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Mizushima Int'l. Co. Ltd. is highly committed to give customer satisfaction throughout the bidding and purchasing cycle of foreclosed properties. Since we are only two businessmen who do all the tasks, We operate our company in more practical and less-expensive way. Our customer's don't need to bother on administrative fees and staffing fees. We would like to cut the unnecessary expenses as much as possible. Enjoy Our minimum service fee of JPY 250,000 (research and coordination fee) + 6% of the property purchase amount.
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To provide high quality, business transparency and cost-effective service.
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Auction procedure summary

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Auction procedure summary.
The Creditor usually initiates the auction. A typical example of creditor is usually from financial institution. Aside from this, there is Tax administration bureau and local executive branch (City Office, Prefectural government, etc.). When such kind of public office initiates the auction, it is called "Public sale". In case of auction and public sale, both process should be applied in the court office. The court office will request to appraise/ assess the real estate that is subject for auction and public sale. Then, the detailed article or document report will be created based on the appraisal/ assessment result.
During the bidding process, if no one bids within the specified bidding duration, it will implement the special clearance sale within a week after the bidding duration. Whatever amount offered by the purchaser will become a possible purchase amount.
Example, there is an auctioned property no. 100 (Year 2009). At first, the bidding duration is announced. Then, it will turn to a special clearance sale when there is no bid entries.
If no one gets the special clearance sale, a second bidding which is 30% lower than the clearance standard price will be announced. Then, second special clearance sale will be implemented in case of no bid entries on the second bidding duration. This process will continue upto third time bidding and special clearance sale.
No auction will be announced after the third time bid opening.

Calculating the appropriate bidding amount

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Calculating the appropriate bidding amount.
It is necessary to secure more than 12% rate of return to have a successful property investment in Japan, Property investment becomes failure when a property is acquired through bank loans with monthly amortization costing more than the monthly rental fee revenues.
Rate of return is the recommended indicator to determine whether an investment property will succeed or not. To compute, first, divide the total property cost with 110% denominator. Then multiply the total monthly rent for the whole year with multiplier 80%. Note that our denominator is not 100% but 110% because of the additional 10% which represents the miscellaneous expenses incurred when acquiring the investment property. Meanwhile, our multiplier is not 100% but 80% because we deducted 20% which represents property tax, reserve fund for renovation, deficit incurred during periods without tenants, etc. It’s a rule of thumb that worst case scenarios should be assumed when embarking in an investment.
The standard rate of return when buying a property should be more than 12%.
Rate of return = Revenue from the monthly rental fee ÷ 110% of the total property cost
Sample Case Problem:
6-room apartment, with one room monthly rental fee amounting to about 38,000 yen
Budget for renovation is 2,500,000 yen.
Given the above condition, how much would be the appropriate bidding amount if the target rate of return is 15%?
Total Monthly rent:
38,000 yen x 6 x 12months = 2,736,000 yen
Net Income from the Monthly Rent:
2,736,000 yen x 80% = 2,188,000 yen
Cost of Investment:
2,188,000 yen ÷15%=14,592,000 yen
Deducting the renovation cost:
14,592,000 yen – 2,500,000 yen = 12,092,000 yen
Deducting the miscellaneous expense incurred by the auction bidding
12,092,000 yen÷110%= 10,992,000 yen
Appropriate bidding amount:
10,992,000 yen

Bidding result of property in Shiki City

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Bid opening of the property in Shiki City has been announced. The winning bid amount is JPY 5,391,000 . There were 20 bid entries. This amount is very close with our estimated winning amount.

Bidding result of lot property in Ichikawa City

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Bid opening of this property Land parcel in Ichikawa City has been announced. The winning bid amount is JPY 3,636,000 . There were 11 bid entries. This amount is lower than our estimated winning amount. If the monthly rent fee is JPY 70,000, the projected yield is around 23%.

Property in Kawagoe City

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Bidding Duration: October 29, 2009 to November 5, 2009
((Monthly rental fee = 50,000 JPY x 12) / 2,400,000 JPY ) x 100 = 25% estimated ROI
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Nearest station from the foreclosed property:
JR川越線 西川越駅 (North-West side) - 1.24 Kilometers
JR川越線 的場駅 (Nort-East side) - 1.36 Kilometers
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PROPERTY DETAILS:
Standard Clearance price: JPY 2,730,000
Bargain Selling price: JPY 2,184,000
Category: Lot and Building
Floor No.: 1st floor, with 34.78 square meters; 2nd floor, with 33.12 square meters
Date constructed: 1978
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FACTS ABOUT THIS PROPERTY:
1) Land property is 59.39 square meters with constructed building.
2) Public road with 3.85 square meters (1/3 share)
3) Public road with 0.44 square meters (1/3 share)
A friend of the debtor is renting on the 2nd floor (Japanese style room) for a monthly rent of JPY 20,000. This tenant has the priority over the highest bidder, so there is a need to evict by court legal procedure. While on 1st and 2nd floor (Western style room), is owned by a debtor who has cleaning shop business. In this case, no need to proceed with court legal procedure. This will be a good invetment if the debtor will pay a monthly rent fee of JPY 40,000 from now.
However, if the debtor will not be able to pay the rent, you need to evict that debtor and your source of rent income will only be from 1st floor. It will be about JPY 30,000.
For the breakdown formula of estimated yield/ return-on-investment:
1) Monthly net rental fee: JPY 50,000 x 12 months
2) Possible winning bid amount: JPY 2,400,000
Expected yield/ ROI: 25 % ( No.1 / No. 2) x 100).
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PICTURE



Bidding result of Land parcel in Hidaka City

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Bid opening of this property Land parcel in Hidaka City has been announced. The winning bid amount is JPY 4,122,000 . There were 5 bid entries. This amount is higher than our estimated winning amount. If the monthly rent fee is JPY 60,000, the projected yield is around 17%. This is a good chance for investment.

Bidding result of Apartment room in Sayama City

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Bid opening of this property Apartment room in Sayama City has been announced. The winning bid amount is JPY 2,192,100 . There were 6 bid entries. The projected yield is around 15% (Monthly rent fee = JPY 36,000 x 12) / (JPY 2,192,100 + JPY 600,000) x 100.