LAS OLAS close to Bahia

when were you last at Las Olas?

I was there in 2016.  I made friends with many of the founders club buyers and have kept in touch with them since.

I remember in May 2014 meeting a very nice retired couple in Bahia at Coco Bongo hostel/restaurant. They had arrived in March. They shipped all of their household goods and they were do to arrive in September. They had been promised that they would be in their house November 2014 . I often wonder about them, especially if they made it through the April 2016 earthquake ok 😔

dfcordero  - I know exactly who you are talking about.  They did make it through the earthquake with just the shirts on their backs.  They are no longer in Ecuador, but are doing very well now.

Who was it that said, "A fool and his money are soon parted"........or "Theres a sucker born every minute"?  it just came to me in a blinding flash.....W.C. Fields for the second one......

dumluk wrote:

Who was it that said, "A fool and his money are soon parted"........or "Theres a sucker born every minute"?  it just came to me in a blinding flash.....W.C. Fields for the second one......

The first was apparently first written in 1587 although it is certainly an old, old saying, much older than that:
https://www.phrases.org.uk/meanings/a-f … arted.html

The second is commonly attributed to P.T. Barnum although some say he never said it.  He was right, of course, he just underestimated the frequency:

https://en.wikipedia.org/wiki/There%27s … ery_minute

One of my favorites among many from W. C. Fields is
"A woman drove me to drink and I didn't even have the decency to thank her."

I understand that "Yulrun" left Ecuador in 2017. Leaving aside the merits or otherwise of the "Las Olas" project, no-one could blame him, given his loss during the 2016 'Quake.

Having said that, it is interesting that the project seems to have gone no further after a number of years.

We, ourselves, bought a place in Ecuador a few years back. We've since sold out of it, having realized that there were things we still wished to do in our own country before looking at extended living O/S.

The key difference between the place we bought, and those being bought by investors in projects such as Las Olas - and this is the chief take-away - is that the place we bought had the following characteristics:

1) It had been (long) built, as had the rest of the community, rather than being "planned".
2) There was (and is) a "critical mass" of houses and apartments built and owned within the community which will ensure that the HOA will be fully funded into the future. We insisted on seeing HOA financials etc. before committing to it. (See next point).
3) It was in a community (HOA), which was long-established, and fully-financed.
4) It had/has good access to the essentials. (Potable water, sewerage, broad-band Internet and so on).
5) It is in close proximity to a thriving local community (including recently built shopping centers, medical precincts and so on).
6) It doesn't have a golf course to maintain. (Although being on the coast - and beach front) it still has it's share of maintenance/upkeep problems).

Naturally, we flew to Ecuador to view the house, the surrounds, the local area and so on (to assure ourselves that it was actually what they said it was), before we purchased.

...and yet, right across the road is one of the "Yet to be finished" developments people speak about. It was built not too long after the place we bought into. It has the Gateway/Guardhouse (long-since un-manned), and the large numbers of empty lots, with the - occasional - built house. I wouldn't want a home there.

Much less one in a place that "might be built some time down the track...as long as you give me the money up-front..."

I honestly don't know how this Las Olas project is still in operation.  They are putting up the odd house piece meal to appease the masses, yet no infrastructure.  No hydro, no sewer system, and most importantly, no water.  Buyers that had been promised to be in their homes in 2015, 2016, 2017, have yet to see that come close to materializing.  A couple that sold everything in Canada recently and shipped their belongings over, have been promised to be in their home by Christmas of this year.  I think it's a safe bet to say that that will not be happening.

The curious thing is all these people that bought their lots, their homes or condos,  legally cannot receive a deed to their property until infrastructure is in place.  So in essence, they actually own nothing.  If this development goes belly up before any infrastructure takes place, and they do not receive their deeds,  they will never see a dime.  If they want to bail out now, because they see the writing on the wall so to speak, again they will never see a dime.  They cannot "sell" their lot, because again, they legally do not own it.  It may be that  Las Olas has offered to "find" a buyer for the irate buyers that bought in and now want out.  Again, another move to appease the masses.  Why on earth would they do that when they need cash inflow.  They have a huge amount of lots left to sell.  As far as I know, the buyers that were told that a new buyer would be found for them, have been left spinning their wheels.

There are developments like Las Olas littered all over the world.  This is nothing new.  The old adage of "it's too good to be true",  comes to mind.  Buying pre-build is always a risk.  Either you can afford to lose your money should it not materialize or don't be surprised if you do.

What recourse do Las Olas buyers have?

What does it say in the Las Olas contract about recourse?

Someone may need to contact a bilingual attorney to read the Spanish legalese in the contract .. and advise what can be done.

...

I bought my condo in Quito in pre-construction.  There was a clause about an eight-thousand dollar penalty to be paid me by the developer if the project wasn't ready by the deadline, which of course it wasn't.

I didn't press for the penalty because it would have cost three thousand to file court papers and the project eventually got built and occupied.

cccmedia

I do know several buyers personally.  Although there are "recourse" clauses written into the contract, no one I know has been able to enact them, on their own merit or legally.  The developers are aware that it is an expensive, lengthy process to hire a lawyer and go the legal route and are banking on the fact that this may deter most.

