How We Help Real Estate Developers

A 3-Way Approach

We help you to ‘Build YOUR vision with OUR expertise’

We are a Real Estate focused advisory organization. Our target markets are the fastest growing Asian countries. We as an organisation strongly believe in creating value to the developing through innovative and creative financial solutions and improving their execution capabilities.

We closely work with the Real Estate development firms in achieving their vision of creating landmarks, living spaces, townships, entertainment hubs in their territory. We bring the global expertise for their local application- thereby creating a global company.

We not only advise them, we also participate as and when required in applying our advisory and make things. We actually partner with the developer to realign their vision.

At REAF Global we understand these issues and offer a solution that addresses the pain point of various stakeholders.

Existing Pre Launch Sales
Large ticket size
Non transparent transaction
Customized deals
Closed community sales
Limited to local investors
High risk and complex
Trust, not fact based
Regulatory risk
Non-documented process
Cash element in transaction
Limited participants
Developer loses price appreciation gains
High cost of fund
Unrated products
No price protection
No exit guarantee
REAF Pre Launch Sales
Multiple ticket sizes
Totally transparent
Standardized rules for deals
Open to a broader community
Global access
Secured and simplified
Fact based
Within the regulatory framework
Fully documented process
Only through bank transactions
Wider participation
Developer shares appreciation
Cost of fund is minimized
Rated and ranked products
Price protected through guarantee
Exit is guaranteed

We offer a participatory fund-raising mechanism that is sustainable to all stakeholders. We help developers to expand their base to global investors from a limited local group. The product is also structured to be transparent, safe and legally sound. Developers have a chance to share the profits in appreciation in line with risk taken. Also, we facilitate right-pricing the homes based on social price discovery

Real Estate and Funding

Developing property is capital intensive. Raising money for a Real Estate Construction is never easy. There are traditional and alternative funding sources but they all have issues.

These are not easy to come by

  • Traditional capital sources such as loans from banks come in only at a later stage.
  • Private equity and other funds are not typically available to smaller projects
  • Money lenders can be expensive and takes time to build a relationship and arrange funds.
  • Alternative funding sources, except pre-launch sales is not a viable option currently in India.

So developers have to rely on pre-launch sales – selling before all the plan approvals are in place – to raise early capital and progress towards launch. The advantages? No need for personal collateral and the funds are returned when home buyers pay advances when the project is launched.

Currently the pre-launch sale is most of the time focused on the investor community of High Networth Individuals (HNIs), Ultra-HNIs and institutional investors. Developers usually bank on this construction finance to bridge the funding gap for their project launch.

But this is fraught with issues. The transactions are customized and there is no transparency. Also there is no trust between the investors and developers due to opaque dealing. There may be elements of cash transactions which can lead to regulatory issues. The deal is structured as a promissory note and there are no legal structures. The Real Estate Regulatory Act may limit this method of fund raising

The target investors are HNIs who have to be identified and connected with. The investors are typically from the local area and are therefore limited. This network of investors is closed and it is not easy to penetrate. The funding terms are based on investor interest and not on market price. So, the investors share no risk with the developer but get the bulk of the rewards.

The investments are large ticket size and there is need to have a development track record.

Now Everyone Can Buy Sell Real Estate

We at REAF understand , there is a need to build an inclusive way that would enable the biggest customer base , RETAIL to participate in the existing Real Estate investment Eco system . Most of the Real Estate investment opportunities are designed only taking the HNI , UHNI and institutional participation . The 4 way strategy to help and guide the retail community of REAF educate , enable , engage and empower them in the Real Estate investment Eco system .

Our objective is to solve the 9 great challenges faced by the retail community

Solving the 9 Great Challenges of Retail Participation in Real Estate Investment

1.Connecting Opportunities

The property markets are highly dynamic and to gain high returns you need good quality opportunities, reliable market insights and quality advice. REAF Global can be your ideal partner in building/diversifying their portfolio.

We have a strong regional presence in Asia , an excellent track record , and one of the best- connected and most-knowledgeable team.

2.Due Diligence

Every Real Estate investment opportunity we bring to our investors has been subjected to a thorough, tailor-made due diligence process.

Process and Partners

Shortlisting the best opportunities

REAF has created a frame work to select and list the best Real Estate project available after detailed due diligence.

We only select projects that pass the very strict criteria set forth by experts.

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