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Property Syndicate Offer

Discussion in 'Real Estate' started by Lyrae, 8th May, 2007.

  1. Lyrae

    Lyrae New Member

    8th May, 2007
    Perth, WA
    Seeking likeminded investors to be a part of upcoming residential development in Thornlie.

    Low entry costs with excellent returns and all safeguarded with appropriate legal documentation.

    Contact Lyrae Lamond on 0400 213 708
    Or email [email protected]
  2. KevinH

    KevinH Well-Known Member

    6th Nov, 2005
    Well this is a publuc forum and lots come here to learn as well as share info.
    So, can you give us some parameters ?

    How many units?
    Strata or survey strata?
    Proposed construction and timeframe?
    Potential return to investors?
    Who is managing and for what fee?
    How much do you plan to raise?
    What is the proposed borrowing lvr?
    What structure are you using ( unit trust or Pty Ltd)?

    More info pls...

  3. Lyrae

    Lyrae New Member

    8th May, 2007
    Perth, WA
    Property Syndicate Offer - more info given

    I didn’t expect a great deal of response for my posting of the Property Syndicate Offer hence I kept it brief.

    Basically the development in Thornlie will consist of 29 strata residences.

    It is estimated that the construction of the houses will be completed in November 2008.

    Feasibility for Standard House and Land Package -
    Land Cost $168,000
    * Build Cost $140,000

    Total Cost $308,000

    Projected Resale in November 2008 $399,000

    Projected Project by December 2008 $91,000

    Please note * these items are not a fixed price, Industry & Government charges may vary over time.

    Also the above figures are provided in good faith and are based on the Project Manager’s experience.

    The Project Manager is a company called “Frasers The Project Manager Pty Ltd” (FTPM). Their fee for this project is $8,000.00

    It will either be a company and/or trust. The structure is currently being considered by FTPM’s lawyers, Brook & Co Barristers and Solicitors, and will be finalised by early May 2007.

    An Expression of Interest (EOI) fee of $6,000 is required and must be provided from the investor’s own resources. This fee comes off the total price of the Land package.

    A finance package will be made available to investors to assist them with the developed lot price of $162,000 ($168,000 minus $6,000 EOI fee) with a likely upfront payment of approx $45,000 per lot depending upon which Lender provides us with the best offer. This amount is also to be provided and sourced by the investor.

    Funding for the Project -

    Expression of Interest Fee $6,000 Due by 22/05/07
    Finance Deposit $45,000 Due by 01/06/07

    Balance of Land & Subdivision $117,000 Provided by the Lender
    $168,000 = Total Developed Land Cost

    House/Build Cost $140,000 Provided by the Lender

    Interest on Loans TBA Provided by the Lender

    The above is just a brief description of the development project. I can provide more information on the costs of the land development and on the Funding and Legal matters. I also have a breakdown of the Project Management fee, resume from FTPM, site drawings of the proposed development, etc.

    On a personal side, I have been involved in prior projects that have been managed by FTPM for the last 2 years and I think that there are still some good money to be made out of property in Perth. The City of Gosnells offers a great opportunity for future investors, there is so much progress happening and it is affordible.

    So hoping that the above information will maybe entice a few investors to be involved in this project.

    If so contact me on 0400 213 708.

    Regards Lyrae
  4. KevinH

    KevinH Well-Known Member

    6th Nov, 2005
    Interesting stuf Lyrae.
    I have a developer friend in Perth who is doing somerthing silmilar.
    Only they are issueing units in a unit trust and capitalising the trust so that they purchase the land (triplex sites) outright, and then doing a 100% lend on the construction.
    On this basis, the returns are pretty low but is is a conservative model which takes a lot of the 'borrowing' risk out of the equation as well as keeping down holding costs.
    The way to boost your returns would be for the unitholders to use LOC or borrowed funds to put into the syndicate initially.

    You rmodel seems to be related to 'one' of the strata properties. ie you buy the land survey strata and end up with a property of your own on completion ?
    Not sure how you pool all of the properties if each investor of funding their own ?

    BTW.. what is the return on capital based on this feas ?

    Is it $91,000 profit for a $45,000 investment ?

    Not quite clear on final outcome for the investor..

