With the real estate sector dramatically outpacing the broader market, International Land Alliance, Inc. (ILAL) has created a massive, first-mover advantage with near-term revenue growth ahead.
When you think about real estate, what comes to mind? Owning a home, buying a building, or maybe even purchasing raw land? That takes tens if not hundreds of thousands and even millions of dollars to accomplish but for many investors today, there’s a different kind of real estate investment that’s actually outpacing the performance of the stock market as a whole.
Real estate stocks have outperformed since the start of 2019. The Pacer Benchmark Industrial Real Estate Sector ETF (INDS) returned 51% versus the broader-market SPDR S&P 500 ETF’s (SPY) 35%; that’s just one example.
Don’t get me wrong, 2019 and into early 2020 the broader markets have been on fire but if you were invested in real estate stocks over the same period, your gains would have dwarfed that of the broader markets.
For active investors looking to gain the edge, you don’t need to look any further than where the money is flowing. Investors looking for secure income streams and falling interest rates have been turning to real estate stocks. And because of all this momentum, the industry has become a more popular income investment vehicle.
Numbers don’t lie.
Real estate development companies are primarily engaged in owning, developing and managing a variety of real estate properties, including commercial, residential and mixed-use parcels. While some developers undertake construction on their land holdings to eventually sell the properties to homebuilders, retaining the same for conducting operations is also a common practice. These companies generate recurring revenues by operating the properties.
The fact is this: not only are real estate stocks outpacing the broader market, but they’re also outpacing the returns that traditional real estate generates on an annual basis. Commercial properties typically have an annual return of the purchase price between 6% and 12%, depending on the area.
Meanwhile, we just saw real estate stocks jump over 50% during the last year alone! Do you think the time is now to start paying close attention to these stocks? Many would say yes simply based on the numbers alone.
International Land Alliance, Inc. (ILAL) Is Giving Direct Access To One of the World’s Most Untapped Opportunities Right Now
Unlike traditional penny stocks where a company is backed by the money, they raise in hopes of generating revenue “someday,” International Land Alliance, Inc. (ILAL) could be one of the most undervalued companies in the market today that are actually holding significant, real assets.
The company’s projects which we’ll discuss in full detail, have a total appraised value of over $27,000,000. Considering the market cap is under $25 million, this fact alone should raise some eyebrows. Beyond that, the GAAP value versus the appraised value is also an eye-opener. For 5 of its projects, in total, International Land Alliance (ILAL) has a GAAP value of just $4.2 million.
But this is just the tip of the iceberg.
International Land Alliance, Inc. (ILAL) is a land investment and development company building a compelling portfolio of exclusive properties. Its main target areas are in an untapped area of development in Baja California, Mexico. And right now, International Land Alliance could present an immediate opportunity to be among developers in a growing market area that has become increasingly popular for tourism and retirement.
Mexico is the world’s 15th largest economy with the potential to become 5th by 2050. It’s the most stable economy in Latin America. Over the next two years, the International Monetary Fund projects a growth of 2.3% and 2.7%, respectively. But this particular area of Northern Baja California, Mexico has quickly become a hotbed for tourism and even baby boomers looking to relocate.
Tourism officials in Baja California expect to see a 5 to 7 percent increase in tourists in 2019, according to Baja California’s Secretary of Tourism Óscar Escobedo Carignan. According to Baja Norte’s Ministry of Tourism, the number of hotel rooms occupied in Baja California from May 2018 to May 2019 increased by 4%.
Meanwhile, there are declining occupancy forecasts for the U.S. lodging industry in both 2020 and 2021. When we talk about following the money, this is a glaring standout in comparing these two markets. On top of this, Mexico is already the most popular country for American and Canadian ex-pats. Estimates put the number of ex-pats in Mexico at well over 1 million and increasing every year.
This trend is expected to grow with 10,000 baby boomers in the U.S. reaching the age of 65 every day for the next 19 years thanks to vibrant culture, affordable cost of living and excellent healthcare. So a built-in clientele doesn’t hurt either.
Current Portfolio Offering Massive Value Proposition For International Land Alliance, Inc. (ILAL): Industry Peers Don’t Stack Up
As discussed earlier, International Land Alliance, Inc. (ILAL) has an appraised portfolio value even greater than its overall market cap. That’s unheard of no matter who you ask and the overall market opportunity for a company like International Land Alliance (ILAL). As investors, the goal is to find early opportunities with undervalued companies and right now, real estate stocks, for the most part, are already expensive.
Take companies like The St. Joe Company (JOE), Meritage Homes Corp. (MTH), or even NVR, Inc. (NVR). These companies trade at much higher prices with some as high as $3,500+ per share. This leaves very little room for the average investor to get in on the real estate boom. The issue now comes into play with the quality and potential for newcomers, like International Land Alliance, Inc. (ILAL) to bring real value through untapped opportunities like the one in Baja California, Mexico.
