Dubai chapter of the forum

[AAPROP]

Taken from another thread. I am sure a lot of you will have the same queries.

Quote:

Originally Posted by talk

To build a community you need a lot of trust in each other.Investors mostly work alone for this reason.Developers already have their communities on their books fighting over registation,prelaunch,launch discounts etc.
Bringing 400 investors together would mean turmoil,400 times the fighting,400 times the greed.

Believe it or not but developers would love it.Prices would go up so fast through greed,then no one could sell.

Prelaunchs and discounts are only developers advertising their next tower.
Many times I've purchased at the same price as a bulk buyer months after launch.

Investors who work alone will keep the market stable for longer and still make a good profit.

1 GOOD QUESTION IS CAN PRICES BE STALLED PER SQ/FT.RENTS CAN ONLY SEE A CERTAIN INCREASE YEARLY.DO YOU THINK THAT SALES PROFITS MAY ONLY ALLOW A CERTAIN % ON TOP OF PURCHASE PRICES.WHAT SENSE WOULD DISCOUNTS MAKE THEN.

I really think that working alone will keep us happier longer.

Reply to "Talk"

Rome was not built in a day. Everything takes time.

The model could be changed to suit tastes.

Not all 400 would like to invest at the same time. You can still work alone even if there are 400 people.

For eg : There is an offer for a full floor of a commercial building of lets say 10,000 Sq ft. I am interested in securing 2000 sq ft. With a database of 400, we just need to sound the members. I am certain I will find atleast 5 out of the 400 who will be interested in the balance 8000 sq ft. I still get my 2000 sq ft and the balnce will be shared with the other members. If there are more investors interested, you go for more floors. In the eyes of the developer he has sold 1 floor, but we have still retained our individual identities with our individual investments. What has happend is, you have got your individual investment and for a price lesser than market value.

We go as a group but still buy individually if required. In that way we are absolved of any infighting or disagreement between investors.

The developers will not sell on their terms. We are smart enough to diffrentiate between greed and actual. We put a counter offer and it works.

Classic case : Look at Dynasty Zarooni, they would probably buying at half the market price and selling at market price. He is not a fool to operate on a 20% margin. He is definitely getting more than that. You think he would put vall the money down when buying a building, he would have got the developer to agree to his terms and would be paying in installments.

The idea is to start. Ther will be "if's" and " buts " on the way. If it does not work out, what the hell, you have made 400 friends. We would have formed a club which meets to share views and talk about the market.

Regards

Roshan

Hi Roshan,

Excellent suggstion and initiative. I am in as well. Let me know if you need any further info about me. Thanks.

 

[Roshan]

Hi Roshan,

Excellent suggstion and initiative. I am in as well. Let me know if you need any further info about me. Thanks.

As Nike says " Just do it " or Addidas says " Impossible in nothing ". My mentor used to say " Impossible does not exist "

Regards

Roshan

 

[bluelight]

Hi There!
Although new to this forum as member but was reading for quote some time please count me in. I am in Dubai
email is gulhassan at hotmail dot com (the name is together)

looking forward to hear more details

 

[suas5]

hello Roshan and other members,

if fact a group of 5 or ten partners whom i know are into such bulk purchasing and it's very advantagous as the payment plan, prices,location etc... all end up in ones favour .
infact during the summers the markets are slow and the prices pick up during the autum (when the citi scape dubai is ) presently if i could join the current 14 members that met shall be more than willing to be a part of the syndicate.
i would be very much interested please inform me at suas5 at hotmail

 

[suas5]

Hi Roshan,

Excellent suggstion and initiative. I am in as well. Let me know if you need any further info about me. Thanks.

hello Roshan and other members,

if fact a group of 5 or ten partners whom i know are into such bulk purchasing and it's very advantagous as the payment plan, prices,location etc... all end up in ones favour .
infact during the summers the markets are slow and the prices pick up during the autum (when the citi scape dubai is ) presently if i could join the current 14 members that met shall be more than willing to be a part of the syndicate.
i would be very much interested please inform me at suas5 at hotmail

 

[Roshan]

hello Roshan and other members,

if fact a group of 5 or ten partners whom i know are into such bulk purchasing and it's very advantagous as the payment plan, prices,location etc... all end up in ones favour .
infact during the summers the markets are slow and the prices pick up during the autum (when the citi scape dubai is ) presently if i could join the current 14 members that met shall be more than willing to be a part of the syndicate.
i would be very much interested please inform me at suas5 at hotmail

A group has to gel before they actually invest. We all meet under the same umbrella and investors decide how they will invest.

As I mentioned earlier on, let's consider a floor. Each member can invest individually. When 10 individual investors get together and invest in a floor ( again individually ). You have a better bargaining power with the developer as he stands to sell the full floor.

The developer also wins and the 10 investors with their individual investments also win by getting a better price then what they would have got if they had to approach the developer alone.

Regards

Roshan

 

[attif]

A group has to gel before they actually invest. We all meet under the same umbrella and investors decide how they will invest.

