Wow

Castellamonte

Castellamonte

Bronze
Mar 3, 2005
1,764
50
48
Cabrera
www.villa-castellamonte.com
Can someone give me the skinny on WOW Cabarete? I noticed their sign the other day when driving through Cabarete and finally remembered to checked them out online. Unfortunately it looks like another "fund me and I will build you a condo" type of project but I'm hoping it's better organized than that.

Anyone know who is behind it? Track records? Worth investigating for possible investment? Thoughts?
 
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MrRiley

Member
Feb 6, 2007
64
1
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I just saw your thread concerning WOW Cabarete, and I can give you some information. This project is using a "buying group" concept that was developed and proven to be successful in Israel. The founders of this project are Israeli and have years of experience developing properties using this blueprint. This project is being managed by Rob and Sandi Riley that have developed 2 projects here in the Cabarete area. Our attorney for this development is Dr. Julio Brea Guzman from Guzman Ariza. One exciting difference about this project is that the build process is able to be complete at wholesale builder cost rather than at retail. For anyone that has sent a request and did not get a reply, we apologize, and please resend since we are now up and running with the website and are receiving requests without fail. Also, please feel free to contact us by email or by phone which can be found on the website. http://www.wowcabarete.com/
 
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MrRiley

Member
Feb 6, 2007
64
1
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I apologize if my post came across as an advertisement. Just trying to answer the questions/concerns that were brought up.
 
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MrRiley

Member
Feb 6, 2007
64
1
8
A Buying Group is a term that was coined in Israel when they started using a new process for construction that kept building costs to a minimum. Please read the text below.

A Buying Group is an organized group formed to purchase land
for the purpose of constructing on the land.
Once all units are sold the formal buying group is formed and the land purchase is completed. During this time all initial down payments are made to an escrow account.
When the land purchase is completed all members are part owners of the land. After the permits are obtained the builder will provide
the buying group sufficient guarantee throughout the building process. All payments to the builder from the escrow account are met and approved by an independent inspector.
The main benefit of the Buying Group is that the members are able to build a retail product at a wholesale price, giving them an unparalleled price advantage.
The buying group structure is specifically made to provide the
group with maximum guarantee until the units are allotted to the purchases.

Title and Payments are held in escrow. (what is normally a "promise to sell" is in this case, a "conditional stock" agreement). Dr. Brea is finalizing the contract within the next 5 working days that we will be able to share with prospective buyers.
 
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MrRiley

Member
Feb 6, 2007
64
1
8
We start construction as soon as all units are sold. In the contract, there is a limit on how many months that can be. **If all units are not sold within the time frame, all land/kick-off payments (payment 1) are refunded 100%. This is where the risk is taken out of this project. At this time the second payment is due. It is held in escrow and released to the builder as milestones are met and verified by an independent inspector.

Estimated build time is 16 months.
 
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AnnaC

Gold
Jan 2, 2002
16,050
418
83
MrRiley said:
We start construction as soon as all units are sold. In the contract, there is a limit on how many months that can be. **If all units are not sold within the time frame, all land/kick-off payments (payment 1) are refunded 100%. This is where the risk is taken out of this project. At this time the second payment is due. It is held in escrow and released to the builder as milestones are met and verified by an independent inspector.

Estimated build time is 16 months.
Click to expand...

How many units are there including commercial units and does the does the " all sold" include the commercial units or just the condos?
 
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MrRiley

Member
Feb 6, 2007
64
1
8
Then, either the unit is resold, or it can be purchased by the "other" owners who have first right of refusal to purchase for only the amount of the 2nd payment.
Unless this was a large number of purchasers not completing their transaction, it would not stop the forward momentum.
 
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MrRiley

Member
Feb 6, 2007
64
1
8
There are 26 residential units and 15 commercial units. 41 total. The "all" sold is all units. We have 3 commercial units and 1 residential units sold to date. --the garages do NOT need to be sold in order for construction to be a GO.
 
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AnnaC

Gold
Jan 2, 2002
16,050
418
83
Any interest paid on deposits?

Hope you don't mind all these questions I'm sure it's all covered in the agreement of purchase.
 
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MrRiley

Member
Feb 6, 2007
64
1
8
All questions are completely welcome. We are sorting final details in the contract that is being completed in the next 5 business days by Dr. Brea. The details of the buying group blueprint work differently in the DR than in Israel. He is also the holder of the escrow accounts through Chase Bank. I will find this out and answer as soon as possible. Personally, I have not worked directly with his office before, so I'm not sure what his standard practice is on this matter. --good question. I'm sure it will be asked again--
 
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DRob

Gold
Aug 15, 2007
8,234
594
113
Question,

Why not presell units with a minimal good faith deposit and a letter of credit from the buyer's financial institution? That should get you the financing necessary to build the project out from your lender, and minimize risk to the buyers.

It's one of the solutions being used in the "new reality" of the post RE-bubble collapse
 
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