Fon started raising funds for its development project the seat in Costa Rica I recently spoke with the CEO Max VF who will be primarily responsible for the new Ventures success the platform offers a 15% interest rate over 24 months that's a much higher yield than what you get on some of the most popular P2P learning platforms which is why in this video we will dive deeper into this investment opportunity and discuss risks that you should be aware of offering an investment in real estate development in Costa Rica may seem strange for most investors particularly on
a platform specializing in developing rental properties in Prague so let's hear what Maxim has to say about that actually I'm looking on Costa Rica from year 20 when I first time read about Philip Costa Rica Villas yes when there was Co times Costa Rica was one of the countries that has the easiest measures in the regard of covid and there was this wonderful information about like Costa Rica itself all the possibilities it allow and I found phips like Villas there he has just built them it was year 2020 when he first finished one part of
his Villas he builds that so actually I'm looking into cost for quite like a long time so what is interesting from our part like what like in the G of C Costa Rica is really very interesting country in regards it's um stability like Democratic stability for the 75 years there was no like Revolution or some kind of any so it's like really stable country one of the oldest democracy in all El in America it has like the biggest gramy in regards of education so people are like really educated there there is a rule of law
almost same like in Europe in regards of bribery and all of this stuff it's absolutely not like other country in Latin America it's surrounded by Nicaragua Panama that are not so Progressive as Costa Rica and uh one of also most like interesting part of it why I like it very much in regards of Investments almost 70% of investment direct investment coming to Costa Rica are us Investments yes only 20% is European and 10% something else and for me it was always very interesting to enter some how yes Market but from what part you know so
uh I didn't want to de is like exactly like he has as a to and to combine this vacational property and US market because the buyer in Costa Rica is American yes so when I've been there in July when I was on the spot which sh all the details so everywhere everything that is buil there now is buil like 7 80% for US citizens because they're buying it as a second and third Po and for me it was always interesting to deal with us market like this and Costa Rica in that way is so there
is combinational Factor so I really liked uh everything that Philip does yes the way he approach the things that you do is local knowledge of everything because it's one of the most important like point for me to think about with whom we will be dealing because we need local knowledge it's one of the most important stuff we have our development ex that we bring to the table but we have to combine it with all the local things that will be around doing or disc discussion Maxim also mentioned that Costa Rica is not becoming a favorite
spot for US citizens moving out of the states or looking for a second or third home additionally Costa Rica attracts many tourists from the US and Canada particularly during winter the project in Costa R won't be just a new Venture for the VF group the company is partnering with Philip Jac who sold his company to move to Costa Rica a few years ago where he built his Boutique vacation resort while wef will bring the development experience Philip will help navigate the local environment as he has already built his project close by and is familiar with
the local procedures unlike most development projects on other platforms finon shares additional details and project stages in the first stage finon is raising funds from investors to finance the land acquisition in total finon is aiming to raise 1.5 million EUR from retail investors thef investments will invest a minimum of 500,000 to secure the project the price per square meter has been reserved several years ago at the more favorable terms which lowers the risk for investors Maxim will fly to Costa Rica at the end of February to pay for the land and registered the first rank
mortgage the land will be owned by propco uita LLC which is a local SPV 90% of this company is owned by maxing himself while Philip Chuck owns 10% more details for investors are all find in the memorandum which is available for registered users on fown or in our dedicated article about the SE project in our Academy section on PTP Empire after securing the land the project moves into the second stage which covers the project in construction preparation the project features 75 units including town houses Villas studio apartments and jungle cabins all distributed across three phases
if the project documentation already pre-approved by government authorities this stage will focus on obtaining the necessary construction permits and finalizing the preparation for the building including a clear and comprehensive evaluation of construction cost this process should take until the end of the year as soon as the preparation is complete the listing price of future units will be revaled and VF will begin with the pre-sales at this point Maxim and Philip will enhance the legal structure of the project by including a US registered entity so we will have also in future for other phases I suppose
something like a US company for the international Capital to flow in because it's quite big project and at this stage we are not exactly planning to have bank because we have not worked with banks there of course we will start talking to them but I cannot rely on this video because I know how Banks work we have to make at least like one project like like in this way like running for the band to participate the majority of the funds for the first two stages of the seat will be raised from retail investors and bu
of Investments the project also aims to attract Equity investors who wish to invest at least $1 million the pre-sale of the units will secure additional Capital which will help complete the final stage of the project the construction is expected to begin at the beginning of the next year and it should last at least 2 years for Finton investors it's important to know that the units of the seed project will be sold there won't be future investments in rental units like is the case with the currently operational rental properties in kene and Trey finon investors will
