00:00:00: The total land involved from what I saw is just under two square kilometers, right?

00:00:07: thousand seven hundred square meters something like that and five structures

00:00:13: That were all

00:00:14: built.

00:00:15: I believe between twenty to thirty years ago

00:00:17: Right!

00:00:17: That's right.

00:00:18: yeah the one of the homes was building i think in ninety-nine And the other was build into early two thousands.

00:00:26: So sort of one after the other.

00:00:28: yep

00:00:30: Okay, and you've purchased it thinking to do with that what?

00:00:34: because thats a bit more than holiday home or single family homes net.

00:00:54: So, Emile is an Australian.

00:01:15: He's been living here in Japan for over two decades now and for about half of that time he has been buying selling and managing real estate properties... ...in Tokyo on behalf his own family and the great many happy clients And also acts as a mortgage broker on behalf of this client.

00:01:29: so he got dedicated loan officers.. ..and many Japanese megabanks.

00:01:34: And if you're a regular listener of the podcast, You probably already know him from our JREP The Japan Real Estate Experts Panel Sessions.

00:01:41: Which means that your all ready aware of fact That the man is an absolute fountain Of wisdom on all things related to real estate in japan and In particular to family homes ,the greater Tokyo metropolitan area and mortgages.

00:01:55: Most importantly he's incredibly generous with his time and advice which Is more than happy To provide at no cost or commitment to anyone asking.

00:02:02: So If u've been thinking about buying your home in Tokyo but you've been sitting on the fence for a while or All

00:02:20: right, so for today's episode we've recently been contacted by a longtime listener of the podcast who has also attended some of our summit events both online and in person.

00:02:29: And he's got very interesting property that they'd like to sell!

00:02:32: He'll explain why their selling this conversation you hear at the moment... to set up either a hospitality business, corporate or artist retreat type operation.

00:02:54: Anything more creative whether for pure income Or as part of the Business Manager visa application.

00:03:00: However unlike The much larger and robust Nagano property This one is cheaper More compact Although it still comes with five structures Including two single family homes One which Is an American style country house That was actually imported here from US As well as A fully operational cafe And restaurant.

00:03:17: It's also far more central and accessible, located in Ciba Prefecture near a golf course.

00:03:22: And the world famous Olympic surfing spot, Ichinomiya Beach.

00:03:27: it does not require that kind of TLC that the Nagano Hotel complex does its literally ready to go barring the application for short term stay license if one is required which has already been researched.

00:03:39: It also has on-sense style bathrooms, although as opposed to the Nagano property it's not an actual natural hot spring water supply but rather well water and with communal spaces that land themselves a corporate or artist retreat setup.

00:03:53: staff quarters or event spaces and a hormesis, hermetic therapy room which if you're ignorant like I was is the specialized wellness spa or clinical room designed to expose the body to safe low-level stressors.

00:04:07: Like trace radiation from radon gas extreme heat or cold.

00:04:12: Hermosis Room is quite popular in health and wellness circles apparently... ...and costs about five million yen to set up If You Were To Set It Up Independently.

00:04:20: The property also has a large basement storage area, which again would be very interesting for those potential commercial uses.

00:04:27: And even more interestingly the seller is actually willing to consider an owner financing arrangement For the right buyer and they will let them pay for the property via monthly installments at an interest rate of about six percent and up to fifteen years.

00:04:41: so Very interesting property, once more if you are tuning in via the podcast.

00:04:46: You might want to click on the video version and this episode show notes instead where we'll also showcase some of the photos and other info we have on it but then the show notes will also have the full write up and listing summarizing everything that's about here.

00:04:58: so have a listen for our conversation with Rob The Seller And I'll see again on the other side.

00:05:03: Okay, so Rob I know your face.

00:05:06: I haven't met Chica yet.

00:05:07: This is the first time i'm seeing her.

00:05:09: So you're a regular attendee at our summits right?

00:05:14: I've seen it couple of times there already.

00:05:16: Yeah we went to The Last Summit and We actually had a call probably A year ago with You But It was quite a while ago before all this transpired.

00:05:28: yeah And when you say transpired, You've contacted us because you're interested in selling a beautiful property.

00:05:36: I'll splice in photos and videos when we publish this down in Chiba Prefecture right near the beach?

