Bridge – unique technology of business
How to become the most successful in the Real Estate market with support project “Indvizh”
Valentin Frost
Ekaterina Milash

© Valentin Frost, 2022

© Ekaterina Milash, 2022

ISBN 978-5-0056-3086-5

Created with Ridero smart publishing system

PREFACE

You are holding in your hands a manual that I created primarily for myself and for my colleagues.

This handbook was designed for our company to facilitate the process of our sales department development and to help us operate effectively in the competitive real estate market.

Once I began to work on process automatization for our company it became clear for me there was a strong need for such a manual in the market.

Penetrating the market of Krasnodar Region and developing new projects, we faced an absolutely new reality of operating in the field.

We found out there were no customer-oriented companies in the market.

Today the purpose of the handbook is to help professionals in the real estate industry with the following issues:

– Changing the society’s perception of our job

– Creating a civilized real estate market

– Facilitating the processes of finding and purchasing real estate for the customers in a constantly growing market

– Increasing revenues

Chapter 1 INSIGHT

Do not limit yourself by only listening to the advice of successful businessmen – pay attention to what those who are bankrupt have to say if you genuinely want to win.

Your job consists of establishing communication with your partners and clients, so building additional sales funnels will only increase the performance coefficient.

Note that I am not talking about additional effort, nor about something new or unusual. In fact, this is what you are used to doing on a daily basis, however, now your revenues will start to increase.

This information will be useful for sales managers, real estate agents, executives, investors, and entrepreneurs of any kind who have been contemplating the idea of joining the real estate market, but do not know where to start.

If you implement the techniques described in this book, you will manage to build a “bridge” that leads your customers to becoming grateful property owners.

The methods outlined in this manual are as solid as the fact that tomorrow will definitely come – with or without you wanting this. There will be a brand-new day!

So, you either take action and win the battle, or the next morning is not for you.

No one is to make your job for you.

You have to do it yourself.

And now I am going to tell you how to do it.

Chapter 2 HOW TO START

Becoming a part of the large “Bridge” project means taking the first decisive step towards building a successful career in the real estate sphere and investment.

However, the situation in this industry is such that in order to stay in the market, you need to respond as quickly as possible to all significant events taking place in the world.

The book that you hold in your hands will become your faithful assistant in this.

“Bridge”: created for the entrepreneurs and investors as plan B:

– You have no objects? – Open the book!

– Market stagnation in your region? – Excellent. Open the book!

– The world’s economic crisis? – Couldn’t be better! Take and opened the book!

The content of the book covers all business processes and technologies for the implementation of the real estate objects and projects.

The book will give you the exact algorithms and mechanisms of work and focuses your attention on especially significant points.

It is important for us that, by joining the project, you get the opportunity for professional development, career growth and the right to independently develop your own projects.

We want to help you develop your business and grow with you, expand your geography every day, create more new projects, attract more people to our team.

But how do you structure your work? What to focus on first?

Of course, competent self-organization and effective time management play an important role at any stage of creating a project. But at first, it is especially important to correctly prioritize and allocate temporary resources.

So, what do you need to allocate time for and how to allocate it appropriately to achieve the desired result:

1. 25% of the time

▪ Planning the goals for each day

▪ Search of the objects

▪ Inspection of the objects

▪ Advertising creation

▪ Advertising distribution

▪ Sending of the letters

▪ Making calls

▪ Meetings, communication with agents, presentations in the real estate agencies

▪ Search of the specialists to develop the sales funnels

2. 25% of the time

▪ Training, participating in business trainings (networking)

▪ Improving oneself as a person, increasing the level of competence

▪ Communication with specialists (lawyers)

3. 50% of the time

▪ Customer search and involvement agents (the main activity that directly influence on the result)

▪ Environment sphere formation

▪ Target marketing

The main task at the very beginning of the way will be the search of the partners and objects. You must have your own strategy. Here is the definition given by Wikipedia:

Strategy (ancient Greek “the art of the commander”) is a general, not detailed plan of any activity, covering a long period of time, a way to achieve a difficult goal.

In a general sense, being a strategist means arranging goals in a hierarchical order, the consistent achievement of which, starting from a small goal, leads to the achievement of a major goal. The task of the strategist is the efficient use of resources to achieve goals. The main resource is people.

