May 23, 2010

49% of the Southgate Place has been given away

As much as I am against Southgate Place,we have no choice but to deal with it and make the most of it.   The silver lining is that although the project cost $7,000,000, there is only about $1,000,000 that has to be paid back so there should be a positive cash flow for the South Worcester Neighborhood Center to reinvest back into the neighborhood.

The thing is only 51% of the profit goes to them.  The the other 49% goes to their other partners.     What exactly did they put up to get 49% of the profit?  Nothing.   True they did alot of work up front, which they had to float until the grants came through.  Now they have been paid for their work and get 49% of the profits.  

You get 49% ownership in a 7 million dollar project and you don't have to put up one dime.   Puts new meaning into Robert Allen's Nothing Down Real Estate books.

1 comment:

Jahn said...

Would it be appropriate to say that S. Worc Nieghborhood Center and this 40b consultant are basically in bed with each other?

The end result however is that Worc is the one ends up getting you know what'ed.