Property Syndication - bearing returns of 20% to 60% from for 1-3 years
Our investors funds are also secured investments in property syndications, but there is no monthly payment of interest. It is paid, at the end of the term of the investment.
We use property syndications to acquire properties to develop. We use loans to buy and hold these properties and to fund the professionals required in the town planning approval process. Planning approval may take from as little as six months to as much as three years. Returns are commensurate with the difference of the value of the property when bought, and, the end value once planning approval is granted. Read More:
In this model:
1. The property is valued by a resigistered valuer actively used by one or more of the prevailing banks.
2. A new investment company is registered to hold a mortgage that secures the investor/s capaital against loss. .
3. We cede the shares of the property-owning company to a conveyance attorney to hold the syndication's security.
4. The repayment period is between 1-3 years: in most cases return paid are 20% first year & 40% second year.
5. Most developement take eighteen months to pay out, so bank on 30% return.
6. Capital is used to fund pruchase of property and fees of the architect, engineer & townplanner.
7. Capital and interest is accumulated and repaid at the end of the loan.
8. Minimum investment is R 250,000 - funds are not used until syndication is complete.
9. Some projects require as little as R 1 million to fund and others require R 12 million.
10. Brown field developments take less than a year to complete and green field developments take between 2-3 years.
See more about syndications on offer:
- Investment 02