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Condo Hotel Center: Property
Alert
THE
PRIVATE REAL ESTATE CLUB
A Different Way to Invest in Condo and Condo Hotel
Developments
 Hello.
Joel Greene here from Condo Hotel Center. As you know,
I use this newsletter to tell you about different
types of real estate investment opportunities.
Today I’m writing about something
unique, the kind of opportunity that is whispered
about at lavish cocktail parties but is usually pretty
difficult to access on your own. So for now, consider
yourself part of the “in crowd.”
The
Private Real Estate Club
The
Private Real Estate Club is a group that we at Condo
Hotel Center came across a while back. We researched
the Club's almost eight-year track record, spoke with
some of its members and finally, met in person with
its founder and president. We came away very impressed
with the concept and the enormous upside potential
for its members and therefore have decided to dedicate
this Property Alert to telling you about this Club.
What
the Private Real Estate Club Does
The Private Real
Estate Club offers a different way, a very lucrative
way, for individuals to participate in the buying
and selling of property for profit with zero risk.
Simply put, the Club buys condominium
or condo hotel units during the pre-construction phase.
It buys in bulk (as much as 30% to 50% of an entire
building) in exchange for discounted prices and very
favorable terms. You, as an individual member, would
have the opportunity, but not the obligation, to participate
in that purchase.
The Club then waits for the developer
to resell the Club member's unit to a third party
who is expected to close. This new buyer's deposit
replaces your own, and you will typically get back
your initial deposit monies within 12 months of signing
the contract. Then, 12 months later, 24 months from
the time of your originally signed contract, when
the new buyer closes on his unit, you'll get your
share of the profit.
Why It Works
A developer needs to pre-sell
a certain number of units, usually 50% of the total
units, before a bank will give final approval on his
construction loan. The Private Real Estate Club's
bulk purchase helps the developer get that approval.
And once a project gets funded and starts coming out
of the ground, sales will increase because buyers
who waited to make sure that the project would go
forward before investing will now be ready to buy.
In return, the Club requires the developer
to resell his units within specified time frame at
a certain minimum price that guarantees a very favorable
return for each Club member who purchases a unit.
Your Purchases
Are in Your Name, Not the Club’s
When you buy a unit through
the Club, you write your check directly to the title
company or escrow agent of the developer. The contract
is in your name, not the Club’s. And the deposit
check stays in escrow, and can never be touched or
used by the developer. The Club gets paid only AFTER
the deal is sold, and you'll get your share of the
profits at the same time as them when the closing
agent disburses funds to everyone at the same time.
Reselling
the Unit
Since the developer
is responsible for the resale of your unit, you will
not have to close on your purchase. Therefore, you
won't need to:
- Pay any closing costs
- Retain an attorney
- Get a mortgage
- Find a buyer to resell your unit
to
- Pay a brokerage commission
- Everything is handled for you,
and all you do is collect your profit.
Guaranteed
Pre-Sold Unit
Why would a developer agree to the resell your unit?
He resells your unit at a price that gives you a tidy
profit in return for helping him get his construction
financing, but then HE gets all the profit beyond
your guaranteed resell price.
Return on
Investment
The deals most often structured by the Club use a
formula that guarantees its members a minimum of 25%
return per annum on a two year deal, but since your
initial investment is typically returned to you within
12 months, these monies can be re-invested, so your
overall return can be significantly higher.
The Potential
Risk
The formula used by the Club
eliminates all risk. Your deposit money is always
held in a U.S. attorney or Title Company's escrow
account, and the developer may never touch it, unless
this is agreed to in the contract by all parties concerned.
Preservation of capital is only half the equation.
Unfortunately, as is the case in all
business dealings, sometimes real estate deals can
go bad too. The Club's contracts with the developers
offer them great protection, but if needed, one of
South Florida's biggest and best attorney firms is
on retainer.
Membership
Costs
Membership cost is a one-time
$20,000. It is payable from the profit proceeds of
your first transaction or up to your first four transactions
if purchased close together. This means that there
is absolutely no cost for you to join the club, until
and unless you commit to purchasing your first unit.
Club Members
The membership of the Club reads
like a who’s who in business. Not everyone is
accepted. To become a member requires certain qualifications.
However, the Club makes the point that you do not
need to be wealthy to become a member. Some real estate
opportunities that the Club has represented require
as little as a $20,000 total deposit.
Summary
There are many more details
about the Club that I could have included here, details
that would further convince you that this group knows
what it’s doing and has an extremely viable concept
with enormous upside potential. If you’d like
more information, I’ve put together a Q/A that
I can e-mail to you immediately. Once you’re
read that, if you’d like to speak with the Club’s
director, I will put you in touch with him.
Whether or not you’re interested
in the Club, I hope you found it interesting to learn
about this unique way to participate in the on-going
real estate boom.
Disclaimer
I want to make it clear that the
Private Real Estate Club is not affiliated or connected
with Condo Hotel Center in any way. The above information
should not be construed as an endorsement or guarantee
of any sort by Condo Hotel Center.
Past performance is not a guarantee
of future performance. Individuals considering membership
in the Club should evaluate the Club based on their
own assessment of its potential success and risk as
well as their individual investment objectives.
***
SOLD OUT
In a previous Property
Alert I told you about the Resort at Singer Island,
located in beautiful Palm Beach County. Now I need
to let you know that the property is sold out after
only six weeks on the market! That includes 66 condo
hotel units and 239 resort units. When I tell you
that property here in South Florida is selling at
a lightning fast pace, it’s situations like this
that lead me to that conclusion.
If you unfortunately missed out on
Singer Island and could still be interested in this
first-class, oceanfront WCI Community, please let
me know, and I will use my contacts to find out about
any possible deals that fall through, allowing a unit
to come back on the market. I also have additional
information available on this property upon request.
***
I hope you stayed with me until the
end. Once again, if the Private Real Estate Club interests
you, please let me know. I have two detailed documents
I can send you, a Frequently Asked Questions and an
even more detailed Infrequently Asked Questions. Upon
request, I'll get those right out to you.
As always, thank you for your interest
in news from Condo Hotel Center. If you have any friends
who might like to receive our Property Alerts, they
can subscribe here,
http://condohotelcenter.com/subscribe.html
Joel
Greene, Broker-Associate
Condo Hotel Center
A division of Sheldon Greene & Assoc., Inc.
12700 Biscayne Blvd. Ste. 301
N. Miami, FL 33181
PH: 305-944-3090
FX: 305-948-0460
Joel@CondoHotelCenter.com
www.CondoHotelCenter.com
www.CondoHotelsDubai.com
www.WorldClassCondoHotels.com
www.CondoHotelsBahamas.com
www.CentralAmericaSecondHomes.com
www.DominicanRepublicVacationHomes.com
Want to know more about me? Click below:
http://www.condohotelcenter.com/joel-greene.html
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