Acquisition charges are paid on the overall deal measurement, as opposed to fairness invested. That is a big difference because a 1% acquisition price on a $30 million property comes out to $300,000. Most properties are usually leveraged utilizing two-thirds debt, so the required equity may only be $10 million, that means that $300,000 charge equates to a 3% value of fairness invested.

Any good exit plan begins with stress-testing the deal at purchase. There are various factors in stress-testing a deal however here are just a few to consider: 1. By no means run out of money, so plan accordingly; 2. Improve the vacancy to at least 25% in the course of hold and confirm that the bills can still be paid; 3. Improve the exit cap fee by not less than 10 foundation factors per yr of hold. - Chris Roberts, villa for rent limassol Sterling Rhino Capital

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