Categories Interviews, Other Industries

International Land Alliance President: Mexican real estate offers great value to homebuyers

In an interaction with AlphaStreet, International Land Alliance President Frank Ingrande and VP of Finance Jason Sunstein speak about the company’s premium property projects in Mexico and the value they offer.

International Land Alliance focuses on the development of premium residential, resort, and commercial properties primarily in Northern Baja California in Mexico. The San Diego, California-based company’s stock trades in the OTC market under the symbol ILAL and the firm currently has a market cap of about $25 million. 

What is the value offered by International Land Alliance to property buyers?

Frank: I’ve been in the market for about 20 years. Our core business is residential real estate in Northern Baja, California, for the US market, primarily Californians. We do see owners coming down from different states, but since we are right here in California, we really don’t need to market anywhere else.

International Land Alliance ILAL Q1 2021 earnings

We have got a very large population here that is very familiar with the Mexican market. We see that value is the primary reason for the people investigating, and ultimately moving full-time or part-time to Mexico. Higher-end real estate such as beachfront properties are out of reach in California for many people these days. Real estate prices are hugely different in Mexico, with the same views of the Pacific Ocean that you get in La Jolla. 

How do you fund these projects?

Jason: We recently closed a $2 million equity investment through H. C. Wainwright. From an investment perspective, this is really the catalyst for us to execute our vision.

International land alliance portfolio
Source: International Land Alliance Investor Presentation

When do you expect to start generating significant sales revenues from the properties?

Frank: Sales from the property in Emerald Grove are going to be ramped up real soon. Probably within the next couple of months, we will be seeing some rental revenue. At Bajamar, I think within the next couple of months, we will see revenue from that project. On the Oasis, I think by the end of this year, we should have it developed to the point where we could recognize revenue and do marketing and sales. So this year we are going to start seeing sales revenues, some of it as soon as a month or two away.

Jason: We maintain very little debt and have tight control on overhead. The low cost of materials and labor allows us to sell at very competitive prices. We are selling completed homes, 45 minutes south of the border, at $200,000. The goal is to get to profitability by the end of this year. 

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What’s on the development pipeline?

Frank: Right now, we are in the early development stages of the International Land Alliance project. We have got 65 homes, of which probably 45 are finished and 20 under construction. Of the 20 that are under construction, 10 to 15 will be finished within the next couple of months, and we have got 20 more on the drawing board. Then there are 20 to 30 more in the planning stages.

Jason: The fact that we have no debt on any of these properties allows us a lot of flexibility on the sales side. Meaning we can take a 10%, 20%, or 30% down payment, which accelerates development activity on a massive scale, in turn generating sales.

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You have a joint venture to grow CBD hemp. How does this fit into your overall business model?

Frank: It falls in line with our business because we are real estate. We had some unused land in our southern California development and there was an opportunity to utilize the property on a joint venture basis with a hemp organization.  So through a real estate transaction, we are able to benefit from the growth in the industry.

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