This article describes specific examples of earnings received by investors who worked with the investment proposals selected by us:
The developer purchased 1.5 hectares of land near the ocean, in Bali in a good location of the Sanur district and created a project of a hotel complex of 200 apartments with an average of 100 m2. Having studied the cost of renting apartments of similar quality and the cost of finished objects in this location, he determined the cost of a square meter at $ 5,000 per m2.
When buying these apartments, $ 5,000 per m2, those for $ 500,000 - 100 m2, these apartments will be rented for $ 350 per day, those for 126,000 per year, and taking into account the workload of the room fund and all costs and taxes, the investor will receive a net profit of $ 78,290 per year. The annual yield will be 16% and the payback of the object will be within 6.5 years. At the same time, this calculation does not take into account the annual increase in prices by 12% and the cost of renting housing, which increases profitability.
During the design work, the developer announced a pre-sale to cover the initial construction costs and provided an exclusive price of $ 2,000 per m2. The pre-sale lasted 1 day.
The investor understood that this price was 60% lower than the market price and booked an apartment of 100 m2 at a price of $ 2,000 per m2 - for only $ 1,000.
And the next day, the price was already raised to $ 2600 per m2. Thus, during the day, the investor planned to earn $ 600 per m2, those with 100 m2 - $ 60,000.
The following week, the investor who took the apartments for pre-sale paid 30% of the cost of the apartments for $ 60,000 out of $ 200,000 (he had to pay $ 140,000) and immediately put his real estate object up for sale.
During the next week, he sold the object with a new price of $ 2,600 per m2 and received revenue of $260,000 of which he paid the balance of the payment of $ 140,000, returned $60,000 to himself, paid the balance of the payment of $ 140,000 and earned another $60,000 100% in 2 weeks.
In this case, at the Pre-Sale stage, a total of 27 objects were sold during the week. Some of the investors immediately sold the objects, and the other part left the real estate objects in order to sell the objects at the next increase or still rent out with a high yield.
The price of entry to the Pre-sale is $60,000
The yield from the sale within two weeks is 100%
Of course, this is an exceptionally rare case.
And we are proud that we managed to find such an investment object for our investors.