Land plot with signed buyout (Interest paid from June)

 Buy to let then flip
Tallinn, Estonia

KEY FACTS:

  • Existing cash flow with a 8,52% gross yield and 6,02% net rental yield from existing long-term rental contracts.

  • There are 5 tenants from existing long-term contracts which are equally paying 20% of the rent each 

  • Preliminary agreement is signed with a local developer to sell the property for 260,000 EUR within 24 months. The existing agreement promises an 13% Capital Growth.

  • 10% reservation fee (deposit) from the buyer is already paid to secure the sale of the property in the future.

  • Huge development potential for this property

  • Interest yield from rent is paid out each month. The other part of interest will be paid out at the completion of the project

 

Given property is located in Mustamäe district, Tallinn, Estonia. The main value of this property is the spacious land plot that has a great potential for new development. The land also includes industrial warehouse that is rented out with long-term contracts to 5 different tenants.

Mustamäe is well connected with the city center, which is only 6,5 km away from our property. Estonia’s largest Technical University (TTU) is located nearby, attracting students and scholars on a daily basis. Properties in the area promise great capital growth in the coming years.

Furthermore, the area is also well-known for it´s Tehnopol science and business centre, Universities, as well as trade outlets and community services. The industrial part of the area is also evolving rapidly with a large number of production and warehouse buildings in the immediate vicinity.

Planned expansions of Tallinn Technical University and its Institute of Cybernetics, as well as an expansion of the nearby Technopol and science park will make this area one of the most sought-after technological and industrial hubs in Tallinn in the near future. The Mustamäe district administration of Tallinn has confirmed building the extension of Vinkli street up until Kadaka street, making this property logistically much more approachable and valuable in the future.

Investing in this area of Tallinn right now is a wise move considering all the planned developments.

Project provided by:

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The property for investment with the address Vinkli 10, Tallinn, Estonia - is a plot of land including industrial warehouse. Located in the up-and-coming district of Mustamäe, the 3818 m2 plot with its warehouse provides immediate cash flow with a 6,02% net rental yield from existing rental contracts with long-term tenants.

This property’s acquisition price, including all costs, is 230,080 EUR. Investors will enjoy passive income from day one until the last day when property is sold to the developer for a good profit. We have signed a preliminary sell agreement with a local developer to sell the property for 260,000 EUR within 24 months from our initial purchase and received a deposit of 10%.

Our investment strategy includes purchasing the land and keeping the existing warehouse tenants, until the developer finalizes started transaction of purchasing the property as stated in the preliminary agreement. A 10% reservation fee (deposit) from the buyer will be held by Reinvest24 to secure the deal. The existing agreement promises a 13% Capital Growth.

The funding total includes:

  • Property purchase price 228,000€

  • SPV, collateral agent and notary fee 2,080€

Status
Done
229 772 € (99.87%)
230 080 €
Term: 24 months
Interest payment schedule: Part monthly and another part at the completion
12.53%
Annual yield
-
LTV
First
Mortgage rank