01. Company was formed in 07'
02. Company was created solely for this subdivision project and has no other assets or liabilities.
03. Site was purchased in Nov 08' for $2.6M
04. Financing through Assured Security ($1.9M)
05. Valuation of the property is $2.9M
06. 42 lot subdivision, 10 acres.
07. Currently in the process of calling tender (which means that about to start construction)
08. Location is 45 mins from Brisbane, 20 mins from Sunshine coast, 10 mins to Northlakes
09. Currently sold 30 lots
10. Total cost for this project is roughly $5.2M
11. Sale of 30 blocks is roughly $5.7M
12. Which leaves 12 blocks unencumbered (which means no money owing)
13. 12 block = $2.28M
14. As for risk, it is very minimum. I have contact of 5 builders who are willing to buy up land if current buyer pulls out (which they won't)
15. As for security for his money, we can draw up a contract which enables client to have shares into this project.
16. Time frame for borrowing is 6-10 months.
17. Borrowing amount is $1M AUD
18. Return is 40% = $400K