As of today we are officially building four homes. The first two (the 100k and 120k) many of you have been following for a long time now. We will be finishing them up in the next few weeks. The second two, known as the Philadelphia Passive Project, we just recently introduced. Of those four homes, three already have signed agreements of sale and the fourth has several interested buyers. Despite dire economic warnings and the apparent deflation of the housing market, we seem to have found a product that sells. Now, we need to keep up with the demand. We need to build more houses.
We have the capacity to build many more of these homes over the coming year, and we are developing a new purchase and delivery model that will simplify the process for both us and the buyer. The challenge right now is land acquisition and capital. This, my friends, is where you come in.
Postgreen (that’s us for you newbies) is introducing our Residential Project Investment Program. This is basically a project specific investment program that brings in outside partners to fund land acquisition and some construction costs for a set return. This program is actually already at work in several Postgreen projects.
How It Works
Postgreen will be finding qualified building lots and placing offers. When an offer is accepted and we decide to purchase the land, we will send an investment proposal to all the qualified potential investors on our list. The first to respond to the proposal will be given the opportunity to invest in the project.
Investors will receive their payback and return upon final sale of the house. These investors will be ahead of us and just behind the bank in payment. In other words, we at Postgreen don’t see a dime until you are paid off.
Your investment will be secured by a note. The details of this note may vary slightly from project to project, but that will be hammered out before any money changes hands.
The actual percentage may vary slightly from project to project, but currently, we are offering a minimum of 10% – 12% (depending on investment level) annually. This percentage will be paid in full even if we shorten the term of the investment. So, even if we finish and sell in six months you will still get the 10% – 12% as if the project had continued the entire year.
To illustrate, an investment of $20,000 would see a return of $2,000. This means that immediately after settlement a $20,000 investor would receive a check for $22,000, regardless of whether we finish in 3 months or 12. Compare that to the return of most investment opportunities, and we think it looks pretty good.
Getting on the Qualified Investor List
To hear about our project investment opportunities you have to be on our Qualified Investor List. Don’t worry, it is a fairly simple process.
Step One is understanding whether or not you are in a good position to be a Postgreen Project Investor. Here are three simple questions to which you should be able to answer yes.
- Do you have a minimum of $20,000 to invest? To keep our projects as simple as possible we have set an investment minimum of $20,000 (though some projects may have higher minimums). Naturally, you can invest more than this, but you will need to be able to commit to at least 20k to be on the list.
- Can you access these funds quickly? We will send out investment proposals and need answers quickly to move forward with the project. If you sign on to a project you will need to be able to provide the funds you wish to invest in as little as two weeks. We can’t afford to delay settlements while we wait for funds from investors.
- Do you believe in what Postgreen is doing? We really only want investors who believe in the projects in which they invest. You will, by agreement, be a silent investor. So, it is important for you to have confidence in Postgreen’s team and the overall vision of our company.
Step Two is sending us an email that briefly answers the three questions above and clearly states your desire to be added to our Qualified Investor list.
Curiosity or other, less savory motives may tempt some unqualified people to sign on to the potential investors list. We ask that you please refrain from filling out the form unless you are willing and able to put money into a project. We will happily sate your curiosity without this unnecessary deception. Just ask.
It is inevitable that I have missed some important information in this post. What else do you need to know about our program? Is anything about what we are proposing unclear? What else would you like to see in an investment program?
Ask away in the comments.