2.1. People search

I remind you that all your activities consist of building quality communications. In order to sell your expertise, you must first find someone who will be interested in buying your service, so the first step is to find customers.

Definition of TA (target audience)

There are a lot of people providing intermediary services, and very few people who are ready to offer new ways to solve the problems, which indicates a large segment of the market, free from competition.

Everyone will be able to find their client if they approach this issue professionally.

Even if an experienced specialist reads these lines, he still performs the same actions every day, namely, he searches for sources of potential customers: sellers, buyers, intermediaries.

And you, my future partner, most likely know such a thing as lead. If not, then keep the information:

A target lead is a potential customer who, in one way or another, reacted to the selling communication.

The term “lead” is used to designate a potential buyer, contact with him, received for the further work.

In Russian, the expression “a customer who has shown interest” is closest to it.

The term “lead” is used in management theory to describe the methods and practices used to engage new potential customers, and the methods of building communications that allow generating the interest of potential customers are called “lead generation”. Thus, lead generation in this business is a communication technology aimed at engaging new potential customers and selling the services to them.

And since we have plunged into the world of technology, I propose to get acquainted with the concept that will firmly enter into your daily activities.

Prospecting – the activities to engage potential customers.

Prospecting is not limited to calling potential buyers and sellers.

To be effective, it must be a planned and sequential process. If we project prospecting onto our project, then it will be constant presentations in the real estate agencies, webinars, communication with agents, customers, posting ads.

Take the time to prospect!

The main difference between the prospecting of the “Bridge-INDVIZH” project and the usual prospecting is that here the search is aimed at creating partnerships, searching for partners.

In order not to “break down” after a month of work in a new sphere for you (and this is absolutely a new sphere), you need to plan your time, allocate a sufficient part of it to find and engage partners and customers. In the long-term prospective, those of you who can build the “bridge” will win customers based on your reputation and referrals. And that’s exactly what they will be able to reduce the amount of time allocated for prospecting. However, when you first develop your project, you need to learn different ways to search.

Search is a system process, not a single event.

Let’s look at the example again (real estate analytics of the north and analytics of the south).

You and I have a clear understanding of the real estate market and investments in Moscow, St. Petersburg, and other cities in the north of Russia (here we mean all Russian cities outside the Krasnodar Territory and Crimea) and understanding of the investment flows of the Black Sea cities. Therefore, prospecting should be directed in two directions. The south side is to search for projects and the north side is to search for partners. Everything is extremely simple. Investors and buyers in the north should be aware of the great deals in the south, and that’s why you connect both sides. And for the search to become effective, find partners continuously and systematically!

One of the methods to encourage investors and partners to cooperate is to give them something they find valuable. Pass on the information! This is called direct response marketing. Create an offer to receive important information for a partner or investor that they simply want to receive. But remember: the information must be really important, and your offer must be convincing. And I believe that the analytics of the markets of the north and south will become that most valuable information. Keep connecting with them. Business contacts, like any other, are based on whether people like and trust each other. In order for the relationship to be of value to the investor and partner, place them in your favor. To do this, keep them interested by continuing to give useful information in small doses. And your personal qualities will help to please and be remembered. For example, a sense of humor.

We build a system of sequential actions:

The only guarantee of a growing business and financial independence is a stable flow of leads.

Daily prospecting:

Daily mailing of messages; holding at least three webinars per week; at least three streams on the YouTube channel; daily meetings and negotiations with interested parties; at least 40 quality calls per day. Here it is necessary to clarify what “quality calls” means. This means that you have reached a potential customer or partner at least forty times a day. You also already understood that you need to start a YouTube channel. Use all possible types of prospecting.

However, it is better to start with your environment.

Perhaps you know about 100 people (the “method of a hundred”) whom you see from time to time. And, of course, you have family, friends, old acquaintances, neighbors and even a hairdresser with whom you meet regularly. All these people are the basis for the generating a sales funnel. Create a database of people you keep in touch with. Gather the names, addresses, phone numbers, and email addresses of all people who know you. At this stage, you need to quickly collect the database and then start working with it sequentially.

First step: announce to everyone that you are the leader of the “Bridge” project, working in a large inter-regional network.

