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Invest in Real Estate by pooling resources
Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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Bye Bye High Bank interest Rates. Invest in Real Estate by pooling resources and get more value for your money.
The current bank interest rates are in the range of 17% per annum. Assuming an investment on a 1/8th acre plot for rental bedsitters, the cost will be as below. 1. cost of construction . kes 7.3m 2. cost of land. kes 3m 70% of Cost of Construction. Banks can finance only the cost of construction to the tune of 70%. This brings the amount financed to kes 511,000. Monthly bank repayment. After raising personal savings of kes 3m to buy land and kes 2,100,000 as 30% of construction cost, the investor is still required to pay the bank a monthly payment of kes 88,000. Rent collection. This project can effectively collect kes 84,000 in monthly rent. This means for the next 10 years, the bank will take all the rent. This can be quite an uphill task considering the bank has only put in 511,000 out of the possible KES 10,3000 total construction cost, roughly 50%. For an individual to purchase the 3m land and put in 2m as 30% of construction cost then wait for 10 years for any financial gain is not an easy task. Solution. For the exactly same project cost of kes 3m for land and kes 7.3m for construction, a4architect.com offers a solution whereby several investors are pooled together to become joint co investors into the whole project comprising of 12 bedsitters. See more details here http://a4architect.com/discuss/
Joint Co Investor. Each joint co investor will legally own 1 share out of the possible 12 shares. In addition to this, the 1 share will be translated to a particular bedsitter unit which the co investor can live in and collect rent from. Comparison between Bank finance and Joint co investor finance. The land plus construction costs kes 10.3m. For the 12 co investors, each owning 1 bedsitter unit, this translates to 10.3m/12=kes 860,000. After contribution of kes 860,000, the co investor will immediately start earning monthly rent of kes 7,000 on construction completion. For the bank financed at 17% per annum interest, the investor will have to come up with kes 3m for land purchase and a further kes 2.1m for 30% construction cost. The bank will bring in 5.1m as construction loan and will take kes 89,000 as monthly payment for 10 years. In other words, the investor will get nothing till after 10 years. The total amount the investor will have put in is kes3m plus kes 2.1m =kes 5.1m If he invested in the a4architect.com method of pooling resources, this would have translated into kes5.1m/kes860k= 6 shares. These shares will earn 6 x kes 7,000=kes 42, 000 monthly. For 10 years, this will be kes 42,000 x 12 x 10=kes 5.04m. This represents a 10% per annum growth rate . In this case, the investor who puts in kes 5.1m and borrows from the bank will get 0 revenue for the next 10 years while the investor who puts in the same amount and pools resources form other investors gets back the money he invested by the 10th year. As the saying goes, a bird at hand is worth more than 10 in the forest. The a4architect.com option of pooling resources will work better . Savings. In the a4architect.com method of pooling resources in 12 unit shares per plot, it’s easier to spread your savings from 1 plot/area to another as your money comes in. Example. For example, in June 2013, you are able to raise the kes 860,000 for 1 share. 6 months later in December, you are able to raise another kes 860,000 for 1 share. This means you will t have to wait for all your shares to be in 1 project. Every month, there will be a new opportunity to pool resources for the rental investment plan hence ease of personal finance planning. There is no missing the bus. Join Now. To join into the a4architect.com Real Estate investment plan, read here http://a4architect.com/discuss/ for more info or email info@a4architect.com . http://a4architect.com/2...re-value-for-your-money/As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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 .Me like this.....Thinking without that damn box! Nothing great was ever achieved without enthusiasm.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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a4architect.com wrote: Bye Bye High Bank interest Rates. Invest in Real Estate by pooling resources and get more value for your money. The current bank interest rates are in the range of 17% per annum. Assuming an investment on a 1/8th acre plot for rental bedsitters, the cost will be as below. 