Investment Portfolio

How and where to invest money profitably in the Latvian market?

Recently, KOM-INVEST has been receiving an increasing number of requests from clients asking to select and implement investment projects in Latvia. Of course, such clients have many questions - what are the most common projects; how are projects selected; is it possible to conduct legal and technical assessment of projects; is it possible to obtain tax consulting; is it possible to receive assistance in organizing and implementing projects.

KOM-INVEST will provide clients with the following services:

• Consultations on the structure of an investment portfolio. For example - purchase of residential or commercial real estate, purchase of one or several properties, purchase of properties in one building or properties in different buildings.

• Consultations on investment objectives. For example - rental with stable income or purchase of a property at a low price with a view to subsequent resale.

• Consultations on the method of purchasing investment properties. For example - purchase with your own funds or purchase with credit using bank financing.

• Preparation of a report on estimated income and expenses.

• Selection and viewing of commercial properties and buildings for reconstruction, residential buildings. Including commercial properties that can be quickly and profitably rented out. Properties of this kind are not always listed on the website, but are selected only on an individual request basis.

• We will assist you in participating in auctions for the purchase of real estate.

• Legal support for real estate transactions.

• Subsequent management of the investment portfolio. For example - rental, assistance in organizing repair or construction work, assistance in resale.

• Accounting support. For example - accounting records of income and expenses related to the investment portfolio, filing of tax returns.

A new investment product from KOM-INVEST

In the opinion of KOM-INVEST, the most popular real estate investment projects can be divided into the following categories.

• Purchase of a certain number of apartments and renting them out: the simplest and safest investment option. Proper selection of apartments can provide a high return of up to 10% per year after deducting expenses and taxes.

• Purchase of a commercial property and renting it out: a stable and long-term investment option. Usually, the return from renting out retail space, offices and other commercial properties provides a return of up to 7% per year after deducting expenses and taxes.

• Purchase of an old building, its reconstruction, and sale by apartments: an effective investment option. The average implementation period for such projects is from one to five years. Proper selection of the property can provide a return of up to 20% after deducting expenses and taxes.

The essence of such projects is the purchase of an old building (usually historic apartment buildings; administrative buildings of Soviet construction; industrial facilities of Soviet construction), its reconstruction into a modern residential apartment building of economy or business class (depending on the project concept and project location), and sale by apartments.

• Purchase of a land plot, construction of a new project, and sale by apartments: the longest investment option. The essence of such projects is the purchase of a land plot; approval or clarification of the construction project; construction; sale by apartments. With proper project implementation, returns of up to 30% are possible after deducting expenses and taxes.

KOM-INVEST draws the attention of long-term investors to the fact that the most profitable investment project at present is the purchase of an old building, its reconstruction and renting out apartments. The rental market is very active, and the rental market lacks quality, well-maintained apartments with thoughtful layouts and good building locations.

Therefore, the creation of such an "income-producing building" is an option for stable, long-term investments.

Project selection - an important and responsible stage

For example, a client contacts KOM-INVEST who wishes to implement one of the aforementioned investment options.

• Upon receiving such a request, the selection of an investment property is performed. A KOM-INVEST specialist selects a property from the company's database; from the database of partner companies; from open sources; from the database of banking companies that own real estate. Thanks to the large number of property sources, there is no situation where properties are ignored and not offered to the client for any subjective reasons.

• Taking into account KOM-INVEST's extensive experience and the large number of transactions completed, properties are offered only from sellers with a good reputation.

• After selecting one or more investment properties, a KOM-INVEST specialist checks the legal status of the property (properties) and performs the necessary calculations. For example, if a property is being rented out, or a property is planned to be rented out - what will the rental rate be, what will the expenses and tax payments be; if reconstruction is planned - what will the construction expenses be, what will be the possible price for selling apartments, what will be the project expenses and income from the project implementation.

• Next, the information is summarized, a report describing the project is compiled, and the report is sent to the client.

Legal and technical assessment of projects

After receiving initial information (a report with information about the project or projects), the client can evaluate whether the project meets their requirements.

If the project meets the requirements, an in-depth study of the project is possible. There are 2 most common methods of studying and checking a property that must be applied comprehensively.

• The first method is legal expertise of the project. It is possible to obtain an independent legal expertise where all legal aspects related to project implementation will be checked.
• The second method is technical expertise. It is possible to engage a construction specialist (architect, construction engineer) who will assess the technical condition of the property; check all construction-related parameters; evaluate the feasibility of implementing the project concept.

Tax consultations

To optimize returns from project implementation, proper management of cash flows (income and expenses) is required. KOM-INVEST cooperates with accounting companies that can provide investors with tax consultations and accounting support for the project.

Assistance in project implementation

KOM-INVEST offers to perform the functions of a project manager. This includes selecting an investment project; evaluating its prospects; assisting in organizing legal and technical expertise; assisting in implementing an investment project.

• For example, if reconstruction of an old building (or construction of a new building) is planned, KOM-INVEST can offer experienced construction specialists with whom we have years of successful cooperation experience, who can perform construction supervision functions, can organize a competitive bidding for construction work, monitor the quality of construction work, etc.

• If after reconstruction of an old building (or construction of a new building) the sale by apartments is planned, KOM-INVEST is ready to carry out the necessary marketing activities, organize the sale of apartments, and provide legal support for the transactions.

Thus, by contacting KOM-INVEST, an investor will receive consultations, obtain information about properties, and receive assistance in implementing the project. Experience, complete confidentiality and respect for your money are additional arguments in favor of KOM-INVEST.