After spending the last three years building Yoko Village in Santa Teresa, I’ve come to realize that my true passion lies in fulfilling a vision for a community that’s accessible to more than just the wealthy.
The Challenges:
In Santa Teresa, I faced several challenges. It started with the high cost of land, followed by the steep expense of building due to the remote location. These issues were compounded by conflicts with neighbors, difficulties with local authorities, and navigating complex topographies. Building a community near the coast in a rapidly developing area is incredibly expensive. When I began in 2021, during the pandemic, the market allowed many to afford what we had to offer. But what happens when the market isn’t at its peak? That’s when many developers in Costa Rica, even successful ones, begin to struggle, especially with cash flow.
As I connected with other developers along Costa Rica’s coast, I found that they were grappling with the same problems. Land is expensive, operational costs have risen, and legal fees in Costa Rica have become comparable to those in the U.S. No large development is immune to someone trying to disrupt their plans. When significant amounts of money are involved, there’s often a political game at play, further driving up costs.
The need for escrow and trusts when dealing with large sums adds even more expense, making it nearly impossible for developers to sell parcels for less than $150K, often closer to $200K. When parcels are priced this high, development timelines need to be fast, or potential buyers can’t commit. The reality is that most people can’t afford $200K for a parcel, plus the cost of building a home — it becomes a dream only the wealthy can afford.
A Personal Dilemma:
My biggest challenge is personal — I don’t want to sell exclusively to rich people. My purpose is to connect with like-minded individuals, not just wealthy professionals.
The Solution:
So, how can we create a village where we only require a $10K deposit and sell plots for a total of $40K? How can we offer a mortgage that costs no more than $416 per month and still successfully develop the land? If you’re familiar with Excel and business plans, the best way to understand is to dive into our development model. But let me give you an overview of how we’ve made this work.
What We’ve Done at Yoko Caribe:
I’ve learned many hard lessons from my early years as an entrepreneur in Costa Rica, but they’ve led to the development of a business model that allows us to sell land for less while still moving forward with our projects.
- Land Partnership: Instead of buying the land, we partnered with a Costa Rican landowner who understands our business plan. We share a portion of the revenue from every deposit and payment, making the land essentially cheaper, while also being more beautiful and functional.
- Scale Matters: We chose a large parcel of land, allowing us to make hundreds of sales. The financial model works better without the need for bank financing or lenders, and the steady stream of cash flow enables us to continually develop the land.
- Patience: Our target market isn’t in a rush to build tomorrow. They are willing to wait 1–2 years, which gives us time to cover development costs.
- Simplicity: The land we selected doesn’t present significant topographical challenges, making it fast and inexpensive to develop. It already has access to water and electricity, reducing additional infrastructure costs.
- Natural Resources: The area is abundant with natural resources, allowing us to source building materials locally and keep costs down. Dirt roads with gravel ensure minimal dust, and the electricity is a combination of solar panels, battery packs, and a government grid backup. Water is plentiful, with an artisanal well more than sufficient for families.
- Strategic Location: Proximity to airports, schools, hospitals, supermarkets, and hardware suppliers makes it an attractive and accessible option for buyers.
The dream of owning a piece of paradise is no longer just for the wealthy — it’s within everyone’s reach!
