After my Belize retirement update appeared last week, a number of things happened. Most initially were rather painful, but eventually I was placed on the phone with Rod Kazazi, the project CFO who is based in the United States. Since we both had a financial background, he was able to address most of my concerns by informing me of solid programs that ensure the project will be completed. Had I met him sooner, I doubt I would have had to raise the alarms in my column, as there have been a number of recent improvements that put my mind more at ease about the project.
I still believe that with any purchase you need to do due diligence — something we had not adequately done ourselves — but the in-depth review I’ve now undertaken gives me substantially more confidence in the integrity of the company, thanks largely to some recent staffing changes, and it greatly improves my confidence that the project has a future. I’ll offer here a guide to the kinds of things you should ensure when making an investment like this; I’m now actually pretty pleased with what I found.
I’ll close with my favorite product from CES: an incredibly well-priced 4K TV that’ll knock your socks off.
Financial Controls
The CFO is critical in a project like this. The CFO makes sure that reserves are in place, that revenue exceeds expenses, and that executives aren’t treating the company like their personal piggy bank. I’m an ex-internal auditor for IBM, and I spent most of the afternoon last Thursday grilling Sanctuary Belize’s CFO Rod Kazazi. Rod has an impressive background and a good grasp of the fundamentals. We really hit it off, and I’m genuinely sorry I didn’t meet him much sooner.
Rod previously has been CFO of American Apparel, a public company, and he has experience in strategic planning, as a director of finance, and in a variety of multinational financial roles. There is substantial rigor to naming a CFO for a public company, and this means Rod understands financial controls, reporting, risk management and financial oversight. He has a degree in business with an emphasis in finance from USC.
He immediately recognized my concerns and indicated he had programs in place that already addressed them or shortly would. If you are concerned about the project, this is the guy you need to talk to.
Project Controls
One of my greatest concerns was seeing the beach club go up without a plan, deviating from what we were led to expect and running significantly over budget. Applied to the rest of the complex, this would suggest — as it did to me — a failure.
Sanctuary Belize subsequently hired an expert in this area to ensure that future projects are properly planned, overseen and executed. Project Manager Mark Mahaney has a deep background in this area. He is an architect registered in Hawaii and Arizona with 29 years of experience, and he has an impressive background with 10 projects in Hawaii, Arizona and even the project for Disney Studios in Florida. (I once worked for Disney myself, and it’s very particular). On top of that, he has worked at a number of resorts including Disney World, and planned communities in Hawaii and Arizona. He appears to have the background the project seriously lacked and desperately needed.
In addition, I was very concerned about the marina and the fact that — like George W. Bush and the Iraq war — Sanctuary Belize appeared to declare the project finished long before it was. Sanctuary Belize has partnered with and soon will announce that a large firm specializing in marina management is taking this over. It will ensure that the marina will be properly provisioned and that the result will meet the expectations of the community. Since this is a keystone of the project, this step is incredibly important. I’m pleased Sanctuary Belize found expert help for this component.
Airport/Hospital
Shortly after we took our latest trip to Belize and discovered the airport had been untouched for some time, the problems preventing the completion of this project were resolved. Funds have once again started flowing, and it once again appears there will be an International airport and a much needed general hospital near the development. This will make a huge difference in the time it takes to travel from the U.S. to the complex, and it will better ensure those who retire there can get healthcare in a timely way — either locally or by air transport to Mexico or the U.S.
This is one of the biggest concerns in taking a risk like this if you are older; you need ready healthcare, and having something like this close should put a lot of minds at ease.
Wrapping Up: Renewed Hope
Some of the things that happened last week were truly unfortunate, but I’m all about looking forward and not back. I’ve now been shown most of the controls I couldn’t see when writing my last column, and Sanctuary Belize will be starting a semi-monthly newsletter so owners aren’t left out of the loop. In addition, the purpose behind the accelerated sales I noted was to ensure the funding necessary to complete the project in a timely way — something I know all of the owners will appreciate.
We’ll be exiting from the project ourselves, but because of some things that were done in the heat of the moment and no longer because we have lost faith in it. The dream will be alive for the amazing people who remain with the project — I’m just sorry we no longer can share it.
