The term “real estate investors” encompasses a wide range of people and groups that purchase property. Homeowners who buy a single property to live in are as much investors as those who buy to let or buy to sell.
While all the categories above can offer solid returns, it’s the investors who buy to sell that can really strike it rich in the property market. But as the “rich get richer” the theory goes, it’s typically only companies or high-net-worth individuals who fall under this category–able to afford properties they won’t use or collect income from throughout their period of ownership.
Or is it?
Big or Small; Make Serious Money with Real Estate
One Bangkok based real estate consultancy firm, called BTS Property Group is changing the preconception that only the very affluent can make serious money with real estate. By utilizing their connections with Thailand’s most reputable developers, the company works to create exclusive discounts on meticulously researched, up-and-coming market areas of Bangkok and Pattaya that anyone with a desire to invest can take advantage of. BTS provides investment opportunities for relatively small size investors to very large ones and able to achieve for them the same kind of returns major investors can achieve with limited risk and minimal effort.
…With Serious Discounts
The discounts are achieved by grouping enough individual investors together that they are able to collectively buy out entire floors of a condominium project before construction begins, when prices are the lowest. This early-stage, bulk purchase allows every investor involved to enjoy significant discounts (averaging a whopping 15%) that could never be attained by purchasing just one or two units.
Turning the Profit
It’s not just the heavy discounts that make the investments so lucrative though; with this type of purchase also comes an incredible ease of resale. When a property is purchased at such a low price, prior to completion the buyer will be in a position to flip it, or sell it at a price that’s the same or often even lower than the developer’s asking price. This consequently makes the buyer’s particular units more appealing than the rest. Additionally, the property deals that BTS offers to investors are exclusively in developments and locations that the company has thoroughly researched and are predicted to significantly appreciate.
While other companies may form group-investment schemes or buyers clubs, what is unique about BTS Property Group is its lack of membership requirements. Clients from around the world with all different backgrounds and investment experience come to BTS with one common goal: to make a high return on investment in a short amount of time.
When initially consulting its clients, BTS Property Group will get to know potential investors and understand what they are looking to achieve. Once a deal has been established with a developer, the BTS consultants will present new opportunities through seminars, roadshows and private meetings. Along the way, the company works with each investor to create individual risk-management plans, ensuring a sustainable payment and exit strategy over the course of their investment.
Here’s a Real Example of How it Works:
To further explain how BTS Property Group works, CEO Kasper Roelvink provides an example, depicted on the graph below. Here he compares a typical Return on Investment (ROI) that an individual investor received after buying only one unit (Example A) with the ROI that many investors received when collectively buying into a bulk deal (Example B) in the same project:
“First of all, in both examples the reader should keep in mind that we only advise our clients to invest in quality valued condominiums within a prime location, as these are two factors that maximize investment potential,” Roelvink said. “Additionally, we always make sure our investors are purchasing units in a project that’s still at a very early stage in order to get exclusive pre-sale prices. This ensures that the investor can achieve the best possible capital appreciation over the construction period, and thus the ability to quickly resell the property at a high profit.
In example A, one of our clients chose to make an investment in a project in Pattaya during Q4 2013. He paid a 15% deposit on a single unit priced at THB 3,200,000; or a deposit of THB 480,000. Only six months later we flipped his unit, selling it for the price of THB 3,550,000. After deducting the deposit, he made a profit of THB 350,000 in half of a year, meaning a terrific 73% ROI.”
While the investor in Example A clearly had a lucrative exit, his investment could have been part of a discounted group investment. Had he invested the same amount in one of BTS Property Group’s purchases, he could have nearly tripled his ROI.
“In Example B, also from late 2013, we connected several investors in order to buy a group purchase of 20 units in the same project as Example A,” Roelvink explains. “By utilizing our close relationship with the developer, we were able to purchase a large number of units at once, we were able to establish an significant 15% discount for our buyers, lowering the price of each unit to just THB 2,720,000. Once again, a 15% deposit was paid on these units (an amount of THB 408,000 each). In May 2014, we flipped the entire purchase, selling each unit again for THB 3,550,000. While the final selling price of the units in Example A and Example B were the same, the profit made on each unit in Example B was THB 830,000 per unit, meaning these investors reached a tremendous total ROI of 203%.”
The real estate market is booming in Southeast Asia, and Thailand specifically is experiencing construction of new condominium projects at a terrific rate. With compatible prices and vast opportunities for high ROI’s, the experienced investment consultants of BTS Property Group are able to guide their clients along one of the most interesting investment climates in the region.
Those interested in receiving professional advice towards finding the most highly-profitable investment opportunities in Bangkok should contact BTS Property Group at +66(0)2-107-2028 or [email protected].
