Nigerian investor Sean details his acquisition of a 50-unit apartment block in Switzerland for 45 million Swiss Francs, highlighting smart financing and leveraging equity from other properties
[dropcap]N[/dropcap]igerian investor Sean has revealed a significant acquisition in the Swiss real estate market, purchasing a 50-unit block of two to four-bedroom apartments for 45 million Swiss Francs (approximately $52 million).
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The deal, which he described as a prime example of seizing opportunity, was secured from a company reportedly on the brink of financial collapse, making them eager sellers.
Sean explained that the property, independently valued by a bank at 56 million Swiss Francs, was initially offered for 50 million Swiss Francs.
Through shrewd negotiation, he managed to reduce the price to 45 million Swiss Francs. This strategic negotiation significantly reduced his personal financial outlay.
He elaborated on his financing strategy, revealing that the bank offered a loan of 42 million Swiss Francs, representing 75% of their 56 million valuation.
This meant Sean would typically have needed to provide 14 million Swiss Francs as a down payment.
However, by negotiating the purchase price down to 45 million, his required contribution was drastically reduced to just 3 million Swiss Francs.
Crucially, Sean disclosed that he did not use any cash from his own pocket for this down payment.
Instead, the bank leveraged the equity from his other existing properties to secure the 3 million Swiss Francs.
He emphasized his philosophy of leveraging assets to fund new acquisitions: “If you want to stay rich, you never pay anything. You buy yourself. I make other other people pay.”
He explained that he ensures any major purchase, like his luxury car, is paid for by profits from a previous deal.
The acquisition process has progressed to its crucial second stage – the signing of an irreversible contract of sale.
The final step, the transfer of ownership (Eigentumsübertragung) from the former company to Sean’s own company, House Function, is expected to be completed within the next few weeks. Following this, the bank will disburse its portion of the funds.
Upon the transfer of ownership, Sean’s company will be officially introduced to the current tenants by the managing agency.
He plans to hold a meeting with all tenants to inform them of the new ownership, after which he will either issue new contracts or assume the existing ones.
When asked about potential rent increases for the apartments, which currently average 2,300 to 2,500 Swiss Francs for three-bedroom units (excluding utilities), Sean cryptically stated he would “keep that for myself.”
Sean also shed light on his personal luxury acquisitions, including his “Brabus-enhanced” car, which he bought brand new for 423,000 Swiss Francs.
Consistent with his financial strategy, he stated that this purchase was also funded not from his pocket, but from profits made on another deal, ensuring he maintains liquidity for future investment opportunities.
He advocates for a strategy where he buys properties cheaper, builds equity, and then uses that equity to secure loans for subsequent investments, often avoiding direct personal taxation on these leveraged funds.
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This approach highlights his sophisticated understanding of leveraging capital and financial structures to build wealth in real estate.
Source: Read more at tvcnews.tv
Peculiar Adirika is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.
