Land Purchase and Process
• The initial purchase price was 550,000 pesos (~$44,000 USD) with a down payment of 30,000 pesos (~$2.400 USD) and monthly payments of 5,000 pesos (~$400 USD) for 8 and ½ years.
• A committee of the pastors and church leaders co-chaired by Larry and Karen Pedersen is planning and managing funds for the land purchase.
• The landowner who lives on the mainland came to visit the church and offered to lower the purchase price 31% to 380,000 pesos (~ $30,400 USD) for cash payment in a short time.
• An attorney (son of a local retired pastor who donates some of his time and expertise to helping the pastoral association) provided consultation regarding in whose name to purchase the land, confirmed the property title was clear, taxes as well as other municipal payments up to date and developed the purchase agreement.
• The purchase price of $30,400 USD is being paid in three large payments and nine monthly payments to the landowner by December 31, 2014. Payments are in pesos. See the tables below for approximate US dollar amounts (will vary depending on exchange rate). Legal expenses, property taxes and other annual expenses are budgeted.
• The initial payment of $12,000 USD was made possible through donations by a Mexican pastor in Cancun who supports Vida Abundante’s vision of community outreach and donations from several visitors and residents. It also included member pledges and donations made to the church for a previous down payment on a different lot in a new area where the development of services (i.e. streets, water) is delayed. The church is being reimbursed this money to use for the current land purchase.
The nine monthly payments of ~ $240 USD between April and December 2014 are 50% higher than the church’s former rent. However, church members are working hard in very creative ways to raise funds weekly knowing it is an investment in the purchase of the land vs. rent.
The next hurdle is December 31 to make final Payment #3.
December 15th will also be a critical date to assess if funds collected through various sources will be enough to make the final payment ($6,240) and/or if a loan will be needed for the final payment due December 31.
A source has been identified to provide interest free loans to the church for this land purchase if needed. Loan payments will begin on January 15, 2015. If half of the current amount needed ($ 5,750) is funded through donations and church fundraising and the other half via loans, the church would then have a loan balance of $2,875. Vida Abundante Church could pay off this loan in 12 months at their current monthly payment rate of ~$240 USD. Or if 12 donors each pledged to contribute $20USD per month for one year, the church could focus on enhancing the property and serving the community.