Las Olas Ecuador development

I was told recently they are hoping for a 5-7 year build out.  I'd say 7-10 years is a good estimate as sales staff are always optimistic.

Here is a Q&A I think everyone may find helpful.  Please share your opinions as I'm signing a reservation agreement this week and plan to visit in August.

http://lasolasecuador.com/q-a/

I have decided to hold off purchasing in Las Olas.  The main reason is I have financed several master plans in the USA and they have always built the amenities first.  With this development it's a promise.  If it was a solid development they would build the golf course, health center, and fitness facilities first..then sell the lots..and the homes are not that reasonable.  $150 per foot is similar to what I can get in the USA.  I think its an act of desperation and so I am going to wait.  If I have to pay more in the future, so be it.

stueyolson wrote:

I have decided to hold off purchasing in Las Olas.  The main reason is I have financed several master plans in the USA and they have always built the amenities first.  With this development it's a promise.  If it was a solid development they would build the golf course, health center, and fitness facilities first..then sell the lots..and the homes are not that reasonable.  $150 per foot is similar to what I can get in the USA.  I think its an act of desperation and so I am going to wait.

Likely a wise decision to wait and see.  Las Olas may turn out to be a fabulous project, but the syrupy-slow progress makes it appear iffy for folks who don't feel comfortable with the developers' version of a timetable.

$150/sf may seem a bargain some day in retrospect.  But factor in the possible years and years of waiting time during which time you're paying rent or other lodging expenses elsewhere.

Your assessment of a supposed “act of desperation” seems unfounded, however.

cccmedia in Quito

Not personal.  I agree it may work out...I think it won't however..Even the sales guy, his voice, has doubts.....good luck

60 grand for a lot near the beach.  I own one for 30 grand on the Oregon coast...next to Bandon Dunes...its nuts in my opinion.

Stuart,
I bought at Las Olas and believed in the community so much that much like our Director of Marketing, I decided to resign from my lucrative job in the U.S., as did my wife, and we moved our family to Ecuador to become part of the Las Olas team as the Director of Sales. Does that sound like someone that does not have confidence in the project and the value it offers? I understand that Las Olas may not be for everyone, but I would like to make sure that when reading these posts people are comparing apples to apples. If you could find in the US an ocean front property where all-year round the weather is perfect, located on a 15 mile stretch of unspoiled beach while in the middle of nature but still less than fifteen minutes from a shopping center, where you can buy a premium quality house with not only spectacular views of the Pacific Ocean but also of the golf course and it includes air conditioning, solar thermal hot water, renewal energy solar panels, on a championship golf course (golf membership included), with all modern amenities including beach club, equestrian, tennis, gyms, nature reserve, etc.; and you can get a 2,000 sq. foot house including the lot for less than $300,000 (You can get even a cheaper price in Las Olas depending on location, and condominiums start at under $100,000); and have home carrying costs that are less than a quarter of comparable US carrying costs, then please let me know where that's available in the U.S. so I can purchase too. Everything I researched previously that is comparable to Las Olas was at least twice as expensive. I seriously doubt you can get that value/quality ratio elsewhere, especially in the US."

drosenbe1 wrote:

Stuart,
I bought at Las Olas and believed in the community so much that much like our Director of Marketing, I decided to resign from my lucrative job in the U.S., as did my wife, and we moved our family to Ecuador to become part of the Las Olas team as the Director of Sales. Does that sound like someone that does not have confidence in the project and the value it offers? I understand that Las Olas may not be for everyone, but I would like to make sure that when reading these posts people are comparing apples to apples. If you could find in the US an ocean front property where all-year round the weather is perfect, located on a 15 mile stretch of unspoiled beach while in the middle of nature but still less than fifteen minutes from a shopping center, where you can buy a premium quality house with not only spectacular views of the Pacific Ocean but also of the golf course and it includes air conditioning, solar thermal hot water, renewal energy solar panels, on a championship golf course (golf membership included), with all modern amenities including beach club, equestrian, tennis, gyms, nature reserve, etc.; and you can get a 2,000 sq. foot house including the lot for less than $300,000 (You can get even a cheaper price in Las Olas depending on location, and condominiums start at under $100,000); and have home carrying costs that are less than a quarter of comparable US carrying costs, then please let me know where that's available in the U.S. so I can purchase too. Everything I researched previously that is comparable to Las Olas was at least twice as expensive. I seriously doubt you can get that value/quality ratio elsewhere, especially in the US."

So what did you sell in the USA ?

thanks for the response.  My concern foremost is the timeline for completion and staffing of the health center and the fitness facilities, etc.  I wouldn't want to live there until those were completed.

