Las Olas Ecuador development

It is true that there has been progress since last year.  I am just curious about when you were told your house would be ready and whether you think that your house will be ready in the timeframe that you expected it.

The issue is that people need to be provided with accurate information and timelines so they can make an informed decision about whether to invest or not.  The question is how long people are willing to wait to have delivery of a home.  A buyer needs to have realistic and accurate information from the developer so that a buyer can make an informed decision about whether that time line is acceptable.  As others have said, some people are in the market for a home that is a long range investment.  Others are looking for a home they can live in soon.  The question is how does a buyer know that the timeline the developer is projecting is realistic based on the buyer's situation?  The other question is whether the developer is accountable to buyers for the projections they have made.

Susan_in_Ecuador wrote:

Buried in that remarkably lengthy sales pitch is this:

"Yes, Las Olas does use deposits from purchasers to help subsidize working capital as is a normal business practice in Ecuador because of its credit practices.

You are correct to say that the Government of Ecuador had attempted to create a new legislation to prevent project to be sold without all infrastructure in place. This seems to be a very good idea on paper, but unfortunately it was seen to limit the development in Ecuador given current banking practices and was scrapped. "

It is important that those who buy an unfinished project are fully aware of this practice by this and many builders.

To the best of my knowledge, the requirements that infrastructures such as water, sewers, and electric be in place as well as updated deeds in accordance with new urbanization documenting ownership have not "scrapped" and perhaps this writer could provide his proof of that statement.

Caveat emptor, buyer beware.

Susan_in_Ecuador,

Someone posted a lengthy text to which I reply one statement at the time, and you qualify it as a sales pitch?!

"Las Olas does use deposits from purchasers to help subsidize working capital as is a normal business practice in Ecuador because of its credit practices." It's informative, not hidden to anyone and people are free to decide if it's for them or not.

Regarding the legislation, Las Olas as all permits and approvals in place. That's the best answer I can give, don't you think? As a matter of fact, our Founding partner was on a panel with the Minister of tourism recently (http://lasolasecuador.com/las-olas-feat … onference/) and even met with President Correa two years ago (http://lasolasecuador.com/las-olas-meet … r-economy/).

stueyolson wrote:

I did background checks on the principals of this development.  Nothing of concern showed up.  I don't think Russ as enough of construction experience to say he can build this out.  It's much larger than anything he has done before.   David was a food service guy so that means nothing.  But I don't think they are crooks....I think they may deliver, but it will be years and years later than they are estimating.  If i was in charge, I'd build the medical center now as that is the most important aspect from my perspective.  And I wouldn't buy a lot until the golf course if functional.

Dear Stueyolson,

Have you read post #48 on this thread? This is the bio of Randy Russ. If you don't think he has enough construction experience, it's your opinion and I respect it. That said, most people are pretty impressed by his construction background.

But then, David a food service guy? Where did you find that? I asked David if he ever worked in food service and he was surprised someone found that information. It was his first job out of university 33 years ago and he stayed there for 2 years. I agree it's not relevant to the project, but what is more relevant is its last job, as Vice-President Finance of Ameresco Canada (http://www.ameresco.com/). David worked 15 years for Ameresco, a leading independent provider of comprehensive energy efficiency and renewable energy solutions. Since Las Olas is an eco-friendly community, David's background and experience bring a lot of value to our community.

I take note that if you were in charge, you would build the medical center first, even if no one lives at Las Olas. Most buyers prefer we focus on the golf course as the first amenity to be built, which is what we are doing. It will be followed by the beach club, the tennis & pickleball club, the equestrian center, and then after, the health clinic.

The government is currently building new hospitals in Manta and Bahia de Caraquez, respectively, one hour and 15 minutes from Las Olas. As you must know, a critical mass of residents is required before building a health clinic, otherwise, you can't attract any health professionals.

I've been watching this site for months now and decided to chime in for the first time.
My husband and I are PROUD owners at Las Olas.  I came across this site while checking into this community, and after reading all the negative things being said, we had doubts and concerns. Instead of listening to what was being said, we decided to sign a reservation agreement and visit. I want to tell you that these are some of the warmest, caring people we have ever met. We also, had a timeline and expressed that at our first meeting, which was prior to our tour of the property, which is absolutely amazing! While touring, and seeing the first three homes in progress, we were told of changes being made to the original plans. This was due to making sure these homes are going to be done right and made safe. We were very impressed. You see.... I have no doubt that you can find experienced builders and MAYBE even more experienced builders that would be more than happy to slap a house together to meet your deadline. As for me, I'd rather know that the house I'll be moving into is safe and secure, even if it means waiting a little longer. You will never meet a builder that has all his property owners best interest at heart. This is what is so special about this community, it's not just a community to them, it's about everyone in it. They are very honest, open and up front about anything you ask them, and can certainly be trusted. Needless to say, I have no doubts about moving to this community and look forward to living there during the progress and completion of Las Olas. I might add that this community is a perfect fit for all ages. My husband and I are in our 60's and can't wait to retire there.
So........if anyone has an interest in Las Olas, please visit and find out for yourself, not from what you hear from others. Who knows, maybe we'll end up neighbors. We haven't met Pascal yet, but we'll be living right next door. Looking forward to meeting you.

