Anyone been with Armchair Development for investments? They are promising 20%+ return on investment.
In theory it works and legit on paper. PDS checks out but can't read any reviews.
I was wondering if anyone had dealings with them? Positive negative etc
Thank you
<Mod: link to PDS removed>
Paul. Just want to let you know that there are a lot of brutal comments on this site and not much can be done unfortunately.
How did you find out about this post?
It's unfortunate you've chosen to challenge my post without any basis or qualification as to what particular information is allegedly incorrect.
Feel free to correct any statements that you believe are inaccurate, failing which I will believe Dr. Google.
Are you on the off chance a competitor of armchairs experts?
Bring them up on a ruthless bargain website so everyone can bag them out
haha good suggestion… I'll save up companies that I don't like so people can bag them out too
Just wondering, is the 20% p.a. or is it a lump sum at the end of the development completion? Also, if the 20% is a per annum basis, then how are they calculating that, since the housing market has been slumping in the major cities?
Hi @alee112, it depends on the project. There is one right now that is actually paying 30% per annum it does not pay monthly but pays when the land settles. It is only a 38 Lot subdivision in Tweed Heads. The investors in this project receive their first payment in May (Next month) the next in December 19 and the final by June 2020. The other project is 20% per annum and it pays monthly. On the 15th of April (this month) $204,742 was distributed to the investors who are in the monthly projects. Visit https://bit.ly/2DsKSWm
The land is short supply and being purchased by owner occupiers. First stage sold out, second stage only 3 blocks left before the 3rd stage opening soon.
Tweed Heads is not in a housing slump for this type of land.
I hope this helps. I am happy to speak with you direct if you want to know more as I don't view this site very often.
Land or "your" land is in short supply?
The market indicates Tweed Heads is certainly not in short supply of land.
they said like 20% p.a. paid monthly and capital returned at end of term
but someone in the comments early made a really good point about the team that is running it and I will not be investing
Hi @charuzu, I am curious about what comment someone may have passed that would influence your decision in comparison to all the open and transparent data that is available for you to make an informed decision and evidence that everything that is stated does actually happen.
Only party influenced.
Overall it's really historic results and lack of external reviews of past or existing clients that have invested with armchair.
There are no completed projects that can be searched. Completed returns or end results. The website is not the best and yes you are probably good at your job and possibly good at explaing and everyone else is probably missing out.
But the 0 reviews from past or existing customers and lack of completed results is what put me off.
People who invest large sums of their money is a very different space compared to someone buying a dishwasher or even a house through an agent etc. People are very private about their investing of cash. We associate with sophisticated investors, they are not typically people who write reviews for a few reasons. 1. They are very private about their money, they don't want to advertise that they invest or that they even have money to invest. 2. They are high net worth people who don't tend to spend time on social media 3. They make their own informed decisions from the official documents and don't feel its their duty to not only advertise to the world what they are doing, they can't understand why others would do so just because a social media post with no substance suggested they should. You can look up our facebook page, there are reviews there, we do have client reviews also on our website. Visit https://www.isgfunds.com.au/#investments_returns for current and past projects. As well as https://wefindhouses.com.au/invest/armchair-development you can also read reviews on https://armchairdevelopment.com.au
Also check our our face book posts https://www.facebook.com/pg/armchairdevelopment/posts our results are more than covered, we have not missed a payment yet, we paid out another $204,742 this month alone to the investors who are receiving monthly distributions through our ISG funds.
I have had 4 groups of people come and visit our sites this week from Interstate who have proceeded to invest, the offer to come and meet us and look at our projects in person is available to everyone.
If that can't satisfy an investor then they probably don't have the right profile for these projects or are not ready to invest and instead of 20% or 30% would be more suited to 2% or 3% in a bank.
If that can't satisfy an investor then they probably don't have the right profile for these projects
Probably. You're only after gullible morons who can't conduct their own due diligence.
Read about City Pacific and its investments and the funds it took in to invest.
https://www.goldcoastbulletin.com.au/news/special-features/i…
You've worked 10 years in the industry and never heard of it?
I don't work in the industry
in the industry
financial advisor
link not working
thanks for the article but it doesn't relate at all
@ihbh: I guess your entitled to comment what you like but i'm just saying it's just another sob story
@Poor Ass: A couple of years before that, investors were actually getting ~20% returns for a number of years.
Hi @charuzu thanks for posting your question.
As you have uploaded the investment documents for this project without any context, I hope I can help anyone reading this post by providing some extra context and facts behind this project.
