Slingshot Developments Inc. Frequently Asked Questions

1. Is Slingshot Developments Inc. a real estate development company, a real estate investment company or a management company?
   Slingshot Developments Inc. is a development company focused solely on residential, commercial, and investment real estate projects.
2. What makes Slingshot Developments Inc. different from other real estate development companies?
   Slingshot Developments Inc. is a team of experienced real estate professionals who remain involved throughout the development process to ensure the cost effective and timely completion of its projects and to ensure the investors best interests are at the forefront. Most of Slingshot's competitors are professional money raisers - not developers.
3. Why should I invest in projects managed by Slingshot Developments Inc. over any of its competitors?
   There is NO LIFT on Slingshot Developments Inc. investments. This means that the directors of Slingshot Developments Inc. do not take profit “up front” or in advance of the investors. Slingshot investments are structured in favour of its investors in an effort to maximize their returns. The Slingshot Developments team will not take profit from a project until after the investors have received the return of their principal as well as set returns (ie. bond interest, etc).
   Low administration fees. The investments that Slingshot Developments Inc. manages have some of the lowest administration charges in the industry with most projects being less than 1% per year of money raised. We only profit if the project is profitable.
4. Given the current state of the real estate market in Canada, should I be investing my money in real estate?
   We invest our money in real estate in all market conditions. When there is instability in the marketplace, smart investors look to real estate to add certainty to their portfolio. Andrew Carnegie said that 90% of all millionaires became so through real estate. Furthermore, the supply of land is shrinking and the demand is increasing.
5. What is the difference between Interest and Dividend Income?
   Interest is set rate paid in a set frequency and is taxed at a personal income tax rate. The Slingshot Developments Inc. investments offering dividends pay a return when the project(s) are complete. Dividend Income is usually taxed at a much lower rate than interest income.
6. Why the name “slingshot”
   In the late 2008 we were looking at amalgamating our companies into one entity. We wanted a new name that would represent who we are and one we could have some fun with. After sharing our ideas with a friend she laughed and mentioned that she saw us like men having a lot of fun sitting in a Slingshot and being fired off into the horizon. We spoke about the name and thought it was just what we were looking for. For us the word Slingshot evokes images of movement, memories of youth and is a symbol of overcoming giants. A slingshot is also a weapon. Like any weapon it can be used for good or bad, it is effective if there is skill and discipline behind it and it takes a certain amount of strength to operate. It is also a tool of accuracy. Skill, accuracy, discipline & strength are all good descriptors for the people and attributes that make up our company.

   Although merely a passing comment the name stuck.