1. cost of construction . kes 7.3m 2. cost of land. kes 3m 70% of Cost of Construction. Banks can finance only the cost of construction to the tune of 70%. This brings the amount financed to kes 511,000.Monthly bank repayment. After raising personal savings of kes 3m to buy land and kes 2,100,000 as 30% of construction cost, the investor is still required to pay the bank a monthly payment of kes 88,000. Rent collection. This project can effectively collect kes 84,000 in monthly rent. This means for the next 10 years, the bank will take all the rent. This can be quite an uphill task considering the bank has only put in 511,000 out of the possible KES 10,3000 total construction cost, roughly 50%. For an individual to purchase the 3m land and put in 2m as 30% of construction cost then wait for 10 years for any financial gain is not an easy task. Solution. For the exactly same project cost of kes 3m for land and kes 7.3m for construction, a4architect.com offers a solution whereby several investors are pooled together to become joint co investors into the whole project comprising of 12 bedsitters. See more details here http://a4architect.com/discuss/
Joint Co Investor. Each joint co investor will legally own 1 share out of the possible 12 shares. In addition to this, the 1 share will be translated to a particular bedsitter unit which the co investor can live in and collect rent from. Comparison between Bank finance and Joint co investor finance. The land plus construction costs kes 10.3m. For the 12 co investors, each owning 1 bedsitter unit, this translates to 10.3m/12=kes 860,000. After contribution of kes 860,000, the co investor will immediately start earning monthly rent of kes 7,000 on construction completion. For the bank financed at 17% per annum interest, the investor will have to come up with kes 3m for land purchase and a further kes 2.1m for 30% construction cost. The bank will bring in 5.1m as construction loan and will take kes 89,000 as monthly payment for 10 years. In other words, the investor will get nothing till after 10 years. The total amount the investor will have put in is kes3m plus kes 2.1m =kes 5.1m If he invested in the a4architect.com method of pooling resources, this would have translated into kes5.1m/kes860k= 6 shares. These shares will earn 6 x kes 7,000=kes 42, 000 monthly. For 10 years, this will be kes 42,000 x 12 x 10=kes 5.04m. This represents a 10% per annum growth rate . In this case, the investor who puts in kes 5.1m and borrows from the bank will get 0 revenue for the next 10 years while the investor who puts in the same amount and pools resources form other investors gets back the money he invested by the 10th year. As the saying goes, a bird at hand is worth more than 10 in the forest. The a4architect.com option of pooling resources will work better . Savings. In the a4architect.com method of pooling resources in 12 unit shares per plot, it’s easier to spread your savings from 1 plot/area to another as your money comes in. Example. For example, in June 2013, you are able to raise the kes 860,000 for 1 share. 6 months later in December, you are able to raise another kes 860,000 for 1 share. This means you will t have to wait for all your shares to be in 1 project. Every month, there will be a new opportunity to pool resources for the rental investment plan hence ease of personal finance planning. There is no missing the bus. Join Now. To join into the a4architect.com Real Estate investment plan, read here http://a4architect.com/discuss/ for more info or email info@a4architect.com . http://a4architect.com/2...e-value-for-your-money/ Re-check these figures. Otherwise, sounds sensible. Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@Pesa 16,  Iko chida mahali? Nothing great was ever achieved without enthusiasm.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Njung'e wrote:@Pesa 16, Iko chida mahali? computer error! (calculator error??) Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 3/19/2013 Posts: 2,552
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Pesa Nane wrote:a4architect.com wrote: Bye Bye High Bank interest Rates. Invest in Real Estate by pooling resources and get more value for your money. The current bank interest rates are in the range of 17% per annum. Assuming an investment on a 1/8th acre plot for rental bedsitters, the cost will be as below. 1. cost of construction . kes 7.3m 2. cost of land. kes 3m 70% of Cost of Construction. Banks can finance only the cost of construction to the tune of 70%. This brings the amount financed to kes 511,000.Monthly bank repayment. After raising personal savings of kes 3m to buy land and kes 2,100,000 as 30% of construction cost, the investor is still required to pay the bank a monthly payment of kes 88,000. Rent collection. This project can effectively collect kes 84,000 in monthly rent. This means for the next 10 years, the bank will take all the rent. This can be quite an uphill task considering the bank has only put in 511,000 out of the possible KES 10,3000 total construction cost, roughly 50%. For an individual to purchase the 3m land and put in 2m as 30% of construction cost then wait for 10 years for any financial gain is not an easy task. Solution. For the exactly same project cost of kes 3m for land and kes 7.3m for construction, a4architect.com offers a solution whereby several investors are pooled together to become joint co investors into the whole project comprising of 12 bedsitters. See more details here http://a4architect.com/discuss/
