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Resale Department 
 
 
 
 
We offer every client who purchases a property through East West Developments an after sales service which will make the process of buying a property abroad easy and stress free. We will offer you support in all areas from furnishing the property to renting the property out, and to resell it.

Buying a property can be a very stressful experience especially if you are working full time. For this reason we aim to make this process as easy as possible by providing the following services:  
   
  1. Updates on progress of project
2. Furnishing of property
3. Insurance (building, fire, & theft)
4. Legal & conveyance
5. Mortgage & re-mortgage
6. Finance & loans
7. Rentals & management
8. First look at new releases  
   
 
  • All investors who have made reservations on the units can join the developers resale department.
  • This election may be made any time after the first 6 months following the reservation date.
  • On sale, the investor pays to the developer only 6% commission.
  • To join the resale pool the investor has to put a $1000 deposit with the developer. This amount may be paid on a credit card. This is a good faith deposit and this amount is adjusted in the commissions paid on the resale
  • If the investor moves out of the pool this amount of $1000 is non refundable. However if the investor again joins the pool, then the investor need not pay the deposit again, but he has to pay a fee of $25 as administration fees for rejoining the resale pool.
  • On resale of the unit, the developer will take the commissions, and the balance paid to the investor.
  • The investor will remain current on his installment payments. If payments are late or in default, the investor will be moved out of the resale department. However on making his payments current, the investor can again join the resale dept. on paying the $25 rejoining fees.
  • The Developer will first sell the units in his release inventory, and then sell the Investor units in the resale pool.
  • All efforts will be made, but the developer cannot guarantee any resale results.
   
Special Feature – Developer Resale Department: The Developer has agreed to establish a resale dept. for any units purchased by a Investor whereby the Investor may elect, following reservation, to put his/her unit back in the Developer resale dept. of units to be sold. This election may be made any time after the first 6 months following the reservation date. 6% commissions, on closing costs will be charged to the investor against the sale of these units. The Developer will first sell the units in his release inventory, and then sell the Investor units in the resale dept. However the developer gives no guarantee on resales. When the resale unit finally closes sale, the Investor will receive 100% of the sale price less 6% commissions. On receipt of the new buyer’s deposits on the purchase, the original Investor’s funds will be released and sent. It is a rare exit strategy for the Investor that avoids the need to close on the sale and reduces risk while still providing the Investor with excellent cash on cash return. This option is open and available to all investors. 
 
Resale Pool
Resale Pool is open only to the preferred initial founder owners.
 
The other option is to join the Resales Pool. The resale pool is same as that to the resales department, except that the commissions have been subsidized by the developer. The resales pool is available only to the initial founder owners, and this subsidized commission offer may be closed once all the units offered to the preferred initial buyers have been reserved. All founder investors who have made reservations on the units can join the developers resale pool. This election may be made any time after the first 6 months following the reservation date. On sale, the investor pays to the developer only 1% commission, instead of the regular 6%. In addition the investor also pays 10% of the profits on the sale. The investor takes 90% of the profits. To join the resale pool the investor has to put a $1000 deposit with the developer. This amount may be paid on a credit card. This is a good faith deposit and this amount is adjusted in the commissions paid on the resale. If the investor moves out of the pool this amount of $1000 is non refundable. However if the investor again joins the pool, then the investor need not pay the deposit again., but he has to pay a fee of $25 as administration fees for rejoining the resale pool.  
Special Feature – Developer Resale Pool: The Developer has agreed to establish a resale pool for any units purchased by a Preferential founder Investors whereby the Investor may elect, following reservation, to put his/her unit back in the Developer pool of units to be sold. This election may be made any time after the first 6 months following the reservation date. 1% commissions, instead of the normal 6% on closing costs will be charged to the investor against the sale of these units. The Developer will first sell the units in his release inventory, and then sell the Investor units in the resale pool. When the resale unit finally closes sale, the Investor will receive 100% of his investment, and will then split 90/10 with the Developer, any profits that are over and above the initial buying price of the unit. The investor gets 90% and the developer gets 10%. On receipt of the new buyer’s deposits on the purchase, the original Investor’s deposit funds plus profits will be released and sent. It is a rare exit strategy for the Investor that avoids the need to close on the sale and reduces risk while still providing the Investor with an excellent cash on cash return. This option is open and available only for a very limited time. 
A Greater than 300% Cash on Cash Return with No Appreciation Necessary: The beauty of the Preferential Investor opportunity is that it gives the Investor the clear prospect of better than a 300% return on his/her cash investment without any need for the units to appreciate in value. Suppose the investor wants to resell his position 6 months down the road, say in Nov - Dec 2006. Here’s an example: 
 
300%+ Cash on Cash Return
 
A Greater than 300% Cash on Cash Return:
(No Appreciation Necessary)

Public Price of Unit in Nov:
Investor Purchase Pricing

Built-In Investor Profit:
Investor 5% deposit:
No monthly payments for 6 months
Total payments paid


$409,000
$379,000

$ 30,000






$ 18,950
$ 0
$ 18,950
Profit of $30000 on investment of $ 18,950 = 158% Gross return in 6 months.
Cash on Cash Annual Return = 316% Gross return (presumes unit is resold in 6 months)
Returns are net of all commissions, fees and profit splits.
  
