Here we are at the company secretary to finalize details of setting up the company for our client. They have already been issued an Option To Purchase(OTP) but yet to set up the company for the purchase. With this newly formed entity, they are able to acquire commercial and industrial assets repeatedly.
We have many stringent criterias before we recommend the acquisition. In this very scenario, the asset has the following characteristics:
2) 3.4% Yield
3) Entry Below Market Value by 15%
Client did a 20% down to this real estate. Cashflow is even out. He wants to leverage on the tenant to build their savings over time. So he wins in two ways, capita-gains plus rental income. There are several ways to approach the deal and it also depends on each individual client’s scenario at the time of entry.
Doing our homework beforehand is critical to investment success. Invest safe and well.