Project Cost: RM1m
Amount Invested : RM150k
Amount Required : TBA
Knowledge / Experience Required:
Proposed Investor’s Role: others (Non-Executive Director)
Project Stage: start-up
I am in my fifties, happy,hungry and free from any burden after my daughter’s graduation. After leaving my paid job I have learned the smart way to invest in properties.
Product / Service Description:
Buying a residential or commercial property and rent it to trustworthy tenants. Real estate investing isn’t for everybody, but it’s an industry that has attracted many successful and unsuccessful people. Experience and timing is the key only surety to success. One of the reasons I like about real estate is that it is a tangible assets. You buy the bricks, the lands, the dirt, the fixtures. The basic strategy is to cover the monthly repayment while waiting for its value to appreciate.
Auction property is the one of the challenges because of complication of the property. Limited inside view and have to rely on neighbors and assumption to cap repair works. Potentially auction properties have a higher degree of making more money as they are 20% marked down the least, however, the risk is there if abandon property.
The total value of residential property transactions rose by 6.3% to MYR72.06 billion (US$22.4 billion) in 2013 from a year earlier, according to JPPH. After the Asian crisis, Kuala Lumpur′s house prices since then have significantly outperformed the rest of the country, especially after the economic downturn of 2008-2009, when the property market was revitalized with the help of the Greater Kuala Lumpur Plan, targeting developing key locations, including the latest “The MRT Project”.
Revenue will come from the rental collected monthly and property capital gain over time.
I elect myself as a CEO to be the person overseeing the business and elect a non-executive director for the purpose of signatory.
There will come a time when I cannot cope then I’ll hire a assistant to manage the properties.
The CEO will have the final say of the any company’s decisions.
Up to date I owned 3 properties, 2 apartments and 1 landed property. Based on the current estimated valuation of RM600k+ compared with RM280k actual purchase price, a significant 114% capital appreciation.
Actually depending on the investors’ budget on how much they are willing to fund, however, I would propose to start with RM1m for the first year first round funding. Once positive results shown 2nd round of funding will be required. Hopefully it can be done on a yearly basis of funding.
50% equity allocation to investors for full funding. I always feel both founder and investors are important people with respect, their funds and my efforts and wealth should be equally shared.
Expected Return On Investment:
The expected rate is minimum 30% of capital appreciation for by 3 years time.
Investment Risk and Mitigation:
The risk of loosing is relatively low if proper strategies are applied and met in acquiring properties. However some loss of income are unavoidable when properties are vacant and repairs, however, these losses can be managed and reduced to the minimum.
The exit point is after 5 years as RPGT is at lowest 5%. Either dispose or maintain depends on the performance of the properties. Good performance properties will be maintained for another 5 years for better capital gain.
BENNY TANG KEN SANG ( email@example.com)
Company Name: FTI INTERACTIVE
Postal Address :
State : MELAKA
Post Code : 75450
Country : Malaysia