RepeatAdventure wrote:

I do know several buyers personally.  Although there are "recourse" clauses written into the contract, no one I know has been able to enact them, on their own merit or legally.  The developers are aware that it is an expensive, lengthy process to hire a lawyer and go the legal route and are banking on the fact that this may deter most.

Good to see that access to the legal system (for recourse) is as much a deterrent there, as it is in many other places...

This project has garnered a lot of discussion over the past five years yet it seems quite silent - even the website seems stale without updates or "exciting" news.  Is it progressing?  Anyone know?  Anyone care?

RepeatAdventure wrote:

I do know several buyers personally.  Although there are "recourse" clauses written into the contract, no one I know has been able to enact them, on their own merit or legally.  The developers are aware that it is an expensive, lengthy process to hire a lawyer and go the legal route and are banking on the fact that this may deter most.

Dear SawMan,

I see that you mentioned the apparent lack of progress at the coastal-golf-course and housing development planned for Las Olas.

The pre-construction sale of future-units of this project began about ten years ago, so your mention of five years is being generous.

Repeat Adventure (citation above in this post) gets at an important fact -- Expats buying pre-construction in Ecuador are in a difficult position to collect on putative buyer-protective clauses.

I found this out personally when I purchased my Quito condo in pre-construction in 2004, finally able to move in during mid-2013.  There was an $8,000 US 'multa' in the contract.  However, it was only when the slow-moving developer missed the deadline, triggering the potential multa .. that I learned that I would have to pay about $3,000 up front to initiate the court proceedings necessary to obtain the multa.  With additional costs possible and the final outcome less than certain, I dropped the possibility of pursuing the fine.

The last sentence in Repeat Adventure's citation tells the rest of that story.

cccmedia

Here's my analysis based on following this story for years and what I have observed in Ecuador pre-construction cases....

The developers have lost almost all credibility by being unable to show above-ground progress in the housing/buildings development.

The fact of the 2016 earthquakes has not aided the developers in obtaining pre-construction customers or investment funds.

It will take major construction progress such as completing the clubhouse and at least several homes with running water before any potential property-buyer who does due diligence .. would seriously consider this albatross.

The project's number-one promoter / employee of the developers suffered a serious tragedy in the earthquakes shortly after moving his family to the Ecuadorian coast .. and has not been active on this forum for the last couple of years.

cccmedia

It appears that Las Olas has recently managed to secure a substantial loan from National bank to help kick start the infrastructure. Hopefully, for the buyers waiting to move in, I hope this is true and that the money will not be used for "other" things.   Law suits against LO have halted and/or slowed down any construction on site.  And on a sad note, several horses on the property belonging to LO had to be destroyed due to a lack of good nutrition.       “How funny it'll seem to come out among the people that walk with their heads downwards! The antipathies, I think—” Down the Rabbit Hole, Alice in Wonderland.

Went to the website and signed up for the newsletter twice, never received anything.

RepeatAdventure wrote:

Hopefully, for the buyers waiting to move in, I hope (the report of a bank loan for infrastructure) is true and that the money will not be used for "other" things.   Law suits against LO have halted and/or slowed down any construction on site.  And on a sad note, several horses on the property belonging to LO had to be destroyed due to a lack of good nutrition.

Just imagine folks who bought into the Las Olas project ten years ago .. now reading in late 2018 that the developers may be getting a loan to help kick start the infrastructure.

Lawsuits, horses put to sleep, no start to infrastructure after a decade of delays -- what a cautionary tale for Expats considering selling their homes so they can move into pre-construction housing projects in South America!

cccmedia

RepeatAdventure wrote:

It appears that Las Olas has recently managed to secure a substantial loan from National bank to help kick start the infrastructure. Hopefully, for the buyers waiting to move in, I hope this is true and that the money will not be used for "other" things.   Law suits against LO have halted and/or slowed down any construction on site.  And on a sad note, several horses on the property belonging to LO had to be destroyed due to a lack of good nutrition.       “How funny it'll seem to come out among the people that walk with their heads downwards! The antipathies, I think—” Down the Rabbit Hole, Alice in Wonderland.

Very Unfortunate. Hopefully things will turn around for the better. Perhaps this was one, or is one of those projects that will have no middle ground. Either a spectacular success, or a spectacular bust. Kind of looks like a bust at this point in time. Imagine lots of good people invested their hard earned money in good faith. Fingers crossed that things eventually work out for all those people.

Thank you all for the updates and analysis.  Yes, another set of victims.  Lawsuits will outlast them. Sad.

This is sooo similar.  Only a matter of time?  https://www.zerohedge.com/news/2018-11- … 00-million

RepeatAdventure wrote:

This is sooo similar.  Only a matter of time?  https://www.zerohedge.com/news/2018-11- … 00-million

Some people read articles like this and become skeptical buyers who do their due diligence before buying property overseas.

Others who are looking for ways to separate people from their money read articles like this and consider them as how-to manuals...

Any new info on this project?  Anyone moved in yet?

