Our investment proposal.
Have you seen an object that you would like to our kind of business on, but not gone ahead due to the transaction costs, lack of contacts, lack of time etc. Contact us and let’s see if we can do it together.
We can also find a project for you…
How it could work:
1. We together evaluate the object.
2. We together or Lean by itself, your choice, makes a plan and a budget for the renovation.
3. We write a contract between us stating our intended purchase price, budget for the renovation and our at this stage intended sales price.
4. We buy the object in Lean, meaning that we can use the lower transaction cost associated with a development company. Brings the transaction cost down to around 3% (including Lawyer) instead of 11-13% for normal purchases. Catch is that we have to sell within 5 years and can not get a rental license.
5. You finance the purchase through a loan to Lean. As security the loan will be registered with the Land registry giving you the same security as a Bank would have.
- You hand over the loan at the notary when the purchase is being done.
- The property can not be sold until you in writing at the notary’s office declare that the loan have been repaid. Will be done at the same time as the property is sold.
6. We together agree on the advertised sales price and under which parameters we are willing to close the sale.
7. Lean will take care of the staging, sales and marketing of the object.
8. When an offer is received for the property we together decide if it should be accepted.
9. We celebrate together
Advantages for you:
1. Lower transaction costs
2. Lower sales costs
3. You get to use our knowledge and network
4. Fixed parameters
5. Hands of investment for you Lean will handle everything.
6. Project management
7. Lower to no sales commission
8. Building license
9.
Renovation budget fixed at Leans risk or shared? Including furniture?
How do we divide the profit?
You save approx. 8% on the transaction cost and 2% on the commission, we contribute with our knowledge of the business and geographical area and with our time for project management. The key is to choose the right object at the right price, the rest is fairly straight forward.
What happens if it doesn’t sell….
The risk you take is limited by:
If the property have not sold within a year after it have been put to market Lean will agree to sell the object at a price that you suggest. I.e if you like to get your money back as long as there haven’t been serious market crash you should be able to recover your money. Lean will take the risk of the time spent.
What happens if it sells under investment cost?
Do we take the risk of the renovation charge?