actiondell4 Posted May 23, 2010 Share Posted May 23, 2010 I didnt know whether to post this in the SME bUSINESS forum or this one? They seem both the same ,but anyway........ I wonder if its possible and those with business Law knowlwedge could tell me , This is only a example but I have seen a shophouse for sale in Pattaya,5 million baht is the price. Rental income is 40,000 baht a month on a 5 year lease. I would like to start a investment type company where say 10 investors invest in something like this OR a business . My question is ,is this called a Consortuium? How would you start such a Company,obviously all the 10 investors would have to put there name in the Company? Do you think its feasible idea? Link to comment Share on other sites More sharing options...
TiredTeacher Posted May 23, 2010 Share Posted May 23, 2010 (edited) I don't know if I am crazy or the business idea! Rental income = 2.4 million over 5 years (40,000 x 12 x 5). After 5 years you have zero assets (as it is only a lease). But the 5 year lease costs 5 million. I think you have just lost money from the first minute you pay for the lease! With such business skills you might have more luck putting 5 million on horse x on the 3.x at x course! Trying to get investors in this pyramid flop is a death wish in Thailand as angry people shoot with real guns! They might not be silent investors But then again... crazy things happen here that defy all logic! Edited May 23, 2010 by TiredTeacher Link to comment Share on other sites More sharing options...
actiondell4 Posted May 23, 2010 Author Share Posted May 23, 2010 I don't know if I am crazy or the business idea!Rental income = 2.4 million over 5 years (40,000 x 12 x 5). After 5 years you have zero assets (as it is only a lease). But the 5 year lease costs 5 million. I think you have just lost money from the first minute you pay for the lease! With such business skills you might have more luck putting 5 million on horse x on the 3.x at x course! Trying to get investors in this pyramid flop is a death wish in Thailand as angry people shoot with real guns! But then again... crazy things happen here that defy all logic! No,no........the investment.......is the shophouse,which derives its income from........the rent. Obviously......hopefully it would be worth more when /if ,the building,is sold. Link to comment Share on other sites More sharing options...
TiredTeacher Posted May 23, 2010 Share Posted May 23, 2010 No,no........the investment.......is the shophouse,which derives its income from........the rent.Obviously......hopefully it would be worth more when /if ,the building,is sold. So, let me try to get this straight... the shop/house will be purchased on a freehold (not a lease)? This is the asset? 5 million to buy the place? Then what is the lease that you mentioned? Or is the idea... get partners (you want them to be silent... not vocally but in the legal term of them having no voting and decision rights)... for a 5 year period... with (expected) returns of 2.4 million and the hope that after this you sell the place.... maybe you want them in for around 2 million and are planning to give the extra .4 million back to them in profit? This sounds even weirder! Something just does not add up... even with me trying to fill in the wildest possible blanks! At stage one... the very basic question is in whose name is this building being purchased? Westerners do not have the legal rights to buy anything! You can do all exotic legal arrangements to purchase but the reality is no matter what way you try... either in a company or by yourself you will not own it and a Thai person will! Maybe your lease idea is coming from the thought that a foreigner can "buy" using a lease... Link to comment Share on other sites More sharing options...
midas Posted May 23, 2010 Share Posted May 23, 2010 (edited) I don't know if I am crazy or the business idea!Rental income = 2.4 million over 5 years (40,000 x 12 x 5). After 5 years you have zero assets (as it is only a lease). But the 5 year lease costs 5 million. I think you have just lost money from the first minute you pay for the lease! With such business skills you might have more luck putting 5 million on horse x on the 3.x at x course! Trying to get investors in this pyramid flop is a death wish in Thailand as angry people shoot with real guns! But then again... crazy things happen here that defy all logic! No,no........the investment.......is the shophouse,which derives its income from........the rent. Obviously......hopefully it would be worth more when /if ,the building,is sold. errm I am not even sure if we should be taking you seriously I mean have you seen exactly how many vacant shophouses there are around pattaya? keep dreaming ! Edited May 23, 2010 by midas Link to comment Share on other sites More sharing options...
actiondell4 Posted May 23, 2010 Author Share Posted May 23, 2010 Actually i would prefer to invest in a shophouse rather than a condo for a long term investment. Jomtiem Complex would have been one that you would of had a gain had you invested there several years ago. Im sure even the shophouses around Soi Bukhow etc will go up in value in the next few years,it I would imagine and i am not a real estate agent,be better on main road positions. Im sure the Landlords earn more than the businesses that occupy their shophouse. Link to comment Share on other sites More sharing options...
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