The goal to for doing a bulk purchase is taking down the banks pre-sale requirement. A developers lending institution will grant the construction loan when certain amount of buyers come to the table. The pre-sale requirement tends to be 50%. Each of our Investment Groups consists of 500-750 high net worth investors.
At http://www.newcondosonline.com we’ll use our Investment Group to bring in 30 to 150 buyer contracts to the developer. The benefit to the Developer is instead of waiting 6-8 months to hit his pre-sales; we’ll come into a project within 30 days and take down the pre-sale requirement. The bulk purchase also creates velocity and sales momentum within a marketplace. The best way to look at a bulk purchase is a finance vehicle. Once the pre-sale requirement has been met, the Developer gives the high net worth Investment Group an exit plan. Such exit plans are those units being sold through their own sales center.