On top of that, with nearly $30 million in appraised value, the current market capitalization is disproportionate in comparison to its industry peers. With such industry growth and so few companies offering easy access International Land Alliance, Inc. (ILAL) could be in a position to capitalize on several fronts.
International Land Alliance, Inc. (ILAL) Project Portfolio: Potential For Over $70 Million In Base-Line Revenue?
Currently, International Land Alliance, Inc. (ILAL) owns a total of five different real estate development properties consisting of over 600 acres of land. These properties are all located in southern California or Northern Baja California, Mexico, and once fully developed, the properties could potentially yield over 1,500 lots and millions in potential revenue:
Oasis Park Resort – Revenue Potential: $65 Million+
Oasis Park Resort is the company’s flagship property, consisting of a 497-acre master-planned beachfront community with picturesque mountain views, located just south of San Felipe, Baja California on the Sea of Cortez, one of the world’s most prolific salt-water habitats.
International Land Alliance, Inc. (ILAL) has approvals to sell up to 1,344 residential home sites approximately ¼-acre each with starting prices of $49,000. Without even accounting for additional revenue from things like construction, the minimum potential of this project is in the ballpark of $65.86 million.
In addition to residential lots, there is a planned boutique hotel, timeshare/vacation club, special commercial center and nautical center with boat launch and fishing marina. The Oasis Park Resort is a self-contained solar-powered green community that takes advantage of the advances in solar power and green technology. A recent appraisal valued the Oasis Park Resort at $16 million.
Valle Divino – Revenue Potential: $4.3 Million+
Valle Divino is the Company’s 20 acre-parcel (137 residential lots and 3 commercial lots) located in Ensenada roughly 50 miles south of San Diego with starting prices at $35,000. It is part of a 1,250-acre master-planned residential community overlooking the internationally renowned Bajamar Ocean Front Hotel and Golf Course and the Pacific Ocean. Even at a bare minimum on just its residential lots, the project would see some $4.3 million in revenue potential.
Valle Divino also sits on the western edge of the Guadalupe Valley, Baja’s premier wine region with over 200 wineries. In preparation for its groundbreaking and pre-sales in the third quarter of 2019, the company conducted a “Test Vineyard”. A Test Vineyard is planted in an effort to see how different grape varieties grow in the same location. The Company has engaged the same team from the vineyard at Rancho Tecate to oversee the testing and planting.
Villas Del Enologo – Revenue Potential: $3.2 Million+
Villas Del Enologo at Rancho Tecate is a 2.6 Acre Parcel within the prestigious Rancho Tecate. It is a planned 24 -2B/2B Vineyard Villas with a private wine cellar. Second Phase -an additional 22 Vineyard Villas with starting lot prices at $69,000. The Rancho Tecate Resort is a 1,500-acre master-planned resort in Tecate, Baja California (also known as the “Palm Springs of the South”), located just 7 miles south of the US-Mexico Border and just north of the Guadalupe Valley, the premier wine region in all of Mexico with over 100 wineries and growing. With Phase 1 & 2, potential revenues could be around $3.2 million from just lot sales alone.
The Rancho Tecate Resort includes 1,400 home sites, renowned restaurant, hotel with conference facilities, and equestrian –all surrounding lush vineyard landscape. The Company broke ground on the project in the first quarter of 2018. A recent appraisal valued the Tecate property at $1.5 million.
Emerald Grove Estates
On March 18, 2019, the Company closed on a purchase of 80 acres, the Emerald Grove Estates, and an 8,000 square foot event facility, the Chateau at Emerald Grove, in the wine country in Southern California for $1.1 million. The Company has entered into a 3-year lease with future plans of development. A recent appraisal valued the property at $2.8 million.
Costa Bajamar Oasis – Revenue Potential: $4.8 Million+
On September 25, 2019, International Land Alliance, Inc. entered into a definitive Land Purchase Agreement with Valdeland, S.A. de C.V. to acquire approximately one acre of land with plans and permits to build 34 units at the Bajamar Ocean Front Golf Resort located in Ensenada, Baja California.
The project branded “Costa Bajamar Oasis”, is planned to include six separate buildings with three 1BR and three 2BR units each for a total of 36 units and starting prices at $109,000. At total capacity, the company could generate a minimum of $4.8 million just from starting prices alone.
The Bajamar Oceanfront Golf Resort is a master-planned golf community located 45 minutes south of the San Diego-Tijuana border along the scenic toll road to Ensenada. Upon completion of the first building, the Company intends to utilize the first unit as a model and sales office for Costa Bajamar Oasis, as well as its Valle Divino and Villas del Enologo properties.
