Real Estate Funding Strategy: Finding Asian Investors

A large number of property developers have asked us about finding Asian investors for their real estate projects; we will publish several articles relating to this, and hopefully you will find them valuable.

1. Understand who Asian investors are

The first mistake made by many real estate developers is lack of understanding; there are significant differences between each Asian community; and in more details; specific difference between even each Chinese community.

For instance, when comes to Chinese investors; do not assume the same message and strategy can be used for Chinese, Taiwanese and Hong Kong markets; even though they are all Chinese communities. Set your target market first; then come up with different strategies.

2. Your website should be both in Traditional & Simplified Chinese

Simplified Chinese is used in China & Singapore; and Traditional Chinese is used in Taiwan & Hong Kong. If you look at the Chinese communities in the US, the representation is about 50/50.

10 years ago; there would be much more Taiwanese and Hong Kong immigrants than those from mainland China; but this trend has been changing significantly.

For Hong Kong & Taiwanese Chinese communities; it is very hard for them to understand in Simplified Chinese; especially for generation that is 40 to 60 years old; some of them will even find it offended if you give them marketing materials in simplified Chinese.

Similarly, you should also have your website available in Simplified Chinese to reach investors from mainland China and Singapore – this is a strategy that should be applied both for your marketing materials and website.

3. International Settlements can be very tricky

The US market is a highly advanced property market where deposits can be taken online through credit cards or PayPal. When comes to Asian investors; do not expect this can be done easily.

First; for a lot of Chinese investors; they do not even have credit cards; and PayPal is basically unheard by most Chinese investors. Second, online payment is not a common practice in many parts of Asia.

What we have suggested to our clients; is to ensure you have more traditional ways to accept deposits such as international telegraphic transfer with a reputable bank; or if an option is available, have someone physically present in Asia as your agent to take deposits. This can be achieved through appointing an international property agent; or appointing an international law firm as your legal representative or an international migration agent.

Simple tricks can really make real impact to real estate business; especially when comes to dealing with Chinese investors; where many of them remain cautious about international investments; you have to take extra steps to ensure opportunities are not lost.

4. Understand the immigration requirements

It’s interesting to note that a significant proportion of property investors are buying properties to qualify for immigration purpose; particularly in Australia, Canada and United States. Investment visa is often perceived by wealthy Asian investors (mainly Chinese and Koreans) to qualify for residency. Later on, they would usually keep the property for their children as they will often send them to universities in Western countries. A large number of property developers are already using this as a marketing strategy and has been quite successful; especially if they can partner with migration agents.

Other articles and marketing strategies relating to “Finding Asian Real Estate Investors” strategies will be published later on.

Please check out our Global Real Estate Investors Guide which contains hundreds of institutional investors and property groups around the world on http://researchwhitepaper.com