Joint Co Investor. Each joint co investor will legally own 1 share out of the possible 12 shares. In addition to this, the 1 share will be translated to a particular bedsitter unit which the co investor can live in and collect rent from. Comparison between Bank finance and Joint co investor finance. The land plus construction costs kes 10.3m. For the 12 co investors, each owning 1 bedsitter unit, this translates to 10.3m/12=kes 860,000. After contribution of kes 860,000, the co investor will immediately start earning monthly rent of kes 7,000 on construction completion. For the bank financed at 17% per annum interest, the investor will have to come up with kes 3m for land purchase and a further kes 2.1m for 30% construction cost. The bank will bring in 5.1m as construction loan and will take kes 89,000 as monthly payment for 10 years. In other words, the investor will get nothing till after 10 years. The total amount the investor will have put in is kes3m plus kes 2.1m =kes 5.1m If he invested in the a4architect.com method of pooling resources, this would have translated into kes5.1m/kes860k= 6 shares. These shares will earn 6 x kes 7,000=kes 42, 000 monthly. For 10 years, this will be kes 42,000 x 12 x 10=kes 5.04m. This represents a 10% per annum growth rate . In this case, the investor who puts in kes 5.1m and borrows from the bank will get 0 revenue for the next 10 years while the investor who puts in the same amount and pools resources form other investors gets back the money he invested by the 10th year. As the saying goes, a bird at hand is worth more than 10 in the forest. The a4architect.com option of pooling resources will work better . Savings. In the a4architect.com method of pooling resources in 12 unit shares per plot, it’s easier to spread your savings from 1 plot/area to another as your money comes in. Example. For example, in June 2013, you are able to raise the kes 860,000 for 1 share. 6 months later in December, you are able to raise another kes 860,000 for 1 share. This means you will t have to wait for all your shares to be in 1 project. Every month, there will be a new opportunity to pool resources for the rental investment plan hence ease of personal finance planning. There is no missing the bus. Join Now. To join into the a4architect.com Real Estate investment plan, read here http://a4architect.com/discuss/ for more info or email info@a4architect.com . http://a4architect.com/2...e-value-for-your-money/ Re-check these figures. Otherwise, sounds sensible.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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i need to check all the links on your site before i can come up with an opinion/opt to invest. But sounds like a great idea.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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symbols wrote:Pesa Nane wrote:a4architect.com wrote: Bye Bye High Bank interest Rates. Invest in Real Estate by pooling resources and get more value for your money. The current bank interest rates are in the range of 17% per annum. Assuming an investment on a 1/8th acre plot for rental bedsitters, the cost will be as below. 1. cost of construction . kes 7.3m 2. cost of land. kes 3m 70% of Cost of Construction. Banks can finance only the cost of construction to the tune of 70%. This brings the amount financed to kes 511,000.Monthly bank repayment. After raising personal savings of kes 3m to buy land and kes 2,100,000 as 30% of construction cost, the investor is still required to pay the bank a monthly payment of kes 88,000. Rent collection. This project can effectively collect kes 84,000 in monthly rent. This means for the next 10 years, the bank will take all the rent. This can be quite an uphill task considering the bank has only put in 511,000 out of the possible KES 10,3000 total construction cost, roughly 50%. For an individual to purchase the 3m land and put in 2m as 30% of construction cost then wait for 10 years for any financial gain is not an easy task. Solution. For the exactly same project cost of kes 3m for land and kes 7.3m for construction, a4architect.com offers a solution whereby several investors are pooled together to become joint co investors into the whole project comprising of 12 bedsitters. See more details here http://a4architect.com/discuss/
