A 3-Way Approach
Successful pre launch sales of Real Estate projects by a simplified way Globally...
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.
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
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
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.
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.