In Real Estate, Assured Return Plan refers to a Fixed percentage a builder promises to return on Investment.
Typically in double digits, and which is higher than what any other fixed return instrument offers.
Even with having to give higher returns, this type of money is cheaper than, say, borrowing from banks and other lending institutions.
“Typically, returns promised are 9-12%, which is lower than the cost of debt for construction. Higher returns may be a sign of the need for capital, and is sometimes a red flag for the investor,”