Tcsh Development
By: David • Essay • 685 Words • May 22, 2010 • 1,046 Views
Tcsh Development
TCSH Development Company
Welcome to TCSH (Tied Commercial Secure Household) development company. My objectives for this business are to tie in a group of investors to invest in a 10 million dollar property, to have this company prosper with a good cash flow as well as have enough investors to begin this business with. Are you interested in making a large profit in your investment? Do you want to be guaranteed a solid profit at an annual return? Well, my company is here to offer you as an investor, 3 phenomenal deals. 1. 25% return on investment annually. 2. 1/10 ownership of the commercial property that is completely under your control. 3. Tax deferral, which gives you the right as tenant in common to not pay tax in case you decided to invest in something else other than real estate. In other words, your tax is delayed. The people in charge of this business is the principal of my company in this case, myself. I will be working as a manager and developer for the commercial property. A positive aspect from a sole proprietorship is that one person making all the decisions would not result in disagreement, confusion, or even a fight, leading to a healthy, stable environment for the business as well as for the employees..
Now how much will you be investing? Since this is a 10 million dollar project, you will be investing a million dollar as 1 of the 10 investors (10 investors x 1 million dollar= 10 million dollar). With these investor funds, I will be able to purchase the property and lease it to tenants (ex. Starbucks, Cosco, Fries). Investors, employees, and a market analyst are the human resources I will need to begin this business. The employees will involve various people such as plumbers, electricians, carpenters, to construction workers who will all be working under my company. The market analyst will find out what area of a land we should invest in and develop on. To start this business, it will cost us 10 million dollar. Lots will be leased to 4 tenants at $1.50 per sq ft to big companies such as cosco, starbucks, fries, the jungle, etc. The remaining lots will be leased to 12 additional tenants at $2.00 per sq ft to small businesses such as Mike’s Toy Store, Eyeware, etc. Assuming 110,000 sq ft at $1.50 are bought by big enterprises, and 48,000 sq ft at $2.00 are bought under small establishments, (110,000 sq ft x $1.50 + 48,000 sq ft x $2.00= $165,000