The project of East Estate at Tweed Heads is being managed by a fully ASIC regulated environment. This is important as it is not a syndicate, a syndicate doesn't usually have a regulated environment guiding its conduct.
In this structure there is an independent managed fund structure that oversees the project and independently manages the funds.
There is also a bank lender involved. Banks do not lend 100% on a development. At best you will get a 50% LVR, this project does have a 50% LVR. If a project doesn't qualify for any bank lending then it may mean the project is not a good one. At least if you know a bank is involved then the project stacks up very well. In this case the loan has also been paid in advance, which means it can't be in default.
There are 2 companies. One is the Investment Company and the other is the Development Company. The investors funds sit in the investment company (IC) and are never passed to the Development Company (DC). The development takes place in the DC and they have to submit invoices for the work undertaken and the IC verifies the invoice before it is paid to the person who conducts the service.
@gromit The document with the fees you mention needs to be read with an understanding of the fund. As it is a disclosure document it discloses the funds income and expenses it does not imply that an investor is subject to those expenses.
The DC carries the cost of the fund not the IC. In fact the returns are 30.47% per annum NET. You also need to understand what a hurdle rate is. The hurdle rate is put in place to ensure that the investors returns are not diminished. This project has a profit buffer of $3.2Million after investors capital and returns are paid. The IC controls all profit and in this project the remaining 22 hectare of land as well. Not one cent is given to the land owner (DC) until the investors are paid back their capital and returns. While only a bank paying 2% in a term deposit can guarantee your capital, this structure is deliberately put in place as an effective risk mitigation structure.
The project is 38 lots of land that are being subdivided in 4 stages. Stage 1 is sold out and investors are getting paid next month. Stage 2 only has 3 lots left to sell and investors will receive a distribution around Nov/Dec this year for the settlement of that stage. The final stage will return capital and final distributions in May/June 2020.
The owner purchased the land for approx $150K per block in 2013 and the blocks are now selling from $379K - $410K per block. The return of 30.47% was offered as the land owners want to proceed to subdivide the balance of the land but needed to do these 38 lots first and was happy to incentivise investors as there are many similar projects out there paying 20% and he wanted to attract investors who wanted the stronger returns. These type of returns are very normal in a wholesale and sophisticated investor space. As this funds manager runs a retail fund it means that every day investors are able to access these type of returns as well, within a regulated environment.
Look up another of their projects Dakabin Crossing, investors have been in that now for 12 months and they have never missed a payment, in addition that project is on track to return the investors capital in September this year.
If someone decides if an investment is for them or not for them that is 100% ok and entirely their decision, I trust that these facts help anyone reading this post seek more information to make their own well informed decision.
Kind Regards and Happy Investing To You All.
Paul.
Perfectly seperated so investors have zero recourse and no chance of obtaining any return should the "IC" go belly up. Gotcha!
I'm sure land situated next to a major commercial airport is quiet, pristine and in high demand for family homes.
The man PAUL himself has replied.
Feel free to ask him any questions and stop using terms like a scam and Ponzi.
The man PAUL himself has replied.
Is he your beloved guru?
I think SOCK PUPPETING should be added to your list. You gave away your position here.
What's my position you keyboard warrior
Look guys risky investment strategies come up on Ozbargain periodically. Unsecured Debentures, Wine barrels, Bitcoin, and they inxclude a few real estate high interest strategies.
My, and most people heres, advice has been to ignore them as they are a great way to lose your money. The risk to benefit ratio is very poor as history shows it doesn't pay off for innocent investors. I'm not willing to argue this but have found it true by reading finance for about 20 years.
I think this OP is SOCK PUPPETING. I will report.
I don't know who Charuzu is, I certainly don't support the fact that they uploaded our investment documentation onto the site, there is no justification for that. I am happy for this post to be taken down as I don't think it is fair to investors to be using a forum like this to receive credible investment advice. I have weighted into this chat only from the perspective of trying to give your readers a balanced perspective. Cheers Paul.
Please report to have it taken down
Lolllll, of course you would like this post taken down. Would hate future gullible 'investors' to google you and find this!
Charuzu, I see your approach. Just to get more information, the facts, finding people who would have invested there, and report their experience.
But to see other people jumping to see you as a possible bad guy is weird … the way things are those days…. they don't understand your approach.
Have you done anything since last may about it? Did you find more info elsewhere? Did you buy any?
@ Zeggie it’s unfortunate you present your assumptions as if they are facts, without any qualification or basis for the derogatory comments.