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FincaJava?
Submitted by kevins on Mon, 2009/07/13 - 06:33.
This looks like a really nice deal, run by folks who seem to have some really good ideas about sustainability, organics, and integration with local society. Does anyone have first-hand experience with the place or the people behind it?
By the way, as a prospective buyer I know not to count on any future promises (like the hotel or marina). Buy what's on the ground, not in someone's head. Still, it's always nice to know what the overall long-term vision is, if everything somehow managed to go according to plan.
your lawyer
If you want make a deal with land in Nicaragua, look by your own lawyers, is a few Real state agencies in Managua , that they work in checking if the title is clean and is not related to agrarian reform , state title, Piñatas, and all that kind of possesion of lands that can risk your deal in the future. .
Some bank to give you a loan, ask by a title that can show a legal possesion before 1978, that is the better option.
fincajava
From their website.
"We are backed by the best lawyers, land use, construction and coffee experts".
"This area is poised for the development of bed and breakfasts, hotels, lake front restaurants, recreational facilities, as well as building lots and homes to serve the eminent arrival of baby boomers looking for the ideal spot to retire in. The potential for return on this level is unlimited".
Sounds scary to me especially the "best lawyers" and "return is unlimited".
Also there is no update on their "what's up" blog since August 2008 plus no mention when they last updated their website.
Just my two pesos.
Jean-Pierre
finca java response
Unfortunately, having the best lawyers is critical to investing in Nicaragua. We have learned the hard way. Many lands are "uso y goce" titles issued as an agreement with the indigenous community giving right of use over the land. Our project at Finca El Peten has fee simple title and title insurance issued by First American. We have assurances from all levels of the government and a specific agreement with the indigenous community assuring the title of the land. The capitol from the few haciendas opportunities that we offer is reinvested directly into the farm. That is the only reason we offer them. As Kevin, who visited the farm, says below, the potential for return is "unlimited" because of it's beauty, productivity, climate, and accessibility. I have been to many places, and find it one of the most beautiful, unspoiled spots anywhere. We are redoing the website as we speak, which is how I came upon this blog. I was frozen out of the blog due to blogger malfunction. We are back up and posting new content, including videos of President Ortega's visit to our farm recently. Check it out at www.fincajava.com A visit to the farm will show all the progress we have made there in the last two years including a private hotel, restaurant, gardens, trails, roads, wells, etc.
finca java
Does anyone know the elevation of Finca Java?
Finca Java elevation
According to google maps, Lake Apanas is at about 950 meters above sea level, so Finca Java would be roughly 950 to 975.
Finca Java lawyers and returns
We visited Chris at the finca (known as both Finca Java and El Peten). We're pretty sure it isn't the right opportunity for us, but we didn't see any red flags. I would encourage anyone interested in getting involved to talk and meet with them, and then decide.
Supposedly the land title situation around the lake is even worse than in most parts of the country. They have supposedly taken many extra measures to ensure that the title on their land is as secure as possible. I think that's the main point about the lawyers.
The bit about "unlimited returns" sounds like basic marketing hype. However, when you consider the undeveloped beauty of Lake Apanas, combined with the excellent climate, and now good roads all the way to Managua, it is hard not to get pretty excited about the possibilities of that area.
They are aiming for a low-impact, environmentally-responsible development. At least as long as the current folks are involved, you're not going to see any 10-story condos or massive housing developments there. In fact, they seem somewhat conflicted about development in general.
As with most development in Nicaragua, theirs seems to be moving slowly. Whether due to time or money constraints, or philosophical intent, it is not moving quickly. But they do seem to be making progress. And there are some powerful/wealthy people involved, which gives them more credibility that they won't just dry up and disappear.
Jon @ Finca Java
I believe that Jon Thompson is one of the principals of the Finca Java project. Sanjuanenos will recognize Jon as the guy who has been managing the activities of the Jean Brugger Foundation for some years now, and who is also active in other local grassroots projects in the community. I've bought lots of the coffee, and its pretty good. I've worked on some local projects with Jon, and maintain regular contact with him. While I can't attest specifically to the risks and benefits of this real estate investment, I feel confident in saying that having Jon on board as a principal in the organization lends a lot of credibility for both their mission statement and for their organizational responsibility.
ttractive Business Plan
Looks like a really nice business plan. Fincajava is writing on their website that it will manage and maintain all coffee hacienda partnerships under long term contract and that they will split profit after cost. However I am not reading anything about minimum guaranteed profits or losses. I mean what happens if the coffee harvest is lost because of some unknown pest or bad biological pest control by Fincajava? Is Fincajava splitting losses as well or will they still charge some management fee?
Response from Finca Java
Finca Java indemnifies investors against losses in the coffee production. We assume all the costs of producing coffee and then deduct that before calculating gains, which we then split with the investors. For that reason we consider it an "unprecedented opportunity" to gain from an agricultural endeavor without having to manage it. As an agricultural project, we can guarantee profit as we cannot control the weather or the international price of coffee.