As I mentioned earlier on, let's consider a floor. Each member can invest individually. When 10 individual investors get together and invest in a floor ( again individually ). You have a better bargaining power with the developer as he stands to sell the full floor.

The developer also wins and the 10 investors with their individual investments also win by getting a better price then what they would have got if they had to approach the developer alone.

Regards

Roshan

i think with roshans know how of the market and the buying power of x investors getting together, this thing could be very profitable for all who got involved.

If there are any people in the UK, who would like to form the equivelent over the UK please do not hesitate to mail me so that we can all keep in contact, in regards to pushing this thing forward.

Even if not 400, 20 or 30 like minded individuals all wanting to combine their resources to negotiate stronger deals will definetly give us an advantage within the Dubai market.

Regards

 

[Roshan]

i think with roshans know how of the market and the buying power of x investors getting together, this thing could be very profitable for all who got involved.

If there are any people in the UK, who would like to form the equivelent over the UK please do not hesitate to mail me so that we can all keep in contact, in regards to pushing this thing forward.

Even if not 400, 20 or 30 like minded individuals all wanting to combine their resources to negotiate stronger deals will definetly give us an advantage within the Dubai market.

Regards

It's not my know how but the groups know how. The group meet and analyse a project, brain storm if required and conclude the potential of the / feasibility of the project.

The group will not handle anybodys cash. Each investor handles his own cash. The motive is to get like minded members together under one umbrella and get good prices in the bargain.

It's obvious that not all members would be investing in all the projects together. The participants in that particular investment will decide how to handle the transcation. It's not rocket science and it can be worked out within yourselves.

The intention is not only to form a syndicate but also to have interactive sessions, invite guest speakers, help the investors who are starting. Nobody can be an expert in real estate. When you move with like minded investors you learn. There are people specilaized in each area. When they talk, we all listen and learn in the process.

The strategy explained in form of a case study.

Case study : Commercial space to be launched.

Database of 400 emailed informing of the launch.

Each floor is of 10,000 sq ft.

Investor A interested in 2500 sq ft.

Investor B interested in 2500 sq ft.

Investor C interested in 2500 sq ft.

Investor D interested in 2500 sq ft.

The above totals 10,000 sq ft. All the above 4 investors will be individual investments and not joint. BUT, when approaching the developer the 4 investors pose as one investor and negotiate the best price for the full floor.

Conclusion : Each investor gets his own individual investment at a prelaunch or discounted price.

Nobody will handover money to anybody. Each one will handover money directly to the developer.

Regards

Roshan

 

[NAZ_2_NAZ]

The only problem with buying individually as oppossed to one entity is that some people want this part of the floor, other people want another part and it causes problems, i have first hand experience of this. The syndicate should should invest as one entity and get that entity to grow.

I think Roshans point about getting together is good, if it doesnt work, oh well, atleast we made a lot of friends and contacts in the market. I am UK based and have put together a few syndicates of this type, if any one is interested please PM me.

Naz

 

[attif]

The only problem with buying individually as oppossed to one entity is that some people want this part of the floor, other people want another part and it causes problems, i have first hand experience of this. The syndicate should should invest as one entity and get that entity to grow.

I think Roshans point about getting together is good, if it doesnt work, oh well, atleast we made a lot of friends and contacts in the market. I am UK based and have put together a few syndicates of this type, if any one is interested please PM me.

Naz

ok, you mean- hear is a floor, 10,000 sq ft, everyone throws in their money and that floor is then owned by whoever put thier money in? is that right?

the only issue with that is what safeguards are there in place to protect your money? are your details also put down on the papers?

 

[NAZ_2_NAZ]

ok, you mean- hear is a floor, 10,000 sq ft, everyone throws in their money and that floor is then owned by whoever put thier money in? is that right?

the only issue with that is what safeguards are there in place to protect your money? are your details also put down on the papers?

To safeguard the money you can either put everyones name down on the contract or what we do is form offsore companies for each investment, with people allocated shares certificates, the company buys, the company sells, and distributes profit according to investment just like any other business. Check out Knightsbridge Investment Fund. We can create alliances with people everywhere from this forum and form a strong partnership. The aim now should not be to to flip, everyone is trying it, it is getting late for this, leveraging yourself now could be a nasty mistake. Lets buy cash floors/ buildings at half the market rate i.e instead of 2000 AEDsqft, 1000 AED psqft. Guaranteed to make money, but need a lot of cash. Even if people are willing to invest £10K - £20K lets do it. We have the contacts and know how on execution of this. PM me

 

[Roshan]

The only problem with buying individually as oppossed to one entity is that some people want this part of the floor, other people want another part and it causes problems, i have first hand experience of this. The syndicate should should invest as one entity and get that entity to grow.

I think Roshans point about getting together is good, if it doesnt work, oh well, atleast we made a lot of friends and contacts in the market. I am UK based and have put together a few syndicates of this type, if any one is interested please PM me.

Naz

It will be on first come first served basis, like how when we go to a developer, same rules apply.

