Hands on relaxation   

The NEW LIfe Spa

Photos Indicate the Ambiance to be Offered

A Gym

Palapa Dining

A Craft Shop on Site

Rincones for Rest, Relaxation & Meditation

A Walk UP Bar beneath a Typical Palapa

Everything.
Including a State of Mind

• Mexico
• Tlajomulco
• San Miguel Cuyutlan
• Lake Chapala
• San Marcos

We are right there. The low mountain range separates us from the Chapala area and the arrow indicating the view is out over the dry salt lake bed.

Fractional Ownership
 

ALTERNATIVE WAYS TO FINANCE RECREATION DEVELOPMENTS

A New Way to Own a Vacation Home - It is NOT Time Share.

            For the Select Few: Fractional ownership of vacation homes, also called private residence clubs, is a relatively new concept. 

            At present it is being employed in Mexico to a major degree.The approach allows buyers to enjoy two to 12 weeks of home ownership privileges per year at an upscale, luxury resort but at a fraction of the cost of whole ownership.

            If it is the desire of the buyer to own an impressive second home complete with personalized services, located in an expensive resort area but can’t quite justify the expense, this is an opportunity. Because they would be using the facility only few weeks or months of the year, this type of real estate arrangement is very appealing.

            This approach affords Fantastic Environments with Personal Care and Comfort Managed  with  facilities and amenities that a Single Owner can rarely realize.

            Most private residence clubs offer the extensive amenities. These may include an extravagant clubhouse and spa, plus five-star hotel services, the kind you couldn’t expect to have in a wholly-owned vacation home, high-end condo or timeshare.

            Imagine this: You are going on vacation and you call ahead to the staff at your

private residence club home. At your request, the staff shops for your groceries, dry-cleans your clothing, makes your restaurant reservations, prepares your private pools and baths.

            From you private “bodega” the staff can  knick-knacks and favorite pictures of

family members around your residence. You are met at the airport by a staff person who shuttles you to your home where a finally-detailed automobile is sitting in your parking space for use at your disposal.

            There are many variations on this approach, in this picture and from a long list of services and amenities, there can be a suitable combination for El Volcan Spa

            Private residence clubs are not your ordinary second home.  Generally Fractional Ownership facilities are in outstanding locations. In our case the health, quiet, the pampering side of vacation will be developed to its finest point.

            Fractional or residence clubs have sprung up in exclusive, world-class resort destinations worldwide. St. Thomas, Virgin Islands, Puerto Vallarta and Mexico are popular locations. In the U.S., the first fractional ownership resorts were in major ski areas out west, particularly Colorado where real estate was so costly that wholly-owned second homes were out of the question for most people. Eventually they spread to Northeastern ski areas. Since then fractional ownership resorts  have begun appearing in  golf-oriented communities like Hilton Head Island, South Carolina and popular beach states like Florida.

            Some of the most popular fractional ownership facilities can be found in Jupiter, FL; Aspen Highlands, Bachelor Gulch, and Aspen Snowmass, CO; Lake Tahoe, CA; and Whistler, British Columbia.

Management by Five-Star Companies

            The key to the success of fractional ownership facilities is their professional management. Most are operated by well-respected hospitality companies for their total commitment to health, safety and satisfaction of the owners

Hassle-free Ownership: There are advantages in having a particial ownership as opposed to full ownership.

            Part of the appeal of fractional ownership resort homes is that they are completely hassle free. In addition to having a staff for personalized service at your disposal, at a private residence club you never have to worry about repairs, maintenance or housekeeping. Everything is included in the price and annual fees and taken care of by the professional management company.

Appreciation Potential

            To date there have been very few fractional resort developments. The demand is high. As a result, it is likely there will be substantial appreciation, rather than the depreciation that usually occurs with timeshares.

            Real estate experts say that the outlook for investment appreciation appears excellent. You can expect at the very least an appreciation parity against other real estate in the resort area in which the fractional is located.

Prices

To buy a fractional, you pay a one-time purchase price and then a yearly upkeep fee that covers all of the expenses associated with property ownership and its use and services.

What do fractional ownership resort homes cost?

            Prices vary based on the size, amenities and location of the individual property. But most are in the $100,000-$500,000 range. Keep in mind that these are truly top-of-the-line homes that would cost you two to five times as much if purchased outright as wholly-owned vacation homes.  We will definitely be in the middle low range due to the natural advantages we have to work with, the design features we propose.

Comparison of Fractional ownership resort homes to Timeshares

            How do fractional ownership resort homes compare with timeshares? They really don’t. Fractional ownership resort homes are far more exclusive and include many more luxury amenities and services than timeshares. They tend to be larger homes, usually three to five bedrooms.

            Timeshares usually allow you use for just one to two weeks per year. Fractional ownership resort homes offer from two to 13 weeks, and those don't necessarily have to be consecutive weeks. Pick the weeks you want.

