How to put the right real estate investments in front of your clients

Julian Kwan, Chief Executive Officer of Singapore based real estate investment platform InvestaCrowd, provides solutions to the growing ranks of HNW individuals and families that are investing a rising proportion of their wealth in commercial real estate. Putting the right deals in front of these clients is the key.

Kwan addressed the audience at the Hubbis Independent Wealth Management Forum in Singapore on March 8. His target was to explain to investors and distributors his firm’s unique business model and the types of property assets that he believes are most relevant to the rising numbers of HNWIs that are focusing increasing effort on real estate globally.

B2B: helping advisers join in the global real estate boom

Kwan explained that InvestaCrowd’s key value proposition relevant to the Hubbis event of March 8 is the custom-made B2B product, ideal for the clients that work with the wealth advisers attending the Forum. “Much of your clients’ money is tied up in real estate, but you are not participating in much, or possibly any, of that flow. We are here to change that.” 

InvestaCrowd is a Singapore firm with a capital markets license issued by the MAS. “We use data and technology to help transform how people are investing in real estate in a global context. We focus on the product that appeals to the HNWI sector and we offer the skills of our team of real estate experts to sift through opportunities in different types of projects in key global gateway cities, mainly large-scale commercial projects. We make sure that we work only with reputable, professional real estate sponsors.  In short, we make it very easy for people to access, analyse and complete these investments.” 

Top returns mean returning clients

Kwan highlighted the vital importance of focusing on returns. “We can target the best returns because we focus on private equity deals, these are specifically deal by deal direct investments. We invest in debt, we invest in equity, some of the deals are as short as three months and some of the equity deals go on for a couple of years. We invest in residential, commercial, land subdivision. We are also offering some more alternative projects, for example, we can customise specific types of asset classes for your clients.”

Kwan explained that investors first need to provide information in order for them to qualify for the information flows. The information gathering then helps the firm select the right type of products. “We have been able to bring investors with a range of $50,000 to $50 million,” he reported. “Some of the wealthiest HNWIs on our platform often prefer to start with a smaller quantum and then when they are more comfortable they increase their investments and diversify their range of assets.”

Diversification

He elucidated on the vital element of diversification. “Someone can buy one $50 million building, but it is very competitive, the returns are squeezed because of the high asset prices and low-interest rates. It is really difficult to find and complete deals because the global flows of capital have dramatically increased, with China driving much of the growth. Accordingly, we find real estate companies that handle the entire projects, on fixed terms.”

Working with accredited, regulated firms in the major centres is also vital for InvestaCrowd and its clients. “We provide the bridge to the licensed firms, which provides assurance for our distributors and end investors,” Kwan noted.

He also highlighted some key factors that enable InvestaCrowd to be successful. The products we promote are of a quality where due diligence is easier and more rapid, so distributors can easily take them to their clients. Funds are often required rapidly, so making the process as seamless as possible adds a competitive advantage in a world where it is tough to get in on the right deals, especially in a global context.” 

From little to… very large

Kwan then explained more about the platform, noting that the firm has some 2000 investors registered, creating over 100 groups that can invest more than $20 million each. “We can work with investors whose quantum is as small as $50,000 and we are now actually working with a sponsor in Melbourne on a $55 million raising, which will actually be just one investor into one ticket. We provide all the things that these investors, your clients, require. Working with us can increase and diversify your revenues by doing so.”