The members of the syndicate are free to take their own decisons and invest as one enitity. However with no legal implications on the members of the syndicate who have not invested.

When one invests with a particular group within the syndicate ( obviously all will not be on the same frequency ) then they will be doing so at their own free will and risk. Nobody gives any money to any other member. If he does so, it's at his own risk.

Regards

Roshan

 

[Roshan]

ok, you mean- hear is a floor, 10,000 sq ft, everyone throws in their money and that floor is then owned by whoever put thier money in? is that right?

the only issue with that is what safeguards are there in place to protect your money? are your details also put down on the papers?

Each investor has his own individual investment on that floor. However in the eyes of the developer it will be the sale of a full floor. The investors will negotiate a better price considering that the full floor will be sold.

Each investor gets a contract in his name. The investor walks away with a contract in his name and the developer walks with the sale of the full floor. A win-win situation for both.

Regards

Roshan

 

[attif]

hi roshan,

sorry i should have been more specific i was pointing that question to Naz, who has informed us that also does a similar thing and suggested it done as one entitiy.

My question was if it is done in one entity then who has the funds and how are those funds safe...

Attif

 

[NAZ_2_NAZ]

I hope i have answered your questions Attif.

We are trying to join groups of syndicates and network with like minded investors, together it is possible to acheive a lot more ground. So its very worthwhile people in Dubai to meet with Roshan, anyone in UK interested can contact me.

Naz

 

[Saleem]

Hi to you all,

Creating a syndicate to purchase as one entity sounds very feaible but we will have to ensure we all understand and abide by any rules in transactions/dealings, otherwise the group can come apart.

Also being in the UK means we are not at the sharp end of this business so will be relying on syndicate members wih the knowledge and contacts in Dubai.

I will be visiting Dubai next week on holiday for six days so will be keen to meet with you Roshan as you seen to have a great deal of knowledge about this market (sorry I don't mean to offend anybody else by this comment).

If you are available to meet please will you email on Saleem at Naeem dot org dot uk

 

[attif]

my question would be with any syndicate what would be the intention of any parties purchasing withing this syndicate, what i mean, would it be buy to hold? make all payments and keep, buy to sell (flip). I am also very keen on joining some kind of syndicate as the concept makes sense.

 

[NAZ_2_NAZ]

Hi to you all,

Creating a syndicate to purchase as one entity sounds very feaible but we will have to ensure we all understand and abide by any rules in transactions/dealings, otherwise the group can come apart.

Also being in the UK means we are not at the sharp end of this business so will be relying on syndicate members wih the knowledge and contacts in Dubai.

I will be visiting Dubai next week on holiday for six days so will be keen to meet with you Roshan as you seen to have a great deal of knowledge about this market (sorry I don't mean to offend anybody else by this comment).

If you are available to meet please will you email on Saleem at Naeem dot org dot uk

Lol. Dont worry no offence taken. In regards to being in the ground yes it is very important that is why the management of my syndicate include people who are real estate agents based in Dubai and Abu Dhabi and who are Emirati - which is very important, this is how we get access to V.I.P Launches. We handle a few syndicates and it is going well - including a group of HSBC traders.

The reason i see scope to join with others from this forum is growth and expansion.

Each syndicate has to decide its stance and stick to it. Before purchasing the shareholders will have in place a course of action i.e our target is to flip within three months at X %, or buy and hold and make all payments, then sell before completion when the building is up and maximum growth has been reached. It all depends on the risk appetite of the investors, and what financial position each is in.

Naz

 

[Roshan]

I hope i have answered your questions Attif.

We are trying to join groups of syndicates and network with like minded investors, together it is possible to acheive a lot more ground. So its very worthwhile people in Dubai to meet with Roshan, anyone in UK interested can contact me.

Naz

To be kept upbreast with the developments, it would be worthwhile to include 1 agent from each developer. We could have agents from all the leading developers to be a part of the community.

They would also form a part of the presentations and since they would be the first to get a whiff of any new developments in their own company, we might stand to benifit on pre launches.

This is not for any personal benifit. This is a entirely a non profit organization where any member does not make money. The benifit passes onto the group of investors.

A development in the world would have been a foregone conclusion for many of us. With investors teaming up, one could think of buying a develpment in the world.

That's the strength of forming a community.

Regards

Roshan

 

[Roshan]

Hi to you all,

Creating a syndicate to purchase as one entity sounds very feaible but we will have to ensure we all understand and abide by any rules in transactions/dealings, otherwise the group can come apart.

Also being in the UK means we are not at the sharp end of this business so will be relying on syndicate members wih the knowledge and contacts in Dubai.

I will be visiting Dubai next week on holiday for six days so will be keen to meet with you Roshan as you seen to have a great deal of knowledge about this market (sorry I don't mean to offend anybody else by this comment).

If you are available to meet please will you email on Saleem at Naeem dot org dot uk

It will be a pleasure to meet you. I will pm my contact details.

I am not an expert, I am learning everyday

Regards

Roshan