JV Development of Property in Costa Rica

Dear Josh,

I hope this letter finds you well. My name is Patrick Beland, and I am a developer interested in partnering with you on the development of your property in Costa Rica.

Purpose of This Letter

The purpose of this letter is to outline a preliminary proposal for a joint venture between us to develop and sell residential homes on your property. This proposal is a proof of concept intended to serve as a foundation for further discussion. All terms are open for negotiation, and this letter is non-binding.

Proposed Terms

• Purchase Price: You are asking for $125,000 for your property.
• Subdivision and Development:
  • I propose to subdivide your property into four (4) separate lots.
  • On each lot, I will construct a home suitable for resale.
• Financial Responsibilities:
  • I will cover all legal fees, permits, and construction costs associated with the subdivision and development.
• Payment to You:
  • You will receive $35,000 for each lot, totaling $140,000.
  • Payments will be made upon the resale of each home or within a three-year term, whichever comes first.
• Trust Structure:
  • We will establish a trust as the legal entity to hold and manage the property during the development phase.
  • You will cede the property to the trust under the agreed-upon terms.
  • Upon fulfillment of the payment terms totaling $140,000, you will be removed from the trust, and ownership interests will be adjusted accordingly.

Benefits to You

• Increased Return: You will receive a total of $140,000, which exceeds your initial asking price.
• No Upfront Costs: All development costs are covered, reducing your financial risk.
• Legal Protection: The trust structure ensures clear guidelines and protects both parties’ interests.

Additional Considerations

• Timeline: A mutually agreeable timeline will be established for the subdivision, construction, and sale processes.
• Confidentiality: All discussions and shared information will remain confidential between both parties.
• Due Diligence: The proposal is subject to satisfactory due diligence, including legal reviews and feasibility studies.