My "Armchair Development" Experience
- Thread starter Crido
- Start date
I feel the pain for those who have been involved with this group, seems to have gone very bad.
2 projects with issues.... Loftus project gone pear shaped as from another post investors need to throw in $100K which is basically the profits and also way off estimated completion date.
Windsor also be going the wrong way, 18% interest pa is going to also kill the profits and as someone mentioned previously due to the delays the opportunity to sell during the peak has now gone and the cycle has changed. End values quoted may not be achievable??
From my limited research when I was looking at EOS this is what struck me:
1. This company did not have any completed projects, red flag
2. Outsourced project management/build, another layer of costs for investor, and lack of control, recipe for disaster
I also think the Directors of this company have also invested/purchased in these products, so what does this mean??
MTR
2 projects with issues.... Loftus project gone pear shaped as from another post investors need to throw in $100K which is basically the profits and also way off estimated completion date.
Windsor also be going the wrong way, 18% interest pa is going to also kill the profits and as someone mentioned previously due to the delays the opportunity to sell during the peak has now gone and the cycle has changed. End values quoted may not be achievable??
From my limited research when I was looking at EOS this is what struck me:
1. This company did not have any completed projects, red flag
2. Outsourced project management/build, another layer of costs for investor, and lack of control, recipe for disaster
I also think the Directors of this company have also invested/purchased in these products, so what does this mean??
MTR
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Possibly because there is little choice, in particular if the Directors also have vested interest in the projects they just keep moving them in the hope to make some profits. Problem is if they have not identified why/what is happening it will just be repeated. My concern is that the company could also go belly up, then what?? Something that could actually happen, not sure what the implications would be for investors?? does anyone
Holy smoke batman
that's a JOKE of a figure! I stumbled upon this post last night and have been reading from the beginning thinking "Ahhah I've struck gold!" only to be unpleasantly (un)surprised. If it sounds too good to be true right? I feel for OP, hope you manage to retrieve back all your original investment and a little bit of something on top to cover the interest and opportunity costs. But with that crazy time-line ie 2.5 years, the opportunity cost is simply too high!17.5% how did they finance it? on credit card? Even unsecured personal loans are less than this atm. Commercial loans are much less.
I have read through this thread, and their website. My questions is how does the company make money?
It is either on the development - ie a % of the building cost, or via finance cost (or maybe both).
It is reasonably difficult to find development sites returning 20%+, adding an additional layer of costs to the build price just squeezes that even more.
I was also wondering where the risk lay, however, it would seem the risk lies with the investor. How much skin is in the game for the company, to ensure that the development is completed ontime on budget?
Blacky
I have read through this thread, and their website. My questions is how does the company make money?
It is either on the development - ie a % of the building cost, or via finance cost (or maybe both).
It is reasonably difficult to find development sites returning 20%+, adding an additional layer of costs to the build price just squeezes that even more.
I was also wondering where the risk lay, however, it would seem the risk lies with the investor. How much skin is in the game for the company, to ensure that the development is completed ontime on budget?
Blacky
From memory the company gets paid to put the deal together and then at the end. I think half upfront 5% of total project cost and then balance 5% at end, not performance based. The initial capital investors put in also formed part of this. My figure could be wrong but km pretty sure that's how it was structured give or take a % or 2
Sanj
Feed back interesting, I did not get into the fees etc.
How could anyone make money at this point in time, market has changed anyone can make money in a rising market just throw a dart and these guys were in this market... what the hell, how could they get it so wrong??
My guess is the outsourcing and inexperience has killed it, Directors did not have the expertise to drive this so they used a reputable project management/consultant company who charged big fat fees and who did not delivery., However, they got paid for their services, anyone checked out what they were paid
The silly thing is their marketing was so poor.
MTR
Have seen this - the problem is I think its only 66 sqm and more importantly there is so much stock on the market it will come down to how low will you go.
We know these investors have coughed up $580K and counting so it is most definitely a loss, but how much we don't know???
Hi guys,
thanks for posting and sharing all of this. I have coincidentally been looking at this group and am considering to invest in their upcoming project in Beckenham. Looking forward to sharing and reading on more of this stuff...
thanks for posting and sharing all of this. I have coincidentally been looking at this group and am considering to invest in their upcoming project in Beckenham. Looking forward to sharing and reading on more of this stuff...
Even after reading this thread? And theres another one too i think.
Your joking right?
Did you miss the part where clients had to dip in an extra $100K, interest rates now at 18%, delays of over 2 years.
Interesting first post.
Can you please clarify if you are related (financially/personally) to any of the owners of this 'group'?
Are you serious?! Why wouldn't you run away after reading this thread?
Hi Mate, I will pm you the prospectus for 'Waldo Investments', we can offer all that and more!
