Fushimi Roku explained, "For example, a certain construction company in the Tokyo Shinagawa District, due to a capital chain break, is eager to transfer the office building debt it holds, with a face value of 500 million yen, overdue for 3 months. Checking the real estate registration with the Legal Affairs Bureau, it's found that the property's appraised value is 800 million yen, and there's no other prior debt..."
"In this situation, you can use the 'cash acquisition + debt assumption' model to negotiate down the price, eventually reaching an agreement of about 250 million yen. Then, quickly transfer it, selling the debt to a foreign asset management company for 350 million yen, and after deducting transaction costs, net a profit of 95 million yen."
