Context
The client, a private investor, approached us with a clear intention: to start systematically purchasing apartments in Prague. They expected us to provide full legal support, as well as assistance in navigating the market and financial structuring.
Objectives
- Conduct research into the Prague real estate market.
- Provide legal support, including reviewing and preparing contracts.
- Conduct due diligence on real estate properties (legal, technical and investment reviews).
- Ensure the security of transactions, including escrow services.
- Help clients to find suitable financial instruments that maximise their budget.
Legal and financial approach
- We assessed the real estate market and helped the client identify locations and types of properties offering the best price/income/risk ratio.
- We prepared a complete set of contracts, including reservation agreements, preliminary agreements, purchase and sale agreements, storage agreements and protocols.
- Due diligence was conducted for each property, including verification of ownership rights, encumbrances, technical condition, operating costs and lease relationships.
- We provided escrow services and payment control.
In terms of financing, we assessed the client’s solvency and proposed a combination of bank loans, collateral and bridge financing. This enabled us to purchase real estate worth twice the initial capital.
Key point
The most important aspect was establishing an optimal financing structure. The client had planned to invest CZK 50 million, but thanks to a clever combination of financial instruments, we were able to complete transactions worth CZK 110 million while maintaining liquidity and controlling risks.
Another significant complication was that the client was not a Czech resident, which complicated the financing and identity verification process for escrow and compliance requirements considerably. However, thanks to our international experience and close collaboration with banks and lawyers, we were able to overcome this obstacle.
Another significant complication was that the client was not a Czech resident, which complicated the financing and identity verification process for escrow and compliance requirements considerably. However, thanks to our international experience and close collaboration with banks and lawyers, we were able to overcome this obstacle.
Result
- The client effectively invested their budget and achieved asset growth of over 100%.
- Real estate was purchased in various areas of Prague for a total of CZK 110 million.
- All transactions were legally and financially secure.
- The client received stable assets and gained experience for future investments.
“I was expecting real estate services, but NAWI helped me build a comprehensive investment structure. I turned 50 million into 110 million. Thank you!’
Legal and consulting areas
- Real estate law and contractual documentation
- Escrow and transaction security
- Real estate due diligence
- Investment consulting and purchase financing
Keywords
#investments #realestate #Prague #financing #realestatemarket #duediligence #escrow #NAWI #non-resident
