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Finance & Stock Groups Forum Index » Stock Investments » Crisis? Where have you guys been? Do your HomeWork - Recessi
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| Author |
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| brazilrealestate1@gmail.c |
 Posted: Thu Jul 30, 2009 4:13 am |
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Guest
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OPTION ONE:
10,000 square meters land in the heart of the City of Fortaleza
(prime
high investment grade location) near many banks, restaurants,
shopping
malls and a highly saturated commercial area for an office building
project.
Price is R$30, 000,000 (or U$D 16,000,000*) + 5% property transfer
tax
and there might be slight room to negotiate.
Maximum time for approvals, licensing and building permits should not
exceed 5 months.
Risk is at 5%
30% of land is for zoning purposes and the construction ration is 2.8
– 3.2
7,000* square meters X minimum 2.8 = 19,600 square meters which can
be
sold at min R$5,000 and maximum of 6,750 per square meter depending
on
desired quality and sales rate. At a minimum gross R$98,000,000 the
construction cost would be at R$1,000 X 19,600 square meters = R
$98,000,000 – R$19,600,000
R$78,400,000 from which 40% have to be subtracted for 10% margin of
error, administration & project design & management, pre-launch to
investors for short sales of 100% to be sold in 4 – 6 months,
marketing and branding for a pre-tax total of R$47,200,000 – 10% tax
= R$42,480,000 – cost of land = R$11,000,000. This signifies a 30%
annual Return on Investment.
In 12 months or less the entire process from land acquisition to
project design, licensing and pre-launch of sales to investors should
be concluded.
Sales at R$6,500 x 1M˛ at pre-launch to investor would considerably
extend this period to anywhere from 6 – 9 months and quality would of
the project would have to be increased from a 6 point rating to at
least 8˝ which in turn would raise the cost of per square meter of
construction to R$1500.
Gross revenue for building and selling 19,600 square meters at R
$6,500
is = R$127,400,000 and the net profit in a minimum 16 to a maximum 24
month period should be R$38.000.000. This translates into a 60%
annual
Return on Investment.
Underground parking could bring more profit. Additional 4 floors of
underground parking at 3,000 square meters would have R$1,500 per
square meter cost but would only sell separately from the units for R
$5,000 = R$23,000,000 of net profit in the same period increasing the
total profit to R$61,000,000 or 100% annual Return on Investment.
Also, exercising the right to perform owner/builder direct financing
(project delivery guarantee needs to be incorporated) could bring 9%
-
10% annual interest yield for a minimum financed period of five (5)
years and maximum of twenty (15) years.
*Value is based on Friday’s Exchange Rates at the closing bell.
Please
watch the daily fluctuations of FOREX.
*The 7,000 square meters could be increased with good public
relations
with the City Hall to approx. 8,500 or possibly two towers.
OPTION TWO:
This one is a very interesting option of low-income housing for
police
officers of The State of Ceará inside of Fortaleza City right next to
the new Police Academy.
There quite a few investment groups hovering over this investment and
time is of essence.
The purchase of the land price is R$2,200,000.
Landscaping, project design and licensing = R$2,700,000 + R$2,500,000
for phase one of construction is necessary.
TOTAL = R$7,400,000
As soon as the land acquisition, project design & approval is
complete
financing by the Federal Bank Caixa Economica is guaranteed which
will render immediate sales for 100% (risk is zero 0%) to be sold in
9
months or less.
250 houses at R$52,000 = R$13,000,000
150 apartments at R$62,000 = R$9,300,000
50 houses at R$72,000 = R$3,600,000
50 houses at R$87,000 = R$4,350,000
TOTAL = R$30,250,000
Project administration (25%), management (5%), (10%) error margin 40%
R$30,250,000 – 40% = R$18,000,000 – R$9,400,000 = R$8,600,000
This should be earned in a period of twelve (12) months or less.
This translates into 100% annual Return on Investment during a one
(1)
year period.
OPTION THREE:
http://realestate.escapeartist.com/P-2012848/
This is a perfect for front beach residential//rental/retirement/
tourism development at R$8Million.
Beautiful asphalt access main road, within 30 minutes of the airport
and a highly tourist saturated area with a golf development in
construction within 6 miles up the coast.
Initial construction, project design, licensing, marketing costs R
$22,000,000
Risk is 7% - 10%.
80,000 square meters -30% zoning = 56,000 square meters for a ratio
of
3.0 construction A minimum of 150,000 square meters.
150,000 square meters to be sold at R$4,000 (sell fast high quality)
R$600Million –
150,000 square meters X R$1200 (high quality construction with
beautiful leisure areas inside the development) per square meter cost
= R$180M
R$420 Million – 50% (20% margin of error, administration, project
management, sales commissions, etc) = R$210Million – R$12,000,000 = R
$198M – 10% tax = R$179M with an initial investment of R$30,000,000
over a 4 year period amounts to an annual ROI of
125%.
If direct builder financing would be provided at a lower rate (7% -
8%) than the Brazilian markets (current minimum is 9, 75%) by
avoiding
Central Banks Regulations and re-routing this venture could mean up
to
135% annual ROI.
We deem, to the best of our knowledge, this information to be correct
and up-to-date with the current markets.
