Real Estate, Apartments Construction in Kampala,Uganda
by Kato Mawesano Andrew
A. Company Information
The Realtor (U) Limited was formed in July 2011 to invest in distressed properties that require rehabbing for retail or rental. The investment in distressed properties will be in Kampala City and surrounding suburbs. The Realtor (U) Limited is solely owned and managed by Andrew Kato Mawesano. Realtor (U) Limited is located at Quality Mall, Plot 6783 Lubowa, Entebbe Road.
B. Company Objective
The Realtor (U) Limited purchases residential real estate in Kampala City and neighboring suburbs. We target properties that can be acquired at 70% or below of the current fair market value after repairs. These properties generally need moderate to major renovations to go into the retail or rental market. The resale value of the properties after repair ranges from $75,000 to $150,000. While our main objective is to make a minimum of 15% profit based on the After Repair Fair Market Value on each deal, we are also aware of our responsibility to the communities we do business in, and our role in the betterment of these communities. Therefore, we always make every effort to provide products that are of good quality and will blend in well with the neighborhood.
C. Company Summary
The Realtor (U) Limited invests in residential and commercial real estate by purchasing distressed properties below 70% of fair market value. Our strategy is based solely on making sure the profit is made going in and not on speculative appreciation months or years down the road.
Our profit margin over the past year has been on the lower end of our target but volume has been higher. This is to be expected in the early stages of the business cycle. As the business matures we foresee reducing the number of transactions and increasing the profit margin. As we develop our business we have put in place a solid group of people with defined roles that will ensure our success such as Realtors, settlement attorneys, contractors, and bankers. As with any business we will continually evaluate each member’s role and contribution and make necessary changes.
D. Start-up Summary
The Realtor (U) Limited will receive initial funding from its principal in the form of capital contribution and short-term loans. The start-up expenses will be approximately $10,000. These expenses are related to legal services, stationary, equipment and working capital.
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