Hello all,
At the risk of being flamed, I thought I'd place a post in this forum inviting people to participate in a syndicate that I'm involved with. This won't be for everyone, and I'm suggesting that you do your own research if even remotely interested. There have been posts in this forum before about mezzanine finance, and this is along the same lines.
I’m not going to provide full due diligence information about locations and numbers at this stage, only to say that I will provide them if you respond privately ([email protected]). Main reason being is that it’s too lengthy to go in to here in the posts, and there is information we only want to provide to investors or strong prospective investors.
Essentially we (being my business partner and I) have a number of projects that have either settled, are under contract or about to go under contract. These range from single story houses that are in need of a renovation up to a 32 unit development site. Our company are not builders, we see our role as deal putter togetherers(!) By bringing together the property, the finance, the real estate agent, etc, we believe there is a $ in it for everyone.
We make our money through a project management fee and through the returns from our own money invested in the projects (which we have in every deal). For the last 6 years we have been putting together deals individually and in small syndicates and not once have we lost money on a project. Some have been much better than others, but our track record is pretty good. (Again details can be provided)
Properties currently requiring mezzanine funds include an 11 unit development in a bay side suburb of Melbourne and the 32 unit development (mentioned above) on the central QLD coast. Basically this finance makes up the difference between our own funds and what the banks give us. On some deals it can be secured against the property in question, and in some other deals it can’t be, depending on the senior finance conditions. (Although a caveat over the property is always available)
History shows that returns to these investors are between 8%pa and 64%pa where some deals are done over a number of years, and some much shorter time. (Some never even settled!) We don’t offer a guaranteed return because we think that limits the upside, and if investors are in for a number of deals then usually the higher paying ones outnumber the lower paying ones.
A question that has been asked in this forum before is – why would developers use expensive finance? Well the answer to that is pretty straight forward – firstly it’s better to have a lesser amount of something than nothing of nothing. If it weren’t for our investors then we wouldn’t have grown as to the considerable sized projects that we are doing now, but for that privilege we have had to share the profits, and we actually enjoy doing that. Second reason is, that it is actually cheap finance. If we are paying (say 15%) for funds then the use of that money is better than not being able to do the deal at all. Thirdly (as mentioned by Sean in this forum) the ability to multiple deals at one time keeps the cash flow going for investors and ourselves.
Again, this is not for everyone, and when putting something out there like this, (and I know you haven’t heard of me before) I’ll probably come under a bit of criticism. However we genuinely believe that by being involved in a small group like this, that investors can gain more than good returns on their money. Including education, knowledge, and time with likeminded people who actually enjoy working for a living on projects like this.
I’m happy to reply to posts to this thread, otherwise feel free to email me privately. [email protected]
Regards,
Dave.
At the risk of being flamed, I thought I'd place a post in this forum inviting people to participate in a syndicate that I'm involved with. This won't be for everyone, and I'm suggesting that you do your own research if even remotely interested. There have been posts in this forum before about mezzanine finance, and this is along the same lines.
I’m not going to provide full due diligence information about locations and numbers at this stage, only to say that I will provide them if you respond privately ([email protected]). Main reason being is that it’s too lengthy to go in to here in the posts, and there is information we only want to provide to investors or strong prospective investors.
Essentially we (being my business partner and I) have a number of projects that have either settled, are under contract or about to go under contract. These range from single story houses that are in need of a renovation up to a 32 unit development site. Our company are not builders, we see our role as deal putter togetherers(!) By bringing together the property, the finance, the real estate agent, etc, we believe there is a $ in it for everyone.
We make our money through a project management fee and through the returns from our own money invested in the projects (which we have in every deal). For the last 6 years we have been putting together deals individually and in small syndicates and not once have we lost money on a project. Some have been much better than others, but our track record is pretty good. (Again details can be provided)
Properties currently requiring mezzanine funds include an 11 unit development in a bay side suburb of Melbourne and the 32 unit development (mentioned above) on the central QLD coast. Basically this finance makes up the difference between our own funds and what the banks give us. On some deals it can be secured against the property in question, and in some other deals it can’t be, depending on the senior finance conditions. (Although a caveat over the property is always available)
History shows that returns to these investors are between 8%pa and 64%pa where some deals are done over a number of years, and some much shorter time. (Some never even settled!) We don’t offer a guaranteed return because we think that limits the upside, and if investors are in for a number of deals then usually the higher paying ones outnumber the lower paying ones.
A question that has been asked in this forum before is – why would developers use expensive finance? Well the answer to that is pretty straight forward – firstly it’s better to have a lesser amount of something than nothing of nothing. If it weren’t for our investors then we wouldn’t have grown as to the considerable sized projects that we are doing now, but for that privilege we have had to share the profits, and we actually enjoy doing that. Second reason is, that it is actually cheap finance. If we are paying (say 15%) for funds then the use of that money is better than not being able to do the deal at all. Thirdly (as mentioned by Sean in this forum) the ability to multiple deals at one time keeps the cash flow going for investors and ourselves.
Again, this is not for everyone, and when putting something out there like this, (and I know you haven’t heard of me before) I’ll probably come under a bit of criticism. However we genuinely believe that by being involved in a small group like this, that investors can gain more than good returns on their money. Including education, knowledge, and time with likeminded people who actually enjoy working for a living on projects like this.
I’m happy to reply to posts to this thread, otherwise feel free to email me privately. [email protected]
Regards,
Dave.