A Property Empire for $45,000

19-Sep-2011

I like this.

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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.







By Adrian Leeds, International Living,

This is a true story.

I was lucky, not smart, when I bought my first Paris apartment, but it was still the smartest thing I ever did. I simply didn’t want to move from my 17th-century pied-à-terre in Le Marais district when the owners wanted to sell.

With a bank willing to give me a 20-year mortgage, I bought it in the year 2000 when property prices were at a low, but on the rise, investing $45,000 as a down payment. The variable rate loan I got proved to be a sweet deal—the monthly payments were the same as the rent had been, and they haven’t risen after all these years. Only the term of the loan goes up or down when rates fluctuate.

Within a few years, the value on properties in the district had almost doubled, so the bank agreed to issue an “equity release” (second mortgage). It funded the purchase of two additional properties in Paris. Those two small apartments were renovated and furnished for luxury vacation rental—the way to earn the most amount of income.

Meanwhile, all the properties went on increasing in value as the Paris property market continued its rise. The rental income successfully covered all the mortgages…and even left a profit. When the euro-to-dollar value was $1.50 in 2007, the same lender gladly issued another equity release loan, enough in euros to purchase an apartment in Manhattan where my daughter had taken up residence.

In the last year, property in Paris rose almost 23%. The Le Marais historical district where I bought my first apartment has shown particular strength—it’s well located in the center of the city and has appeal to both tourists and foreign investors.

I’m now in the process of purchasing a fifth property—an apartment in Nice on the Riviera. It’s paid for with another loan of 100% based on the increase in value of the other properties. I plan to rent it out as a vacation apartment so the income it makes will cover the new mortgage.

It’s like playing a game of Monopoly and collecting a portfolio of properties, but as I said in the beginning, this is a true story. The properties are currently valued at a total close to $3.5 million, all based on an initial investment of $45,000. That’s a return of investment almost 78 times the initial out-of-pocket expense.

The purchase of that first apartment was more than just a good investment and a great place to live—it was the first step on the road to building a business. Today, my team and I have helped hundreds of other people do the same—find financing, invest in high quality French property and generate rental revenue. It changed my life, provided security for my future and in addition, it’s been greatly rewarding assisting others in doing the same.

It started out as pure luck, but it was the smartest luck I ever had.


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