Joint Co Investor. Each joint co investor will legally own 1 share out of the possible 12 shares. In addition to this, the 1 share will be translated to a particular bedsitter unit which the co investor can live in and collect rent from. Comparison between Bank finance and Joint co investor finance. The land plus construction costs kes 10.3m. For the 12 co investors, each owning 1 bedsitter unit, this translates to 10.3m/12=kes 860,000. After contribution of kes 860,000, the co investor will immediately start earning monthly rent of kes 7,000 on construction completion. For the bank financed at 17% per annum interest, the investor will have to come up with kes 3m for land purchase and a further kes 2.1m for 30% construction cost. The bank will bring in 5.1m as construction loan and will take kes 89,000 as monthly payment for 10 years. In other words, the investor will get nothing till after 10 years. The total amount the investor will have put in is kes3m plus kes 2.1m =kes 5.1m If he invested in the a4architect.com method of pooling resources, this would have translated into kes5.1m/kes860k= 6 shares. These shares will earn 6 x kes 7,000=kes 42, 000 monthly. For 10 years, this will be kes 42,000 x 12 x 10=kes 5.04m. This represents a 10% per annum growth rate . In this case, the investor who puts in kes 5.1m and borrows from the bank will get 0 revenue for the next 10 years while the investor who puts in the same amount and pools resources form other investors gets back the money he invested by the 10th year. As the saying goes, a bird at hand is worth more than 10 in the forest. The a4architect.com option of pooling resources will work better . Savings. In the a4architect.com method of pooling resources in 12 unit shares per plot, it’s easier to spread your savings from 1 plot/area to another as your money comes in. Example. For example, in June 2013, you are able to raise the kes 860,000 for 1 share. 6 months later in December, you are able to raise another kes 860,000 for 1 share. This means you will t have to wait for all your shares to be in 1 project. Every month, there will be a new opportunity to pool resources for the rental investment plan hence ease of personal finance planning. There is no missing the bus. Join Now. To join into the a4architect.com Real Estate investment plan, read here http://a4architect.com/discuss/ for more info or email info@a4architect.com . http://a4architect.com/2...e-value-for-your-money/ Re-check these figures. Otherwise, sounds sensible.
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Rank: Veteran Joined: 2/3/2010 Posts: 1,797 Location: Kenya
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quick one on the 7k, is it nett of service charge, tax, hidden cost also isnt it possible to offer land as equity ie 3/10.3=30% and get financed I may be wrong..but then I could be right
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Rank: Member Joined: 1/21/2013 Posts: 427
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mwekez@ji wrote:symbols wrote:Pesa Nane wrote:a4architect.com wrote: Bye Bye High Bank interest Rates. Invest in Real Estate by pooling resources and get more value for your money. The current bank interest rates are in the range of 17% per annum. Assuming an investment on a 1/8th acre plot for rental bedsitters, the cost will be as below. 1. cost of construction . kes 7.3m 2. cost of land. kes 3m 70% of Cost of Construction. Banks can finance only the cost of construction to the tune of 70%. This brings the amount financed to kes 511,000.Monthly bank repayment. After raising personal savings of kes 3m to buy land and kes 2,100,000 as 30% of construction cost, the investor is still required to pay the bank a monthly payment of kes 88,000. Rent collection. This project can effectively collect kes 84,000 in monthly rent. This means for the next 10 years, the bank will take all the rent. This can be quite an uphill task considering the bank has only put in 511,000 out of the possible KES 10,3000 total construction cost, roughly 50%. For an individual to purchase the 3m land and put in 2m as 30% of construction cost then wait for 10 years for any financial gain is not an easy task. Solution. For the exactly same project cost of kes 3m for land and kes 7.3m for construction, a4architect.com offers a solution whereby several investors are pooled together to become joint co investors into the whole project comprising of 12 bedsitters. See more details here http://a4architect.com/discuss/