Second step: convince your sphere of influence that you know how to earn one million rubles per a month.

During the first 30 days in business, contact each contact six times. After this period, get in touch at least once a month. To optimize your activities, create an Excel table for entering data. Enter in the table the data of all relatives, friends, friends of relatives, acquaintances, neighbors. Let them know that you are now creating projects to engage investment in apartment real estate and business projects based on apart-hotels. Ask them to tell other people about it – for example, at work. Notification methods can be different: personal conversations, phone call, SMS.

Forming your sphere of environment involves working with all contacts. Family and friends are no exception. Everyone should know what you are doing. Remind yourself constantly!

Networking (from networking – lit. “network weaving”: net – “network” + work – “work”; “useful connections”) is a social activity aimed at ensuring that, with the help of friends and acquaintances or people who have connections in one sphere or another, to solve problems as quickly as possible.

When you first enter this project, you have time. Use it wisely. Get noticed by as many decision makers as possible. Join any public organizations and groups. There are many professions closely related to real estate and investment. Arbitrators, lawyers, mortgage brokers, specialists in lending departments, architects, surveyors, cadastral engineers can become good sources of information.

Thus, networking is a good way to build professional connections and expand your funnel.

Create the table for input data:
▪ Last name
▪ Name
▪ Surname
▪ Telephone number
▪ Result of negotiations

The table should provide for the possibility of including all the information necessary for the work and making comments on the work done for each contact.

A. An example of the initial appeal to your environment:

– (Name), as you may know, I’m developing projects (known through your social network). I am in charge of the project to engage investment in apart-hotels on the Black Sea coast.

Get feedback.

– What is the meaning of this project? – There is a huge number of large real estate objects on the market that have been put up for sale more than five or even ten years ago.

– What exactly do I do? – I find these objects, I negotiate with the owner that it is much easier and faster to implement the object if it is divided into rooms, apartments. After successful negotiations, my company enters into a contractual relationship for the implementation of this object – the hostel, the hotel, a large commercial area. We put up the object for the sale process, having previously created a business project and established business processes.

Most owners ask for an initial fee, that is why I’m looking for the investors. For the investor, I create favorable conditions with minimal investment. Everything is individual. Each owner has their own individual problem and the reason for the sale. Accordingly, completely different amounts are required for the initial fee. In addition, I am also looking for a final customer for the created residential / non-residential premises.

Get answers / get questions.

– Could you tell us (the name), who do you know who would like to invest in the real estate in the coming future?

Get information.

– Do you mind if I call them?

If there are no objections, continue.

– Can you think of people from your environment who may need my services in the coming future?

B. Your initial contact with the partner (if it is a face-to-face meeting):

– (Name), at the end of the meeting, one of three events will occur:

1. You will be able to work with me;

2. You decide that you are not ready to work with me;

3. I will decide that I am not ready to take on a job with you (ultimatum)!

– Any of these three options will suit me!

Let me ask you some questions:

A. You want to earn money because you need money. Right?

We get an answer.

B. Why do you need money?

We get an answer.

Q. Are you ready to learn and constantly develop?

(After receiving three answers, we will find out the motivation for working in your team).

– Now great news. I have prepared an investment project for you (an example of a project is an anti-cafe).

– What conclusion can be drawn? The conclusion is simple: you need to find investors, buyers from the north and direct them to the south. You and I will receive financial rewards for the creation of the project, and we will also continue to manage the project.

How will it look like?

– You create a sales funnel.

With the help of social networks, with the help of “cold” calling or direct contact, you look for and find people with money, negotiate with them. After that, you give me customer contacts. I “close” the client. After the client transfers funds, you receive your commission in the amount of 30,000 rubles per 1 sq. m or 3% of the transaction amount invested in shares-tokens.

At the same time, you do not take the client around the objects, you do not show the market: foundation pits, all stages of construction, secondary buildings, plots, commercial real estate, private houses.

Be sure to enter the results of these negotiations with a potential partner in your table.

Continue to regularly work with your environment, remind yourself of yourself in various ways.

Thus, working with the database is a continuous cyclical process. Remember: prospecting will bring you a significant number of clients only if the sphere of influence is systematically and regularly worked on.

2.2. Project search

This book talks about how you can make a profit in various ways.