7. How long has Slingshot Developments Inc. been in business?
   Slingshot Developments Inc. was incorporated in 2008 as the amalgamation of three other real estate development companies owned by the principals, the first of which was incorporated in 1991.
8. Who owns Slingshot Developments Inc. and what experience does the ownership group have?
   Slingshot Developments Inc. is owned by Jay Harder and John Sadowski, they are both very experienced in the real estate development industry. These two genltlemen have a total of more than 30 years of development experience.
9. What type of projects does Slingshot Developments Inc. target?
   Slingshot defines its ideal project target as one with a clearly defined end-user. Understanding the target market adds certainty to project economics. Given this certainty, profit potential is easier to establish.
10. In what areas does Slingshot Developments Inc. look for projects?
    Project accessibility is key for Slingshot Developments Inc. to ensure quick access for hands-on project management. For that reason all present projects are based in Western Canada.
11. What strategies does Slingshot Developments Inc. employ in order to ensure my investment money will be secure?
    All projects are secured directly or indirectly in real estate by way of charges against title or as secured deposits in trust accounts.
    Development time frames are kept short to minimize the risk of instability in the market.
    In most cases, properties are bought through relationship rather than on the open market ensuring the lowest purchase prices possible.
    All projects are entered into with the end user in mind. There is no point in buying an investment if we can't sell it.
    Plans also include multiple exit strategies to allow quick exit in the event of a shift in the real estate market.
12. What strategies does Slingshot Developments Inc. employ to maximize shareholder return?
    Slingshot Developments Inc. will not over-subscribe an investment. This prevents the dilution of investor returns and shortens the timeline on project profitability. Expenses are not front-end loaded with additional charges such as placement fees. By doing the development in-house, costs are easier to control. The market price of the project is charged to the investment where competitors will purchase the land and add a 'LIFT' to the price paid by the investors. The directors of Slingshot only profit if the investor profits. The more money the investors make, the more money the directors make which provides motivation to keep expenses and timeframes as low as possible.
13. Do the Directors of Slingshot Developments Inc. invest their own money in company projects?
    Yes. Although the level of investment changes from project to project, the Directors of Slingshot Developments Inc. all have personal investment in each project.
14. Where is the Slingshot Developments Inc. head office located?
    The Slingshot Developments Inc. head office is located at 6324 Bowness Road N.W., Calgary, Alberta.
15. Can I meet the project developer?
    Yes. Call us anytime. We will be glad to meet you and discuss any questions you may have about us, our developments, or our investments.
16. What information is available for the projects Slingshot Developments Inc. has underway?
    Offering Memorandums that have been filed with the Alberta Securities Commission are available on our website or by calling our office. Summaries are also provided for investor reference. In addition, our newsletter is available as a way to keep up with what we have going on.
17. Are the Slingshot Developments Inc. investments RSP eligible?
    Yes. Most of the Slingshot Developments Inc. investments are RSP eligible. This includes RRSP, RESP, RRIF, LIRA, and TFSA eligibility.
18. Has Slingshot Developments Inc. received legal advice regarding the tax implications of its registered investment eligible offerings?
    Yes. Slingshot Developments Inc. has consulted third party advisors regarding the tax consequences and RSP eligibility of its offerings based on the Income Tax act, the Regulations therein and known administrative practices of the Canada Revenue Agency. However, all investors are advised to seek the advice of their own tax professionals.
19. Can I use existing Registered funds to invest in Slingshot Developments Inc. projects or do I have to make cash investments?
    Investment in Slingshot Developments Inc. projects can be made in one of three ways:
    • Cash
    • Transfer of existing RSP funds
    • New RSP contributions
20. Can I use other deferred tax savings plans for investing in Slingshot Developments Inc. projects?
    Yes. Money from RESP, RRIF, LIRA, and TFSA funds can also be used for investment in Slingshot projects.
21. Are Slingshot Developments Inc. investments traded on the Toronto Stock Exchange or the TSX Venture Exchange?
    No. Slingshot Developments Inc. is not a “reporting issuer” in any jurisdiction and as such trading of its investment securities is restricted by securities legislation.
22. If I invest money with Slingshot Developments Inc., can I sell my investments to others?
    We are restricted by the Alberta Small Business Act as to how we are able to pay out our investors outside the parameters laid out in the offering memorandum but we will make every effort to accommodate requests within these parameters.
23. Why does Slingshot Developments Inc. solicit money from private investors instead of borrowing money for its projects from the banks?
    Our long-time investors asked us to provide them with a long-term registered savings vehicles for their investments which resulted in the creation of our RRSP eligible investments. To facilitate further growth of our company, we elected to open these investment opportunities to new investors as well.
24. Are Slingshot Developments Inc. investments secured?
    Yes, the Slingshot Developments Inc. investments are secured either directly or indirectly in real property.
25. Are any fees charged on the investments I make with Slingshot Developments Inc.?
    Slingshot Developments Inc. investments are executed in accordance with the fee structure laid out in the offering memorandum. There are expenses incurred in this type of investment that make sense given their RRSP eligible structure. We endeavor to keep all expenses to a minimum to maximize our investors’ returns.
26. What is the minimum I am able to invest in a Slingshot Developments Inc. project?
    The minimum investment is $3,000.

27. Should I get legal advice regarding any of the Slingshot Developments Inc. investments?
Yes. We always recommend obtaining good legal council as part of the investment decision process.