Leadership With Experience & A Proven Track Record Of Success In Real Estate Development
Just like any successful company, vision and experience are keys to success. When it comes to real estate especially, it isn’t an industry that can be navigated easily without industry expertise and real-world know-how. This is exactly what International Land Alliance, Inc. (ILAL) has put together and one of the big reasons why it could be a company to watch right now:
Roberto Jesus Valdes
President, Director and Co-Founder
Mr. Valdes is the Co-founder of International Land Alliance, 2013. Prior to joining ILA, Mr. Valdes was the primary owner and director of Grupo Valcas since 2009. He was responsible for the preliminary master plan, Valle de Jatay, Ensenada, 2010; the master developer of Rancho Tecate Resort and Divino Fractional Wine Resort. He was on the Board of Directors, DUBCSA – Bajamar Ocean Front Resort Master Developer.
Jason Sunstein
Vice President Finance, Director and Co-Founder
Mr. Sunstein is the Co-founder of International Land Alliance, 2013. He has over 25 years of finance, mergers and acquisitions, and general management experience. Since 1989, he has participated in a broad variety of both domestic and international structured investments and financings, ranging from debt and preferred stock to equity and developmental capital across a wide variety of infrastructure and corporate financings and has been involved in numerous start-ups, turnarounds, and public companies. He has also been a director of several public and private companies.
Manuel Garcia
Director of Operations
Prior to joining ILA, Mr. Garcia was the director of sales at Rancho Tecate Resort. Where he oversaw land sales, special projects, development of sales strategies; and new areas of business development. Prior to joining Rancho Tecate Resort, he was the Divisional Manager for Hipotecaria Nacional, SA CV, a financial services company for real estate developers in the cities of Tijuana, Mexicali, Ensenada, Tecate, Rosarito B.C.: Hermosillo, Nogales, and Puerto Peñasco, (Rocky Point) Sonora.
Mauricio Bustamante
Director of Sales
For the last 20 years, Mr. Bustamante has been responsible for sales and marketing for some of the largest and most successful real estate developments in Baja California. In addition to sales and closing support, he has developed and managed on-call support centers, Message generation, and branding Monitoring social media campaigns, Lead tracking monitoring and the first Baja Real Estate Shuttle, a shuttle service bringing potential buyers from Southern California.
When Was The Last Time The Real Estate industry Saw An Opportunity Like This?
Honestly, can you name the last time the real estate industry saw something like this? A business with properties appraised at more than the company is actually trading for in the market right now. Furthermore, the massive opportunity in Mexico could be far greater than imagined and International Land Alliance, Inc. (ILAL) is already grabbing as much as it can to get ready for the expected growth in the country.
The growing boomer population has now given a big reason for development companies like International Land Alliance, Inc. (ILAL) to act quickly in preparation for the next boom from the 65+ crowd. Meanwhile, tourism in the area not just from adventurers but from wine lovers alike gives this another layer of potential.
Where some investment and development companies simply go directly after boomers and create retirement communities, International Land Alliance, Inc. (ILAL) is creating lifestyle communities. The company is geared at offering a true, one-of-a-kind experience that’s not only luxurious but also takes full advantage of the lower cost of living than Mexico offers. Imagine for a second, being able to have a dream home in Miami without the hefty price tag to go with it.
With lower prices, access to acres of land plans for more than just residential lots and additional potential down the road. This isn’t only “groundbreaking” in the literal sense, but also in the figurative. International Land Alliance, Inc. (ILAL) is on the verge of rolling out its full portfolio with very near-term revenue milestones. Considering the red hot climate for real estate stocks right now, the outperformance of the broader markets is just the beginning. Those looking at International Land Alliance, Inc. (ILAL) now could be witnessing the industry’s next big disruptor.
5 Key Points on International Land Alliance, Inc. (ILAL)
1. The market for real estate stocks is red hot but not many public companies are within reach of retail investors based on bloated share prices & high multiples compared to market cap. International Land Alliance, Inc. (ILAL) currently trades at least a 1:1, market cap to the appraised value of its portfolio.
2. Major opportunity to be among early developers in the growing market area for tourism, second home and retirement industry with boomer generation increasing at a rapid rate per day.
3. International Land Alliance, Inc. (ILAL) project pipeline has both near and mid-term revenue potential that could be valued at more than $76 million at full occupancy. That also doesn’t take into account any additional revenue from construction, financing, or the Emerald Grove event facility.
4. International Land Alliance, Inc. (ILAL) has already broken ground at several locations and begun presales as well.
5. International Land Alliance, Inc. (ILAL) management has a proven track record of success with countless projects across the world.
References:
- https://www.nolo.com/legal-encyclopedia/pros-cons-investing-commercial-real-estate.html
- https://www.investopedia.com/insights/worlds-top-economies/
- https://www.sandiegouniontribune.com/news/border-baja-california/story/2019-06-20/baja-california-tourism-projected-to-increase-this-year
- https://insights.ehotelier.com/global-news/2019/06/06/declining-occupancy-forecasts-for-the-u-s/
- https://www.escapeartist.com/mexico/live/move-mexico-2017/
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