Property Two: Funding Round Open to Investors
Property two is a Class-A multi-family residential building in the Heart of Prague. It stands on the river Vltava and enjoys beautiful views of Vysehrad park and cathedral.
The property has been fully upgraded in 2019 with two new floors, new roof, elevator, structural integrity, and cosmetics. It needs no Capital Expenditure in the short term. Each living unit is fully equipped with a modern kitchen and dishwasher, clothes washer, stand up shower, efficient heating, and is furnished with aesthetically pleasant custom furniture.
The property can be adapted to long-term multi-family residential at the flip of a dime. Currently, it enjoys high cash flows and is operated as a short-term rental for business professional. A highly reputable property manager has achieved an average rating of 9.2/10 on Booking.com. This provides a steady cash flow base that safely covers debt expenses, operating expenses, and allows for an savings account to service future capital expenditure investments.
City Prague City Center - Hlavni Mesto Praha
Location Smichov on the River Vltava
Cost 120,000,000czk Building Size 982m2
Funding Target 50,000,000czk Flats 26
Financed Amount 70,000,000czk Features Lift, 2 Lofts
Target* Upside 20,000,000czk Year of Entry 2022
Equity Upside Split 80% Target* Horizon 36 months
Investment Strategy: Sign the property under contract, retain current tenant operator with Booking.com 9.2 strategy, force appreciation via negotiated step-up rents, refinance with quality lender, distribute earnings to equity investors.
*Targets are not promises of performance and are dependent upon prevailing market conditions.
Profit Split: 80% Upside goes directly to equity investors
Payment Frequency: At Maturity, 36 months
Sample Payoff Schedule: Based on target* upside of 20,000,000czk. This is how the profit would be split based on the amount you invest.
Your Invested Equity
Your return based on 80% upside
Your ROI** %
*Targets are indicative only. As with any investment, figures are not promises, nor are guaranteed. Investor takes responsibility for amount invested and is only liable up to that amount.
**ROI: How it is calculated
Professional property management firm with an excellent reputation that seeks to maintain flat occupancy over 95% and stable profitability
Excellent facility management firm overseeing the quality of the facility, the state of amenities, and coordinating value-add capital expenditures.
Experienced commercial real estate law firm to carefully draft each contract and protect your money
Seasoned accounting firm to distribute cash flows and pay-offs to you -the investor - including yearly earnings reports ensuring transparency