Have you participated in investor pools?
- Thread starter jboire99
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I have.
May I suggest that you look at
a) fees,
b) track record of management team,
c) potential uplifting of going-in prices of real estate,
d) realism of assumptions of exit prices, demand or costs; and
e) underlying economic fundamentals.
What specific firm is it ? Some are great, some are scams, and the risk of total loss of investment is a real possibility in some, but not all, instances.
More details, please, for example an offering memorandum, as the devil is in the details.
related myreinspace post on 8 mistakes to avoid in real estate syndications: http://myreinspace.com/search/public_forums/General_Discussion/61-22331-110625-8_Mistakes_to_avoid_in_real_estate_syndications.html
May I suggest that you look at
a) fees,
b) track record of management team,
c) potential uplifting of going-in prices of real estate,
d) realism of assumptions of exit prices, demand or costs; and
e) underlying economic fundamentals.
What specific firm is it ? Some are great, some are scams, and the risk of total loss of investment is a real possibility in some, but not all, instances.
More details, please, for example an offering memorandum, as the devil is in the details.
related myreinspace post on 8 mistakes to avoid in real estate syndications: http://myreinspace.com/search/public_forums/General_Discussion/61-22331-110625-8_Mistakes_to_avoid_in_real_estate_syndications.html
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Not sure if a formal memorandum will be developed, but looking for joint venture partners that would be interested in the development of a 2 hectare lot mainly industrial-commercial use, in a fast growing foreign (outside of Canada and the US) urban area. Local investment partners say they are interested in investing about half of initial costs. Use of a trust structure is being suggested. Similar smaller project nearby is underway, the industrial buildings are being built. A participant in the smaller project wants to start to develop the 2 hectare lot when ready. More information available later on costs, time to rent, price increase potential.
I personally suggest that if you are involved in rental pools, you should deal with a company with a very strong and positive reputation. Also look for a company that assures a certain amount of money each month in the first few years of your investment, as this is when it is the most uncertain.Vision Investment properties is one that I have found to be very reliable, as they have their rental assurance program, and their rental pooling program.
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[quote user=jboire99]
Not sure if a formal memorandum will be developed, but looking for joint venture partners that would be interested in the development of a 2 hectare lot mainly industrial-commercial use, in a fast growing foreign (outside of Canada and the US) urban area. Local investment partners say they are interested in investing about half of initial costs. Use of a trust structure is being suggested. Similar smaller project nearby is underway, the industrial buildings are being built. A participant in the smaller project wants to start to develop the 2 hectare lot when ready. More information available later on costs, time to rent, price increase potential.
Are you going to be the expert in developing the property, or are you just raising the money? If just the money, how do you know your local partner is trustworthy? Do you have a good understanding of property law and the legal system in the country you're planning to invest in?
Regards,
Michael
Not sure if a formal memorandum will be developed, but looking for joint venture partners that would be interested in the development of a 2 hectare lot mainly industrial-commercial use, in a fast growing foreign (outside of Canada and the US) urban area. Local investment partners say they are interested in investing about half of initial costs. Use of a trust structure is being suggested. Similar smaller project nearby is underway, the industrial buildings are being built. A participant in the smaller project wants to start to develop the 2 hectare lot when ready. More information available later on costs, time to rent, price increase potential.
Are you going to be the expert in developing the property, or are you just raising the money? If just the money, how do you know your local partner is trustworthy? Do you have a good understanding of property law and the legal system in the country you're planning to invest in?
Regards,
Michael
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Tip 1: ensure that you cannot lose more than you invest, for example by co-signing for a mortgage or being tied into it legally or financially.
Tip 2: know what similar properties sells for, on purchase as raw land, and on exit as house or condo or developed/serviced lot.
Tip 3: ensure you can get the money OUT. many countries have limitations on money flow
Tip 4: know about taxes payable on sale
Tip 5: estimate future exchange rate.
So, even if the invested money is doubled, before tax in 2 years, it may be taxed at 50%. The currency might depreciate 25%. So even with a successful project the after tax money coming back to Canada might be far smaller than envisioned.
Tip 6: know about demand, trustworthiness of partner, local law (written), local laws (unwritten, i.e. bribes, mafia or squatters, ..)
Tip 7: do the normal property due diligence that you would do at home.
Overall, property development in a developing nation can be very lucrative with the right project and the right partners, or it can be a write-off.
Tip 8: Perhaps start small, say $20,000, and if you lose it all it won't destroy you, but you learned a ton. Then do more $s on the next similar project if it turns out well.
Tip 2: know what similar properties sells for, on purchase as raw land, and on exit as house or condo or developed/serviced lot.
Tip 3: ensure you can get the money OUT. many countries have limitations on money flow
Tip 4: know about taxes payable on sale
Tip 5: estimate future exchange rate.
So, even if the invested money is doubled, before tax in 2 years, it may be taxed at 50%. The currency might depreciate 25%. So even with a successful project the after tax money coming back to Canada might be far smaller than envisioned.
Tip 6: know about demand, trustworthiness of partner, local law (written), local laws (unwritten, i.e. bribes, mafia or squatters, ..)
Tip 7: do the normal property due diligence that you would do at home.
Overall, property development in a developing nation can be very lucrative with the right project and the right partners, or it can be a write-off.
Tip 8: Perhaps start small, say $20,000, and if you lose it all it won't destroy you, but you learned a ton. Then do more $s on the next similar project if it turns out well.
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The project is divided into more than one property, so per property a JV partner would be able to participate as a co-developer and help shape that part of the project, starting-out. I have met the local partner, also familiar with the environment and I have a local real estate law firm I consult with. Those are good tips, I also consult with a local accountant that has a large American real estate investor as a client, who has done well with their investments. Feel free to consider this project taking shape and that has room for JV partners and later possibly passive investors; also consider the above tips and suggestions, later I will post some general numbers. This could turn-out to be a good opportunity for some Canadian real estate investors to participate in and become a little more familiar with investing in real estate projects outside of Canada and the US.
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What could be a reasonable percentage participation or split, to compensate partners as co-syndicators to help develop an investor pool, or as board members or advisers for a pool? And as an invitation to posters and readers familiar with how to develop pools, how could you possibly be able to participate, working together to help develop something like this? And with a couple of people lets develop a plan to develop the pool.
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As soon as you market to people that are not friends, family, close business associates or accredited investors you are selling securities. Please be aware of those restrictions when marketing investments.
You need an offering memorandum to market to investors outside this group, and that costs $20-$40,000 to set up.
You need an offering memorandum to market to investors outside this group, and that costs $20-$40,000 to set up.
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- Jun 12, 2012
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No, i am not participated ever that type of sessions but can you tell me the agenda !