About South American Homes
MISSION AND ORGANIZATION: SAH was created to serve the growing need for adequate residential housing for those living and working in Latin America, starting in the largest market, Brazil: a country whose economy and prosperity is growing while the availability of affordable housing for workers is not keeping pace. SAH is a unique and low overhead platform combining years of collective experience under one roof and provides a source of financing into neglected markets. Coincidently, the Company has also found a need for its services in the Panhandle of Texas in the United States.
OBJECTIVES: SAH wants to accomplish the following objectives and has modeled its business plan to accomplish these goals:
- Technology driven, architecturally designed for local appeal, volume production at high rates of completion,
- Project returns to conservatively average 15-20%, through the use of new construction technologies that promote houses that are built faster, better and cheaper than others, and of utmost importance, of superior quality than those of any competition.
- Projects will be self-contained for water and waste management, and home lighting will be solar-powered-LED to reduce the introduction of disease-carrying insects.
COMMUNITY DEVELOPMENT STEPS: It is SAH's objective to maintain minimal overhead, both at its corporate and project locations, and sustain its contracts with superior and experienced commercial entities (resources) for all its community project requirements, which would include planning, marketing, engineering infrastructure, development and sales.
- SAH utilizes its contractual resources to source pre-permitted land (Brazil and Peru) on which it acquires options and partners if necessary, with local landowners.
- Projects are designed as to requisite need, houses are priced according to anticipated demand, construction is quoted using various technology options and the financial model is reviewed.
- Local private banks are invited and encouraged to provide mortgages when government pre-purchase commitments are not available or required. In some cases, state banks with federal funding guarantees may be needed to offer housing to purchasers whose income is very low or non-existent.
- Once the contractor of record is chosen for both the infrastructure and the houses, the land identified, the mortgage bank chosen for the anticipated home selling price, and the financials approved portraying the desired profit, the project financing is acquired.
- Pre-permitted land is secured.
- Infrastructure engineered and community designed.
- Homes are modeled and pre-sold.
- Infrastructure and home construction coordinated to match planned occupancy.
COMMUNITY PLANNING: SAH's goal is to have each community pre-sold, minimally, to 30-40% before construction is commenced, with a view to reducing investment risk.
- The engineers create and piece together the community, estimate the utility demand loads for local availability and calculate approximately the need for water and waste treatment.
- SAH's local partners administer and supervise all the steps and stages of the development.
- SAH acquires the technology either in forms to be used on site or from locally constructed factories that manufacture the chosen panels. Technology selection will be based on community acceptance, environmental conditions and, of course, what works best - economically and aesthetically. Most of the Company's projects will employ some form of concrete.
- As to cash flow from the project, the administrator and budget manager are not compensated until each house is sold for which a 6% commission is paid. This is based on an existing negotiated contract. Each site will have a responsible experienced site manager. Infrastructure improvements are bought and delivered. SAH's construction company is not paid until each group of 100 homes is completed and this is noted in its contract.
READINESS: SAH's management has devoted the past several years developing and formulating its present corporate structure as well as garnering and nurturing the resources needed to make its concept a viable one. This included extensive efforts cultivating relationships within the Brazilian and Peruvian communities to identify community opportunities and those quality businesses, which would join SAH on a project by project seamless basis, in construction and organization. Each of these resources has been contracted by SAH and stands ready to fulfill its obligation when needed. Each has noted its appreciation of the transparency and cooperation by which SAH conducts its operations and the ease by which payments are made throughout the project.