One of these ways is to find large real estate objects with further division into premises. It is not necessary to immediately plunge into the processes of separation. You can gradually enter projects by providing such objects to those companies that are engaged in the partition. Transferred the object – received a commission. In the process, you will gradually grow into an independent project, but first you need to find the object itself.

Now I’ll tell you about a new term that will definitely come in handy for you:

Farming (from the English farm – “farm”, farming – “cultivation”) in our project is work on your own territory. It can be territorial and/or segmental (hotels, guest houses, private houses or commercial real estate, etc.).

The advantage of this method is the fact that once you start to become known as a specialist in your area (region), it will be very difficult for other agents or the whole company to force you out of your market.

How should one properly “cultivate”?

A. Determine the geographical boundaries of your local market and describe it.

The optimal volume is considered to be from 50 to 300 of real estate properties.

B. Define a segment.

You can choose the economy segment of the market and sell large real estate objects, dividing them into shares, at low prices, or take on commercial real estate and re-concept (change the concept) and sell commerce by apartment, positioning the object as a business class.

It makes no difference to you how you receive your money. Investments in real estate will always exist as long as this world exists. The most important thing is for you to choose your own market segment and work with those clients with whom you would like and know how to work. By segmenting your funnel, you will be able to identify who owns this type of property. Contact them and try to build a business relationship.

B. Thoroughly study the real estate market in your area.

Explore your area. You need to know the price level in the area in order to put your property on the market at the right price.

The right price is the price at which the property will be bought.

The ability to conduct market analytics and negotiate based on this analysis will be your competitive advantage.

G. Study the infrastructure of the area.

Social and cultural facilities are of great importance:

▪ Hospitals and polyclinics (for children and adults)

▪ Kindergartens and schools

▪ Fitness clubs and swimming pools

▪ Stadiums, sports facilities

▪ Restaurants and shops

▪ Car services and parking

▪ Beauty salons, children’s centers, as well as other infrastructure facilities of the district

Check out the Community Forum.

D. Explore the territory relative to the object within a radius of approximately 15—20 minutes on foot, as well as by car and always by public transport. Find out the features of transport accessibility.

E. Work on the “farm” systematically, build relationships.

Connect different channels for obtaining information, make contacts. Farming efficiency secret:

Thoroughly study your territory, actively maintain and develop contacts. Let everyone know that you are the best specialist in your area!

Life hack

Objects long gone from the real estate market that were on the market, but were not sold for a certain period of time, because they were withdrawn from sale by the owners.

Such objects can always be found by carefully tracking the databases and by forging partnerships through their old communication channels.

It is also possible to conclude an agreement a few years after the removal of the object from the sale.

Phone calls and personal meetings with the owners of such real estate can be an effective way to quickly create new projects. To do this, a large package with information about your services, your team, as well as a well-executed presentation should be prepared.

Do not stop only at those objects that are now on the market. Keep a constant search and find “old new” objects!

2.3. Social network

It is an ideal supplier of the partners and investors, but only if you use them correctly.

Facebook¹, V- Kontakte, Odnoklassniki, and Instagram² are suitable for your activities. But keep in mind that they all have a different target audience.

In addition, in order for your page to start bringing money “to the house”, you must do the following:

A. If you use a personal page for the work, clean it thoroughly.

Photos for personal use and vulgar jokes are not allowed. Minimize the number of hippos, cats, posts about all kinds of socionics and family psychology. All of this can alienate your potential customers.

B. The best option is to start a professional page for the work. In this case, each of its elements should work for your image.

C. Make publications on your page daily. Publications must be in interview format. Interviews should be recorded with all market participants: with realtors, with sales managers, with heads of sales departments or real estate agencies, with developers or with owners of big real estate.

Publications can be devoted to the intricacies of your activities, the situation on the real estate market, the opening of new malls and other interesting events in your region.

D. Encourage customers to leave positive feedback about your work on your page. This will increase the level of confidence your potential customers have in you. Do not ignore requests for advice, always respond to messages in the “private messages”!

Specify the address of the professional page on a social network on a business card.

Chapter 3 WHY DO YOU NEED THIS BOOK?

In order to expand your funnel, grow from an agent or agency into a big independent project.

Why is this topic important?