            With regard to financing, obtaining a bank or mortgage company loan on a timeshare is difficult. Rates are high, regardless of  how good your credit. That's because it’s a well-known fact that most timeshares depreciate over time. Conversely, banks and mortgage firms consider fractional ownership resort homes to be appreciating assets and will often treat them like any other second-home

purchase.

            Why do fractional ownership resort homes tend to appreciate while timeshares usually depreciate? There are a couple of reasons. With fractional ownership resort homes, more of the buyer's dollar goes to high quality finishes and "bricks and mortar" vs. sales commissions which can be as high as 40%-50% with timeshares.

            Furthermore, timeshare values have historically been poor because of the large  number of resales on the market, not to mention a continuous stream of new developments. The fact is the secondary market for timeshares has never really developed.

            Conversely, there are a limited number of fractional ownership resort homes on the market. Most likely, that number will stay small because fractional ownership resort homes are built in only the very best, most highly desirable locations. Therefore, demand outpaces supply and results in property appreciation. Comparison of Fractional ownership resort homes to Condo Hotels

            Fractional ownership resort homes (private residence clubs) differ from condo hotels in that you have a set amount of time when you can use your vacation home. Condo hotels are in fact, condos located within hotels. You can use your unit whenever you want, and place it in the rental program when not using it.

            In general, fractional ownership resort homes do not offer rental program participation.   We will consider this element carefully, but at present we favor the approach.

            Fractional ownership resort homes tend to be larger than most condo hotel units. Most fractional ownership resort homes offer three to five bedrooms, while most condo hotel units are studios, one bedroom or two bedrooms. Currently, most condo hotels are located in Miami and other surrounding cities in South Florida. Fractional ownership resort homes are most prevalent on the West Coast, particularly in ski areas. However, both types of real estate are rapidly gaining popularity and soon there will likely be more of a supply across the country to meet the growing demand.

Summary:

            We like the fractional ownership resort home approach and think the time is right for the prices to be down to a level where younger small families can afford them

We do think the operation of a facility in the absence of the owner makes a great deal of sense. The renting of your facility when you cannot or will not be using it will be a stream of income that can substantially reduce your cost and continuing maintenance expenses.

            This approach provides for us a means of financing that would be in Mexico quite expensive and probably not available. We can build a minimal number and begin operation. This would not only provide us with a stream of potential customers but would allow us to grow in an orderly, manageable way.

            We cannot give enough emphasis on the potential as a strong secure investment our offering would have.

FINANCIALS:

The property is approximately 35 Hectares (50 acres), about 1/4 of which is volcanic. The property is held in fee simple or outright ownership and is not subject to an Hijidal or indial rights.

The property is Free and Clear of any obligations. and valued as it is at 2.5 Million Dollars. At present the owner enjoys income from the mud export of about $125,000 a year. That contract will not be renewed by the owners. There is other  income for grazing rights and agricultural use.

The location is central enough t be accessible and far enough and isolated sufficiently to have no worry attendant of encroachment of traffic or industry.

There is work to be done on the streets through San Marcos and out of San Marcos for about 1.25 km. To cobble stone those need sections would cost about 35 pesos a meter, labor and material.

There is some rough places on the road over the mountain to Chapala and would be relatively insignificant to repair.

There is ample of potable water on the property and the volume of hot mineral water is sufficient and virtually un measurable.

The area of the mud pots and spring is overgrown with tulle and it would be necessary to engineer and install walkway for maximizing the scenery and to facilitate the taking of water and mud.

From the springs to the area of construction is a slope and rise of about 35 feet in 400 feet. This represents an advantage for view, climate and development of grounds.

We propose to build an aqueduct to transport the water throughout the facility servicing each facility. This would be beautiful and would add to the landscaping and charm. There would have to be a system for maintaining the temperature but the pressure would be gravity flow and it would to require extraordinarily heavy pumping equipment to raise the water to the necessary level that allows the flow to be satisfactory through the spa.

We anticipate that the mud required for treatment would have to be gathered daily for maximum effect. This would require mechanism and system for gathering the mud transporting it to a facility for packaging to take to each place where its use is scheduled.  Heating or re-heating the mud would be a matter of management, handling and control in each treatment center, room, or bath.

Mud would be available for purchase in various sizes.  This is a high margin item and is to be pushed aggressively. At wholesale--- gathering and packaging, there would be a cost of about $1.00 dollar a pound and would sale for upward of $15 dollars a pound.

We want to point out that the mud is butter smooth, without a "grit," taste or odor. It does not stain.

Water disposal must involve  re-injected into the underground so as to not intrude into the fresh water or potable water. This gives us an opportunity to have plush gardens with a wide variety of plant live that can be nurtured by the water, sun and all around warm weather. Waste water can flow with gravity to the dry lake bed  and remain underground without any ill effects.