Unlocking An Ideal
Real Estate Investment Opportunity
IMOINVEST International Real Estate
PARIS - LONDON - GENEVA - SOFIA - TALLINN
Table of Contents
!About Gregory Lu and IMOINVEST
!What is a Leaseback ?
!Why Invest in Leaseback ?
!History of Leaseback
!How the Leaseback Works
!Understanding Your Investor Type
!Understanding Real Estate Investment
Gregory Lu and IMOINVEST
! Received business law ! Returned to France and
and accounting degrees rediscovered the Leaseback.
in France. Used my experience with
external and personal
! Moved to the US to companies to launch
perfect English and IMOINVEST International
obtained mortgage and Real Estate.
real estate broker licence.
! Growing quickly, we now
! Moved to Estonia, have headquarters in France,
worked for pension and UK, Estonia, Switzerland,
real estate funds to and Bulgaria (soon to open
establish a Baltic real in USA and Canada); as
estate portfolio (Estonia, well as exclusive reps in
Latvia, Russia). Dubai, Netherlands, Ireland,
Italy, and Thailand.
What Is A Leaseback ?
It’s as Easy as One and Two :
1. Purchase a residential property in an accredited
2. Lease it for a period of minimum 9 years to a
management company, giving the right to the
management company (your tenant) to rent it short
term for its own profit.
The Leaseback Offers:
! Guaranteed Rental Income
! Carefree Rentals
! Carefree Ownership
! Tax Free Investment
! Tax Advantage
! VAT Discount
Why Invest In Leaseback ?
• Low risk French real estate investment
• Add the Euro zone to your portfolio
• Guaranteed returns of 4.5% to 6% net annually
• Can be leveraged to create impressive potential
returns with minimum downside exposure.
History of the Leaseback
!Created by the French government about 25 years ago,
the Leaseback was implanted to facilitate the
development of tourist accommodations.
!In order to attract investors, the French government
offered tax incentives associated with the purchase of a
" Refund of the VAT (19.6%) of the property price
" Non-Taxable rental income produced by your
" Non-Taxable capital gain (larger investors)
!Creating a unique alternative, the Leaseback apart hotel
entices the visitor with a full range of hotel services and
the comfort of a real home, as well as affordable
vacation destinations that allow the visitor to live as a
How The Leaseback Works
1. You buy a property in France, in an accredited building,
called a « residence de service ».
2. You leverage your investment by financing the property via
French Banks at 70%, 20 years, 4.5%. (30% down+5%
3. You lease your property to a selected management company.
4. The minimum contract of the rent is 9 years, at a fixed rate
usually from 4% to 6% net (increasing with inflation).
5. After 6 months, you receive a refund of the 19.6% VAT
discount on the property price from the tax administration.
6. The tax administration allows you to amortize the property,
if you registered yourself in a special tax status, giving you a
non taxable rental income for about 15 years in France.
7. For investors above €500000, if you keep your property for
more than 5 years, you will not be taxable on capital gain in
The Benefits :
• Guaranteed Returns
• Tax Incentives
• Leveraged Investment
• Rental Management
• Highly Desirable Locations
• Timing of Cash Flow
• Automatic Renewal
• Currency Risk : Diversification into the Euro
• Usage Weeks vs. Discounted Usage
!Available from some banks up to 80% of list price
(price including VAT)
!Typical first year cash flow of between 55% and
75% of cash price depending on interest rates
!Down payment : 5% to 45% of purchase
!Transfer tax and notary fees : 5% to 7%
!Mortgage fee : up to 1% of the mortgage
!Price start at $90,000
!Minimum Cash $10,000
• Sell during the initial 9
• Sell after renegotiating a
• Sell after owning the
property at least 15 years
• $119,600 property = $100,000 cash price
• Finance 70% of list price = $83,720 or 83.72% of the cash
price (after VAT discount)
• Cash needed at closing = $35,880
• VAT refund = $19,600
• Real cash invested = $16,280
• Rental income year 1 (5.5%) = $5,500
• Interest on mortgage 4.5% = $4,500
• Property expected growth (5%) = $5,000
• Return on cash invested = 37%
• HIGHER LEVERAGE AND VAT ADVANCE
AVAILABLE ON SOME PROPERTIES
Identifying Your Investor Type
The Goal :
Understand your Investor “Type” to clearly explain your needs
and find the property that best fits your criteria.
! Budget and Financibility
! Area Preference
! Focus : Rental Income
! Focus : Capital Growth
! Focus : Vacation Usage
! Focus : Personal Ownership
Understanding Real Estate Investment
The Goal :
Understanding what’s out there, what’s right for you,
and what to do once you find it.
! Choosing the Ideal Region and Location
! Choosing the Ideal Locality and Development
! Choosing the Right Flat
! Be Logical
! Ask for Help
! Be Decisive
INVEST IN YOUR PEACE OF MIND : IMOINVEST INTERNATIONAL
The #1 Real Estate Investment Brokerage and Leaseback Specialist
A FULL SERVICE COMPANY BY YOUR SIDE THROUGHOUT THE INVESTMENT
• LEASEBACK / INVESTMENT PROPERTY SPECIALIST
• FINANCIAL SERVICES
• CURRENCY EXCHANGE
• PROPERTY SEARCH
• INTERNATIONAL PROPERTY RESALE SERVICES
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