00:05:43: Yes it's an Itunomia that is where the Olympics surfing competition were held so its very famous Beach.

00:05:55: We purchased these properties from our friend who happened to run a cafe out of one of the houses, actually two homes side by side on separate lots but side-by-side that they built together.

00:06:12: Our friend lived in one, ran her cafe out at one and our mother lived in another one.

00:06:19: due some circumstances with their mother.

00:06:22: They had to leave near hospital.

00:06:30: So it set vacant for a couple of years and we kept in touch with her.

00:06:34: She's a dear friend of ours, And cafe was very popular.

00:06:41: actually We loved the properties very much when she started talking about selling them.

00:06:51: Well hold on don't just sell them let us know and we were able to acquire them through working with her over a period of time.

00:07:03: And have since done a lot of work on the properties, so it's bit of a labor-of love.

00:07:11: So... We put a lot in effort into remodeling.

00:07:16: Yeah you're saying by the way sorry to interrupt two houses but I've noticed some hospitality style cabins on the same lots as well, right?

00:07:25: It looks like three or four structures.

00:07:27: That's right.

00:07:28: there are actually five structures total... Five

00:07:31: structure okay

00:07:32: Two single family homes.

00:07:34: one of them is a main home that she ran in the cafe.

00:07:37: it was an American-style house.

00:07:43: She shipped from US and built so its very much like a coastal home.

00:07:48: The second single-family home is a log cabin, what they call a loghome in Japan that her mother lived and it's very rustic.

00:08:01: It feels rustic but its'a modern kitchen with an onsen style bathroom.

00:08:11: Yeah, I've seen one of the bathrooms there.

00:08:15: Probably the one you're referring to looks like two baths side-to-side?

00:08:18: Like an actual onsen resort.

00:08:20: That's right.

00:08:20: yeah There is... One of those two bath is a hot bath and other ones are cold bath.

00:08:25: So

00:08:26: that what i was assuming Okay thats very cool.

00:08:28: And theres also a sauna in the bathroom.

00:08:32: so they actually put a sauna inside it Two bathtubs and a sauna.

00:08:38: It's not an onsen in the sense that it's not a springs-fed bathtub.

00:08:44: Oh, so no natural onsen water just to set up?

00:08:47: That feels like if

00:08:49: that feels like it.

00:08:50: and The bath tubs obviously soaking tubs very large soaking tugs both of them.

00:08:55: Yeah.

00:08:56: So yeah, I feel is that like an onsens but its not spring fed.

00:09:01: And three outbuildings.

00:09:03: there are two larger buildings that are essentially like sheds, so they were used as hobby rooms.

00:09:15: They're air-conditioned and have power with air conditioning but there's no water to those buildings.

00:09:24: There just basically room almost a little efficiency type of rooms two of them you know, sleeping arrangement.

00:09:39: Oh communal

00:09:40: space.

00:09:40: I'm sorry i'm always thinking with these kinds of properties a lot of the people who buy them especially through us and by them for corporate retreat purposes.

00:09:48: so when you're describing that I am feeling workshop communal space in that kind of area.

00:09:54: Communal space or sleeping quarters yeah air conditioned space.

00:10:00: they are perfectly comfortable almost one room suites.

00:10:06: And then the third building is a small shed type building.

00:10:11: So it's more of a storage kind of, uh, Shed and as well.

00:10:20: on one single family homes there was basement storage area.

00:10:25: so very large storage areas not conducive to living but its basements where theres lots tools down and things like that.

00:10:35: So

00:10:37: the total land involved from what I saw is just under two square kilometers, right?

00:10:43: Thousand seven hundred square meters something like that And five structures

00:10:49: That were all

00:10:50: built i believe between twenty to thirty years ago Right!

00:10:54: That's right.

00:10:54: yeah uh-huh The one of the homes was building in I think in ninety nine and the other was build into early two thousands.

00:11:03: So sort of one after the other, yep.

00:11:06: Okay and you've purchased it thinking to do with it.

00:11:10: what?

00:11:11: Because that's a bit more than a holiday home or single family home isn't

00:11:15: it?

00:11:15: yeah our kind of initial thought was to do almost corporate rental because in this area With the surfing environment And sort of sports environment there is golf course very nearby the property and some other recreation, it's very suitable to sports teams or other types of rentals that way.