Joint Co Investor. Each joint co investor will legally own 1 share out of the possible 12 shares. In addition to this, the 1 share will be translated to a particular bedsitter unit which the co investor can live in and collect rent from. Comparison between Bank finance and Joint co investor finance. The land plus construction costs kes 10.3m. For the 12 co investors, each owning 1 bedsitter unit, this translates to 10.3m/12=kes 860,000. After contribution of kes 860,000, the co investor will immediately start earning monthly rent of kes 7,000 on construction completion. For the bank financed at 17% per annum interest, the investor will have to come up with kes 3m for land purchase and a further kes 2.1m for 30% construction cost. The bank will bring in 5.1m as construction loan and will take kes 89,000 as monthly payment for 10 years. In other words, the investor will get nothing till after 10 years. The total amount the investor will have put in is kes3m plus kes 2.1m =kes 5.1m If he invested in the a4architect.com method of pooling resources, this would have translated into kes5.1m/kes860k= 6 shares. These shares will earn 6 x kes 7,000=kes 42, 000 monthly. For 10 years, this will be kes 42,000 x 12 x 10=kes 5.04m. This represents a 10% per annum growth rate . In this case, the investor who puts in kes 5.1m and borrows from the bank will get 0 revenue for the next 10 years while the investor who puts in the same amount and pools resources form other investors gets back the money he invested by the 10th year. As the saying goes, a bird at hand is worth more than 10 in the forest. The a4architect.com option of pooling resources will work better . Savings. In the a4architect.com method of pooling resources in 12 unit shares per plot, it’s easier to spread your savings from 1 plot/area to another as your money comes in. Example. For example, in June 2013, you are able to raise the kes 860,000 for 1 share. 6 months later in December, you are able to raise another kes 860,000 for 1 share. This means you will t have to wait for all your shares to be in 1 project. Every month, there will be a new opportunity to pool resources for the rental investment plan hence ease of personal finance planning. There is no missing the bus. Join Now. To join into the a4architect.com Real Estate investment plan, read here http://a4architect.com/discuss/ for more info or email info@a4architect.com . http://a4architect.com/2...e-value-for-your-money/ Re-check these figures. Otherwise, sounds sensible. Typo, i believe that was meant to be 5.1m and 10.3m respectively.Makes sense
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Rank: Member Joined: 6/14/2010 Posts: 520 Location: Nairobi
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timuka wrote:mwekez@ji wrote:symbols wrote:Pesa Nane wrote:a4architect.com wrote: Bye Bye High Bank interest Rates. Invest in Real Estate by pooling resources and get more value for your money. The current bank interest rates are in the range of 17% per annum. Assuming an investment on a 1/8th acre plot for rental bedsitters, the cost will be as below. 1. cost of construction . kes 7.3m 2. cost of land. kes 3m 70% of Cost of Construction. Banks can finance only the cost of construction to the tune of 70%. This brings the amount financed to kes 511,000.Monthly bank repayment. After raising personal savings of kes 3m to buy land and kes 2,100,000 as 30% of construction cost, the investor is still required to pay the bank a monthly payment of kes 88,000. Rent collection. This project can effectively collect kes 84,000 in monthly rent. This means for the next 10 years, the bank will take all the rent. This can be quite an uphill task considering the bank has only put in 511,000 out of the possible KES 10,3000 total construction cost, roughly 50%. For an individual to purchase the 3m land and put in 2m as 30% of construction cost then wait for 10 years for any financial gain is not an easy task. Solution. For the exactly same project cost of kes 3m for land and kes 7.3m for construction, a4architect.com offers a solution whereby several investors are pooled together to become joint co investors into the whole project comprising of 12 bedsitters. See more details here http://a4architect.com/discuss/
