From A to Z : complete service proposed by In-Vesta.
P. has 150’000 CHF equity and he is looking to reach a min of 10% return p.a. on his equity.
This is how In-Vesta made a successful partnership with the client:
First meeting with the client to understand his financial objectives and constraints.
Thanks to its network, expertise and efficiency, In—Vesta found a flat to buy and reform in Plan-les-Ouates (Geneva): duplex, 67m2. Price offered: 470’000 CHF. Indicative cost of reform made during visit: 30’000 CHF. Prior to the visit, administrative due diligence is made ( PV assembly of owners, last transactions in the area, price to rent per m2, condominium fees, etc.)
Negotiation: First offer made during visit as price m2 is much below market (6700 vs 9’500 CHF / m2). Final negotiation is made in the next 48h.
Initial discussion with Notary and seller for a signature in 30 days.
Finance set up file for the banks and the client. Credit proposals presented to the client in 14 days.
In the same period, finalisation of the quotes for the reform. This phase is important as validation of quotes, confirmation of availability of suppliers and material are keys for the efficiency and success.
Finalisation of finance mortgage with bank and supervision with Notary, Seller and Buyer.
Signature of the purchase agreement. Apartment will be in possession of the new owner after 45 days, corresponding to the usual administrative delay. In-Vesta is present next to the buyer and make sure that all interests are preserved in good faith and conditions.
Purchase of material (kitchen, tiles) in order to optimize time and money for the start of the reform.
After 45 days, confirmation of possession of the flat published in the local press. Different authorities and suppliers are contacted to advise the start of the reform in the next 3 days.
Start of the reform: technical responsibility including management of suppliers and material. Time and budget respected (40 days for a budget of 30’000 CHF)
In parallel of the finalisation of the reform, implementation of the strategy to find new tenant at a fair price (1900 + 200 CHF): internet, social media and human natural network.
Organisation of the visit for the future tenant, analysis and pre-selection of candidate, implementation and validation with owner for the rental contract and the future tenant.
Management of the property (client, tenant, authorities etc.)
Financial report of the case study:
Return on cash: 16.2 % per year, and one single partner to deal with!
Equity used: 122’000 CHF including notary fees
Cost to finance: 0.78% p.a., 2995 CHF
Condo fees: 150 CHF per month paid by the tenant
Revenue generated by rent: 1’900 x 12 = 22’800 p.y.
Ratio Revenue after cost / Equity = 19’805/ 122’000 = 16.2 % p.y. Objective of the client is achieved!!