Of course, you can put this book aside and continue chasing a client who is not eager to communicate with you and who is most likely not happy to pay a commission.

Here the question is not that you did not manage to present your value, but that every person has a desire to benefit, to save.

I can give examples where a person does otherwise. In my practice, 90% of foreign clients did not even think about the fact that these services of intermediaries cannot be paid. They had a cost in their head, and what elements it consists of is not their concern.

But we are now talking about our sphere of influence and our funnel.

Agree with me that the majority of our clients are our fellow citizens, who can be safely attributed to the so-called “reds”.

For those who have been in the market for a long time, this information will not be news: people really similar to each other, and they can be combined into groups.

I’ll tell you about it in more detail. Knowing this aspect will help you find the answer to the question “why?”.

CLASSIFICATION OF CLIENTS BY COLORS

BEIGE

Beige clients are not decision makers (DMs).

These may be relatives who select real estate not for themselves, but for their daughter, who is in another city and upon arrival will independently study the real estate market.

You can’t waste time on beige clients

PURPLE

Violet is a very difficult type of client. However, if you can adapt to them, then success is guaranteed.

Purple client is a supporter of any teachings. He pulls into his value system, offers to become a member of his society or asks you to buy an Energy Diet slimming shake.

In a word, these are fans of their views, and if you behave correctly with such a person, then the deal is secured.

Remember how fanatically the client pulls you into their business. Just as fanatically, he will talk about you in his sphere of influence.

RED

Now, please, more attention: RED IN THE CITY!

This is not a reference to the last century – this is a characteristic of our society.

Each of us is a little red. You are not born red, you become red.

Just so you understand: even purple clients can turn red if you make one mistake.

Who are the red ones?

Basically, these are aggressive, insatiable, greedy customers. It doesn’t matter to them whether the product is of high quality, what risks are possible when buying. They are interested in bargaining – cheaper and more.

Don’t put your finger in their mouth. When communicating with them, in no case should you talk about concessions, bargaining, that you can give up with your commission.

By saying this, you will open Pandora’s box, and the red one will never come off. There will be bargaining until he breaks the deal for himself.

It is for them that advertising campaigns of the following type have been created: “Buy an apartment and get a refrigerator as a gift!” or “Pyaterochka store near the house” and at the end of the announcement in large letters: “BARGAIN!”.

Submit such an advertisement – and you are provided with a call. You’ve landed a potential client, a red client.

How to work with him?

There is no panacea.

If a person wants to make a deal without intermediaries, he will go to the end.

Yes, he will smile in your face, but in the end, he will try to do his best to save money.

The only advice is to be stronger, show the client that you are a professional, and if he does not want to pay for your work, then please let him continue looking for real estate without you.

BLUE

It can be said that all foreign customers are blue. They came, they chose, they bought.

The blue client does not like gray schemes, he needs specifics: price, floor, distance to the sea, how much money the rent will bring.

If such a client sees that you have exaggerated or even lied somewhere, he will immediately find a replacement for you, since it is important for him to work with a good specialist. Unlike the red client, the blue one will not break the SIM card after showing the object. Blue will say to his face what exactly did not suit him in the object and the specialist.

ORANGE

Orange is the most favorite client (investor).

He doesn’t care how much you earn. The main thing is how much he can earn thanks to cooperation with you.

GREEN

Comfort is above all.

They also don’t care how much you earn. The main thing is that their property should have such characteristics that will give them positive emotions: a view from the window, maybe a square, a beautiful courtyard. In short, a landscaped area for a comfortable life.

Absolutely every client can become red. Don’t bargain, stay within limits. However, if you make a mistake, then 99% out of 100% is a loss of opportunity to get results, and most importantly, a loss of time that you could spend on other motivated clients who appreciate your service.

“But don’t rush customers!” you say. And some will even get ahead of me and will stand on the fact that the specialist chooses the client, and not the client chooses the specialist.

I will answer it this way:

Do you need to know your worth and not work with those who do not appreciate you? – YES.

Do not scatter customers left, and right? – YES.

Both points of view are correct.

And that is why it is necessary to create a digitization of customers that will attract absolutely everyone, regardless of their “color” and bring you one hundred percent income.

Minimizing the number of broken deals and broken contracts is very simple.

