Find out how Investment Funds injected into a secured emerging market vehicle will accelerate the grouped funds for high yields returning back to the originating funds.
Investment funds may originate from an investor seeking a secure vehicle where it can grow. This vehicle may itself be a fund used for investment or a special purpose vehicle purchased, funded and used to grow the value of real estate until it may be exited through a sale to return a much higher return to the original sources of the income.
The areas of focus of investment funds here is where it can grow the fastest and most secured. Foreign direct investment (FDI) that flows into emerging markets is an example of an investment process that can generate high yields for the FDI if the right fundamentals are utilized. One of the key requirements is to have an adept investment manager or professional fund management that can mobilize the right team to source secured markets for the funds and a fail-safe plan to grow the funds and pay a larger portion back to the owners on exit of the emerging market investment.
In general, a vehicle where the funds grow could be a collective scheme where funds of investors are pooled or a private placement that facilitates the same pooling of funds for the investment.
Where can we find secure fast growth investment vehicles?
Placing funds for investments in special purpose vehicles (SPV) or companies that will skillfully invest in high demand real estate in emerging markets where there is a high barrier to entry due to a dearth in liquidity, infra-structure, mortgage facility and a high demand for housing due to its shortage, is the answer. Further, if this market is large with a good investment climate, all of these amplify the potential to generate large returns. The combined factor of an emerging market and an offshore growing market will coalesce to provide the needed security to generate large return on investments when handled by an experienced and skillful investment capital management that knows the local market and is an expert at developing and leading such projects.
Take for example an SPV that is set up to develop 30 Terrace or Town house condos apartments where there already is a shortage of housing and employment in the area and the use of outright cash purchases is the norm. Due to the demand for quality homes that can meet the median scale income there will be a good momentum of buyers looking to utilize outright cash purchases even in a challenging economy. Why? People need a roof over there heads and will pool their funds together for this purpose. By strategically introducing short term seller financing at premium pricing seizing the advantage of high double digit interest rates customary to the market, followed by a refinance after 5 years through a local bank to facilitate exit of the capital injected, the investor wins with a landslide. High double digit annualized returns on investments are effectively realized. This scenario presented is very atypical of offshore emerging markets in the Sub Sahara Africa. The said SPVs can enter, exit and re-enter new similar developments within 5 year investment cycles for as long as the FDI or Funds are planned for the offshore market. Only a few astute investors are capitalizing on this highly secure investment vehicle.
More value added secure investments
Now consider the above type of real estate investment within a free trade zone established to promote and bolster investment into an area. Some of the incentives include tax holidays, subsidized or free allocation of land for operations, 100% repatriation of foreign investments out of the country, no charge on government permit fees and the list goes on. How good is this or rather how much impact will this be on your bottom line? Can this bolster a strong return on investment even more? These are the factors that further buttress security on investments. So if your investment funds are struggling to compete in your onshore local market because there is too much competition, hence not enough demand and inflation is further regressing the thin return you are earning, there is a much better way. Our adept real estate investment capital management will facilitate your secure investing in either US and or offshore emerging markets.
How can your group ownership real estate investments further secure you?
By utilizing a private placement memorandum process to generate capital for an SPV that will own the investment and distribute your equitable shareholding of it to you, you are protected from anyone making away with your investment. As you would own a portion of the company that owns the real estate investment, the operating agreement will require that you enjoy a portion of the cash flow and receive your principal and capital gain upon an exit sale of the investment. While others are struggling with low investment returns outside of emerging markets and closing their better options in offshore emerging markets for a lack of knowledge, the astute and educated investor is basking in the sunshine with his well-earned loot on offshore emerging market profits. An adept real estate investment capital management will help to soar your returns. To get on a fast track to high yields secured to real estate and boost your investment funds Contact our adept team today.