We just purchased is as well. We can't wait.

Since you are Director of Sales can you give me some insight.

I was asked to pay $60,000 up front for the house.  Is this in escrow specific to my residence or is that open for the developer to use it for other purposes?  That will make a big difference in my purchase.

It seems like you have a good vision for the project.  But I keep finding things that are a concern.  I learned today had I purchased four months ago I would have received a 20% discount on my home.  Then recently you started to offer free financing for 36 months on 25% of the increased purchase price and also throwing in a free pool.  Businesses with a solid product and with financial strength just don't keep offering incentives like this.  Better to build the amenities first and not have the concessions.

I'm also worried about the golf course.  You can max out maybe 250 rounds on one course per day.  With 1600 residences, assuming 2 per household, and 50% are occupied year round, and 25% play golf every day (it is the main reason to buy there in my opinion), that equates to 400 rounds in demand per day.  Again, most expats want a golf course community so participation will be high.  So access to the golf course will eventually be difficult.  Just my opinion.

I hope it works out well for you.  I have to go with my gut and just watch from a distance and hope it works out for everyone that has invested.

Good Luck,

Also, I should add that I learned my 33% down payment to purchase is not held in escrow and can be used for purposes other than construction of my residence.  Crap shoot.  I would think most buyers are a little nervous about investing in a foreign country.   Again, good projects would build the amenities first, sell the homes without all the incentives, and keep the money in escrow.  But what do I know.

In report #252 above, Stuey Olson explained why he thinks that the golf course at Las Olas will eventually be oversubscribed.

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Addicted to golf?  Need to play 18 holes seven times a week?  Concerned the other golf addicts will scoop up all the available tee times?  Uncomfortable with playing afternoon golf under the intense Equatorial sun?

The solution to all of the above may be night golf with glow-in-the-dark balls.

Think this isn't being done?  You might be surprised at what you find if you google night golf.

cccmedia in Quito

I don't know who you are...and I don't care...it's probably sarcasm...but I'm right..wish you the best...Oh, and if you buy a lot in Las Olas tomorrow we will give you a free bmw.

It's simple math and my estimation is very generous...Four golfers in each group, 10 minutes each (15 minutes is the norm).  That is 24 golfers each hour....12 hours (which is generous) each day.....Pebble Beach and Bandon Dunes does less than that on a single course...and wait til the boutique hotels come on board.  They will golf too....simple math elvis.

Dream, Dream, Dream.  I'll stick with what I got and build my home near Bandon Dunes...it rains but I like the challenge of playing golf in the rain....by the way, there renderings are either number 4 at Pacific Dunes or number 16 at Bandon Dunes....

In response to the recent posts about Las Olas -

There is NO golf course.
There are NO homes.

Reminds me of the medieval philosophical debate about how many angels can dance on the head of a pin.

stueyolson wrote:

It's simple math and my estimation is very generous...Four golfers in each group, 10 minutes each (15 minutes is the norm).  That is 24 golfers each hour....12 hours (which is generous) each day.....Pebble Beach and Bandon Dunes does less than that on a single course...and wait til the boutique hotels come on board.  They will golf too....simple math elvis.

Dream, Dream, Dream.  I'll stick with what I got and build my home near Bandon Dunes...it rains but I like the challenge of playing golf in the rain....by the way, there renderings are either number 4 at Pacific Dunes or number 16 at Bandon Dunes....

I wanted to stay out of this discussion, but I have to jump in. Above, you said you don't know who cccmedia is... Before jumping into this thread you should have read the +200 messages previously written by the Expat.com community. That way, you would know that cccmedia is one of the most active participants on this blog and I think he deserves great respect.

People who are buying at Las Olas does it for several reasons, but the main ones are the great year-round weather and the unspoiled beach with warm waters.

Apart from that, you will find people attracted by the amazing surrounding nature, or the fact that Las Olas is an eco-community.  You might be surprise to learn that only 40% of buyers are attracted by golf.  That's because Las Olas as so much to offer. Some people buy because of the equestrian facilities, some for the tennis and pickle ball club, some because of the community spirit itself.  It's far from solely being a golf community.  When you have access to a 650-acre private nature reserve with miles of trails where you can walk, bike or horseback, when you have fitness facilities, a spa, a private beach, restaurants, etc., golf is just one thing amongst a large choice of amenities and activities.

If you hesitate between Oregon and Ecuador, I'm sorry, but I just don't get it. If you want to compare Las Olas with other similar developments, look at Mexico, Panama or Costa Rica... not Oregon! Temperature never drops below 65F here and you can play golf in short sleeves every single day of the year.