00:11:43: There are Airbnb type short-term rentals in the area but not many that are conducive to provide housing for a lot... Large

00:11:55: groups?

00:11:56: Yeah large groups.

00:12:03: floor that there is in one of the homes, it's really conducive to having a good eating arrangement as well as potential AV space.

00:12:17: We've spent a lot of time providing Wi-Fi service throughout the entire grounds.

00:12:23: so you know, conference calls or even just Wi-Fi networking on that floor as well throughout the grounds.

00:12:36: So

00:12:37: because your resident in the US at the moment right?

00:12:41: The plan was

00:12:42: to

00:12:43: turn it into hospitality retreats kind of property and then run it remotely.

00:12:48: Corporate rental yeah running it remotely.

00:12:52: we have a position that way now.

00:12:55: We've done preliminary investigation on the likelihood of having licensing for MIMPACU and it is very likely because there are others in the area to be licensed.

00:13:09: So, its kind well positioned to do that.

00:13:13: we have since did the reform work completed at all.

00:13:25: that we have as our own vacation home.

00:13:28: And due to that, we want to kind of focus on that area and so we're looking to sell this property and reinvest the funds into Tokyo.

00:13:40: Can I ask what changed your mind?

00:13:43: Because That's a pretty sharp pivot isn't it?

00:13:47: Yeah i think The thing was.

00:13:51: It came to us is a convenient Property to acquire and so we did yeah, and we've done almost like wholesale deals in the US Several times.

00:14:04: We have several decades of real estate experience here And so The idea taking you know couple of years to spend time on this property and building a business, you know getting property management in all that.

00:14:24: In an area where we probably won't be living was probably not ideal.

00:14:30: so we decided to see if we could sell it and like I said reinvest the funds into potentially multi-family.

00:14:44: So I guess from your perspective, it's kind of a flip isn't?

00:14:47: You've purchased.

00:14:48: It you've spruced up a little bit to put in place the infrastructures to enable people to use as hospitality property or rental space and now you're flipping it hopefully for profit.

00:15:02: Or is that close?

00:15:02: what we bought at four?

00:15:04: Yeah In a sense We are not really making a whole lot of profit was really help our friend I mentioned her mother needed some help and so we, having the experience that she had thought it would be a good investment for us as well as helping her out.

00:15:25: So thats what he did.

00:15:27: you know were also inclined to if doesn't sell getting it rented because its still obviously strong asset with cash flow.

00:15:38: well but but again, buying the house that we purchase in Tokyo it just makes a little more sense logistically for us to start to center our projects around the area where we have the vacation home as opposed to Chiba.

00:15:56: It's a bit of ways away from there.

00:15:58: I've seen you've listed with Japanese agency But i also see on Akiyama.

00:16:05: I'm just wondering, because the Akiyama art boys are avid surfers.

00:16:08: Were they not interested in maybe turning this into a surfer base or anything like that?

00:16:14: Yeah we haven't actually talked to them directly about it.

00:16:17: We have talked to Toshuu Matuo Post earlier on and he did a blog about it which is...

00:16:25: Akiya Hub.

00:16:25: yeah i've seen that

00:16:27: one A few months ago.

00:16:29: sorry So you know They It's not up there Alley per se because it's not sort of like the bottom Bottom.

00:16:40: yeah, they

00:16:40: like projects.

00:16:41: They liked something that can be bought at a bargain but I mean price is quite attractive.

00:16:45: i think It's listed for what?

00:16:47: Forty nine million yen or some of them.

00:16:49: That's right.

00:16:49: four two homes As one asset.

00:16:53: its.

00:16:53: it's kind of an interesting property For someone who's inclined to either live in one or rent The other rent them both out as as a sports complex or whatever, you know like we talked about.

00:17:06: There's all whole lot of possibilities with the flexibility of the property.

00:17:13: but uh you know Like I said i think for us um As we've gone through the reform and You know positioned it well...I think It's ready For The Next Owner to kind Of Take To The Next Level And Do If Somebody Who'S Really Interested In Running A Business Whether Its Short Term Or or what have you in picking it up.

00:17:33: Or even a company purchasing directly as sort of the best offer there for their own employees and clients, whatnot?

00:17:42: Yeah so when you say positioned that yeah if you actually been running it as business or do just mean the preparation of the property itself

00:17:52: The preparation I mean its rent ready Wi-Fi throughout.