There are two other options that are very interesting. One of them is
a very reputable developer with a front beach development (60
hectares) fully licensed and ready to construct of market units sales
value of R$650Million right next to one of the few golf developments
in construction in the State of Ceará. The owner is willing to give a
30% discount to pre-launch investor purchases and when that is at 50%
completion he will launch the project to the public market 6 months
after first investment is transferred over. Meaning: 6 months or less
you earn 30%. Investment minimum is at R$25Million. The second option
is a developer struggling with a front beach development of 90units
and only 12 were pre-sold, we might be able to negotiate a 35%
discount in order to purchase the remainder of the units and
immediately put them back on the market at a regular price. The
development has little to no marketing. We can make the marketing
happen with ease, actually I would say that our product to client to
investor to buyer ration is lacking properties in our portfolio at
this time but steadily growing. The demand is much higher than the
building companies can move for any sector of the market and
especially local residential market where there is a deficit of
560,000 units. Therefore builders, construction company owners and
land + project owners of off-market opportunities request LOIs. We
have contact with all the building companies and land owners. We have
full accessory services on standby.
Here is an example of sold property:
http://realestate.escapeartist.com/P-2012849/ - We can provide some
of the negotiations papers
Other options available:
http://realestate.escapeartist.com/P-2012845/
http://realestate.escapeartist.com/P-2012930/
http://realestate.escapeartist.com/P-2011724/ - Four of the Six 1, 5
hectare lots sold (past 4 months)
http://realestate.escapeartist.com/P-2011723/ - long term, ultra high
ROIs, signed off by Jack Nicolas
http://realestate.escapeartist.com/P-2011722/
http://realestate.escapeartist.com/P-2011721/
http://realestate.escapeartist.com/P-2012919/
http://realestate.escapeartist.com/P-2013427/
References available upon request by qualified / accredited
investors.
-Thank you for your interest. Please feel free to contact us at any
time.
We would like to invite you to join us at Invest in Brazil Club and
share the wealth of knowledge in the Brazilian Markets.
Whether you are part of Facebook, Xing, LinkedIn, Skype Community or
any other networks we are sure that you will enjoy this Club!
Business guide to Brazil - Please send feedback, join us for advice,
tips, discussions and post articles/comments.
Welcome to the Invest in Brazil Club with over 1100+ loyal members
like you. Please join us at:
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This is a free, consultative business guide to Brazil, live and
frequently updated. New developments, current news and investment
opportunities are our strong point and the principle topics.
Its focus is the real estate market as well as alternative energy and
foreign trade (import/export) in the Northeast Brazil, State of
Ceara,
City of Fortaleza but we cover other parts of Brazil and other
sectors
of the market as well.
http://www.slideshare.net/InvestinBrazil/BRAZIL3PPTCOMPATIBLE-MODE-97...
Examples of properties / investments:
http://www.escapeartist.com/International_Real_Estate/Brazil/Ceara.html
We are here to build a bridge between culture, language, mentality
and
legal barriers so you could have a hassle free and painless
experience. Our “on the ground experience”, strong local
connections /
relationships, market secrets knowledge & off-market properties /
investments are your / our key to success.
Here are the types of properties and the services we offer;
Properties:
a.) Investment Excursions, Field Trips with professional
photography
and filming of your experience.
1. Front beach villas, vacation, retirement, rental and residential.
2. Front beach land for residential or development as investments.
3. Front beach resort and hotels.
4. Front beach Water Park and pousadas.
5. Pre-approved projects ready to execute with land.
6. Land for alternative energy (wind hydro and solar) and biodiesel
plantations.
7. Homes, hotels, pousadas (inns) and apartments condos in the large
coastal cities.
8. Luxury properties.
9. Farm land.
10. Land for sustainable forestation.
11. Commercial space, land for commercial buildings, commercial
buildings, shopping malls.
12. Wind power projects with land or land for wind power stations.
13. Biodiesel farm plantation and/or land for such to implement.
14. Mineral ore mines.
15. Sugar Refinery Mills.
16. Ethanol Refinery.
17. Private Islands
We also provide full A-Z accessory services for investors, and buyers
such as:
A.) Personal Investment & Sightseeing Excursions with
professional
photography and filming.
1.) Land acquisition, architectural development and approvals.
2.) Complete construction cost calculations and analysis,
construction, engineering, and building permit.
3.) Sales & Marketing Strategy.
4.) Resale
5.) CPF cards and Permanent Residence Program.
6.) Tax consulting, accounting, and lawyers & attorneys.
7.) Governmental Contacts & Elite Society local contacts.
8.) Pre- Launch to investors & strategy.
9.) Exit Strategy.
10.) Relocation Services.
11.) Due Diligence, complete analysis of legal documents such as
titles and deeds.
12.) Title Insurance.
13.) Opportunities for joint ventures with other investors.
14.) Financial transactions and strategy.
15.) Off Market Opportunities.
16.) Market Research, Due Diligence, Feasibility Studies
17.) Product Sourcing for Export
18.) Wealth Management
19.) Asset Protection
20.) Full Tax-Haven Services
Warmest Regards from The Land of the Sun,
A Chicagoan in Northeast Brazil,
Mr. Martin Gajewski Jr.
http://www.facebook.com/people/Martin-Gajewski-Jr/766958653
http://www.linkedin.com/pub/martin-gajewski-junior/2/4b5/380
http://www.orkut.com.br/Main#Profile.aspx?uid=4754384024518625082&pcy...
Offshore Investment Consultant &
Glenda B. M. Chagas
http://www.xing.com/profile/Glenda_Chagas
Comes from a Family Real Estate tradition of 25+ years.
International Property Broker
brazilrealestate user name on skype
free pc-pc global telephone system
download at www.skype.com
jazmartin@gmail.com
brazilrealestate@hotmail.com
fortalezarealestate@gmail.com
55-85-8811-0900
55-85-3264-8155
1-708-354-9688 |
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