How you buy luxurius homes!

This is a kind of startup strategy, but more for buying luxurius homes in fine places around the globe.

The idea is this:

You create an LLC structure. You find an expensive  and luxurius property in an ideal place and then you ask for a real estate agent if they can find a rental tenant for 6 months of the year for this particular property. This way you can earn money and still be able to use the property for your own desires. Free of charge. The tenant pays for the party.

Usually these kinds of luxurius homes (the ones I am talking about) cost above $1 million. A lot of money for many people on this globe.

But here is the thing: You don’t have to have the money yourself. You can either bring on board an equity investor or you borrow money and use someone elses good credit and cashflow as security. You’re choice.

An example:

You find a nice Monaco mansion for USD$10 Million. You setup an LLC structure. You contact a real estate agent specialised in luxurius homes. Tell the agent “help me find a rental tenant for 6 months of the year for this monthly amount given to you in this email”. When the agent has got someone under contract, you then contact your private banker (cultivate a contact if you haven’t yet done this). You contact your private banker and tell him you have found this incredible property i Monaco and you just have to have it.  You tell him that you have a rental tenant agreement for the first year worth this and this much (your equity). Now, you only need an investor who is either willing to put up cash money into the LLC structure (USD$10 Million that is) or give his good credit and cashflow stream as security for a bank loan (in exchange for equity in the LLC).

If the rental agreement you have secured is worth USD$ 6 Million for year one and the investor secures the USD$ 10 Million (paying for the property), then you will recieve USD$ 6 Million / (USD$ 6 million + USD$ 10 million) = 37,5% of the property. The rest is controlled by the investor.

So that could mean, depending on how you have decided to do the deal, that you will get 37,5% of the available 6 month period and the rest is for the investor to use as he see fits. 37,5% of a 6 month period is approximately 2 months of the year (mind you, free of charge. Only the trip to and from Monaco will cost you money:)). You got this for just putting different resources together. So never say you can’t have something because it cost a “hell of a lot”. Because it is not correct. You need to think in possibilities. You can have it all, but sometimes you need to share it a bit with others. If you can agree to sharing, then life will be so easy. At least financially wise. Greed is not always good. It can be detrimental to success in many cases.