Who would have thought this about Simon Zutshi?
On the 4th August 2016 Simon Zutshi introduced me to his developer friend Mr Dean Gary Powers. Simon stated that the developer urgently needed a £100K investment for professional fees, to achieve full planning permission and associated costs for 10 detached four / five bedroom houses, at the site known as Pennar Park, Pembroke Dock, SA72 6GL.
Simon Zutshi stressed the urgency of the loan was based on the current outline planning expiring in mid-September 2016 and if that happens then the site / land would be worthless. He said the value in the deal was achieving full planning permission.
Initially Simon wanted the funds to be paid directly to Dean Powers (Developer), despite advising me that the developer was in an IVA.
I refused to loan the money to the developer because of his IVA risk profile. Simon Zutshi then suggested the £100k loan should be made as a personal loan to him, I agreed to this arrangement because Simon Zutshi and his Mastermind program had a great reputation in the property training sector and Simon was an established property investor.
Simon Zutshi proposed the deal structure as follows: -
· I would receive a profit share of 100% on my investment
· Subject to achieving full planning permission for 10 four / five bed detached houses, if planning is not achieved then my profit share would be 0%.
· This meant that if planning permission is granted, I was entitled to my return of the capital of £100,000 plus the profit share of £100,000
· A minimum loan term of 6 Months and a maximum of 12 Months.
· The developer offered Simon Zutshi security by way of a completed plot at Pennar Park, Pembroke Dock, SA72 6GL.
Simon Zutshi placed a massive amount of urgency to get this deal done in days rather than weeks. Simon Zutshi said to expedite the agreement he would instruct his solicitors and Business Partner to draw-up the contract.
The following day, 5th August 2016 I received an email from Mr. Zutshi’s business partner outlining what was agreed at the meeting on 4th August 2016 along with a draft contract.
Simon and his legal team gave us additional comfort in the contract by allowing for default interest, should the loan remain unpaid at the end of the term (12 Months). The default interest rate of 22% per annum after the first year and simple interest at a rate of 12% per annum for the first 12 months. This Clause in the contract gave us a degree of certainty that Simon would repay the debt before the end of the 12 Month term.
By the 8th August 2016 (four days after the initial meeting) the contract agreement was signed by Simon and myself and the money was exchanged.
On 10th November 2016 I received an email from Simon Zutshi in which he stated full planning is approved and all conditions have been met, furthermore he stated the development is due to start January 2017. I checked the planning portal and planning had been granted.
August 2017, I received a call from Simon Zutshi, he said the strategy had changed and he has made a new application for bungalows which would give him a better GDV. I had no issues with Simon changing his strategy as the terms of our original agreement remained unchanged.
I had no personal interest in the development of the site, however I became curious when Simon Zutshi's company ‘CROWD PROPERTY’ RAISED APPROXIMATELY £942K TO FUND THE DEVELOPMENT OF THE SITE WHICH SIMON HAD PREVIOUSLY CONTROLLED.
· January 2018 CROWD raised £768,500 on plots 60, 83 – 86 and 88
· October 2018 CROWD raised £174,000 on plots 79 – 82.
I AM SURE THERE IS A CONFLICT OF INTEREST THERE??
My loan and interest were due for repayment on 8th August 2017. I have been chasing Simon Zutshi for the past 3 years to settle his debt now in sum of £280,000. I am now pursuing the legal route to recover my money.
I AM AN EXPERIENCED INVESTOR AND EX MASTERMINDER, WITH MORE TO LEARN. I’VE ALWAYS HAD A HIGH DEGREE OF RESPECT FOR SIMON ZUTSHI BUT SADLY NOW THIS EXPERIENCE HAS LEFT MANY DOUBTS ABOUT SIMON’S INTEGRITY AND I CONSIDER IT MY RESPONSIBILITY TO INFORM OTHERS ABOUT SIMON ZUTSHI, DIRECTOR OF PIN, CROWD PROPERTY AND MASTERMIND TRAINING.
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