Netizens Weigh In On The Elmer Resort Fractional Ownership Concept Pushed By Terryanne Chebet

Perhaps coming from the past harsh experiences and rush for blinded investments without due diligence, Kenyan middle class have become a hit target for most scammers who eventually perish with their hard earned cash.

We can’t list all the pyramid schemes that has seen unsuspecting Kenyans lose billions to scammers who sell them ideas that are unbeatable. Real Estate has been a hotspot and many have been duped and counting loses. More often, like in the recent case of Greenhouse scam where millions of clients money was stolen by the directors, the schemers use the mass media and influential personalities to sell their schemes as genuine. All this has been happening undeterred due to rushed decisions without conducting due diligence, not seeking professional investment advice.

While many conned Kenyans are currently counting loses, and wins as well because not all projects proposed are dubious, more schemes and projects continue to crop up.

Elmer Resort And Spa in Naivasha has come up with a unique concept where one can hold a share in the hotel line by investing Sh3.3M for a villa. So in plain text, you own the hotel not the whole but just a portion, more of like buying a floor in an apartment.

The ad which was shared by media personality Terry Anne Chebet on Twitter, has since brought up a discussion about investment security with 90% of comments giving red flags for the concept.

I'm in if you are in. Let's see the financials and CR 12.

— Matigari Ma Njirungi (@MaMatigari) May 29, 2021

It's the media personalities always hyping these pyramid schemes. https://t.co/kwvlNCzQD3

— ?? Kuria (@OptaHos) May 31, 2021

This is a pyramid-like scheme. Unless you have money you don't mind losing, don't do it. https://t.co/WnF4pc4os8

— #CorruptionIsExpensive (@ItsMJ254) May 30, 2021

Sorry to say but avoid this if you can. There is no express regulation for such. #real #estate https://t.co/oxMu1soF7R

— MA™ (@Morris_Aron) May 30, 2021

When doing due diligence one of the top checks should be is it regulated?

If it is not the next question should be are you comfortable taking that risk?

Advertisement

After going through these you are truly on your own and should proceed knowing the potential risks and rewards.

— Son of M'Baku (@mtucreativity) May 30, 2021

One last thing
(40000*12)/3300000 = 0.145 or 14.5%
This is not worth the risk.

TBond this month closed at 13.9% so you are technically forgoing your principal safety & peace of mind for 0.6% extra
Even Sacco can do better

Money Markets, NSE Stocks, Fixed Deposit, TBills etc

Advertisement

— Son of M'Baku (@mtucreativity) May 30, 2021

And so are the risks,
Why go for high returns in an asset that is not even regulated?
Kwani you people don’t learn?#CytonnIssues#AmazonWebWorkers

— Son of M'Baku (@mtucreativity) May 30, 2021

Mumias, Atlas, Deacons etc were all listed in the NSE regulated by CMA and other regulatory authorities.
To rephrase your question, what happens to shareholders wealth when this companies go under?

— Evans Adoyo (@AdoyoEvans) May 30, 2021

Advertisement

3) How do you liquidate your shares should you decide to pull out the investment. Are you even allowed to do that?
Atleast with greenhouses you'd get the land. Here you essentially own nothing. Just God's hope given its an unregulated concept.

— Grace Munyi (@graciewmunyi) May 30, 2021

Yes exactly, when doing due diligence one of the top checks should be is it regulated?

If it is not the next question should be are you comfortable taking that risk?

After going through these you are truly on your own

Advertisement

— Son of M'Baku (@mtucreativity) May 30, 2021

REITs much better

— CMNjeru (@CMNjeru) May 30, 2021