Joint Co Investor. Each joint co investor will legally own 1 share out of the possible 12 shares. In addition to this, the 1 share will be translated to a particular bedsitter unit which the co investor can live in and collect rent from. Comparison between Bank finance and Joint co investor finance. The land plus construction costs kes 10.3m. For the 12 co investors, each owning 1 bedsitter unit, this translates to 10.3m/12=kes 860,000. After contribution of kes 860,000, the co investor will immediately start earning monthly rent of kes 7,000 on construction completion. For the bank financed at 17% per annum interest, the investor will have to come up with kes 3m for land purchase and a further kes 2.1m for 30% construction cost. The bank will bring in 5.1m as construction loan and will take kes 89,000 as monthly payment for 10 years. In other words, the investor will get nothing till after 10 years. The total amount the investor will have put in is kes3m plus kes 2.1m =kes 5.1m If he invested in the a4architect.com method of pooling resources, this would have translated into kes5.1m/kes860k= 6 shares. These shares will earn 6 x kes 7,000=kes 42, 000 monthly. For 10 years, this will be kes 42,000 x 12 x 10=kes 5.04m. This represents a 10% per annum growth rate . In this case, the investor who puts in kes 5.1m and borrows from the bank will get 0 revenue for the next 10 years while the investor who puts in the same amount and pools resources form other investors gets back the money he invested by the 10th year. As the saying goes, a bird at hand is worth more than 10 in the forest. The a4architect.com option of pooling resources will work better . Savings. In the a4architect.com method of pooling resources in 12 unit shares per plot, it’s easier to spread your savings from 1 plot/area to another as your money comes in. Example. For example, in June 2013, you are able to raise the kes 860,000 for 1 share. 6 months later in December, you are able to raise another kes 860,000 for 1 share. This means you will t have to wait for all your shares to be in 1 project. Every month, there will be a new opportunity to pool resources for the rental investment plan hence ease of personal finance planning. There is no missing the bus. Join Now. To join into the a4architect.com Real Estate investment plan, read here http://a4architect.com/discuss/ for more info or email info@a4architect.com . http://a4architect.com/2...e-value-for-your-money/ Re-check these figures. Otherwise, sounds sensible. Typo, i believe that was meant to be 5.1m and 10.3m respectively.Makes sense Quite a typo there. But nonetheless the message is clear. Seems sensible
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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thanks for informing on the typo. Its 70% of 7.3m which is 5.1m not 510k. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 6/21/2008 Posts: 2,490
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Quite an idea - But at one point if I decide to dispose my bedsitter (Share) how is this facilitated? The man who marries a beautiful woman, and the farmer who grows corn by the roadside have the same problem
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@ZZE123, to sell your bedsitter, you simply dispose off your 1 share from the LLC. You advertise on www.a4architect.com for a buyer to be interested then you connect and do the transaction. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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digitek1 wrote:quick one on the 7k, is it nett of service charge, tax, hidden cost
also isnt it possible to offer land as equity ie 3/10.3=30% and get financed @digitek. The 7k is gross. There will be a % for rent collection agency and usual maintenance. These % costs will be determined by the 12 members through majority rule decision. On the land as equity for financing, for thelast 6 months, all the banks that i have been engaging when seeking finance for client projects have since stopped calculating /including the cost of land within the 30% of developer equity. Developers must put in the 30% in liquid cash. Bankers in this forum can advice us as to the reason for this recalculation. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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Pesa Nane wrote:a4architect.com wrote: Bye Bye High Bank interest Rates. Invest in Real Estate by pooling resources and get more value for your money. The current bank interest rates are in the range of 17% per annum. Assuming an investment on a 1/8th acre plot for rental bedsitters, the cost will be as below. 1. cost of construction . kes 7.3m 2. cost of land. kes 3m 70% of Cost of Construction. Banks can finance only the cost of construction to the tune of 70%. This brings the amount financed to kes 511,000.Monthly bank repayment. After raising personal savings of kes 3m to buy land and kes 2,100,000 as 30% of construction cost, the investor is still required to pay the bank a monthly payment of kes 88,000. Rent collection. This project can effectively collect kes 84,000 in monthly rent. This means for the next 10 years, the bank will take all the rent. This can be quite an uphill task considering the bank has only put in 511,000 out of the possible KES 10,3000 total construction cost, roughly 50%. For an individual to purchase the 3m land and put in 2m as 30% of construction cost then wait for 10 years for any financial gain is not an easy task. Solution. For the exactly same project cost of kes 3m for land and kes 7.3m for construction, a4architect.com offers a solution whereby several investors are pooled together to become joint co investors into the whole project comprising of 12 bedsitters. See more details here http://a4architect.com/discuss/
