Colibri Villas Project in Roatan

As you may well recall, especially if you have contributed to
the project, some time ago we started a condo construction
project on the island of Roatan, Honduras. The project has
been on hold for some time now due to needed financing.

For some time I was attempting to secure this financing from
Honduras. At one point we were close, but ultimately, the
construction loan/line of credit could not be gotten.

The actuality of what occurred with this loan is as follows.

0. Prior to the loan being submitted, all research was done for
the property to be used for the project. About 10 properties
were looked at with 2 different real estate agents. The agent
I settled on was a buyer's agent, who represents only clients
wishing to purchase real estate on Roatan.

Within 2 months of my arrival to Roatan, a 1/2 acre hillside
property was purchased that had a nice potential view of the
Caribbean sea. This potential turned out to be an actual
beautiful view once some trees and branches were cleared.

00. The planning was the done for the project. At first the idea
was to construct just 3 condos and a pool, but as we looked to
maximize the project, it was seen that the property had the
potential for 6 condos. What was NOT seen at the time was
that our financial resources did not have the same potential.
So that was a significant error in the project that led to later
problems and expenses.

1. The submission for the construction loan was done to the
HSBC bank in Roatan, just before we started construction. This
was to be structured as a Line of Credit that would be used for
construction, with interest paid only on the portion of the LOC
that was used.

The LOC was to be for approx. $150,000, enough to build the
first two condos and show to the bank that they were there
and available as a resource to back a further loan to complete
the project. The negotiations were progressing well and it looked
quite positive to get the loan.

2. Before this time we had $40,000 in the bank that was being
used for the project designs and plans (a 5 month affair with a
company on the mainland), environmental inspection, building
permit (6 weeks waiting and $7,000 paid for that), building a
storage shed to protect the materials plus provide a kitchen
and bathroom facilities for the people working on the project,
etc.

3. We were finally able to start construction in Spring 2007 and our
10 man team got to work building the first HUGE retaining wall (11
feet high, 80 feet long and 2-3 feet thick, solid concrete, stone and
rebar). At this time we had about $15,000 left in the bank and were
expecting our construction loan/LOC to come through any time.

4. In following up the loan at the bank after not hearing for a few
weeks, we were informed that the loan application and all our
documentation had been LOST by the former manager who we
had been dealing with and that he had since been FIRED. This was
a huge blow to the project.

At the same time, the bank that was previously a Honduran bank
had been bought out by HSBC and now had new management.

5. Negotiations were started again with the new management, but
this time instead of negotiating with a $40,000 corporate reserve in
the bank, we had close to $0. The construction was not far enough
advanced to make the property itself worth the funds we were looking
for, the loan could not be approved and the project stalled. This was
April 2007.

6. Subsequent efforts to arrange funds from other sources did not
pan out and the project has been on hold since.

7. Many attempts were made to re-establish income streams with
which again to build a reserve and cash flows to support the project.
Although there was some success in 2008 to generate cash flow, it
was not sufficient to do anything other than keep up with mortgage
payments and other expenses to do with the property.

8. Some months ago I finally admitted that the solution for this
situation was not going to happen in Honduras. In the meantime
my personal finances had suffered considerably as well, not at all
helped by the failure of my lawyer there to get my residency
approved in over 2 years, thus making it illegal for me to be able
to work there to generate income.

These are the circumstances that led to my return to Canada in
September 2009.

From here I now have as a major goal to re-build income, credit
and the personal equity base and reserves from which to be able
to leverage a loan in Honduras. This will be done through personal
investment in Canadian real estate. The resources and opportunities
available to me here are considerably more than in Honduras.

Since I returned to Canada, I have zero'ed out all personal CC debt
(over $20,000) and have started to re-build my personal reserves.
I am presently working to promote the Colibri Villas project and to
also build a corporate reserve with which to be able to restart
construction in Roatan over the next couple of months.

I am also working on selling the condos (pre-construction). Any leads are
welcome and will be rewarded! Any members of Wealth Building Enterprises
who have made a down payment on a condo are encouraged to make their
next payment as a means to assist in building this reserve as well.

I hope this helps to clarify what is happening with the Colibri Villas project
in Roatan and I hope it can also be seen that this project is still very much
a current priority to be completed as soon as possible.

Ron