Alternative Models in Practice

This module is based on chapter 9, “Alternative Models in Practice”, from “Capital Structure Intelligence”. The Investor-Tenant Model In reality, there are many people who want to buy a property – but currently cannot. Reasons include, for example: – not creditworthy – too little equity – poor financing conditions But this is exactly where a great opportunity arises. Because instead of saying, "It’s not possible," you can change the structure. 9.1 Basic idea of the model Simple explanation A company (e.g. your real estate GmbH) buys the property. The person who actually wanted to buy moves in as a tenant. But: He is not a normal tenant. He simultaneously becomes: – user – capital provider – future buyer Why this is important This model solves a real problem: The buyer cannot buy → but can still get started And you as an investor: – generate revenue – build wealth – structure a deal 2. Wrong assumption (common mistake) “I just pay rent and later everything will be credited to me.” Why is that w...