Thank you so much for your detailed and well considered response.  You are an excellent ambassador for your new project and your positive optimism is inspiring.  My heart weeps for your family loss !   I can see you being very successful in your new position as Director of Marketing.

As a professional business person operating in the local community, one of my concerns has been to ensure the clients previously renting in Bahia, anxiously awaiting their promised homes receive better or more accurate information. By your own admission I am glad to see you be more realistic
" it will not be any time soon. "   Ironically much of the " misinformation " that I apparently have came directly from " Las Olas "  at some time. 

I appreciate your offer for a site tour, and will take you up on that in the future.  However your assumption is incorrect as I have already been on the " Las Olas " property many times. 

I would like to clarify a few of your assumptions :

" I find whoever told you this might have been mistaken. "  This was  from my discussion directly with the young entrepeneur.   

" inexperienced developers "  my comment was specific to a large residential development and more importantly to any business experience in Latin America.  This would prevent mis-management of funds like the purchase of the illegal truck - for a good price -only to be subsequently seized by Aduana.

We will certainly agree we have significantly different opinions on what constitutes sustainable development.  I strongly believe that local community opposition and demonstrations regarding  your restricting public access to the beach, destroying  turtle nesting grounds,  and the illegal removal of protected Ceibo trees all resulting in sanctions from the Ministerio del Ambiente  is not " sustainable development " !

" our staff turnover by any standard has been extremely low "  I personally know 18 former key staff of Las Olas   -  given there are currently only a half dozen key positions ......

Three final questions :   

i.)  You indicated there has been a tremendous increase in property values.  Why doesn't the company simply purchase back the properties at their purchased value, from those few investors who have changed their minds, and take advantage of this " windfall " on the corporate bottom line ?

ii.) With all that  land available, and no issues with water, I am most interested in the logic behind your turf farm for grass being located some 30 km away from the golf course site.

iii.)  Las Olas RUC number is not publically available on the website for clients to confirm legal operating status in Ecuador, number of employees etc

A suggestion that would greatly enhance the confidence of your investors would be to provide an interactive  " sales barometer "  of your ever increasing sales volumes.  A wide variety of opinions on what Las Olas will be in the future, but as a realist, I don't think anyone at this point can say with any certainty what the ultimate result will be.  I sincerely wish you all the best !

BahiaBob I would like to add to the comment you made on December 29, 2016,  “As a professional business person operating in the local community, one of my concerns has been to ensure the clients previously renting in Bahia, anxiously awaiting their promised homes receive better or more accurate information.” 

According to the information on the Las Olas website about Randy Russ, a founding partner, his companies have vast experience in construction with two US companies called Bobby Castle Construction and Texas Fixtures.  Here is the direct quote from the website.

“Bobby Castle Construction was incorporated in 1971 and is owned by Randy Russ who entered the firm as a partner in 1984. Bobby Castle Construction is licensed to operate  in over half the states in the United States.

“Clients of Bobby Castle Construction include Michaels Crafts Stores where we have completed more than 250 stores in twenty plus states. Cost Plus World Market stores where we have worked on over 200 stores. We have also constructed Big Lot Stores, Bed Bath & Beyond Stores, Bevmo Stores and JCPenney.” 

The suggestion is that Randy Russ has enough experience in construction to have an understanding of the amount of time it takes to install infrastructure and to construct a finished complex of buildings.  A reasonable assumption would be that Randy Russ has sufficient expertise to quote a realistic date for the completion of homes and for the other amenities that are advertised on the website.  We can only assume that Bed Bath and Beyond, Michaels Craft Stores, etc. would not engage in repeat contracts with a contractor who did not meet construction deadlines. Any reputable contractor with experience in North America, where contractor regulations are very strict, would not quote completion dates without knowing that he had all essential infrastructure, etc. in place and that he could deliver on time. 

It is hard to imagine that Bobby Castle Construction would promise a timeline to Michaels Craft Stores and then not deliver on that date, and still not be able to deliver 2 years later. What would the consequence be if that occurred?  Good customer service and delivering on commitments is what builds a strong business anywhere in the world. Providing realistic timelines is good customer service.  So far, Las Olas has not been meeting the timelines that they have been providing buyers and owners.