00:17:59: We've done a lot of work too.

00:18:02: It's well property, so it is natural water as well.

00:18:07: So we rebuilt the well and that kind of thing.

00:18:12: There are no city-water supply going there?

00:18:14: That right!

00:18:18: The reason why they're unique Is both properties feed off same well in the same septic.

00:18:29: Without some work, it couldn't be sold separately.

00:18:33: It's really an asset where both homes are together as a sale and that is why its price kind of affordably to make it conducive.

00:18:48: In our experience with wells, they can sometimes dry out or the water quality can suddenly deteriorate for whatever geothermal reason.

00:19:01: Have you checked whether it would be easily connectable to city-water supply?

00:19:06: I don't believe we've checked on that but because we just had it rebuilt and re-built It's pretty much ready in the next several years.

00:19:16: We wouldn't expect.

00:19:17: And

00:19:18: you've done the quality checks underwater.

00:19:20: They are drinkable and bathe-able?

00:19:23: Yes, absolutely!

00:19:25: The properties again they're between twenty to thirty years of age meaning for example we had a beautiful Onsen Resort that were talking about a few episodes ago with Matt.

00:19:38: That's a project that would need some work.

00:19:42: The purchase price is similar or little bit higher than yours but you would need to at least double or triple that, get the property up and running in any serviceable capacity.

00:19:52: It's also a lot bigger.

00:19:53: so yours is smaller more compact we're not talking.

00:19:57: thirty rooms were talking maybe it doesn't guess to sell and its ready-to go.

00:20:02: this is a turnkey kind of project aside from the licensing isn't

00:20:06: Turkey?

00:20:07: there would be some landscaping work that we need to be done.

00:20:11: We kind of focus on the houses, on the reform.

00:20:14: so yeah the house are essentially you know ready-to-go very much ready but

00:20:19: with two kilometers of land there's always going to be landscaping works isn't it?

00:20:23: There is gonna be that.

00:20:25: um you know most people who understand You know that kind of thing.

00:20:32: It's especially in the summer.

00:20:34: they grow so we've been taking care of it, but its That needs to be you know continuously handled.

00:20:42: So right

00:20:43: and what else aside from this surfing?

00:20:46: What else can you tell people about the environment?

00:20:49: What's out there in?

00:20:50: In echinomia

00:20:53: So I mentioned a golf There's a country club adjacent, almost adjacent to the property and there's also a couple of lakes that are just down the road.

00:21:04: So they're sort of fishing hiking um...that kind of thing uh..and then obviously the beaches.

00:21:10: it's world-famous beaches so you've got that as well as restaurants cafes coffee shops in all of all typically around your popular beaches.

00:21:25: So lots of restaurants, not I wouldn't say a lot but some restaurants.

00:21:31: it is you know...I wouldn't call it country tibia but its outskirts the tiba.

00:21:38: so it's not in nightlife.

00:21:41: But if you're looking for beaches and recreation and hiking

00:21:48: It's already a domestic tourist destination, isn't it?

00:21:52: Maybe not as well known to international visitors but very well-known for domestic tourists.

00:22:00: As far the population is higher end.

00:22:02: so your typical country lower class type houses are actually with the Country Club and some of the recreation around there.

00:22:16: Yeah,

00:22:19: and transportation wise I think it's about an hour from Tokyo station but an hour-and-a-half to Narita Airport.

00:22:27: Is that right?

00:22:28: That's right.

00:22:28: yeah our from Tokyo Station pretty its direct From Tokyo Station And It's about ten minute drive from the nearest train station.

00:22:43: The properties are kind of up on a hill so it's a little bit Feels away from everything but still ten minutes from the station.

00:22:53: Ten minutes for the beaches that kind of thing.

00:22:56: Okay, so ten minute drive to the station ten-minute drive or walk?

00:23:01: Drive to the beach is not really conducive to walking.

00:23:05: So yeah Typically be you know driving around

00:23:11: I'm seeing mini buses coming in and out with the groups.

00:23:14: Sorry go

00:23:18: ahead.

00:23:19: There are home improvement shops around there, lots of shopping.

00:23:26: so almost everything you could want in the area within call of ten minutes.

00:23:34: Okay and do you know if the area is popular with holiday makers?

00:23:40: Is it just during spring-summer or year round?

