Thanks Thomas for giving me the opportunity to validate my credibility.
Damara, please understand the following are just the facts of our fund and you should consult anyone who actually has experienced investing with InvestPlus and read our offering memorandum to substantiate these facts, as I believe everyone should do before investing in any opportunity. We would also be happy to share references with you.
In general I do not share my opinion on other funds as I believe it is not my place to do so. Naturally, being a business owner myself, as Thomas would agree, I am biased toward my own fund.
Ok, so here are the facts.
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[*]Our commission fees are actually up to 7% of funds raised. (not sure where Thomas gets 10%)
[*]Acquisitions fees are 3% of Purchase price of building
[*]Management fees are 10% of gross monthly income which includes third party management (5%) and therefore works out to about 0.5% Asset Management (not 1%)
[*]Our current offering offers a 70/30 split to the investor
There is a performance rate (hurdle rate) of return of 9%. That means you as the investor get all of your money back first, plus 9%, before we split the profits 70/30. Others don't have a performance rate of return. They split the profits as soon as your money is returned in full.
So I'm puzzled where Thomas get's his information.
While we're comparing notes:
We don't have a refinance fee of 0.7%
We don't have an administration fee of 1% of gross funds raised.
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As for the fund, yes we stepped in to replace Evolve at the request of the Limited Partners and I'm not sure where Thomas gets $1M raised and 50% of funds were spent. Actual numbers would suggest about 25% of funds raised or $218,000 of $940,000 were used mainly for promotion, up front legal setup costs and commissions from the previous General Partner. I would agree, this is high by our standards as typical costs runs us between $150,000 to $175,000, however it was as a result of these cost overruns that InvestPlus was voted in as the new General Partner to take over and drive this investment to a success which I will come to in a second.
Track Record
Having an unproven track record is completely false. How then would you explain the several investors who have invested with us and have all of their money back, plus 30% return and still own their equity position in the property? How would you explain our recent sale of an 18 unit apartment building we bought for $50k/door and sold for $87.5k/door resulting in an annual ROI of 29% to our investors? And yes this after selling and closing costs. With over 220 doors transacted and another 122 under contract to purchase before June 2011, none of our clients have ever lost any money
The vehicle in which we used to create the syndication has no bearing on our performance. Our clients choose to invest with us based on our ability to find great properties, negotiate great terms and provide a transparent and lucrative investment. Please click here for more details on our track record. http://www.investplusproperties.com/invest/track_record.html
The InvestPlus Opportunity Fund IV LP
Since we've taken over the fund in summer of 2010, we have purchased a 33-suite condominium building. We have since renovated the building, taken the Rent Roll from $16k/month to $25k/month and have taken the building vacancy from 39% to 0 as of Dec 1 2010. The building is still full. This was all done under budget and ahead of schedule.
We also have a pending deal on 14 Condos in Mission, Calgary priced at $105k/door. Current retail price for these condos are $175k/door. I admit, I don't have an appraisal but I do have comparables. If you want to calculate selling and closing costs, add another $10k/door and say $15k/ door for a nice upgrade. That's still $45k/door spread per unit. This will be part of our Opportunity Fund IV LP.
We also have an unconditional offer on a 20 suiter in Edmonton for $85.5k/door. The value of this building after spending $6k/door will be $101,250/door. In this case we have a certified appraisal for the as is value (appraised at $92k/door) and post upgrade value.
Damara, I understand you recently attended one of our webinars and were speaking to one of our representatives, for your own edification; our representatives are licensed Exempt Market Representative with the Alberta Securities Commission and are qualified to provide
suitability in regards to all investment products legally offered within the Exempt Market Place.
You can also get a YouTube update of our 33 suiter:
LPIV Update September 2010 ` The Metropolitan:
http://www.youtube.com/watch?v=ZSjr_lde7A4&feature=player_detailpage
LP IV Update January 2011 ` The Metropolitan:
http://www.youtube.com/watch?feature=player_profilepage&v=zKp4ivaa3w4
I hope I've shed some clarity on this.
Sincerely,
Domenic S. Mandato, President
InvestPlus Properties Canada Ltd.
T: 403.663.8772
F: 403.663.8773