Exclusive Investment Property with 100% financing 12 posts • Page 1 of 2 • 1, 2

[FreshInvest]

So many developments worldwide claim to offer "the best" investment properties with promises of massive capital growth, rental income, etc.

Fresh Invest extensively research investment properties in emerging and established areas in the International property market.

We disregard approximately 95% of the properties we research, allowing us to offer our Clients the top 5% these markets have to offer.

We are currently promoting a number of Caribbean investment opportunities which offer many investor incentives, including 100% financing, 2 year 10% rental guarantee, 5* furnishings included, 30 days per year personal use and more.

Please feel free to contact us so that we can get to know more about your requirements and advise you accordingly.

Lots more information on our website http://www.freshinvest.co.uk.

Kind regards,

Graeme Johnston
Company Director

[Fraser]

Hi Graham,

Thanks for your post - what's a typical deal for you in the Carribean? What kind of units are you sourcing for clients?

Have you ever sourced any units in Berlin for clients?

Regards, Fraser

[FreshInvest]

Hi Fraser,

We are concentrating on fully managed 5* hotel & resort projects on selected Caribbean islands. Our research indicates that these command not only the highest chargeable room rates, but will support ongoing capital growth and high occupancy rates.

An important factor for us is to have an investment package in place which is feasable for a wide range of investor types. Rather than payment structures with 30%+ deposits and ongoing stage payments, we have 100% financing options in place where possible.

The units vary from studio suites (hotel rooms) anywhere up to luxury villas with in-house spa facilities. There certainly are a wide range of options from entry-level upwards.

We find that the flexible personal-use aspect with these Caribbean properties also appeals to many of our Clients, which spreads great confidence. If investors can see the appeal of these 5* Caribbean resorts, it is a good indication for them that the tourism demand will also be high.

We have not yet sourced investment properties in Berlin or Germany.

This certainly is a market we believe would work well for many of our investors, but it comes down to properties which are ideally located, priced, etc. Also packaged in a way which makes it accessible to a large investor audience as above and can be carefully structured with the right incentives.

Hopefully this is a market we will be able to get involved with in the very near future, but until then we will have to work on all these contributing factors until we hit the jackpot.

Kind regards,

Graeme

[Fraser]

Hi Graeme,

Thanks for your thoughts - it does sound very exciting in the Carribean. Why don't you post an example deal on the 'for sale' section, it would be interesting to see what the numbers are and how the process works.

My colleague, David Terrisson and I are going to be going to Germany/Berlin and researching the opportunities there. David speaks fluent German and is a property investor and part of the Property Fit organisation. Would you be interested in hearing our findings? What are your investors looking for?

Regards, Fraser

[FreshInvest]

That does sound interesting Frasier, particularly with the backup of your German speaking colleague which I'm sure will come in handy!

Our clients do not want to part with large amounts of their hard-earned cash, so minimal setup capital is an important aspect to ensure that our opportunities are accessible to most (if not all) investors.

For example, the deposit on our Caribbean properties can be raised from equity available in a property they own. The developer will then pay the monthly loan repayments with the total added to purchase price upon completion. As the prices are currently structured below current market value and with 10% - 15% capital growth per annum, the guaranteed 70% LTV mortgage upon completion is more than enough to cover the original purchase price and loan payments - essentially borrowing 100% and possibly releasing further equity from day 1 if required, as well as having their original deposits returned.

We find that this structure works particularly well if the developments are off-plan with 2+ years until completion, benefiting from capital growth to minimise mortgage deposit. Plus the factor that investors are securing early release prices to maximise profit.

Just a quick breakdown of the factors we look for initially, but anything that fits the above we would like to look at. There is a lot of research we undertake from our end to ensure that all boxes are ticked. We can also advise developers how to structure deposits, rental management, etc. to best work for the investment purchaser.

I'll post one of our Caribbean properties on to the sales section of this forum to demonstrate further how the opportunity is structured.

Kind regards,

Graeme

[Fraser]

Hi Graeme,

That is interesting - would be interesting to see an example property on the for sale section. I can highlight it next time I e-mail the Property Fit distribution list.

Regards, Fraser

[FreshInvest]

Sounds good Fraser,

I've uploaded more information onto the sales section. It's tricky to get all information on there, but it certainly includes the major incentives on offer.

It would be great if you could highlight this one to your contacts. We strongly believe it is a great opportunity and I have personally reserved 3 units on 2 of these Caribbean resorts already!

Kind regards,

Graeme

[REI]

Graeme,

You are selling resort property and it is likely something close to a condotel. Individual villas or rooms in a hotel setting where there is centralized management.

How are you estimating the future appreciation? For the most part this property will be an operating hotel so the value should be a function of the income vs. expenses and the capitalization rate. These are not owner occupied units where someone could just keep it as their home free of the hotel, correct?

Once the hotel is up and running what is the exit strategy for the owners? It would seem they would need to sell to someone else who wants to buy a piece of a hotel. Is this largely correct?

[FreshInvest]

Hi John,

Yes, that's correct - investors purchase their chosen property (including freehold) within the resort with rental fully managed by an appointed 5* hotel operator.

Future appreciation will be determined by increasing property values and net rental income. There will be a contract between owner and hotel operator for properties within the resort area. However, there will be a residence area which will not form part of the resort management and ideal for purchasers who wish to use their property more for personal use than rental and the associated income.

Exit strategy would be to sell on as an investment opportunity. As there will also be an ongoing sales presence within the resort on behalf of owners, we envisage demand for re-sale to be high. Particularly once the occupancy and rental figures have been proven.

Is your interest from a personal investment perspective or do you have other investors who would be interested?

I am more than happy to discuss these Caribbean opportunities in further depth with you?

Kind regards,

Graeme

[REI]

Graeme,

Ignore the units that are for the long term residents who will be living there. Focus for a minute on the rental portion of the resort.

You said part of the return is from the increasing property values. Once the property is up and running why would there by any increase in property value? Honest question.

In the commercial world the value is a function of the cash flow assuming no change in use (tear down and do something different). Net Operating Income times the CAP rate to determine the value. There is no premium for owner occupancy so income minus expenses times desired return defines the value. Commercial property is very sensitive to interest rates to determine the return in the calculation.

The property is a commercial property (hotel/resort) and it should be valued as such. Is that what you are assuming when you project increasing values?

Where is the financing coming from? I would expect it is based on commercial terms and conditions or is being provided in-house from the development company.