Investment Schemes
Investment schemes represent basic areas with different risks and returns from which the Investor should choose
Expected Return on Investment
The return is defined as the valuation of the investment over the duration of the project as a percentage multiple of the originally invested amount. In the scoring, it is subsequently possible to find the often expected EBITDA of the project.
Duration of the Project
The duration of the project represents the duration from the investment in the project to the realization of the return.
Risk of Time Mismatch
Here it represents the textual and point value of the deviation of the project from the expected timeline in the scoring.
Exit Strategy
It represents the risks associated with the impossibility of selling off the purchased project in the unfinished phase and realising the profits at least to cover the basic investment. Listed here in the text in point scoring ratings.
Failure to Achieve Yield
The point-evaluated risk that there will be a reduction in purchase prices or an increase in input prices (materials, work) – here evaluated verbally, in the scoring by points.
A – Build to Sell
New Construction
A1 – The project has a building permit
> Usual return 15% to 60%
> Realization usually 0.8 – 3 years
> Small risk of time mismatch
> Exit strategy usually functional
> Medium risk of yield deviation
A2 – The project has a zoning decision
> Usual yield 40 – 80%
> Implementation usually 2 – 4 years
> Medium risk of time mismatch
> Exit strategy usually functional
> Medium risk of yield deviation
A3/A4 – Project without any permission
> Usual return 60% to 140%
> Realization usually 3 – 6 years
> Higher risk of time mismatch
> Exit strategy usually functional
> Higher risk of yield deviation
B – Build to Sell
Reconstuction
B1 – The project has a building permit
> Usual return 15% to 50%
> Implementation usually 0.8 – 2 years
> Small risk of time mismatch
> Exit strategy very functional
> Low risk of yield deviation
B2 – The project has a zoning decision
> Usual return 40% to 70%
> Realization usually 1 – 4 years
> Medium risk of time mismatch
> Exit strategy very functional
> Medium risk of yield deviation
B3/B4 – Project without any permission
> Usual return 40% to 90%
> Implementation usually 2 – 5 years
> Higher risk of time mismatch
> Exit strategy usually functional
> Higher risk of yield deviation
C – Build to Rent
New Construction & Reconstruction
C2 – The project has a building
permit
> Usual return 5-9% p.a.
> Implementation usually 0.8 – 2 years
> Small risk of time mismatch
> Exit strategy very functional
> Low risk of yield deviation
C3 – The project has a zoning decision
> Usual return 7 – 10% p.a.
> Implementation usually 1 – 4 years
> Medium risk of time mismatch
> Exit strategy very functional
> Medium risk of yield deviation
C4/C5 – Project without any permission
> Usual return 7 – 20% p.a.
> Implementation usually 2 – 5 years
> Higher risk of time mismatch
> Exit strategy usually functional
> Higher risk of yield deviation
C1 – Buy to Rent
Property Acquisition
C1 – The project is built and has all permits for operation
> Usual return 4-9% p.a.
> Implementation usually 6 months
> There is no risk of time mismatch
> Exit strategy very functional
> Low risk of yield deviation
Atypical Aqusitions
D – Industrial Firms
Construction of Industrial Complexes
Aqusitions of industrial complexes are counted individualy
In most cases, the return on investment is evaluated in a way that it should be in the range of 15-30% per year.
E – Atypical Investments
Investments Outside of the Standard Schemes
Solved individually if the investor is interested in investments outside of standard methodologies and standard investment schemes.