And if you are a golfer, you would know that 15 minutes between tee times is not the norm (in fact, I never saw that in 30 years of golfing all around the world).  In 90% of golf courses in North America tee times are usually each 8 or 9 minutes apart. Some very popular course push it to 7 minutes, while private and resort courses without much activity will have a group every 10 minutes.

On top of that, you can't compare Ceibo Valley Golf Club at Las Olas, a private golf course, with Bandon Dunes, which is a daily fee resort. It cost up to $310 to play a round at Bandon Dunes (walking only, not carts allowed) and let's be honest, when the daily maximum temperature averages over 60F, the green fees are over $200 per round. When living at Las Olas, you take your golf cart right in your garage, drive it to the club house, or practice facility, and enjoy!

Family membership at Las Olas is estimated at $130-$150 per month... And here's a real picture of the 15th green complex, so yes, Las Olas is truly building an amazing golf course.



Please compare apples with apples.

gardener1 wrote:

In response to the recent posts about Las Olas -

There is NO golf course.
There are NO homes.

Reminds me of the medieval philosophical debate about how many angels can dance on the head of a pin.

Please see the picture in the above message regarding the golf course in construction and the ones below for home in construction...





Las Olas is not a small project...

Yes, only a fool laughs at work half done.  When will this project be half done?

Gardener 1,


I have always loved your cat with an attitude and cigarette, even though I have not smoked in decades.

HelenPivoine near Vilcabamba but not in  it which is good

I know a ton about golf.  Sorry I am only a 7 digits.   My problem is they are using the initial deposit to build out the development.   It's the essence of a Ponzi deal.  They give really low prices for homes under the pre-construction scheme..use the money to build out the lots, and then hope they can get other buyers to pay more for there homes which continues the development.  They don't rely on their own money to take the risk, just the future lot buyers.  I don't want a lot in Ecuador...I want a home...a lot is worthless to me...I'll wait until it's developed and pay more....they already raised prices 20%....seems like a big scam to me.

Its a great idea.  An expat community that is totally inclusive.  Everything you need is right there, no reason to leave.  Good fresh food, golf course, beach, equestrian center, fitness facilities...none of which is done.  Why not get a rich developer to put the amenities in and sell the homes and not ask us to bet on them?  This development is using the purchasers money as working capital and if they cannot sell the lots going forward it's going to stall.  My opinion, not trying to be negative, but that is a fact.

And I have asked many relevant questions about the use of my initial deposit, the time frame when the wellness center will be built, the time frame from which I could expect my home to be finished, whether there will be any warranties, etc, etc.  No response...And they are advertising everywhere.  I could go into a bathroom at the north pole and I would expect to see a las olas advertisement on the igloo toilet.   That is partially where your deposit money is being used.  The rest is used for the development so they can deliver the founders homes.  Classic Ponzi.

I'll stay in the USA.  Build my home in Bandon Oregon, get a job at the course and play it for free...and I can live there for $2000 a month.

And I will say this.  From there website a lot of buyers were from Canada and Europe....mostly in 2014.  Those currencies are much lower and we have experienced a dive in home buying in the USA from those sources.  The Canadian dollar has dropped by 30% and the Euro has dropped by 20%...Lots of head winds...on currency values vis a v the dollar...but what do I know.....

Look how crooked that roof is on the home they have built.

Look at that roof!  I can't believe to sent that picture.

Without question, (1) purchaser deposits have been and will continue be used for construction costs but also to pay the immense sales, marketing, administrative and overhead costs of the developer and (2) the monies are NOT being escrowed or earmarked for YOUR house. So, yes, past, present and future deposits are and will be used for dirt work, office supplies, marketing, operating expenses, etc. as the need arises and, yes, continued work is dependent on current sales of homes to be delivered (if all works out) sometime in the unforeseen future.  This may not be fraud, but it is very risky that the developer will be able to deliver (within an ever-changing time-period) the project it promised for the amount of money it collects.

I stand by the wisdom  of my previous post (although I would now add that golfers need not worry - they're no longer be physically able to play by the time their retirement home is ready!)

If you are at or near retirement age (or more specifically the age at which you intend to occupy your home in Ecuador), Las Olas is NOT for you, in my opinion.  This project is already three to five years behind original plans and is not progressing at a measurable rate.  Conservatively, if all goes well this project is 5 to 7 years from being in a condition in which you would begin to want to live there, unless you like incomplete infrastructure and possibly questionable utilities.  Get the artist's rendering out of your mind - if it ever achieves that state it will be at least 7 - 10 years from now.  Besides, do you really want to bet your remaining years in this mortal world that you'll remain healthy and alive long enough to enjoy your home?  There are existing, ready-to-go options elsewhere posing no (or at least a whole lot less) risk of losing all your money and, more importantly, all of your remaining time. This project is for someone around age 50 willing to gamble a bit on what it will be like when they're 60 or so and ready to retire. 

