role and with whom was he involved in?

Regards,
NERA

[Author]

Posts