Singing Pig

Bad news re them not staring. I don't think the'll be able to pay us back unless they do the build - or unless they can sell the land at a profit, which seems unlikely given the market.

I've done many off-plan purchases and NEVER has the money been in an escrow account. You can get deals where it is but its rare in my experience. Basically they need your deposit to fund the development. Perhaps you could in low growth markets but not in the fast growing markets in which I invest.

 Do keep in touch on this one.

 

I looked into the escrow account thing and this is quite common practice in the property investment field. Maybe the terminology of escrow account may be the confusion - its basically a secure solicitor or similarly held third party account protecting the buyers deposit. You put your money in escrow and it is borrowed against by the developer to assist in the build but its still safe if the build goes belly up.

Consider World Capital Partners

How many clients do they have. there's 3 projects and there's probably 800+ units they have have sold. This is 10's of millions of pounds. Why have they not started building with so much money taken? Smells Fishy.

Still Worried - Buyer Beware!

  

I have lots of off-plan experience. In my experience escrow is rare. It can exist and you significantly reduce risk if available. It depends on the market you invest in. I invest primarily in Eastern Europe. The developers there have no need to offer escrow since there is significant demand for property in the local market without it.

 Other markets may offer escrow, but my guess is that with the lower risk comes lower return. I say again. Higher returns = higher risk. Lower risk = lower returns.

WCP - I can understand your concerns, I too am concerned, but I think your pessimism is grounded on speculation about their position rather than any real knowledge. We need a lot more information on their position before we should truly be be concerned. I'll see what I can find out.
 

hi,

I am new to this web forum, I invested with WCP on the durango project and received a contract to execute the option and therefore take the valuation risk out of the contract. Obviously means nothing if they to not have the money to pay out when the time comes. I assume they could only offer this contract to excute based on them having a buyer for the land or development. 

Anyone get the contract to execute? 

It would be good to hear from anyone who does get the first payout.

I myself don't expect them to pay out till the last day, therefore use the 12 month contract payment terms to run to Dec 2009.

Sat

 

 

 

 

Sat,

 The 'Option' was to purchase the property at 10% below the list price. If you've executed this Option are you saying that you've agreed to the purchase of the property? If you chose to let the Option lapse then they agreed to pay back the deposit plus 80%.

animal

Animal, sorry by my statement execute I did chose to lapse the option and take the deposit plus 80%. 

Still concerned that they have not track record of paying out on the options. 

 

My findings confirm everyone on the first 2 developments received the offer to lock in the return. So far no-one I've been in contact with has been paid out.

Interesting article in the Property section of the Sunday Times, 11th. May ref. Las Vegas - hotels & casinos closing, projects on hold, thousands of staff laid off.