1.   How will the initial funds be handled?

 

We are working on documentation which we will give to the bank we plan to use, probably Bank of America.  This will basically say that no money will be spent for any reason, except for attorneys fees and other purchase expenses  until we have purchased the property free and clear.  We are all, still paying our own way for anything and everything until we have total ownership of the land.  The land purchase will require $5.5 million.  The other $2.7 million will be used for roads, bridges, surveying, construction, and other project expenses.  This will put us in a position to start selling lots and building homes.  If we fall short of the 50 investors, we will make the land owners a discounted offer on the land, if all investors vote in favour of this.  The terms of the bank account are open to all investors.   Tell me what it takes to make you feel comfortable and we will put it in the documentation.   I plan to require 2 signatures on the checks, mine and someone else that you guys select.

 

2.  What is step 2?

 

After we own the land and are in the process of building roads and bridges and laying out lots, we plan to sell another 20, one percent ownerships, just like the first sale but it will cost $300,000 at this point in time.  This will raise $6 million.  These funds will be used to “start the construction of the project.”  We will need another  $146,000,000 but we will use our lot and home sales to raise these funds.  We will build it as we make our sales.  Our schedule to complete the project is shown on the 8 year Spread Sheet on page 4.

 

3.  Who is the market for the lots and homes?

 

Our number one customer will be The European Union.  It appears number two will be Japan.  The other big markets are the USA, Canada, New Zealand, and Australia.   We are not a USA development, we are a World Wide Development.

 

4.  Will you have a local airport?

 

There is a small, government owned airport near our land.  Our first plan is to buy this property and expand the airstrip and add several hangers.  This airport is not active at the present time.

If this is not possible, we will build an entirely new airport on our own land.

 

5.  How many sales have you made to-date and how much money have you taken?

 

We have not taken any money and will not take any until we feel we have enough buyers that we are  close to reaching our goal.  At the present time, we probably have about 10 to 15 people who will follow through with a purchase.  Some want to buy 2 or 3 shares.  But this is not near enough to open a bank account.  I would like to know that I have about 30 shares sold before we open the bank account.  So, let me know if you are serious and how many shares are you interested in buying.

If we can put the funds from 30 shares in the Bank, I think the last 20 will go fairly fast.  There are several people who want to see how the sales are going before they make a purchase.

 

6.  What happens if you suddenly drop dead and leave us to finish the project?

 

I am not the only person who is capable of “starting up” and running this project.  My Mechanical Engineer, Hjalmar Pachas has been working with me from day one on this project and he is fully capable of “starting up” and running the entire project.  He is also from Venezuela so he speaks the language just a little bit better than me.  And he knows how business is done in South America.  It is difficult to find an Engineer who has the honesty, integrity, respect, and work ethic to do a job like this, but Hjalmar fits the bill 100%.  If we both drop dead the day the project starts, then you will have a problem.  The project really needs one of us for at least the first 24 months.  After this we will have enough people trained that you can run the project without us.

When it comes to “starting up” the project, Hjalmar is probably more important to the project than I am.   He is presently handling all of our contacts with Chile Government Officials, the present land owners, our Chile attorney’s, our 2 part time local employees in Chile, and with the two American Ex-pats, who already live in Chile and are doing a lot of work for us.   Everyone who meets Hjalmar likes him very much because he is so respectful and considerate of others.  He is 33 years old and a very “exceptional” individual.  His family was originally from Sweden, so they are much taller than the average South American.  In fact, he is much, much, taller than the average Chile Resident.  He is a “job supervisor” who the local workers will “look up to” and pay attention to.   We are also both keeping, up to date, our Chile Ranch Diaries.  With the above people and our Architect Firm in Miami, we already have, in place, a very good “start up” team.

 

7.  How do you plan to keep us informed on the progress of the work?

 

We will have a very extensive web site that will be updated every day.  It will be done by a Professional Web Designer, rather than our existing “Engineer Version” of a web site.  The main section will be open to the general public.   It will contain many pictures of the entire project, with new photographs added every 3 or 4 days.  It will show several pictures of each lot we lay out.  It will also show the price so we can make sales on the Internet.  We will have a salesman available to answer customers questions 24 hours a day.  We will be communicating in all time zones.  We will place the drawings of our planned improvements on the web site and report our progress at the end of every week.  We will create a Web Site that people can follow on a daily basis and watch the Project Grow.  We have had some inquires from some Colleges and High Schools who wanted to watch the Project Grow on the Internet.  We will make the Web Site, not only “informative” but “educational.”  

We will have a section open only to lot owners where we give out even more information.

We will have a section open only to investors where we provide information on sales, equipment purchased and our financial situation.

Each section of the web site will have “forms” that the Investor, Lot Owner, Prospective Buyer, or the General Public can fill out and we will answer them.

We will also have several (more than 10) “live, 24 hour a day, cameras” showing what is happening on various parts of the Land.   Some of these cameras will show the construction, one will show the front gate, and some will be placed in remote locations where they can show “wild life” and weather conditions.

We must have a web site that will draw people in every day to see what is happening.  This will be our most valuable advertising and sales tool.

We will even film our “fishing trips” to show the world the fish we are catching.   We can catch Trout in our Rivers and many different types of fish in our Pacific Ocean Bay.  Trolling up and down this   bay (more than 100 miles) is a great way to catch many different types of fish.

This will be one of my jobs.  Want to join me?  I will have my boat always available for emergencies.  (An emergency is when I just must go fishing.)

We can make these movies available for anyone to run, 24 hours a day.

We are not only going to make money, but we are going to have a lot of fun doing it.

 

8.  If for some reason, we cannot, or do not, want to use this land, do you have any other possibilities?

 

Yes, I do, but I cannot discuss them in public.

 

9.  A.  What if I bring in some others who buy a share, do you pay a commission?

 

We pay a 4% commission.   This is $7,000 per unit; bring in lots of others.  Let me clarify.  You get the commission for all you bring in, but if someone you bring in brings in someone else, then he gets credit for those he brings in.

 

    B.  Also how many units have you sold since answering question 5?

 

As fare as units we think we can sell, we are probably up to about 20.  It appears we have a way that we can get started without 50 investors.  We would need about 35.

 

 

10.  How early in the construction phase will you have the airport installed?

 

We are still working on many parts of this project, including this one.   We are putting together  a schedule for purchase and/or  installation of all of the items on page 6.   As soon as we get it completed, we will put it on the web site.

 

 

Norman Nixon,  PE