Pre-Construction Condominiums Needed - Worldwide

Discussion in 'Caribbean Real Estate' started by realestatechic, Dec 5, 2007.

  1. realestatechic

    realestatechic New Member

    remove posting from forum
    Last edited: Jan 11, 2008
  2. DC

    DC Member

    Sounds interesting, what does it actually mean in lay persons terms.
  3. realestatechic

    realestatechic New Member

    remove posting from forum
    Last edited: Jan 11, 2008
  4. realestatechic

    realestatechic New Member

    remove posting from forum
    Last edited: Jan 11, 2008
  5. DC

    DC Member

    Michele send me your email address please to info at thanks
  6. DC

    DC Member

    You pay 10% down payment, and you are getting a 15 to 20% discount.
    When do you pay the other amounts? ie. The other 90%?
  7. DC

    DC Member

    And what would be your sales strategy to sell the units you purchase?
  8. DC

    DC Member

    for others -

    Pre-Construction Overview

    Canyon Acquisitions (www.canyonacquisitions) is a private equity firm with more than $100m in pledged reserves that allow us to pull the trigger on condo, townhouse, marina slips and similar development projects worldwide.

    To date, we have completed more than $500 million is project investments and are currently engaged in more than two dozen development projects around the globe.

    Canyon typically buys between 40 to 50% of the total planned units in any one project nationwide and abroad. Single family homes do not qualify because of the varied custom features that are normally offered. Too much customization, unlike condos and townhouses don’t fit the Canyon profile. However, we will consider commercial condos, marina slips, land sub-divisions, timeshare/fractional ownership and storage condos. Condo conversions will be considered on a case by case basis. However, we require at least 12 months seasoning for reassignment (a further explanation of this can be discussed verbally).

    Our buy in is at a typical 20% discount from the retail sales price with 10% down on contract per unit. On some occasions the developers bank has allowed us to place a 5% deposit which offers us some flexibility in our discount percentage.

    For Canyons services which include attorneys, legal and travel expenses we charge 7 to 9 points. The fees are broken down in stages (2.5% upon funding escrow, 2.5% in development and 2.5% upon completion of construction).

    Please keep in mind that our investors are not end users, which makes this a strict investment vehicle for them. Canyon’s buyers and our JV Developer agreements allow Canyon to re-assign the contracts to the ultimate end users of the product. More on the sales of units will be discussed below.

    Escrow deposits are not for construction purposes, nor can they be used for construction. Deposits for our buyers must earn a minimum 5% ROI which is inflexible. We have established relationships with a number of banks that will offer such returns if it’s necessary to make such an arrangement.

    One thing Canyon has permitted, is to allow the developer to borrow against the escrow deposits. Typically 90% is what most banks are happy to do. We state clearly in our addendums that the monies in escrow are not to be used for construction. However, since one can borrow against those funds, he or she may do with them as they please, including paying our brokerage fees, architects, construction, etc

    With regards to the ultimate sell out, Canyon requires that the remaining developer units and the units acquired by the Canyon buyers be sold in unison – side by side through a local realtor, broker or in-house marketing plan.

    The side-by-side sale is necessary as a performance requirement on part of the developer. Since Canyon is buying the units at a discount, we have a dollar for dollar price adjustment clause built into the agreements. Canyon expects that the developer price the market accordingly so as to maximize the returns. Should the developer overprice the market, Canyon has the right to make the necessary dollar for dollar adjustments in the discount.

    There are three (3) significant bulk buyers in the marketplace. Canyon is one of them and we do perform . . . and very quickly.

    An executive summary, pro-forma, web-site and renderings will allow us to move toward a more in depth dialog. Upon a clear understanding of our program and willingness to move forward, we can issue a letter of interest within 24 hours in most cases.
  9. propertyborders

    propertyborders New Member

    Thanks for the details.

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