CaboMX UPDATE – FEBRUARY 2008

I’ve just been there again…  Where, you ask?  Why CaboMX, of course.  And why again so soon? 

FIRST, because I simply love it down there – I wanna move… 

SECOND, in addition to my ‘Cerritos Beach Lots’ investments, I bought a beautiful condo down there at ‘The One and Only Palmilla’ right on the Golf Course (I love it – love it – love it…) and you’re all going to be afforded the opportunity to join me down there, but more on that later – watch for my ”Palmilla Plan” to be announced shortly…

THIRD:  I wanted to see the growth and development that’s taken place – with my own eyes - since the last time I was down there in October of last year like the brand new Wal*Mart, Sam’s Club and Sears – and everything else… 

And it’s absolutely astounding – they’re “gettin’ ‘er done” - especially with regard to the new MX Hwy #19 road-widening project stretching from CaboMX north along the beautiful Pacific Coast (think PCH in SoCal 50 years ago – wouldn’t you have loved to get in on that “Building Boom” as an Investor?) to TodosSantos (a “Magic Town” and home to the world-renown ‘Hotel California’) and right by our multiple development projects at Cerritos Beach; this road-widening project - in and of itself - should further skyrocket the value of my investments at Cerritos Beach by cutting the drive time down to about a ½ hour from CaboMX itself…

And with the progress on ‘Sol Pacifico’, the first condo project being built directly on the beach right in front of our ‘Cerritos Beach Lots’ project site and responsible for turning our vacant/unimproved lots just behind ‘Sol Pacifica’ into “fully-entitled” (ie: all new utilities/roads/etc.) ‘Cerritos Beach Lots’, a one-of-a-kind SFR (single-family-home) project just steps from the beautiful blue Pacific of Cerritos Beach itself…

And some ‘PreConstructionOps’ are still available

And with the brand new ‘CaboMX International Airport’ – FINALLY!  No more 45-minute drive from the existing International Airport at San Jose del Cabo just to get to CaboMX itself along the heavily-congested “Corridor” Road - I love it…

In the current US real estate investing marketplace – a market that is slowing/shrinking/dying as far as “make-sense” real estate investment opportunities go (not to mention:  tried to get a mortgage lately?) – looking to the international market, especially our closest neighbor to the south and keeping in mind that almost half of all US Retirees who chose Mexico choose our neighborhood – BajaSur – read on…

Almost a billion $ and 50% of all US Dollars invested on the West Coast of MX are invested in BajaSur

A QUICK REVIEW OF OUR INVESTMENT STRATEGY

Simply position ourselves in the path of growth and development and let time do most – if not all - of the work…

As 'savvy' Real Estate Investors, we can no longer rely on the "Old Rule" of Location- Location-Location as our sole investment criteria – that’s strictly for the retail market…

We must now include Timing-Timing-Timing and Appreciation-Appreciation-Appreciation as meeting these 3 investment criteria virtually assures the attainment of our overall investment goals in any EMERGING MARKET – and that’s definitely what we’re talking about here folks…

LOCATION

Our Investment Strategy consists of simply following the “Big Boy” Developers building oceanfront Resorts and Condos and investing directly behind their projects and directly in the line of growth and development which they’ve created – positioning ourselves in the path of progress, if you will - taking advantage of the new roads they build, the new utilities they install and the new sales activity they generate, riding along on their coattails and watching our investments in ‘Cerritos Beach Lots’ soar in value as a result of their activities. While “Insider Information” may be illegal in the Stock Market, it should be “illegal” NOT to have “Insider Information” in the Real Estate Market – and to act on it in a timely fashion - and if we know what’s going to happen in any given area before most everyone else, then we have a unique and timely “back door” investment opportunity and that’s what we – as Investors - are always looking for, isn’t it…

APPRECIATION

We began investing in CaboMX in April of 2006, and in our initial year of ownership, the actual value of our investments appreciated by a whopping 100% - and when you factor in the Leverage we enjoyed based on the low 25% cash down payment required along with it’s attendant Seller-Financing, our actual Cash-on-Cash Return (ROI) comes in at 4 times that number – or 400% annualized – and has been keeping to the same pace ever since…

TIMING

The time is NOW! Don’t wait to invest – invest and wait…

Always when new construction begins in any of these types of development/investment scenarios – an EMERGING MARKET - values will increase at an even greater rate than previously enjoyed, making our investments, when made with the appropriate timing, kick into second gear and leave rubber…

WHAT DOES THE FUTURE HOLD?

And how does all of this development activity affect our investments? As a result of all of this area development activity, all new roads and utilities will then become available to our ‘CerritosBeach’ Lots, altering forever these Lots from ocean view Lots with no utilities available into ocean view Lots with all new roads and all utilities available in an area of increasing development activity at increases in value which can only be guessed at – and all future growth will radiate out from these development centers…

OUR EXIT STRATEGY

We’re looking at this Opportunity for the medium haul: two to three years hold and then “flip”, thus enabling us to hold for the max return and cashing out well before the 5-year “Balloon” is due; sometime well before this time we will have identified one – or more - Residential Developer/Builders to build out the project, cashing us all out of our Lots and it’s ‘Show Me The Money’ time while providing a pathway to additional profits via a potential ‘PreConstructionOp’ position to those Investor/Owners who want to stay “in play” on the project – then, when these new homes begin selling retail (to “end-users”), it’s ‘Show Me The Money’ time for the second time around…

PS:  And don’t forget about our ‘CaboCruise’ scheduled for July – check it out in the January CaboMX UPDATE – go to RealEstateClubLA.Com and click on INVEST IN PARADISE…

For further information on CaboMX, please feel free to contact us at CaboMX@RealEstateClubLA.Com or meet with us at the ‘BajaCalls’ Vendor Table at the Tuesday February 12^th REIC-LA General Meeting...