SDG's Rigths & Liabilities
The average percentage value of SDG for the project management in respect to the total value is 18% of the profit before tax generated from the sales of the property. However, SDG is only paid after the sales of the property.
If investors decides to lease instead of selling the property;
• SDG would be entitled to shares equal to 18% of the total cost and the generated income respectively.
• SDG would have the privilege to manage the project, report to investors and benefit 18% of all income generated from the operation.
• Investors would not deposit any cash to SDG’s bank account.
• All payments are made to the Fund’s bank account.
• Payments to the product/service suppliers can be made by two SDG members’ signatures.
• Reports are made monthly and send by e-mail to all investors.
• Once a month SDG would provide construction details.
Investors would contribute to unexpected expenses and make deposits to the Fund’s bank account to keep a budget of USD 5.000 for unexpected expenses anytime.
SDG is the Project’s decision maker about all operational details and responsible for the management. Yet, 2/3 of SDG members approval is necessary for all decisions.
SDG shall not be held liable to and shall not accept any liability, obligation or responsibility whatsoever for any delay, loss or damage arising from investors’ failure to payment.
SDG shall not be liable for any delays occurring during the permit and construction process and arising from the City regulations or investors’ payment delays.
SDG has right to change the number and value of issued & outstanding shares in case of investors’ failure to payment.
SDG has right to search new investors and allocate issued shares to them in case of failure to payment by the initial investors.
SDG represents 1/5 votes for the sales of the property at the end of the development process. The developed property can be sold by 3/5 of the members’ votes.
SDG should and will apply all Federal and State regulations and laws.
Investor's Rights & Liabilities
Investors would pay to SDG 18% of the brut profit generated from the sales of the property (Sales price - cost of project) at the end of the project. However, SDG is only paid after the sales of the property.
Minimum investment made by each investor for the Real Estate Investment Fund designed by SDG is USD 50.000 which will determine investor’s outstanding shares. Contribution of the investor starts with land purchasing process and and ends with the property sales. All prospects should decide in 10 days after the opening of Fund offer. Investors receive outstanding shares of the Fund’s legal entity (LLC, Cooperative, Syndicate) with respect to their contribution to the total investment. Investors contributions and outstanding shares are calculated according to the Average Project Cost Value.
Investors are required to make their respective payments to the Fund’s bank account on a monthly basis for all expenses explained in details in the Monthly Activity Report.
A profit-sharing plan is elaborated by SDG. Under this type of plan, investor receives his profit based on the Fund’s earnings on the sales of the property after all taxes are paid.
All investors receives as many shares as their investment value. Each share is valued USD 1.000. An investment of USD 50.000 for a land valued USD 300.000 receives 50 lots from the total 300 shares issued for the land purchase. Contributions during permit and construction process receive respective outstanding shares.
All investors receives as many shares as their investment value for their contributions to expenses during permit and construction process.
In case of the investor’s failure to payment a notice of payment is sent to the investor and 30 days is granted to make the payment. After 30 days his shares are first offered to SDG and other investors.
In case of failure to payment during the permit and construction process after the purchase of the land;
• Notice is sent to investors. If current investors can not buy offered shares after 30 days a new offer is made to other potential investors.
• The project is financed by other investors if new investors are not involved to buy out the investor who fails to payment. In that case other investors outstanding shares would increase.
• Investor who fails to payment would lose his right to vote.
If the project should stop in case of failure to payment and lack of new investors;
• The project is listed to be sold and its price is determined by the majority of the votes among SDG and investors who didn’t fail to payments.
• The Fund would pay to SDG 20% of the total project cost at the end of the project sales.
SDG business model is designed as a risk free investment. If some investors desire to exit the project after the land purchase in case of failure to payment their shares are first offered to SDG shareholders with their nominal value. If shares are not bought by SDG LLC, they are offered to other investors. If other investors are not interested new potential investors may be searched. If no other investors or entity are interested in the offer investors who fail to payment can still benefit the profit generated after the sales of the property with respect to their outstanding shares.
At the end of the project one of investors may wants to buy the property. In such case he can buy the property with 10% discount on the average market value of the property determined by three real estate agents. At the end of the project more than one investors may want to buy the project. In such case the property is sold to the best bid made by the related parties.
In case of failure to a pledge of payment the investor may not claim any shares from the profit when his shares are transferred. He can only receive his initial investment back.