There you go.  The disclaimer finally surfaces.  Buy at your own risk.  Not a good situation.

stueyolson wrote:

There you go.  The disclaimer finally surfaces.  Buy at your own risk.  Not a good situation.

It's not a risk worth taking in my opinion unless (i) the deposit is an immaterial amount of the purchaser's retirement assets (so they can afford to lose it completely and not miss a beat) and (ii) they are in good health and at least 10 years from retirement or, again, so financially well off that they're living the dream elsewhere while Las Olas runs its ultimate course.

And would you comment on the status of the roof of the home that was shared with us?  It looks pretty bad and I don't think the owner will like that. I'd ask what warranties you offer but since you rely on purchasers funds I'm not sure we could rely on a warranty....

stueyolson wrote:

And would you comment on the status of the roof of the home that was shared with us?  It looks pretty bad and I don't think the owner will like that. I'd ask what warranties you offer but since you rely on purchasers funds I'm not sure we could rely on a warranty....

Me?  I'm not familiar with this type of construction or why the cantilevered portion is not supported by multiple columns, which it seems would do wonders along with a decent sized beam.

Sorry, I thought you represented the company.  The Director of Sales responded some time ago and I thought you were him.  He apparently has been silent on the site since then.  Sorry.

This is for the Director of Sales for Las Olas who posted earlier.  What do you think of the picture of the roof above?  You said "premium homes".  Is that the quality you were describing?

Stuey Olson has alleged on this thread that the Las Olas project is a Ponzi scheme and a "big scam."

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A Ponzi scheme is a fraudulent investment operation such as Bernie Madoff was incarcerated for .. and Charles Ponzi was twice convicted, nearly a century ago.  Falsified documents are presented to prospects, auditors and/or the government.

Stuey has not produced credible evidence that would implicate Las Olas as a “Ponzi deal” and a “big scam.”  He should be more careful before tossing around unfounded accusations on a public forum about alleged criminal activity by the developers. 

Obtaining early-investors' money by offering them a discount not offered to later investors may not meet Stuey's investment standards, but that does not mean that such a practice is fraudulent.

cccmedia in Quito

Stuey Olson has posted four times recently on this thread questioning the allegedly poor construction of a new-home-under-construction's roof as seen in a picture supplied for this thread by a Las Olas representative.

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I have done multiple enlargements of that photo on my MacBook Pro to discern whether there is a problem with the roof of the home under construction .. as shown in Report 259 of this thread.

My conclusion:  There is no roof yet and the “walls” of the structure are construction board, not completed walls.

The Las Olas rep had clearly marked the photo as a home under construction and made no representation that there was already a roof on the building.

It seems odd to be so concerned with a “roof" that had not even been installed.

cccmedia in Quito

We are purchasing here and so far our experience has been great. Everyone we email responds almost immediately and have been very helpful and patient with us trying to decide which unit we want being that we are in Atlanta and not on the property.
Also, I work with a physician from Ecuador and he says the place is legit and going to be great!

cccmedia wrote:

Stuey Olson has alleged on this thread that the Las Olas project is a Ponzi scheme and a "big scam."

---------

A Ponzi scheme is a fraudulent investment operation such as Bernie Madoff was incarcerated for .. and Charles Ponzi was twice convicted, nearly a century ago.  Falsified documents are presented to prospects and the government.

Stuey has not produced evidence to qualify Las Olas as a “Ponzi deal” and a “big scam.”  He should be more cautious before tossing around unfounded accusations on a public forum about alleged criminal activity by the developers. 

Obtaining early-investors' money by offering them a discount not offered to later investors may not meet Stuey's investment standards, but that does not mean such a practice is fraudulent.

cccmedia in Quito

Agreed, poor business practices are not in themselves fraudulent .  Could be that EVERYONE involved will lose money.

You are correct, that was an improper characterization.  But it does tell me the developer is undercapitalized.  In this case, if the developer sold 50 homes at $200,000 that would be $10,000,000 in sales.  The developer offers $2,000,000 in discounts on those homes and in return gets 33%, or $2,500,000 in cash to begin developing.  Paying 80% through discounts to obtain $2,500,000 for development is an incredible cost. 

I was referring to the roof line being all uneven.....