International Land Alliance Announces Execution of First Construction Financing Contract

Rhea-AI Summary

International Land Alliance (OTCQB:ILAL) has announced the execution of its first construction financing contract for a custom single-family home at its Rancho Costa Verde (RCV) development in Baja California. The company is raising $5 million to launch a new mortgage division through preferred stock issuance. Funds will mainly be used for financing loans related to their real estate offerings. RCV has successfully sold over 1,000 residential lots, constructed 55 homes, and has 38 more under construction, contributing to a backlog of demand for financing. The company anticipates generating over $200 million from construction services, with higher profit margins expected from ongoing home construction.

Positive

• Execution of first construction financing contract.
• Raising $5 million to establish a mortgage division.
• Significant demand for construction financing from RCV owners.
• Over $200 million anticipated from construction services.

Negative

• None.

SAN DIEGO, CALIFORNIA, April 25, 2023 (GLOBE NEWSWIRE) -- International Land Alliance, Inc. (OTCQB:ILAL), (“ILAL” or the “Company”), an international land investment and development firm, today reported the execution of its first construction financing contract to build a custom single-family home at its Rancho Costa Verde (“RCV”) development. As previously announced, the Company is raising $5 Million, pursuant to 506 (c), to launch a new mortgage division by issuing preferred stock. The majority of funds will be allocated to finance loans to purchasers of our real estate products in Baja California, Mexico, including home sites, home construction and finished homes.

RCV has sold over 1,000 residential lots and built 55 single-family homes with 38 under construction. This is in addition to a completed boutique hotel and clubhouse. To date, all of the homes have been built and paid for in cash. The Company is experiencing significant demand from its 1,000 owners to commence construction, creating a backlog of demand for financing. This is expected to generate in excess of $200,000,000 (estimated at $200,000 per home) in construction services. As the land cost and majority of sales and marketing costs are recognized in the lot sales, we see significantly higher margins in the ongoing home construction.

For more information about the Company, please visit RedChip’s ILAL page at https://ilalinfo.com/.

About International Land Alliance, Inc.:

International Land Alliance, Inc. (OTCQB: ILAL) is an international land investment and development firm based in San Diego, California. As its’ core mission, the Company has embraced technology for sustainable and socially responsible solutions, in addition to using proptech and construction tech advanced applications to meet these goals. The Company is focused on acquiring attractive raw land primarily in Northern Baja California, often within driving distance from Southern California. The Company serves its shareholders by devoting considerable time and resources to seeking out the finest sites available and obtaining the necessary development permits to build a compelling portfolio of properties, which provide a diversity of investment and living options. Please visit: www.ila.company. 

Safe Harbor Statement

The press release may include certain statements that are not descriptions of historical facts but are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects,” or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.

CONTACT:
Dave Gentry
RedChip Companies Inc.
1-800-RED-CHIP (733-2447)
Or 407-491-4498
ILAL@redchip.com

FAQ

What is the recent construction financing announcement by ILAL?

International Land Alliance reported the execution of its first construction financing contract to build a custom home at Rancho Costa Verde.

How much is ILAL raising for its new mortgage division?

ILAL is raising $5 million through preferred stock issuance.

What is the expected revenue from construction services for ILAL?

ILAL expects to generate over $200 million from construction services.

How many residential lots has ILAL sold at Rancho Costa Verde?

ILAL has sold over 1,000 residential lots at Rancho Costa Verde.

How many homes has ILAL constructed at Rancho Costa Verde?

ILAL has built 55 single-family homes with 38 currently under construction.