Punta Leona

Jaco, Costa Rica presents an amazing investment opportunity! There is exciting growth and unlimited potential over the next 3 to 5 years. It is perfect timing for the conservative investor seeking aggressive returns. Solid comparables, limited inventories and minutes from the under construction luxury deep water marina Carrara Bay, 5 Star Hotels and Championship golf courses.

Costa Rica is a Democratic Republic with a stable government and a very strong system of checks and balances. With a strong economy, solid yearly growth, low unemployment and a diverse commerce, Costa Rica’s strong and growing tourism trade is supported by North America, Europe and South America.

Investment Stability:

Enjoyable year round weather, Championship Golf, World Class deep sea fishing and easy access, Costa Rica boasts first place in Eco-tourism and biodiversity. Its amazing rain forest engulfs our proposed project as seen above. The US continues to lead all countries in investment in Costa Rica.

Breath taking sunsets, Fee-Simple ownership similar to the US with Title Insurance, a solid local work force and experienced builder-developers with years of experience makes our project a solid investment opportunity.High demand, solid conservative comps, diverse consumer purchasing power and a desirable easy access location help support our projections for aggressive returns with reduced investment risk.

Punta Leona is located on the central Pacific Coast of Costa Rica at the mouth of the Gulf of Nicoya. The private community comprises 800 acres of lush tropical rain forest opening up to two beautiful white sand beaches. Twenty minutes north of Jaco, Punta Leona is the closest beach city to the main airport of Costa Rica. With the completion of the new highway in early 2008, the drive time from San Jose to this beautiful community will be cut in half at just under one hour.

Punta Leona

We are proposing to buy land within Punta Leona’s private community and build 7-10 spec homes between 3,600 and 5,000 square feet. Costs for a well built house equipped with wood flooring & ceilings, granite & stainless steel appliances, pool & jacuzzi average $100/sqft.

Lot 3 & 4

The subject lots 3 & 4 comprise 3,307.31 square meters. With 500 square meters and 40% coverage required for each house, we are able to build 6 large homes with spectacular views of the ocean and white sand beach of Playa Mantes.

Neighboring property to the north of Punta Leona is Carara Bay’s fresh water protected marina. With construction already underway, this development including 5 Star Hotel, 250 boat slips, 200 dry dock boat storage, commercial & residential real estate is expected to dramatically increase the real estate prices in Punta Leona as the marina has done in Los Suenos. With gorgeous white sand beaches, rain forest setting and a beautiful marina, we expect the projected real estate prices will continue to rise.

Budget - Fully FundedPre Eng. Tests: $10,000 Soil, Hydro & Topography Maps

Land: $992,193 We are expecting to spend roughly $165,365 per lot.

Closing Costs: $18,107.52 3.65% paid 50/50 buyer and seller

Title Insurance: $6,945 .7% up front. Credited back at sale of homes.

Hard Cost Construction: $2,490,000 6 Homes - 4,150sqft each. Based on $100/sqft.

Architecture & Engineering: $90,000 We plan to use the same architect & engineer for all homes. This will reduce costs all the

way around including time to design & build.

Permits: $18,000 Permits average about $3,000 per house.

Legal/Accounting: $50,000 Legal Fees to form LLC, Audit books, Tax Accounting Costa Rica Attorneys to split lots, create

CC&Rs and sales & escrow.

Travel: $75,000 We are budgeting for about 30-40 Trips to complete the purchase of land, architecture/engineering, permits, and over see the building process.

Developers Fee: $171,011 Roughly 4.5% Developer Fee

Contingency: $190,012 Roughly 5% Contingency Monies

Construction Management: $50,000 We propose to hire GCI to monitor day to day construction, budget, scheduling, permits & quality control.

Total: $4,161,268

CompsCurrent Local Comps:

Los Suenos - $875/sqftPunta Leona - $360/sqft

Projected Comps for Punta Leona with Carrabay Construction Underway:Punta Leona - $600/sqft (Based on Conservative Median Price between current comps of Los Suenos & Punta Leona)

Projected Profits

Projected Gross Profits:$600/sqft Sale: 24,900sqft X $600/sqft = $14,940,000$450/sqft Sale: 24,900sqft X $450/sqft = $11,205,000$360/sqft Sale: 24,900sqft X $360/sqft = $8,964,000

Projected Net Profits:$600/sqft: $14,940,000 - $5,180,924* = $9,759,075.77$450/sqft: $11,205,000 - $4,926,010* = $6,278,989.52$360/sqft: $8,964,000 - $4,773,062* = $4,190,937.77

*These numbers include sales commissions.

Comps & Projected Profits

Equity Members will receive 50% of the membership interest in the LLC. All capital invested in the LLC by equity members will be paid back in full before profits are distributed. If the profits in the end do not give equity members at least a 50% return on cash investment, promote members will reduce their share of the profits until this 50% return is met. We are seeking to raise approximately $4,161,000.00 from equity members. This number should fully fund the LLC to purchase the land and build six 4150sqft spec homes.

Proposed Relationship50% Equity / 50% Promote

Projected Net Profits:$600/sqft: $14,940,000 - $5,180,924 = $9,759075.77 (Approximately 117% return on $4,161,000 investment for equity members)

$450/sqft: $11,205,000 - $4,926,010 = $6,278,989.52(Approximately 75% return on $4,161,000 investment for equity members)

$360/sqft: $8,964,000 - $4,773,062 = $4,190,937.77(Approximately 50% return on $4,161,000 investment for equity members)

Note: These projected profits and returns on investment are pre tax.

For more information regarding an equity membership interest in our Punta Leona, Costa Rica spec home project, please contact us.

Tim Sears

Tel: 858.945.0132 - tim@searsparty.com

Austin Birch

Tel: 858.864.7719 - E: cannongc@aol.com

Chris Andreoli

Tel: 858.342.4444 - E: chris@advantagex.com