08-15-2022, 09:18 PM
(08-15-2022, 05:17 PM)panamaniac Wrote:(08-15-2022, 03:59 PM)tomh009 Wrote: It appears that we are both right. It's based on the same concept as the Harbour Life complex in Hamilton: the investors are buying the units, and then they would (be able to? need to?) sell them to a seniors' home operator once the project has been completed.
I'm not sure I understand the two-step process. Why would the seniors home operator not just buy the units/build the project from the outset?
It is indeed complicated. I was told that the (new to the business?) home operator needs to demonstrate an ability to run the business and secure tenants in order to get financing. And, indeed, if they were to develop the building, they would need to put up the funds pre-construction, wheras in this case it's a combination of the investors and the bank that would finance the construction.
Maybe this makes sense? It doesn't really seem like a Ponzi scheme even if it is rather, uhh, unusual in its structure.