long term settlement contract

[bez23]

http://exclusivelynews.com/investor-flock-4-day-property-offer/

Similar to an option but you have to settle. For 4 dollars a day, it seems reasonable? Anyone have any experience with these sorts of deals ?

Cheers

 

[Corey Batt]

Can't find any reference to these kind of deals in SA besides the original source, same for LTSC's in general besides this one development.

If you don't settle for ten years the property would still be existing, I'm assuming the developer would rent the property out? Or is it just a land development?

 

[bez23]

Seems like mainly land banking.

 

[jrc]

On the figures quoted it seems closer to $12.00 a day. A lot of risks. What if the developer goes under, what if the developer can't perform. What if building codes change and impact costs?

 

[Aaron_C]

I agree it sounds like funding land banking as that is a dirty word in finance these days. Main risk is counter-party risk if the developer goes belly up.