Case Study
Securing a Profitable Investment Property Through an American LLC
Navigating challenges with budget, flood risks, and international ownership, with expert guidance and a focused search, securing the perfect property and ensuring a smooth, confident transaction.
Challenges
Since the Japanese yen is weak, this client wanted to purchase Japanese real estate to manage their assets. Given the tight budget and specific conditions, it was challenging to find properties that matched the requirements on the market. Additionally, the client wanted to use an American LLC to purchase Japanese real estate.
Solutions
With clear criteria, we focused on Tokyo’s 23 wards and began searching for properties. Although we found properties that met the criteria across a wide area, we narrowed down the search due to the higher flood risk on the eastern side of Tokyo compared to the west, narrowing our search exclusively to the western side.
Regarding Japanese real estate, I explained that purchasing through a foreign corporation is feasible, and based on our experience with international clients, purchasing with an American LLC is not an issue. I provided detailed and clear explanations about corporate tax implications in Japan and the purchase process when buying through an American LLC, ensuring the client understood that purchasing with an LLC was indeed possible.
Afterwards, we began a detailed property search, sharing the property list via Google Docs and uploading property plans. We focused on narrowing down preferred properties. Because of the strict conditions, suitable properties were not readily available on the market, so I checked the database daily and continued to introduce newly listed properties.
Results
We were able to find a property in Setagaya Ward that perfectly matched the client’s criteria. The real estate transaction was completed using electronic signatures, allowing the client to finalize the contract without coming to Japan. The closing process was completed smoothly with a judicial scrivener.
Since it was an investment property, it was necessary to consider not only the area, budget, and size but also rental demand. Fortunately, our affiliated company, Axios Management, conducted research and provided advice on the rental market, ensuring that the client was confident and able to purchase a wonderful property that met all his criteria.
Contact Keiko
Whether you’re buying, selling, or investing, our team is ready to assist you. Contact us to get started on your real estate journey and discover how we can be your trusted partner in the property market.