however receive early birth pre-sales offers for those who wish to become owners and rent the property when they are not there investing in development in Costa Rica is definitely not risk-free so let's hear how Maxim evaluates the risks so there is quite a bit of risk involved in this as well right because you don't know exactly how much money you will be able to raise in which time period right no it's not like Z you have to understand how I see it in regards of or how I would see it if I would be an
investor so it's very important what is going on in every stage of development yes so first we acquire the land we know that this land is like cheaper than it like really has to us so it's first stage so there is like minimum risk you have something that has like bigger value then there is second stage second station actually created getting construction pyramid construction pyramid evolves the price or pushes the price somewhere else again so there is another phase of value creation and the price will go much more higher than the cost related to this
um the stage then there is a third stage when you have the construction and with every part of the construction you're also bringing all the time like Val you Val you up so if you uh do it like this so normally the value of what you do like real value will be always higher than the cost that you put in it so this is the main part and what is everybody normally has to be like interested uh in if something happens so where are our money actually they to be somewhere you know and that is
the main thing because you have to have something to be able to sell because what is the worst part that happens like with developers that we've seen like that has issues like all over the world is normally that money are somewhere else or the value of the assets uh is like actually much more less than the money that was invol so some part of money just like disappeared somewhere so that is like the biggest issue right normal but if all the money and invested in more value Creations then value creation will be always for more
higher than the cost and there's always a possibility crazy but possibility to sell it off to do something to refinance it to attract some other like investor or anything because there are like a lot of money all around the thing is how well like on what terms are you able to to attract this money you know so there always has to be value behind it and that is the main part uh also for investors to understand but anyway we are dividing now in three main phases and uh every invester is free to like say okay
but I do not want to be Ved in construction phase I want to not a problem actually is able to exit and not an issue so somebody else will come on his place in regards of this so if the money is allocated correctly the property's value should always be higher than the costs during our interview Maxim also promised to share regular reports with investors including a breakdown of how the funds raised were spent do you plan to release some sort of uh documents about the costs of every phase so investors can have an overview of
how much has been funded and how much has been spent we will actually uh publish I suppose almost every information because once we start we have this kind of information ready we will publish as so I don't see any reason not to show the invest how much everything cost we will have all the financial plans and so on details the cash flow plan and so everybody will be able to look at it and of course the cost the I mean how we uh proceed with the costs that we assumed and so so all the financial
part will be always like available and we will publish it in light I every quarter every six months there will be nothing that we will be hiding of something there is no reason for that really see other platforms that Finance development LS share financial breakdowns of the projects so this could be interesting information for investors who wish to learn more about real estate development however despite vod's Flawless track record certain risks May materialize during the development process outl in our project evaluation which I will link below in my opinion there are two risk categories that
will need bf's close attention it's the company's first project in Costa Rica where they created efficient systems for develop in and managing properties in Brock there will undoubtedly be differences and lessons to be learned in Costa Rica Maxim informed me that VF will have a dedicated project manager on S side to ensure the development costs are aligned with the expectations during all talk Maxim shared with me that he wants to create an economically viable project that meets the highest standards he will need to rely on Philip Jack's experience and local knowledge to succeed local engineers
and law firms will also support a project to ensure compliance with regulatory requirements another risk to consider will be the Financial Risk unlike in the Czech Republic where rorf uses affordable capital from Banks to finance the majority of its development projects in Costa Rica the company will be investing more Equity it will also rely even more on fown investors particularly in the early stages of the project the longterm is set for 24 months meaning that the funds from investors who will exit in 2 years will need to be refinanced Maxim will need to be on
track with the construction of the seed and fulfill all promises to secure additional funding so far he has always been able to find funds for its real estate properties in prag however the financing in Costa Rica May unveil yet unknown challenges personally I think that the seed project can succeed that a prerequisite is certainly there although if they were not to succeed Maxim risks his reputation and potentially further funding for his real estate properties in the Czech Republic it would not be wise to jeopardize fintown as a funding source which is why I believe that
he will do his best to ensure the project success if you want to earn high yields on fintown this may be just one of the few opportunities as we won't expect this type of yield for future projects in prag the interest rates from local banks decreased over the past year so VF has access to cheaper financing in the Czech Republic if you're curious about the platforms planned in czechia for this year make sure to subscribe as we will release another video highlighting the upcoming changes for 2025 if if you want to get additional information about
the seed project you can learn more about it on P2P Empire if you found this video helpful hit the like button and subscribe to not miss out on future updates thanks for watching and I will catch you in the next one
