The main point of the project: buy a 2-apartment house in Bavaria, repair it and resell it at a bargain price. Yield — 15.9%.
The project is implemented by Tranio.
- finds the object in poor condition, at a bargain price;
- make the financial model of the project, taking into account all the costs associated with the purchase and repair;
- organizes bank financing (up to 50% of the value of the object);
- repairs the object;
- organizes the resale of the object.
- invests in the purchase and repair of the object;
- after resale of the object and payment of all commissions and taxes has a profit of 15.9%.
Project duration: 6 months.
Total project costs: 659,000 euros.
Investor capital: 439,000 euros (using bank financing 220,000).
Resale price: 766,000 euros.
Investor's profit before taxes: 107,000 euros (25.4% of the invested capital).
Investor's profitafter taxes: 67,000 euros (15.9% of the invested capital).
Regensburg — a city 125 km away from Munich, one of the most economically developed cities in Germany, in which many large companies are located: Krones AG (Headquarters), BMW, Maschinenfabrik Reinhausen GmbH, Siemens and others.