Joint Co Investor. Each joint co investor will legally own 1 share out of the possible 12 shares. In addition to this, the 1 share will be translated to a particular bedsitter unit which the co investor can live in and collect rent from. Comparison between Bank finance and Joint co investor finance. The land plus construction costs kes 10.3m. For the 12 co investors, each owning 1 bedsitter unit, this translates to 10.3m/12=kes 860,000. After contribution of kes 860,000, the co investor will immediately start earning monthly rent of kes 7,000 on construction completion. For the bank financed at 17% per annum interest, the investor will have to come up with kes 3m for land purchase and a further kes 2.1m for 30% construction cost. The bank will bring in 5.1m as construction loan and will take kes 89,000 as monthly payment for 10 years. In other words, the investor will get nothing till after 10 years. The total amount the investor will have put in is kes3m plus kes 2.1m =kes 5.1m If he invested in the a4architect.com method of pooling resources, this would have translated into kes5.1m/kes860k= 6 shares. These shares will earn 6 x kes 7,000=kes 42, 000 monthly. For 10 years, this will be kes 42,000 x 12 x 10=kes 5.04m. This represents a 10% per annum growth rate . In this case, the investor who puts in kes 5.1m and borrows from the bank will get 0 revenue for the next 10 years while the investor who puts in the same amount and pools resources form other investors gets back the money he invested by the 10th year. As the saying goes, a bird at hand is worth more than 10 in the forest. The a4architect.com option of pooling resources will work better . Savings. In the a4architect.com method of pooling resources in 12 unit shares per plot, it’s easier to spread your savings from 1 plot/area to another as your money comes in. Example. For example, in June 2013, you are able to raise the kes 860,000 for 1 share. 6 months later in December, you are able to raise another kes 860,000 for 1 share. This means you will t have to wait for all your shares to be in 1 project. Every month, there will be a new opportunity to pool resources for the rental investment plan hence ease of personal finance planning. There is no missing the bus. Join Now. To join into the a4architect.com Real Estate investment plan, read here http://a4architect.com/discuss/ for more info or email info@a4architect.com . http://a4architect.com/2...e-value-for-your-money/ Re-check these figures. Otherwise, sounds sensible. @pesa nane. Thats quite a hawk eye you have. I have had to literally comb through the article to rind the typos. Am sure you must be a very successful accountant for you to be that keen with numbers. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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you can check the site plan layout and floor plan layout here http://a4architect.com/2...-a4architect-house-plan/As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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a4architect.com wrote:
@pesa nane. Thats quite a hawk eye you have. I have had to literally comb through the article to rind the typos.
Am sure you must be a very successful accountant for you to be that keen with numbers.
 Am flattered. It's just that I was keenly looking for investment options since the NSE prices were proving untouchable (not to mention the shameless 5% on Tbills!!) Pesa Nane plans to be shilingi when he grows up.
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Rank: Member Joined: 1/21/2013 Posts: 427
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@a4architect.com How is the progress on this project? Has it been tried elsewhere before (whether by you or someone else) or this is the pioneer project?
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@timuka. Interested people are registering here www.a4architect.com/discus/topic/joint-investment/Once a quorum of 12 is reached, implementation will begin. In Zimmerman, i hear there are such goups with already completed projects using similar concept. Contact @dunkang for more on the Zimmerman implementation. As Iron Sharpens Iron, So one Man Sharpens Another.
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