Off Market Investment Properties

There is almost no industry that is not affected by the Corona virus. Real estate agents are no exception. Apparently, this is evident, for example, on the basis of the pictures, which probably everyone has seen more often in different media in the course of the discussion about housing shortages: housing visits in big cities regularly become mass events, where there is a dense crowd. This is the exact opposite of “social distancing” and therefore no longer responsible during the Corona crisis. This comparatively simple problem could be solved by equalization, but the current challenges for real estate brokerage in the retail market extend significantly further. Those who were still a prospective tenant with a good credit rating yesterday may have to reconsider their plans today in the face of unclear income prospects. But also on the provider side, i.e. on the side of the property owners, there will be significant changes in behaviour. Which homeowner currently wants to let strangers into his house for sightseeing appointments? Presumably, many will decide to postpone the sale until after the Corona crisis. On the positive side of the real estate agents, however, it should be noted that after the Corona virus has substantiated, demand is expected to catch up. Other industries are hit even harder. Those who renounce visiting the Italian today will not eat two pizzas instead of one after the crisis.

It is conceivable that a mini-version of Japan’s 1990 housing crisis could occur. In Japan, the real estate market collapsed at the time, when in a crisis many companies wanted to sell real estate, noting that they were significantly overvalued on the balance sheets. A similar drama is not to be expected in Germany. First, there will not be a comparable number of emergency sales, not least through the federal government’s bailout. Secondly, there is no evidence that real estate in Germany is overvalued to a comparable extent to that in Japan. Nevertheless, a higher supply on the market could lead to falling prices. However, this fall in prices could counteract the fact that the turbulence in the stock markets will trigger a flight into tangible assets and thus probably increase demand.

Social developments and globalization have not passed without a trace in the real estate market either. On the contrary: Whereas in the past apartments and houses were primarily purchased for their own use or as a student stall for their own offspring, today the property is in focus as an investment in value. Investors can use risk-free investments such as real estate and basic asset building. The prerequisite for this is that the properties do not lose value, but on the contrary increase in value.

In this context, so-called off-market properties are particularly attractive for large investors. Behind the term lies a simple principle. Off-market real estate does not appear in the media or on internet portals. The process is the other way around: we address verified customers, make offers to find suitable properties. This is possible thanks to our long-standing, established business contacts. Discretion is paramount, not loud behaviour. In constant contact with investors and regular customers, E1 Immobilien Holding knows the need and opportunities for searchers.

With 42 investments in ten countries, our holding company is represented nationwide. The real estate market is booming. Large cities with growth potential in business, science and teaching are particularly popular. Among the frontrunners are Munich, Berlin, Frankfurt, Stuttgart and Hamburg. But other cities such as Karlsruhe with its University of Excellence are also becoming more and more popular and enjoying rising real estate prices. This is good for investors, as they can look forward to rising rents and a thus rising return.

Before you buy, however, certain factors should be clarified. Is the desired property in a central, well-connected or selected green location, well connected by public transport? What about infrastructure: are employers, schools, doctors and shops easy to reach? It is advantageous to buy real estate when long-term and favourable interest rates are possible.

Our real estate calculation shows you in advance whether it is worthwhile to purchase an investment as a secured investment.

In this context, so-called off-market properties are particularly attractive for large investors. Behind the term lies a simple principle. Off-market real estate does not appear in the media or on Internet portals. The process is the other way around: we address verified customers, make offers to find suitable properties. This is possible thanks to our long-standing, established business contacts. Discretion is paramount, not loud behaviour. In constant contact with investors and regular customers, E1 Immobilien Holding knows the need and opportunities for searchers.

Financing options for real estate acquisition are possible in various ways. One of the simplest and at the same time cheaper forms of financing is equity. However, not all buyers enjoy this luxury and can pay for their property in cash. The equity includes all cash, money in current accounts, insurance and value deposits. Loans from the family or from the employer are also included. The higher the equity capital, the lower the debt that an institution must provide to the election.

Real estate has many uses. For most people, these serve as their own home. The focus is on the fact that no rent has to be paid and then the own children can inherit the property. Another way of using it is to use it as an investment. The purpose of this is to make money. Investment properties (especially off-market)are a safe investment and offer many advantages over equities and capital investments. The goal is often to secure the future and pension provision. Since tangible assets cannot be influenced by interest rates or inflation, they are particularly safe, unlike other investments. This is supported by the high value stability for an investment in investment properties. Developments in the real estate markets are quite strong, but slower than on the stock market. Investments are tangible and real objects and thus have a concrete value. They do not lose it even within the first year, unlike automobiles.

An asset deal in connection with real estate investments is a transaction in which the investor purchases a property directly. The object of the sale is the property itself – in contrast to the share deal, in which only shares in an object company are sold. An asset deal is always associated with a property purchase. The buyer becomes the direct owner of the purchased property instead of the seller. In addition to the “classic” property purchase, in which the buyer acquires a plot of land with an existing building, other forms of an asset deal are possible. These include property developer contracts, general contractor models, land purchases with contract acceptance and property outsourcing through sale-and-lease-back. Portfolio transactions can also be asset deals if several individual properties are sold en bloc. On the other hand, if a portfolio transaction sells shares in a company that holds the real estate portfolio in question instead of individual real estate, it is a share deal.

In most cases, a loan is necessary to finance a property. Real estate financing has even become a very common tool for fulfilling the dream of owning a home. However, in order to finance a property, the bank requires collateral. In most cases, lenders reserve the right to tender the property for foreclosure in the event of insolvency. This is how the debt can eventually be paid off. This type of credit security is also referred to as the lending of a property. Borrowing properties are therefore not a type of real estate, but represent those that actually still belong to the bank until the loan has been repaid.