finding-international-cre-investors

If you work in commercial real estate, you’ve probably heard how much international interest there is in properties here in the United States.
It makes sense.

Real estate is always a good investment. International investments are always good for diversification. Investing in U.S. real estate is a great way of benefiting from the world’s largest superpower’s economy, even if you don’t actually live here.

So you may think that finding foreign investors would be easy.

In fact, you may even be surprised to learn you have to find investors for real estate from other countries.

Shouldn’t they be lining up ready to sign?

5 Ways to Find Foreign Real Estate Investors for Commercial Properties

It’s never that easy.

For one thing, with the growth of commercial real estate in the United States, it’s become an investor’s market.

Furthermore, the recent tax bill was especially kind to commercial real estate, so there’s little reason to think that current foreign investors are going anywhere (or leaving their current U.S. partners).

Therefore, if you want to make deals, you need to learn how to find investors for real estate from other countries by applying these five simple steps.

tips-to-find-international-cre-investors

 

1. Find Real Estate Investors in Your Area First

Unless you already know how to find real estate investors, try starting locally.

Generally speaking, it’s going to be a lot easier to win over people who speak the same language and are familiar with the area.

Once you get better at finding investors for real estate here in the United States, you’ll be better able to attract interest from overseas, too.

Even if you’re ready to look for foreign investors right now, beginning with one or two smaller investors may help. Again, it will be easier to gain their commitment, and then you can show larger, foreign investors that others are already confident in its appeal.

2. Understand How International Issues Affect the Market

As we mentioned earlier, the United States’ commercial real estate market appears to be doing very well at the moment.

While you want to keep your eye on it, of course, you also need to understand how international issues affect foreign investors.

Otherwise, you run the risk of spreading your efforts too thin and seeing nothing in exchange.

Say, for a moment, you were a door-to-door salesperson. Wouldn’t it help to know the income of each household? Of course, it would. That way, you’d know who could afford what you’re selling to begin with and who will probably buy more.

What if you knew who recently received a raise or a big bonus? Wouldn’t it be worth walking an extra block to their house instead of going from one door to the next on a street where you know nothing?

This is the kind of thinking you need if you want to learn how to get investors for real estate from other countries.

You might find that a certain country is running out of commercial state to invest in and it will be years before that changes.

Another country may be seeing a sudden boom economy, which means there will be a lot of people who are now looking for somewhere to put their money for the first time.

A once wealthy country with a falling economy could be an opportunity as investors look for safe havens to put their money. Where better than the United States?

Aside from helping you find these opportunities to begin with, understanding these unique aspects of the foreign market will also make it easier to pitch investors.

3. Reach Out to Foreign Commercial Real Estate Firms

One shortcut you can also take is simply going to firms that already represent foreign investors. You know that they already appreciate the value of U.S. real estate and they clearly have money.

The only problem is that you’ll be bringing in a third-party that will want their piece of the pie.

Still, if you don’t have time to learn how to get real estate investors from other countries to consider your property, this is probably your best option.

For example, you could go right to Chinese Now and, if you get a meeting, potentially partner with the largest group of foreign investors in our country’s commercial real estate. Chances are that is a good tradeoff.

4. Know Who the Biggest Players Are in Your Field

Similarly, go looking for the biggest foreign investors in your particular market.

Again, you already know they’re interested. In fact, they’re even interested in your sector or state.

Obviously, if your commercial real estate is in Los Angeles, you’ll have no shortage of options. That can actually be a challenge unto itself, though.

However, if you’re in a more niche field – say, industrial farming buildings in the Midwest – you can save yourself a lot of time by researching the foreign groups that already invest in these deals, instead of looking at individual investors who will require more education on the topic.

5. Invest in Online Marketing

After all of this other advice about finding real estate investors, this last tip may seem like the least important.

Commercial real estate tends to be a very traditional world. Many multi million deals are the result of networking, golf, dinners, and, finally, sitting down at a table and negotiating.

That generally works when you’re dealing with familiar players. Someone who knows both parties bring them together for that initial conversation.

However, when you’re looking for international real estate investors, this middle person generally doesn’t exist, so one easy way to gain attention is by looking for it online.

Creating a website for your potential deal is a good start, but you want to market it to people who are overseas and have enough money to invest. This is where a good marketing firm will earn their paycheck. Between social media marketing, retargeting, and geo-location, these experts can help put your site in front of the people you’d like to meet.

Don’t Settle for the First Investors to Show Interest

The first time you go looking for real estate investors from other countries, it’s going to be a bit of a struggle, even if you use the above advice.

However, the biggest challenge will be remaining patient.

At first, you need to be patient while you wait for someone to show interest in your deal.

But then, you need to be patient until more investors join them.

International investors are a diverse crowd. Each will have their own pros and cons based on the country they’re from, so don’t just commit to the first person who agrees to your terms. Wait it out and make sure you consider all of your options.

If you’re able to do that, you won’t just find foreign investors. You’ll find the best possible foreign investors.

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