Overseas Investors For Commercial Real Estate Development?

Question

Hi BP... What is the best way to find overseas investors for commercial real estate development projects in the United States? I have some great market feasibility study proposals that yield high internal rate of returns. Suggestions? Thanks.

Andrew Fielder · Answer

If you're just starting off. Networking is probably the best thing you can do. Talk to anyone in real estate with an accent and find out where they're from. Chances are they will have friends and family in their country of origin. It's a little tougher right now because the US dollar is strong compared to other currencies so you will find less small to medium institutions looking to invest in the US. Connect with anyone who is Chinese. A lot of investors are looking to get their money out of China and invest in real estate. I'm currently working with cbre in Sydney and it's a very similar story. Unfortunately most of the investors I work with are looking for very large deals ie. $20M+. Where exactly are these opportunities located? Are these development opportunities you're talking about?

Jacobus Bor · Answer

SAFE and SECURE

We have several site currently under contract and negotiating in Germany SELF storage

Yes safe and secure and most diversified type of property you can invest in as in ea of our

projects their are a minimum of 700 tenants and history tells me we have never had more than

6.2% move out per month and normally have that amount or more move back in at a higher

rental rate .

And Germany is still in its infancy of the self storage industry therefore an IRR of 25% plus

is very realistic.

Happy investing have interest contact me to expand your investments SAFE

Adam McClure · Answer

We have development opportunities in Northern California and need investors. Would be happy to hear terms from capital partners.

On EB-5, yes, it is slated for overhaul in September. We are currently closing a round and need 2-3 additional investors at @500k minimum apiece. Any applications submitted before then will use the current rules. Typically you use a Regional Center to demonstrate "indirect" job creation from things like construction labor and materials purchases, but the most important thing is to have a project ready to fund. What you should know about Chinese EB-5 applicants is that current wait times for processing add 15 months to the typical 4-5 year timeframe to recover funds and get conditions removed from Green Card. Investors from other countries can be approved over one year faster.

Sam Van Horebeek · Answer

We are working with small commercial investors (deal value 50 -100 mm USD) here in Asia so we are looking for interesting deals in the US that produce high yields.

Below is one of my posts that provides some more information around one of our requests:

https://www.biggerpockets.com/forums/32/topics/272...

Feel free to contact me if you have anything that could help us.

Sally Jennings · Answer

I work with a lot of foreign investors looking for experienced operators in the U.S. to partner with. Depending on the country and company they have different strategies and property types they will consider. EB-5 is just one way to attract foreign investment and is often used as mezzanine financing rather than straight joint venture equity.

Cory Macculloch · Answer

Funding sources north of the border might be harder to come across as of late. Canadian investors are definitely looking at the CAD/USD exchange before opening their wallets.

Personally, I would solidify one or two local investors for a proposed deal and then ask them to expand their network.

Ryan McGowan · Answer

I wasn't aware of the changes. I have two tracts coming up that are EB-5. Both in high-end areas. Guess I better look into this...

F. Todd Ryan · Answer

Thanks Joel. Hopefully, those government reforms will somehowbe beneficial to our advantage.

*fingers crossed*

Joel Owens · Answer

That's going to be tough. The EB -5 Visa program is set to expire and they are talking about major government reforms if they do a renewal.

Claims were that instead of run down areas the developers were using the program to redevelop in more affluent areas.

Overseas Investors For Commercial Real Estate Development?

Overseas Investors For Commercial Real Estate Development?

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