Hello Tequila Ranch Investors!!  Welcome to our blog.  If this is your first introduction to the blog, we are glad you are here.  Going forward this will be our primary source of information and updates about our Tequila Ranch project.  Please subscribe so that you will continue to get information and updates.

As many of you who have been involved in the project since the very beginning know, progress has been slower than we anticipated.  Part of the reason is we are developing in Mexico and things move at a slower pace there.  We expected that to be the case and intentionally increased our timeline by 30% to allow for that.  We did not however take into effect the dramatic downturn in the economy.  So here's the good and the bad of that.  First, the bad: the slowdown of the economy has resulted in a significant reduction of availability of investor dollars needed to continue to fund the project.  We have all heard stories of investors sitting on their funds waiting it out, and I can tell you it's true. We have sufficient capital to fund the land and we currently are in a final raise to finish the architecturals and fund marketing.   That's the bad part, now here's the good. 

While real estate in the US is suffering in most regions, in Mexico, just the opposite is true.  The retirement of the baby boomers is fueling second home purchases particularly in Mexico.  The weakening of the dollar has drawn investors from Europe and Canada to the region and they are buying in record numbers.  The value of the land continues to increase as the area continues to develop.   On Cerritos Beach the Beach Club is booming, Roger Pollack's house in under construction, Sol Pacifico Cerritos (a 54 unit condo project adjacent to our La Amanezca condo project) is almost sold out and two of the units are almost complete.   Visit www.investinloscabos.com for recent pictures.  Our lots continue to appreciate.  As of August 2006, the lots we purchased were appraised and had already appreciated over 60%.  So although things have taken longer that we expected, the good news is the area continues to grow and our property continues to appreciate.


Land development projects are complex with many steps along the way.  The very good thing is that values increase every step of the way.   When I first stepped foot in Tequila Ranch it was former grazing land for the ejido ranchers.  When we came up with the idea to create a special community within the community and build very large villas and sell them as fractional ownership, I immediately saw the potential.  Two years later I am even more convinced of the success of our strategy as I learn more and more about the fractional ownership industry.  It is an emerging growth industry that will change the way people look at and buy luxury second home properties.  I believe so much in it that I am writing a book about it called Paradise By the Slice - Realize Your Dreams Through Fractional Real Estate. www.paradisebytheslicerealestate.com.   (I know, a shameless plug for my book, but also a great way for us to market our Tequila Ranch fractionals to the retail market).   Although it seems like not much has happened over the course of the last year or so, actually much has happened behind the scenes.   

• Water has come to our lots. 
• Power has come to out lots 
• High Speed Cable and Internet have come to our lots.
• The Tequila Ranch overall development has been graded, roads and curbs put in.
• A one mile granite wall now provides exclusivity, privacy and security to the development.
• The main entrance security pavilion is almost complete
• The tequila distillery and restaruant is nearing completion (more on that below).
• The main highway is in the process of growing from a 2 lane highway to a four lane. 
• Roads have been cut to the property. 
• Initial site plan and floor plans have been completed 
• The entire development has been landscaped
• Two other houses are currently under construction in the development
• There is a turtle sanctuary under development adjacent to the property
• ATV's and horseback riding provide activities meant to draw people to the development
• The value of the land has increased during each step of the process: re-zoning, infrastucture including utilities (water and power) and roads,  topo plans, site maps, permitting, renderings and drawings, etc.  
• We have had several interested parties come to us looking to partner or purchase the project.  We have evaluated each of these "offers" with care and have decided to continue on our original path. 

The Tequila Distillery is nearing completion.  Complete with a gourmet restaurant overlooking the Pacific Ocean, an impressive glass round elevator and a barrel and cigar cellar catering to private parties, the Tequila Distillery is truly a destination in itself.  Oh, and the tequilla??  The best I've ever tasted and I'm not alone. Once complete it will truly be the draw that is the cornerstone of our marketing efforts.  More on that as we get closer to ground breaking.

A word on our timeline.  The Tequila Distillery is behind schedule as we had hoped to have it up and running  by the end of last year.  We, as a developement team made the decision to postpone breaking ground on our project until the Distillery was closer to completion.  This is a conscious decision we made to delay the project as we believe having hundreds of potential buyers visit the Distillery each week is one of our key marketing strategies.  We did not want to start construction without that key component to our strategy.  Now that the Distillery is closer to completion we will move ahead with finalizing our plans, marketing to the retail market and breaking ground.  I realistically expect to start retail sales this fall and break ground early 2009. 

This is truly an exciting project and we continue to appreciate your contribution and support.

Much Thanks,

Janet on behalf of myself, Loral and Will