- Concrete buys a building for say $10MM ( Market value is $10MM)
- Concrete buys TV/Radio Ads and becomes a big corporate sponsor, in an effort to LEGITIMIZE their company.
- Concrete sells partnership units, in $10,000 increments to hundreds/thousands of "investors"/marks.
- Concrete Promises 75-94% returns in 5 years (varies per property), by re-mortgaging the $10MM property (say at $13MM) and handing out the refinanced funds.
- Bottom Line...they use your money to pay the mortgage in the meantime.
Some further research showed me that one of the senior partners had some problems with an Alberta Real Estate licensing board. The biggest turn off for me was when I found out that the CEO of this company was Dave Jones. Now I have been hearing Dave Jones WealthStreet Wealth Watch reports for a few years on QR77 ( which is an advertisement, pretending to be the news.) and everytime I hear him, I puke a little in my throat.
Dave Jones's wealth must rival that of Warren Buffet's, because he always seems to have picked the winning stocks for the day. ( After the market closes of course...) Perhaps he borrowed Doc's DeLorean and brought back some stock reports? Its all smoke and mirrors. This Jones chap is not a stockbroker, he is an "alternative" investment dealer. ( Ie. Not Stocks, Not Bonds, Not Mutual Funds...perhaps a ATM syndicate or in pop bottle empties?) Lately, it appears Dave's biggest job as CEO was to push the Concrete Equity property syndications.