I think that you folks should send me money and I will eventually invest in stuff that is valid. Do not ask me about progress, just send the money. Stuff and valid is at my discretion.

Hello, We currently have 18 pieces of heavy equipment on site primarily finishing moving the last of the dirt required for the tiered roads that provide unobstructed ocean views for the majority of the homes and condominiums. There are in excess of 100 employees on site. We expect the first 15 homes to be finished by October, most of which will be inhabited by owners that are currently living in Ecuador. From there we will commence construction on our ocean front homes and hillside condominiums. We expect to more than double the number of employees over the next several months. The back 9 of the golf course will be playable by year end. We are engaged with many interested investors in Canada and the US. A promotional offering has just been released. **** Take care.

LasOlas1 - Mr. Inkpen.  I understand that you are one of the founding club member buyers, so you have been involved in this process for a very long time.  As Yulrun was an empassioned and staunch supporter of this project, it appears that it is now your turn to beat the drum, so to speak.  The original drumbeaters have all slowly disappeared.
Unfortunately, your post holds no merit, because your words have been repeated over and over in the past.  At this point in time, the only thing that will give this project ANY credibility is: existing infrastructure, promised beach club and golf club, a playable golf course and  buyers actually living in their homes being able to use the development as promised.   If a handful of people move into their homes by October without some or all of the above mentioned services at their disposal,  Las Olas will be just another pie in the sky development limping along.

Hello, I appreciate your concerns as the development did not move forward as originally planned. Today the situation is significantly different. We have partnered with CFN (the Ecuadorian investment bank) and they have announced publicly an investment of $5,100,000 in the Las Olas development. They obviously have great faith in the opportunities offered by Las Olas. I believe that while your intentions may be good, your knowledge of the current state of affairs at Las Olas is lacking. Have a nice day.

The development must be progressing and real, the internet says so.

I know all about the loan.  I actually made a post on here back in November to the very fact that it was happening.   However, the fact that LO received a loan, does not change any of the factors that I mentioned.  The only concrete proof is time - not words, not loans.  It will either become successful or it won't.  I have friends that are invested in this project.  Believe me, for their sakes, I sincerely hope that LO will be what they had been promised.

Summer reruns.

LasOlas1 wrote:

We currently have 18 pieces of heavy equipment on site primarily finishing moving the last of the dirt required for the tiered roads that provide unobstructed ocean views for the majority of the homes and condominiums. There are in excess of 100 employees on site. We expect the first 15 homes to be finished by October,,,

A decade in, still moving dirt around in anticipation of roads, infrastructure and home building!

Anyone who believes 15 homes will be finished in the next 100-130 days is easily persuaded or gullible, especially given the history of this 'project'.

----

Pre-construction purchases are a risk in South America.  An example of how things go wrong is the situation facing condo buyers of the troubled Trump-branded property that was under construction in Punta del Este, Uruguay, as reported in the New York Times.

cccmedia

There have been a number of Las Olas threads posted here over the years, some were removed. But if I recall the first one dated back to at least 2011?

Since at least 2011 Las Olas has been talking the same story, and I have yet to see any evidence that any investor has moved into a completed house there, much less any of the advertised amenities.

And wasn't one of the big issues  the construction of an alleged desalinization plant to supply water to the development?  I believe there is yet no such plant. So no water supply.

And after the earthquake and what happened to Yulrun, I feel the whole topic of Las Olas is a very tragic subject around here best left alone.

@LasOlas1 I think you should market your scheme elsewhere, we've had more than our fill. You may be new here, but we're not.

gardener1 wrote:

@LasOlas1 I think you should market your scheme elsewhere, we've had more than our fill. You may be new here, but we're not.

About sums it up

Have a nice day.

LasOlas1 wrote:

Hello, We currently have 18 pieces of heavy equipment on site primarily finishing moving the last of the dirt required for the tiered roads that provide unobstructed ocean views for the majority of the homes and condominiums. There are in excess of 100 employees on site. We expect the first 15 homes to be finished by October, most of which will be inhabited by owners that are currently living in Ecuador. From there we will commence construction on our ocean front homes and hillside condominiums. We expect to more than double the number of employees over the next several months. The back 9 of the golf course will be playable by year end. We are engaged with many interested investors in Canada and the US. A promotional offering has just been released. **** Take care.

Wondering what the status is. 15 homes are going to be moved into within 20 days?

Looks like a sad shanty town ... do they have water and electricity wired in?

To you perhaps. To me, when I was there yesterday, it looks like the beginning of the most expansive and interesting community development in Ecuador.

LasOlas1 wrote:

I was there yesterday, it looks like the beginning of the most expansive and interesting community development in Ecuador.

The beginning?!

OMG, it's been at the beginning for a decade.

---

I am skeptical of LasOlas1's expectation, stated on this thread, that 15 homes at Las Olas will be completed by next month, October 2019.

cccmedia

And that is why you have posted actual photos?

Indeed!  I think it would be prudent for Las Olas to provide recent photos on the infrastructure  for their development.  That is the crucial key to credibility.  Not a smattering of constructed homes.