Singing Pig

Jeremy,

 

I'm also invested in Apache Fort with World Capital Partners. You mentioned in a post that property prices in Las Vegas has dropped by 6%. Where do you get this information from? I am being told by WCP that the value of the development has appreciated in value.

 

Also, I wondered whether you were planning to let your option lapse (i.e. take the 80% profit if the value is ok) or would you be looking to exchange and either rent or sell your unit.

 

Animal

Hi Jeremy, I am at the point of getting in on this. How's your experience been so far. I have been trying to find any bad press on them, so far without success. That doesn't mean the deal's a winner however, but as they say "you can't prove a negative". That said, I haven't yet found a positive either.

 

Confused!

Hi Tony

 I'd hold off at the moment if I were you. My option expired a few months ago and I am now due my payment. However WCP have exercised an option they have in the contract to delay payment for 6 months. While they do have to pay interest on this sum, its at a relatively low rate compared with returns I'm getting on other property investments I have.

 I have to say that they have been professional throughout, and the delay is understandable as completion of their first project has been delayed, but I'd rather have had my money to reinvest elsewhere!!!

 As soon as the US market turns, their property options will become an excellent investment, potentially delivering returns of many hundreds of percent, with much of the downside risk removed (as long as they stay solvent). But right now, personally, I'd stay out, and invest elsewhere.

 Jeremy
 

 


 

 

 

Hi there,

Would you mind me asking how you did out of your deal with them? Was it a profitable experience? They are telling me their projects in Las Vegas are still appreciating in value due to their mixed usage nature... From your experiences, is this true?

Thanks

The market in Las Vegas has fallen roughly 10% over the last couple of years. However, on the investment I am involved in - the independent valuation valued these apartments as having stayed the same value (not fallen or risen).

That was last September, and I'd be surprised if anything had changed since then. However, there is obviously truth in the fact that these apartments are not following the market trend. I assume that when the market does turn, these properties will appreciate well. Just when that will happen is anyone's guess!!

 However, it also means that the property option they offer is reasonable value for its return, but personally I'd be surprised if there was much to be gained at present from taking the option, buying the apartment and selling on the open market. In 2-3 years - maybe.

 Personally I'd stay out of the US market at the moment, unless you are going to buy something like a repossession at significantly below market value. I imagine the sub-prime situation offers a number of good options to do this at the moment if you are willing to make the effort.
 

Thanks for your reply.

HI JEREMY,

HAVE YOU GOT YOUR RETURN ON FORT APACHE YET, THE PROJECT WAS DUE FOR PAYMENT END OF DECEMBER ?

Since WCP have exercised a clause in the contract, the payments for Fort Apache are now due by 1st June instead of 1st Feb.