Product of the Week: The Amazingly Affordable 4K TV from Seiki
The next big thing in TVs is 4K, and both the Xbox and the PlayStation 4 look amazing on one of these TVs. The problem is they 4K TVs typically have price tags that would make Bill Gates hesitate — well, maybe not Bill Gates. For anything with a decent size, you’d be talking up to US$20K, and that’s just crazy money.
Well, at CES this year Seiki announced an affordable line of 4K TVs. The ideal size is 65 inches, which is priced at a very reasonable (before discount) $1,799 in basic form and $2,199 in premium form. The premium set has a brushed metal finish rather than plastic and comes with the Seiki up converter.
This up converter, which you should be able to buy for around $50, is really important. Outside of the Xbox and PlayStation games, 4K content just isn’t readily available, and a compatible DVD player costs more than the TV does — a lot more. So, being able to take HD content and upscale it to 4K means you can experience the benefit of the higher resolution TV long before you can find or afford to buy real 4K content. In short, there really is no point to a 4K TV if the only programing you can get is what is playing at a TV shop.
This year’s CES was great. The only thing I hated, other than way too much walking, is that it always leaves my wallet screaming for mercy. Because the Seiki 65-inch TV makes my wallet scream less, it is my product of the week.
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My wife and I had hope of retiring in Belize and we bought a 5 acre lot to build on in Sanctuary. I would like to believe that our purchase was not in vain. We currently have the lot for sale as health issues have left us with little hope of seeing retirement.
Would love to hear about the trip..Thx
we were reciently contacted about purchasing property in belize is this a scam?
Thank you for the update. I will be going on a tour by the end of June and will share my experience(s).
We enjoyed our experience in working with RG. He took us through everything with such detail, precision and kindness. He is extremely knowledgeable in his profession.
Property reservations with Sanctuary Belize are fully refundable, and provide much desirable, and even needed, benefit. Everything was explained very, very well by RG. By the time we boarded our plane to go down there we were extremely well prepared to enjoy The Sanctuary and all that it offers. We were treated with a great level of respect and we felt confident with RG and his ability to help us every step of the way. RG is a genuinely nice guy. We gained an AM azing friendship in working with him, and we miss hearing his excitement and the smiles he shared with us over the phone as he was preparing us to go down to Belize. Nothing but positives, keep up the good work RG!
Hi Rob,
After scheduling our trip to Sanctuary Belize for the end of May, I began to scour the net and do my due diligence. I found your original blog. We figured we would continue forward and be very cautious. A few days ago we had the ill pleasure of spending a whole morning on the phone with SB’s door to door vacuum salesman, RG. They seem to insist that you place a deposit on a lot before visiting SB. I have cancelled the trip. We still plan on visiting Belize soon and looking more in the condo arena. SB may very well be on the up and up, but, after being scammed too many times in our lives we are going to steer clear. We prefer not to be interviewed on AMERICAN GREED next year in regard to this project!! Thanks for your blogs. Hopefully everything is kosher!
Like you, Rob, we too are exiting Sanctuary Belize, not because we don’t believe in the project, but for reasons related to a recent cancer diagnosis which necessitates sacrificing our 3-acre ready-to-build lot to help cover medical expenses – http://www.belizehomesite.com We’re fortunate to be in the Phase I Marina Estates section which has roads, electric and water already in. Like you, we’re sad that we won’t be part of Sanctuary’s promising future.
My wife and I are visiting the Sanctuary at the end of June 2014 and will provide an update as to what we experience. Thank you for the update Rob this has set me somewhat at ease. Will know more after out trip and tour.
For the international airport to meet any standards, there will have to be adequate accommodation nearby for at least a plane load of people, transport, fire services, AM bulances and hospital as well as the airport itself. What about reliable water and electricity supplies? The infrastructure just isn’t in place and can’t be whistled up in five minutes. There is only one international hotel that I know of in Belize, and that’s in Belize City.
I would like for there to be an airport near Placencia, but I don’t see it happening any time soon.