Script 1

(On the example of an ordinary real estate agent – an outgoing purchase call):

– Good afternoon! My name is Ekaterina. Are you interested in buying real estate?

Client response: Yes.

– How can I contact you?

Client response: Bogdan.

– Excellent, Bogdan! For what purpose do you want to buy property? Life, recreation, investment?

Client response: Life. (It doesn’t matter what his answer is. Our goal is to digitize the customer. The first rule of any entrepreneur is “DO NOT MANAGE THAT YOU CANNOT MEASURE.”)

– Bogdan, I need to measure your motivation. Please tell me how urgently you are ready to buy a property on a scale from zero to ten, where 0 means you will be looking for a property for another year and 10 means you needed to buy an apartment yesterday.

Please name a number.

Script 2

(On the example of an ordinary real estate agent – an outgoing sales call):

– Good afternoon! My name is Ekaterina. Are you selling your apartment?

Client response: Yes.

– How can I contact you?

Client response: Bogdan.

– Excellent, Bogdan! If you sell your apartment, where will you move next? (Here we find out – alternative sale or free.)

Customer response: Alternative. (It doesn’t matter what his answer is. Our goal is to digitize the customer. The first rule of any entrepreneur is “DO NOT MANAGE THAT YOU CANNOT MEASURE.”)

– Bogdan, I need to measure your motivation. Please tell me how urgently you are ready to sell the property on a scale from zero to ten, where 0 means you will sell the property for another year and 10 means you needed to sell the apartment yesterday.

Please name a number.

There is no 6 in this coordinate system.

If the client rates his motivation from 0 to 5, you can safely hang up in your CRM system and log: 8 999 713 33 30, Bogdan (A) – the alternative and the number that Bogdan named.

Why?

Because Bogdan has no motivation. He can wait a year, six months, and you need the money now.

For the sake of experiment, you can safely transfer all your unmotivated clients to your colleagues who refuse to run their own business and use scripts.

And you will see how at the moment when you already have substantive negotiations with motivated clients, your colleagues will be aggressive, lose heart, get angry because of negotiations with your unmotivated clients. Then you will understand that your money is in your hands.

You have already understood that if a client evaluates his motivation from 7 to 10, then this means that the client is ready to bargain, installments, concessions – on any conditions, if only to achieve the desired result as soon as possible. Work only with motivated clients: their high motivation today = your money today.

Now you have the answer to the question why you should read this book.

Chapter 4 WHAT IS THIS PROJECT?

Everyone wants their own apartment. And there are only three answers to the question “Why do people want to buy real estate?”:

▪ For life;

▪ For recreation;

▪ For investment.

But the majority cannot afford to invest or simply buy a small studio to live in.

Working with sellers and customers on a daily basis, I came across the fact that people would like to invest and expand, move out of their apartments, but after selling their “one room plus one” they simply do not have enough funds to purchase two properties, not to mention three …

I will try to explain why, thanks to you, your clients will be able to freely invest and buy three apartments instead of two.

You have this book and you can do anything!!!

In Moscow and large cities: St. Petersburg – Yekaterinburg, Omsk – Tomsk, companies operate in smaller cities and earn very good money using project, but not at full capacity.

“Light” method

Companies find an illiquid four-room apartment on the first or second floor above a commercial non-residential floor.

An agreement is concluded with the owner of this housing that the apartment will be sold in parts due to the fact that the market dictates its own rules and it is easier to sell a small studio than an illiquid four-room apartment.

If the owner is motivated, he does not care how to sell, if only quickly.

Object in work: advertising is being done, renderings with a studio plan. Each location is given catchy names (“Madrid”, “Rio”, “Riviera”, etc.) and as many advertisements as possible are issued for each – to move trade.

The result is a low price for the studio, and here there are those who want to buy the treasured square meters inexpensively. In addition, this is not some kind of communal apartment, this is a full-fledged studio with amenities (re-planning was carried out with the allocation of a bathroom zone).

A rush is created around the created real estate objects, and a preliminary agreement is signed with those wishing to purchase such studios, where a separate studio is assigned to each and an obligation is prescribed to repair and re-plan it within the terms agreed after the transaction.

And then one day, buyers are invited to a deal for the sale of a share in an apartment.

