business partnership

business partnership

Owning Farmland that Cashflows - David Sewell of Cima Coffee Farms

3d ago
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http://FutureMoneyTrends.com/coffee Learn more about this investment View Transcript: http://futuremoneytrends.com/blog/?p=27064 Transcript: Future Money Trends: Greetings and thank you for joining us at FutureMoneyTrends.com. I'm here with David Sewell, he's the Vice President for investments at CIMA Coffee Farms. David, thank you so much for joining us today. David Sewell: You're more than welcome. Thank you there for having me. Future Money Trends: David, I'm very excited about this business partnership because an investment opportunity with CIMA Coffee Farms is exactly what I wanted to do. Luckily enough, you and I were able to put something together for FutureMoneyTrends.com members where we get a major savings as a group, dramatically increasing our internal rate of return. I'm excited to be one of the first property owners in the group and I'm happy to introduce you to our members today. I've looked for great agriculture investments for probably five or six years now, and I'm really happy that we finally found you guys. If you could just give people an introduction to CIMA Coffee Farms, about the business itself, and how it came about. David Sewell: The business model is fairly simple. What we do is we buy underperforming, usually unprofitable, commercial coffee farms currently in Columbia. We take those coffee farms and we turn them around in to a producing, profitable, specialty coffee farm. In the process of doing that, we sub-divide the property, the entire farm that is, in to half-acre individual parcels. And we offer individual investors the opportunity to own one or more of those parcels titled and in your own name, with a cash flow attached to it from the specialty coffee that we're creating during the turnaround. Future Money Trends: Now where are the farm properties located? David Sewell: The farms are currently located all in Columbia. There will be an expansion program over time to add other coffee growing regions. But currently they are in the provinces of Antioquia in Columbia, which is the province in which Medellin is located. And it is the top-growing province in Columbia for coffee. Future Money Trends: I'm sure a lot of people are thinking that if you buy a property in Columbia, what is the legality for an American to own that property, how does Columbia treat foreign investors, and of course, how much does your company help the investors through this transaction? David Sewell: First off, the company will take the entire transaction on itself, and it will be taken on for and on behalf of any coffee parcel owner. So that is turnkey and done inside the company. The individual property ownership rights for a foreigner are the same as they are for a citizen of Columbia, or a native-born Columbian. So there are no issues with foreign property restrictions, or any other regulations that would prohibit anybody from owning their own half-acre parcel, or more, of an operating coffee farm in Columbia, all taken care of for you. The process is once the commitment has been made by the parcel purchaser, the company will then aggregate those parcels in to one farm, purchase that farm, sub-divide that farm after they've done a survey, and a subdivision application to the local municipality. And then the deeds, which are called escritores in Latin America, are issued on an individual basis. That process takes approximately six months. Future Money Trends: Now the most important thing to me is the people, especially when you're buying property that you can't drive to. I have rental properties outside of California in the U.S. It's so important to have good people. It's the same thing when you buy a publicly traded stock, it's important to have good people running the business. If you could tell us about, and introduce us to the people, from the farmers who are running the properties, to the people who are running the day to day operations of the business. David Sewell: As for you, so go we, we strongl...