  5. grossrealisation

    grossrealisation Active Member

    8th Sep, 2006
    hi Lyrae
    you will have to be very carefull with this project thatbyou don't get more then 20 people involved or the total amount raised is not over 2 mil.
    check with your accountant they call it the 2/20 rule with the ato and asic and if you go over it without issuing a pds you are fine you in very sticky water,
    the principle is correct but the way that its done is a bit different and you can't but these systems on open boards again if you do then I and anyone else would fall into that 2/20 rule.
    that 2/20 rule is for 12 months so you can't advertise or take into any of your projects more then 2 mil or twenty people within a 12 month period and if you do you must issue a pds for each and every project and it is very specific.
    the ground work on this stage of your plan is the most important and does needs to be done very professionally if done wrong will see some very strong problems for all concerned.
  6. Sandy

    Sandy New Member

    24th Oct, 2008
  7. AsxBroker

    AsxBroker Well-Known Member

    8th Sep, 2007
    Sydney, NSW
    Hi Sandy,

    Very interesting read...

    ASIC alleges the schemes are unregistered managed investment schemes that are required to be registered under the Corporations Act. ASIC alleges that since these schemes are not registered, they do not have the appropriate safeguards in place to protect investors.

    ASIC alleges that between June 2006 and July 2007, Frasers-The Project Managers Pty Ltd offered clients the opportunity to invest in schemes for the purchase and subdivision of rural land into residential lots adjacent to Perth. ASIC alleges that investors paid an expression of interest fee and in some cases a deposit, and that this money was pooled and used in relation to the schemes.

    On 10 April 2008, the Federal Court of Australia granted interim ex-parte injunctions sought by ASIC against Frasers-The Project Managers Pty Ltd, Kenneth Fraser, Morag Fraser and five companies associated with the Frasers to prevent them from promoting and operating nine land subdivision schemes in Western Australia.

    Cheers Sandy :)
  8. Billv

    Billv Getting there

    15th Jul, 2007
    Sydney, NSW
    so when are the police picking them up?
  9. grossrealisation

    grossrealisation Active Member

    8th Sep, 2006
    hi all
    not been here for a while been very busy.
    I have read the link and as I did post it is very important to set up the structure correctly and from reading it these guys did not understand the rules or they were very silly
    and not sure which one.
    the rules are very simple and they have not changed nor for that matter will they in any time soon.
    the deal may well have been fine and seems like alot of people seem to think that because it up with asic that people need to steer clear of these groups.
    well not too sure why you would think that.
    because the structure was wrong does not auto mean that these guys were ripping anyone off
    nor does the fact that asic stepped in to secure investors money auto mean that there money was at risk.
    because there is no safe guards in place and asic decide to step in to put in safe guards
    does not for me auto mean that because asic thinks and I say thinks there is risk
    does not mean there is.
    there are alot of things that do not have those safe guards
    and there is a very good reason why those save guards are not there.
    and one of those is that the people involved do not think those risks are there
    so why protect against some thing that you don't think is there.
    and because a goverment body ( which is not known for being very successfull why it comes to mitigating risk
    and when there are risks is not very good at solving those risks or for that matter closing them down until most of the money is gone or the bill is into the hundreds on millions
    and its sister government dept spends 350 mil of our money trying to find issuses with a group and only recoup 350k and even that was given to them, they don't have good bating average for me and with there success they would not be on my team) says that they want to step in
    thats fine as we need people to do that
    I am not sure how that became run a hundred miles from this group.
    and that this is a shonky scheme.
    it may or may not be
    but on the face of it to me its not shonky and does make perfect sense

    yes the way they did it was wrong
    and yes they are not allowed to do it that way.
    but shonky not sure.
    I can give you a few like westpoint, hth, bridgecorp,and the list goes on where the people had very little chance of getting any money and there capital was at risk.
    but land subdivision.
    any developer will tell you the land sub divsion is one of the most profitable

    and not saying that any of the above should have been done because as I have said they did it wrong but
    lets look at the deal
    you are investing in a very high margin project and have very good chance of getting your money back and if the investor are also the buyers as I think they were .
    then were is the risk to the investors.
    again take out the way it was done but lets look at risk and I look at risk when looking at shonky.
    and if some one can show me how this was shonky good on them.