An example is the huge number of profitable houses in St. Petersburg. In a word, the portrait of the customer here is an investor who is interested in long-term investments.

There are a lot of additional aspects in this “Light” method. This is, for example, the absence of a mortgage. You also need to forget about material capital and other subsidies – only cash. Another feature is the waiver of the pre-emptive right to purchase. And many others.

Always choose the most difficult way: on it you will not meet competitors.

“Hard” method

In the real estate market of any city in our country, there are objects that are attractive only when you own such objects, but do not buy them. Too long-term investment.

Let’s look at the example of a hotel on the beach, Pribrezhnaya Street.

Object cost: RUB 40,000,000

Area: 500 sq. m (useful area).

Number fund: 24.

Average annual rate: 2,500 rubles.

Hotel occupancy: 237 days – 65%.

Income from renting one apartment per year: 592,500 rubles.

Net profit of one apartment: RUB 414,750 (we subtract 30% – trust management fee)

Net profit of the object: 24 is multiplied by 414,750 rubles and we get RUB 9,954,000.

We calculate the payback period: divide the cost of the object by net profit and get 4 years.

This is the period for which the investor returns the investment.

Remark: an investor can increase the class character, invest additionally in the renewal of repairs, the creation of recreation areas, saunas and a swimming pool, and thereby receive a higher average annual accommodation rate per day, i.е. accelerate the return on investment.

The property is an operating hotel.

Due to the long stay in the real estate market, the over-motivated owner is ready to go for installments from six months to a year.

We need to meet with the owner, and most importantly, take the entire package of documents from him, the floor plan for making the calculation. And here is the calculation itself:

Object cost is RUB 40,000,000 divided by the usable area of 500 sq. m.

We get the cost of one square meter is RUB 80,000.

RUB 80,000 for the property with renovation, furniture and appliances on the beach!

An analysis of the market in this area is being carried out.

The cost of a square meter at the construction stage in this area starts from RUB 300,000 per 1 sq. m (as of January 1, 2022).

It can be seen from the project that if this property is sold by apartments, then instead of the total cost of RUB 40,000,000, the object will be sold in the amount of RUB 150,000,000.

This is exactly how the developers of Sochi make money. Making profit from the sales of apartments under construction, developers invest this profit in guest houses, reconstruct and change the concept, draw up documents and receive at least X2 as a result (multiply their profit twice). Crashing into such projects, developers (large investors) satisfy the needs of all market participants.

Realtors receive an object through which they can make money, and investors and customers receive real estate.

We can make approximate calculations: we will include the cost of repair work, the work of a lawyer, the salary of sales managers, reconstruction (if it makes sense), as well as documents (ownership).

With proper investment of funds and increasing the class of the object, you can enter the market with an offer of RUB 250,000 per sq. m. m with a strategy of gradually increasing prices after each subsequent sale.

4.1. Real estate tokenization

You, as the executing party, come to the conclusion of an agreement with the owner of the object on an installment plan, where the entire amount will be received by the owner within a year – a year and a half. It often happens that the owner requires an initial payment, and you, not finding an extra couple of million rubles, involve investors’ money.

The object is divided into premises and put up for sale as an apartment complex (apart-hotel “Island of bliss”).

An act of exchange of shares and an agreement on granting an option to transfer rights to receive benefits will be signed with the investor and subsequent customers of the apartments.

Share – part, share of participation in a partnership, joint-stock company.

A shareholder is a natural or legal person who has the right to become a participant in a joint project after making a certain amount of financial or material resources (share).

Now I ask you to be as careful as possible!

If you are reading this book (and it is about investments), then you have heard about stocks at least once in your life. They are of two types: ordinary and preferred – they occupy the main place among all types of securities.

Конец ознакомительного фрагмента.

Текст предоставлен ООО «Литрес».

Прочитайте эту книгу целиком, купив полную легальную версию на Литрес.

Безопасно оплатить книгу можно банковской картой Visa, MasterCard, Maestro, со счета мобильного телефона, с платежного терминала, в салоне МТС или Связной, через PayPal, WebMoney, Яндекс.Деньги, QIWI Кошелек, бонусными картами или другим удобным Вам способом.

Примечания

1

Organizations banned on the territory of the Russian Federation

Back

2

Organizations banned on the territory of the Russian Federation

Back