"Phenomenal Homes": "An Investment For A Lifetime"

"Project #1"

In order to attract enough investors and to accomplish this project, we need to know as many aspects of it as possible.

General Proposal:

Based on an early-2005 sampling, purchase land to build 58 "Luxury Vacation Homes" of 4,000 to 10,000 square feet each that are 100% "off the grid" for power, water, heat and energy.

In order to Fully Leverage this project; build 5 of these homes for showing and have the remaining 53 mortgaged by the buyers.

By Fully Leveraging, the total cost of $63,150,000 for this project would only require $7,500,000 (less than 12%) in investments without involving outside debts! A $75 investment would be leveraged to $631.50! A $7,500 investment during “Pre-Launch” would be leveraged to $69,465.00!

Features:

* SUPER-insulated homes

* triple-paned windows

* no-voc paint

* photovoltaics

* wind generators

* solar AND geothermal heat

* larger south-facing windows

* depending on feasibility: one extra story down into earth.

Land Costs/Information:

A sampling of 25 pieces of land as of early-2005 have the following statistics:

* 2599.60 acres

* Total cost: $790,518.02 (NOTE: This is WITHOUT discounts; does NOT include filing fees nor yearly taxes).

* 58 homes allowable per zoning requirements

* Zoning allowed homesite sizes from 5 acres to 160 acres each.

* average size: 44.82 acres

House:

* Allowing approximately $150 per sq.ft., a 7,000 sq.ft. house would be $1,050,000 to build.

* Working with ESTABLISHED kit-home company that can deliver a "Luxury Vacation Home"

* The 5 houses initially built would be 4,000, 5,500, 7,000, 8,500 and 10,000 square feet

Other costs ($1,459,482???):

* legal??

* promotional/marketing/advertising?

* what else??

Plan (General):

* Buy Land

* Build 5 home as models

* Show off the houses; the other 53 are ordered by buyers. They get the mortgages.

* Timeframe: 6 to 30 months.

Total Costs:

* $7,500,000 for land & first 5 house

* $55,650,000 to build other 53 houses (mortgaged)

* Grand Total: $63,150,000.

Selling price:

Average: $1,360,991.30 per home

TOTALS:

Selling: $78,937,500

Costs: $63,150,000

Anticipated NET:

* $15,787,500

Anticipated PROFIT:

* $8,287,500

Application of Profit:

* First $2,762,500:

**    25% for work compensation

**    75% for Investors/Growth

* Next $2,762,500:

**    50% for work compensation

**    50% for Investors/Growth

* Next $2,762,500+:

**    75% for work compensation

**    25% for Investors/Growth

Investment:

* $75 minimum investment. Any amount above $75.

* BONUS credit for investment (see grid) during various phases.

* what needs to be done to legally protect both sides?

Timeframe:

* March 6, 2005 to May 14,2005 ("Pre-Launch" Period):

** Fine-tune proposal

** Initial Investment Period. Most generous bonuses for investors.

** Attract people who will work on project for delayed-compensation

* May 15, 2005: LAUNCH DATE.

* May 15, 2005 to August 27, 2005 (Phase-in of Project):

** Begin buying land.

** Make decisions of where to build the 5 initial houses.

** Building Houses.

http://finance.groups.yahoo.com/group/KMMCompany/