Checking a company out

6 posts in this topic

Posted

We are looking to invest some money here in Germany and have been dealing with some financial advisers. One of the companies we are thinking of working with is Real Estate Marketing AG (www.rem.ag). They have a large property development and we were thinking of buying one of the flats and then they would manage it for us.

 

Before we lay our money down, I wondered if there were any ways of checking the company out.

 

Thanks.

0

Share this post


Link to post
Share on other sites

Posted

Well, you could have a look at their past financial accounts (balance sheet and profit/loss account).

All companies in Germany have to publish them and you can consult them for free in the Unternehmensregister.

 

Just insert into the field "Firmenname":

 

  • Real Estate Marketing AG

and click on "SUCHE STARTEN".

3

Share this post


Link to post
Share on other sites

Posted

Thanks for the help PandaMunich ... that looks really interesting. It also appears to be in English if anyone else is interested.

1

Share this post


Link to post
Share on other sites

Posted

Please note that only limited companies have to publish there though. Companies where a natural person is directly liable are not required to publish. Small companies (under 4 million Euro assets) also only have to pretty much summarize their financial accounts for publication.

 

The reports themselves on Unternehmensregister.de (and eBundesanzeiger.de) are in German.

0

Share this post


Link to post
Share on other sites

Posted

One piece of advice I can give you is to avoid anyone who offers a guaranteed rent/rate of return. If the projected returns prove to be too optimistic (which they often do, to get a higher purchase price out of you), then the guarantee isn't worth much. The GmbH that provided the guarantee will simply go bankrupt, leaving you with a low-yielding property that you bought at an inflated price.

 

Moreover, buying a property also entails dealing with tenants, vacancies, repairs, poor location, and any number of other unforeseeable circumstances. There's also the possibility that Germany is in the midst of a property bubble.

 

If you really want to benefit from rising property values, but without the risks I described above, you might look at offene Immobilienfonds, which is the German version of REITs.

1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now