To everyone who cares to listen to some reason; I would like to state the following. As the Agape web site claims:
"We are not a mortgage company or regulated lending institution. We traditionally do not purchase real estate but have taken equity positions if we like the future of your project. We have private sources of financing for bridge loans. Depending upon the borrower's time frame and the circumstances, interest-only loans as well as fixed-rate loans are available. Additionally, Agape World Inc. can provide financing at the time of acquisition, or years after an acquisition, in order to free trapped equity. These special situation loans can be placed instead of or alongside conventional financing to provide winning solutions where others may only see problems. Our firm can fund viable transactions of any size."
Thus; AGAPE liked the proforma of my Carriage Homes project in Maine, and they took an equity position in the project as the funder of the construction needs. So, as the funder, AGAPE provided construction funds to the project. They were given regular monthly requisitions for construction expenditures and they promptly paid them, without fail. As a result of their payments to us, we have reached 45% substantial completion of the project as of just yesterday. We expect to be 95% complete on or about the beginning of July 2009. If that completion date is met, and we see no reason other than a lack of funding, to stop the completion; the units (8) total, will be on the market and sold by a target date of Oct. 2009 - and because AGAPE took an equity position, they stand to make a very hefty return on the investment. Their return or ROI is so significant that it is more than sufficient to both, pay a 10 - 15% return to investors of theirs, and to sink the remaining funds into another project. This should answer the question about why AGAPE is making payments to us. Construction is not done. They funded construction. They make payments to us until done. Then we either take an end loan from a traditional source, or we sell the units off for a nice margin.
As for Carriage Homes being in default; that just is not the case. We owe nothing to anyone, and in fact are regarded to be one of the best projects under way in this area. Subs and vendors are all paid in full and very quickly. Some paid in advance so they can obtain materials etc. We do not owe the lender/investor/equity partner a dime until we are done. With all of the bad press, false inuendos, and outright hysteria and lies, this project may stop so it can acquire additional funding - if AGAPE is not able to continue. That would place a burden on other investors to AGAPE, in that if the project stops, then the end goal may not be met. So, the trashing of people, the rampant disregard for truth and fair play as portrayed in this web discussion, may ultimately destroy an otherwise good project - and hurt more people yet.
It is appalling to see remarks about going to one's office and engaging in physical violence against Nick or anyone for that matter. How does assaulting a man get you your money back? Money issues are a civil matter, while assault is criminal in nature.
I don't profess to have the answers about AGAPE at this point but, they should be given their opportunity to work things out with their investors. And, I should not be subject to the nasty - crude and obnoxious calls to my company, my home, our lawyer's office and home, and we should not be subject to the vile accusations that have been leveled upon us and this project.
An irony exists in some of this. People who take the risk of puting monies into an investment that provides for higher than normal returns, do so at their own choice. While they may be sceptical, they still take the risk. They do so becasue they want to make more than others could or would, in safe environments and in other circumstances. That says, you are willing to take the risk - as long as you are gauranteed your pound of gold. But, if the risk does not pay out as planned, the balme is shifted to everyone but one's self. I have learned in life, we can't have it both ways - not all the time.
I wish a resolution for all AGAPE investors. And, I wish a resolution for AGAPE and Nick as well. Without the funds to finish this project, we will risk a failed project and not experience a success. It isn't easy to take a risk in these economic times - we did up here. And, we are employing people in bad times. AGAPE took a risk on this project. You all took a risk on AGAPE. From what I can see, eveyone is judging AGAPE as the Titanic going down. I am an optimist I see a lot of people in the water, jumping ship, and freezing to death while the ship moves on trying to regain it's bouyancy and making it to shore.
In the final analysis - I wish you all well. I made myself available for anyone to call. Many of you have, and several people have even made arrangements to come and visit the project in Maine. Those are the people with open mind and vision. They are going to find out the facts for themselves and not rely on trash talk. They are the ones that will make it to shore.
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