The Dubai Investment Coalition Planning Thread

[maximusprime]

Originally Posted by bluelight

Question:

Ok so now 20 people have bought a floor for example.
How would the next sales or cash in be handled. All investers are allowed to sell their part of the full floor at will or will this be regulated like e.g. the hold period will be discussed and mutually agreed case by case?

pyramid structure seems to be a good approach.

When the floor is purchased, we will make arrangements for the developer to sell it as individual units to the individual investors. Then each person is free to do what they want with their units. Cash is exchanged dirictly between the investor and the developer, the organisation will never handle money.

[AAPROP]

Originally Posted by maximusprime

When the floor is purchased, we will make arrangements for the developer to sell it as individual units to the individual investors. Then each person is free to do what they want with their units. Cash is exchanged dirictly between the investor and the developer, the organisation will never handle money.

this sounds fair and will help maintain the investors' peace of mind. So when do we start guys??

[Design Architect]

Originally Posted by maximusprime

When the floor is purchased, we will make arrangements for the developer to sell it as individual units to the individual investors. Then each person is free to do what they want with their units. Cash is exchanged dirictly between the investor and the developer, the organisation will never handle money.

In my opinion - to try and combine difference between approaches, I came u with this one:

1 Level of investing - Investment groups acting as one, and buying off whole floors and buildings. We are offering to developer easiest way to sell without hassle

2 Level of investing - Same floors or building is offered to Community at discounted prices. This way, big investors get their share, and community still has better prices than market. We apply first-come-first-served bases for sea view and park view units

What do you think guys?

Reason - developer is not (in my opinion) going to sell to anyone if it too complicated. Market holds a LOT! of people and companies who will by whole buildings without hassle of coordinating 100 members.

[maximusprime]

Originally Posted by Design Architect

In my opinion - to try and combine difference between approaches, I came u with this one:

1 Level of investing - Investment groups acting as one, and buying off whole floors and buildings. We are offering to developer easiest way to sell without hassle

2 Level of investing - Same floors or building is offered to Community at discounted prices. This way, big investors get their share, and community still has better prices than market. We apply first-come-first-served bases for sea view and park view units

What do you think guys?

Reason - developer is not (in my opinion) going to sell to anyone if it too complicated. Market holds a LOT! of people and companies who will by whole buildings without hassle of coordinating 100 members.

So are you saying the goup should pool the money, buy the floors, and "re-sell" the individual units to the members? Thats a possiblilty but it complicates things on our end iand introduces a new element of trust and liability. This would be something to discuss with a developer.

[Design Architect]

Originally Posted by maximusprime

So are you saying the goup should pool the money, buy the floors, and "re-sell" the individual units to the members? Thats a possiblilty but it complicates things on our end iand introduces a new element of trust and liability. This would be something to discuss with a developer.

Basically, yes we are re-selling it to our members. As it may sound bad, it's not. And complications are avoided, because we can take our time and sell it slowly. To explain again:

1 LEVEL - Whom ever got the money - go as a group and buy floors or building. They act like one, and they bring their policies with them. They say for example - we are going to advertise this property for 100dhs more per sqft. We are going to sell individual units without 2% fee, and it's, again, going to be cheaper than market price. It's big investment and it's more risky. Returns are divided in equal parts, depending how much was initial investment.

2 LEVEL - Wider audience of members - can take their time and pick and choose whatever they like. It's going to be within community. It's going to be easy, and you can trust to people. Whoever comes first - snatches good views.

Max, I'm thinking out loud. No body is saying that this is best idea, but if you think it faulty somewhere, please give your comments, they are most welcome. We are here to come up with best idea.

Potential Problems with Community (as it is without 2 LEVELS)

- Are you going to have exact number of people who are willing to buy? Ever?
- What make you think that someone would rather sell something to 100 people than just 1???
- How is going to decide who picks first? If you come up in front of Developer and arguing start to who have first pick - what kind of image (of community) that going to create?

- From different perspective, you would need to go to developer and say "I have 1000 potential buyers" - what is he going to say???
- And if he agrees to 1000 buyers - and you have 400 of them back up, because it's not good for them, what should be the next step???

[maximusprime]

DA,
You are bringing up some very good points. The backing out problem it very real and could potentially mess everything up if the developer is expecting to sell 1000 and all of a sudden 400 change their minds. I think comming to the developer with a nice organized package sounds like a good idea and those who take the initial risk should be rewarded. We should talk to someone who works or has worked (sally) for a developer and see what they have to say about it.

[Design Architect]

Thing of it is - I don't have anything against community where everyone can buy something for them selves, and the developer is happy. But I think that it's too difficult to achieve that. We are talking about trust, and simply you can't trust 1000 people when they say something. Hell you can trust 100, or even 10 for that matter...

Community is a good place - for gathering like minded people and share information. Everything other than that, tend to be too complicated - as the number of involved parties is huge...

Again - we are talking and exchanging ideas - that's a positive side about community.

[sadiqnazir]

I think that here we cant make up kind of pvt. ltd. company where all our investors become kind of shareholders in the company according to the money they are investing in or I think we can make it up project wise, Eg : if we require an investment of 100,000, we can include even ppl with 5,000 and they get their share once the property is sold. This can help out first time investors as well, if their are big players they can go for full floors and small investors can even start with single units where they will be able to gain first hand experience and earn some money as well.

[bluelight]

Originally Posted by maximusprime

When the floor is purchased, we will make arrangements for the developer to sell it as individual units to the individual investors. Then each person is free to do what they want with their units. Cash is exchanged dirictly between the investor and the developer, the organisation will never handle money.

Clear and transparent approach.

[Roshan]

Originally Posted by sadiqnazir

I think that here we cant make up kind of pvt. ltd. company where all our investors become kind of shareholders in the company according to the money they are investing in or I think we can make it up project wise, Eg : if we require an investment of 100,000, we can include even ppl with 5,000 and they get their share once the property is sold. This can help out first time investors as well, if their are big players they can go for full floors and small investors can even start with single units where they will be able to gain first hand experience and earn some money as well.

A company can be formed if a group of investors are investing on one particular investment.

For eg : If I invest in a 2000 sq ft office which will have only my name on the contract and for the balance 4 offices, we have 4 investors, each having 2000 sq ft office space in their names on the contract, why would I need to form a company. I have only my name on my investment and nobody else.

If I have 5 investors investing in say one of the above mentioned 2000 sq ft office, then yes, to protect each persons share and if those 5 investors want it, only those 5 need can form a company for that 2000 sq ft.

Small investors if they go for only 1 small part, they will not get the benifit of discount. The small investor will join hands with other like minded investors who are interested and will pose as a big investor to get the discount. Again, each investor will have his name on his contract and no one else's.

Still confused, get your members together and let's have a meeting. pm me when you are ready.

Regards

Roshan