00:23:50: Summer is kind of the peak season, surfing season but it's a steady population year round and there are always activities like I said cafes or restaurants that are available.

00:24:07: Okay fantastic!

00:24:08: And what's your timeline?

00:24:10: When are you hoping to sell it by?

00:24:14: We're able to sell at any time.

00:24:19: The work has been completed.

00:24:21: It's been on the market, I guess a couple of months now with the agent we have it listed with and We're also With our sort of expertise able to offer Seller financing which is not something that...

00:24:41: That's very important point.

00:24:42: so you could enter a contract with the buyer whereas they pay you certain amount every month or every year until they own the property.

00:24:51: free and clear, right?

00:24:52: That's

00:24:52: right.

00:24:53: With a down payment it is not typical in Japan but we have scrutiners that can assist with that take some time to process.

00:25:08: It's very legal and very doable.

00:25:11: Okay, so that is about fifty million yen?

00:25:14: And if it isn't going to be a seller financing situation what sort of down payment would you want for...

00:25:20: Probably like thirty-five percent down okay the rest financeable with terms that will be negotiated.

00:25:29: obviously we'd get little bit higher than from the bank, traditional institutional banks but an option for somebody who maybe couldn't get.

00:25:42: Well, for wooden houses that are over twenty years old it's not that easy to get traditional financing.

00:25:48: Definitely if you're now the resident of Japan forget about it.

00:25:52: so...

00:25:53: That

00:25:53: could be a very attractive option.

00:25:55: okay I know a few but i'm not sure they cover this area have been in touch with any short-term state property management companies or were planning on having staff onsite?

00:26:08: We have been in touch with Tracy.

00:26:10: Uh, we've consulted with her as well as somebody she referred to us and they were interested in potentially doing the property management for that type of a business were more of the long-term play.

00:26:29: So we've looked into multiple property management, including one you referred to us with what we're talking about at this time.

00:26:38: so there's property management available as well local realtors in that area.

00:26:45: it is popular areas not your countryside kind typical place like that.

00:26:53: So we do have operators who can just step in and handle everything, booking advertising cleaning check-ins checkout there.

00:27:00: they're already in place and waiting to go.

00:27:03: so it really is a turnkey project I guess isn't?

00:27:06: It's feasible for different types of operations.

00:27:12: We were looking for monthly like this corporate rental but again long term both properties.

00:27:19: if someone wanted doesn't stay on one as a vacation home and rent the other, um, and have it sort of pay for itself.

00:27:26: As it were that's feasible.

00:27:28: or well is the corporate rental angle?

00:27:31: Or uh Meepak you short term stay as well.

00:27:36: so

00:27:37: yeah our sub lease arrangements.

00:27:39: somebody buys it and then rents it out to hospitality operators or restaurant or cafe whatever people want around there.

00:27:46: with this seller financing we're You know I think possible that somebody could sublet it and do a triage kind of approach.

00:27:58: Yeah,

00:27:59: I like this!

00:27:59: It's very...I like both the potential and the location and the fact that its uh-it is very turnkey.

00:28:07: Its literally applied for the license which should be feasible in that location and off you go.

00:28:13: And there are obviously some things need to look at the requirements of mean.q... Yeah,

00:28:22: fire and safety compliance.

00:28:24: that's always the case though.

00:28:25: yeah for

00:28:25: sure

00:28:27: got it okay good stuff.

00:28:28: so we are going to list it and hopefully share with a lot of people And uh We'll see what we can do.

00:28:35: It's exciting.

00:28:35: I'm waiting to spend night there when it opens up.

00:28:38: Yeah, we appreciate Charles' help and look forward too.

00:28:42: Same here.

00:28:43: thanks for your time.

00:28:44: talk to you soon.

00:28:44: Okay

00:28:45: thank you Zith Take care Thank You.

00:28:49: So there you have it, pretty unique property.

00:28:51: Plenty of potential for all sorts of purposes here.

00:28:53: I thought if You'd like more info on It or to schedule a viewing Or other ways make an inquiry feel free to reach out To us and let us know.

00:29:00: we'll be More than happy to put you in touch.

00:29:03: And that's it from

00:29:03: us for this episode, folks.

00:29:05: Huge thank you for tuning in!

00:29:06: Please do follow and subscribe to the show.

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00:29:45: ahead!