This leads to your second point, BahiaBob, “i.)  You indicated there has been a tremendous increase in property values.  Why doesn't the company simply purchase back the properties at their purchased value, from those few investors who have changed their minds, and take advantage of this " windfall " on the corporate bottom line ? “

Randy Russ was quoted in a document on the Las Olas website, “We will commence installing electric lines and fiber optic cable shortly after we install retaining walls, which starts 9/22/2015….We expect to start pouring first foundations for first homes in October of 2015…. We expect the homes to take approximately four months to complete. ….The first clubhouse will be the Beach Club.  We expect to commence construction on it in 2016.”    As the reader is aware, the electric lines are not installed on the property of Las Olas as of this date in December of 2016, but the lines are coming down the road.  There is no functioning water yet, no one can live there as of this date.  As the Las Olas website states, the first foundations were poured in February of 2016, not in 2015.  There is no foundation for the Beach Club as yet. 

So, Las Olas marketed a home to us and others that would be ready within a year.  That  has not become a reality.  It would appear that the reality is that there will be no homes with amenities such as the Beach Club, functioning Golf Course, etc. for some indefinite time to come.  We have watched successful condominiums being constructed in Bahia and Cuenca; they have taken years to complete.  No work has yet been done on any of the condominium buildings or the Beach Club.  How long are they realistically going to take to be inhabitable?

So to echo your point BahiaBob, why wouldn't Las Olas want to re-package their  sales program for the development and sell to people who are not yet ready to move there?     Why would they not just say, we are building an awesome development with all kinds of amenities that will be ready for you to enjoy in about 5 to 10 years?  Why would an owner of a company with a history like Bobby Castle Construction, continue to “forecast” (to use the word the Marketing Director is now using), construction time lines that are not being met? 

Why would the founding partners David Maksymuik, and Randy Russ of Las Olas and Bobby Castle Construction, not want to provide good service, build good will, and maintain a good reputation as a contractor by satisfying owners' requests? In the case of current owners who purchased with a promise of a shorter timeline; why wouldn't Las Olas provide more realistic timelines and then give them an opportunity to choose to stay with the project or to move on?  Why would Las Olas want to take the hard earned money of retired people and then treat them with less respect and commitment than Michaels Craft Stores?  Is that the way to build a community that people want to live in?

You can go to FaceBook and search for Las Olas Development

Hi everybody,

Some inappropriate posts have been removed from this thread.

Priscilla

[Post under review]

That't terrible and frankly unacceptable I am SO glad I didn't purchase there and realised once "completed" I could take another look.

You must have some options....get your monies back and RUN!! Any court would side with you!

So sorry this has happened to you, I would be furious!!!!

Keep us updated what you decide - Good Luck!

whams1133 wrote:

That't terrible and frankly unacceptable I am SO glad I didn't purchase there....

You must have some options....get your monies back and RUN!! Any court would side with you!

So sorry this has happened to you, I would be furious!

This post assumes facts not in evidence.

We have no reason to believe that Whams has seen the contract that may exist between Las Olas and Truth B in which construction or completion dates would be stated.

Ipso facto, to our knowledge Whams has no reliable basis on which to assert that “Any court would side” with anyone.

----

Verbal assurances are not binding.  Anybody who buys property in Ecuador needs to get construction dates in writing if such deadlines are considered important by them.  If such dates are not met, remedies in the contract would govern.  If remedies would not be enforceable without expensive and lengthy court proceedings, the prospective buyer may need to reconsider the whole thing.

cccmedia

Thanks for your support.

For a clear-to-the-layman explanation of caveat emptor -- the legal principle governing the buyer's responsibility in purchase of real property -- visit the Caveat Emptor page of wikipedia.com ....

Caveat Emptor =  Let the Buyer Beware.

This post is not meant as an excuse for any construction delays that may or may not be occurring at Las Olas project on the Ecuador coast.  It is for educational purposes only.

cccmedia

truthbtold wrote:

<span>[Post under review]</span>

So much for freedom of speech.
Another thread has been closed too. How people can warn others if there is no way to do it? Even if what is said is true or are links to the sources?

GMistral wrote:

truthbtold wrote:

<span>[Post under review]</span>

So much for freedom of speech.
Another thread has been closed too. How people can warn others if there is no way to do it?

This thread has not been closed.  At least not yet.  I have asked the Home Office to review the relevant post.

expat.com's forums are not the place for parties to a lawsuit or a potential lawsuit to make their claims.  This site does not have access to all the relevant documents .. and would not be the appropriate arbiter or forum even if every document could be reviewed.

The venue for that is a court of law or other legal strategy such as settlement.

----------

Other exceptions to freedom-of-speech include libelous statements .. and shouting ‘fire' in a theatre.

cccmedia

cccmedia wrote:

Other exceptions to freedom-of-speech include libelous statements .. and shouting ‘fire' in a theatre.

Ah, but if there is indeed a fire?

Well, if there is a fire, it's sure a slow-burning smoldering one at Las Olas...the bomberos can take their time warming up and manning the fire truck...