 
Commissions on resale paid to developer is 1% of the sale price = $4090 Plus 10% of the $30000 profits = $3000. Total commission paid = $ 7090.
In this example the investor in 6 months get $ 22910, and the developer makes $7090.
It is an illustrative example only and should not be construed as representing any actual result or presumed actual result.
 
If the unit has appreciated by a mere 15% in price and sold for $470,350, The average appreciation has been over 50% per year in this area during the last 4 years. The Investor profit now comes to $91,350.
Commissions on resale paid to developer is 1% of the sale price = $4,703 Plus 10% of the $91,350 profits = $9,135. Total commission paid = $ 13,838.
In this example the investor in 6 months gets $ 77,512 in profits on a $18,950 investment, and the developer makes $13,838.
This is a WIN WIN situation both for the Investor and developer. It is an illustrative example only and should not be construed as representing any actual result or presumed actual result. Of course, it is needless to say the longer the investor holds the greater are his profits. It is recommended that the investor sleeps on it for 2 –3 years at least and let his profits grow. In fact the real profits, growth and appreciation will come when the units start delivering the huge rental returns. Instead of holding for life-long rental profits, if reselling is the buyers goal, then on completion would be the ideal time to resell to book the maximum profits.
 
The Process: The actual reservation of units will be on a first come-first serve basis generally based on the timing of $1000 deposit received. In other words, an effort will be made to accommodate first those who commit first.  
 
ASSIGNMENTS
 
Reservations are FULLY ASSIGNABLE. You can sell them before you close. This will give the buyers a major advantage. 
 
Reservation Assign ability: Are fully assignable. Yes, reservations can be assigned without seeking permission from the developer and free of any costs by the reservation holder. This election may be made any time after the first 6 months following the reservation date. Developers around the world now rarely ever grant this right to a buyer. It is certainly a big benefit to the buyers now turned sellers. 
 
Example: 
 
buyers now turned sellers have 2 options on selling. 
  1. All investors who have made reservations on the units can join the developer’s resale pool, and sell their unit at the then current price. In this case the sellers have to pay a subsidized commission to the developer. The new buyer pays no commission.
  2. The other option the investor gets a buyer from the resale pool or from the market. The new buyer pays your invested sums plus a premium to you as your profit and you assign your reservation in the buyer’s new name. The seller pays no commissions or assignment fees, but the new buyer has to pay 6% assignment fees to get the reservation registered under the buyer’s new name.
The seller can select whichever options suits him/her the best. Whichever option will make him/her the most profit. 
For the transaction to go smoothly the developer can provide his intermediary services free of any cost. They can act as collecting agency for the funds received from the new buyer, and send funds to the seller. All Bank charges or transaction charges will be borne by the seller. 
 
Disclaimer: Although this is clearly a preferential buying opportunity, the Buyer should be aware that no investment or return on investment is ever guaranteed. No representation is being made that your investment or return on investment will be the same as or resemble the examples shown above. In fact, no representation is made that there will necessarily be any return on your investment. The examples are just one of many possible investment outcomes and are for purposes of illustration only. The Buyer investment, in this case, is in a project to be constructed. Although the expectation is that this project will be built as planned, we make no representations or promises that the project will proceed as planned. Investor funds will be held in secure escrow/trust accounts and all funds will be returned in the event that the project does not proceed.
 
The information herein is merely illustrative and promotional in nature, and does not represent a contract, guarantee or specific representation regarding any particular contract. No representation is made as to the success of any project, the ability of a purchaser to find a buyer to take assignment of a purchase contract of a unit, or that the prices within a particular project will rise. Real estate buyers should understand that if held for investment purposes, there is a risk that returns from other investment vehicles — such as a stock, bonds or other property — could be higher. Accordingly, there is no guarantee that a pre-construction purchase contract represents the best possible investment relative to other possible uses of a buyer's money. Buyers should do their own due diligence and consult their own investment and tax advisors about the suitability of a pre-construction purchase contract for their particular needs and situations. The purchase of a pre-construction contract is a purchase of a particular real estate unit. Accordingly, it is not intended to constitute a security.
 
The information provided here are calculations only. The rates, revenues and returns are expected estimates only based upon the analysis of market conditions and hotel management activity in the Delhi area. 
 
East West Developments makes no recommendations whatsoever with regard to the decision of any prospective buyer to purchase a unit by the developer, other than to recommend to any prospective buyer that he/she should consult with his/her independent investment advisor, tax consultant and legal counsel. 
 
East West Developments is not registered with the Securities and Exchange Commission, or licensed by the National Association of Securities Dealers. East West Developments disclaim any responsibility for the project or portfolio performance and makes no representation or warranty, express or implied, as to the percentage of return of investment to any purchase at the Condo Hotel Delhi. 
 
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