Properties outside the market are very popular and require a maximum of freedom of action. We bring vendors and investors together carefully and without detours and accompany them during the process. The search profiles we offer for private and institutional investors enable us to offer properties in a very targeted and pre-screened manner. In the case of off market properties, we only speak directly to sellers and investors or their legal brokers. The direct contact and flow of information should be available at all times within a short time.
Investments in off-market properties
The property does not appear in the media, such as Internet portals. We only talk to pre-verified search customers. Through proven business relationships with investors and regular customers, we know who is looking for what and who needs which properties.
Quiet sale as investment in real estate
Off Market Deals: The sale is silent. Discretion is our top priority even after a transaction. The so-called non-market properties are very popular and require a special degree of confidentiality. Objects that are not intended for sale on the market are not openly offered by us, are not advertised on property portals and do not appear in print or online advertising. They are offered to specially qualified investors.
As a specialist for Off Market Investments we unite providers and investors diligently and without detours and accompany them during the process. We have relevant search profiles of our private and institutional investors and can therefore offer properties in a very targeted and pre-screened manner. This includes residential complexes, land (only with building permit), shopping complexes, shopping parks and logistics areas.
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Off-market real estate strategy for buyers and institutional clients
OTC properties are sold quietly. Discretion is our top priority even after a transaction. We maintain long-term personal contacts with the management or supervisory boards of some institutional investors and family offices. This is the basis of our business activities as well as our private consulting. The property offered to us is intensively analysed in our company and only then is it offered as an investment property. We also prepare profitability calculations based on client criteria. We accompany our clients throughout the entire process (generally in accordance with the German Investment Companies Act (KAGB)).
Our service promises for you:
+ advice and support
+ Detailed profiling
+ Intensive preliminary examination according to your criteria
+ The exact selection of objects according to your search profile
+ Complete documentation and direct contact with the owner
+ Professional and discreet work
The process of real estate investment outside the market for sellers and investors
Of course, investment in real estate in the off-market is also invisible and closed to the public.
E1-Immobilien-Holding maintains direct contacts with a number of decision-makers, buyers of institutional real estate and a large group of private investors as well as some family offices. First of all, we personally discuss the key data of the desired property with the investors.
Our strategy outside the real estate market
Our service promises for you: professional advice for your property from the first contact to the business contract. Determination of strategic market prices based on statistical data. E1 Holding is a leading German real estate specialist. In recent years we have supported transactions worth more than one billion euros. We always find the “best investment property” and the best buyer for your property. With our individual and transparent method we bring together sellers and highly qualified investors. It has been shown that we achieve a higher degree of transaction security than with conventional brokerage models.
Currently, more and more transactions are being carried out outside the market. According to a new study, both professional investors and sellers are turning away from tender procedures and general market requirements. This is because they take too much time – and fail too often.
A study conducted by research company Bulwiengesa has shown that real estate investors increasingly prefer inconspicuous transactions in economic areas to public tenders. Accordingly, commercial and residential real estate portfolios worth around 40 billion euros were transferred to another owner last year – but the seller did not approach a broad spectrum of potential buyers.
Data from a survey of 682 market participants showed that the total volume of commercial and residential real estate portfolios sold in Germany in 2018 would be around EUR 110 billion instead of the EUR 70 billion announced by brokerage firms. The market liquidity of off market real estate is therefore significantly higher than previously assumed.
The above-mentioned study also shows that 37 percent, i.e. more than every third transaction, was achieved by contacting selected investors.
Off market transactions originally came from family offices
Initially, these were primarily family offices, where deals outside the market were preferred in order to anonymously buy properties for super-rich private investors. They were not interested in the public and knew the details of their property. For this reason, they were often willing to pay above-market prices to gain confidential access to properties.
Today, 96 percent of all institutional investors – from funds to pension funds to insurance companies – are interested in transactions outside the market. However, these professional investors are equally interested in privacy – and they are by no means prepared to pay too much money. On the contrary: the aim of these investors is to acquire real estate quickly and efficiently at reasonable prices.
Successful real estate transactions:
✓ Housing estate with 85 units in Kassel
✓ 14 apartment buildings in Aarbergen-Kettenbach
✓ Refugee home in Wiesbaden-Erbenheim
✓ Apartment house with 90 apartments in Kleve
Info: Our clients attach great importance to the discreet treatment of the reference – we are happy to disclose at least a few references.
Even more off market performance:
✓ Price negotiations with the seller side
✓ Assistance with financing and contract drafting
✓ Preparation for notarial purchase agreement
✓ Attendance at notarisation
✓ Object transfer with protocol.
Get the highest price: Not always a decisive criterion for sellers of off market properties
At first sight it is surprising that the owners do not bid. After all, investors often raise the price of the property considerably with their bids. In the past, however, many bidding procedures have been unsuccessful due to overbids. Bids were often occupied by several investors at the same time, so that ultimately no transactions were concluded.
Due to this experience, it is not always important for the seller to achieve the highest price: Investment criteria such as security of settlements and strategic considerations are at least as important as the net purchase price. Some sellers simply try to keep the deal secret – for example, because they fear that business partners might accept financial difficulties. In addition, owners would often receive “moonlight offers” if they were to offer their property widely in the market. About 75 percent of bidders do not make serious proposals. They just want to get an idea of the quality of the properties and their leases.
What are off-market real estate transactions?
Let us first take a look at the cycle chain in the real estate world. Who gets good offers and why? Real estate owners want to sell their homes. This is best done without much effort and under good conditions – and sometimes when there are problems with the owner of the property.
Of course we can fill the article with reasons why real estate sellers do not become public. In our opinion, the three most important reasons are
+ Fear of the wrong impression
+ Head-in-sand strategy
The first two points are clear, the third point refers to economic problems that have not been solved.
Why transactions outside the market are so interesting …
Property offers are subject to the life cycle chain. We often believe that the entire real estate market is represented on online portals. But this is not so! Not every property that changes seller lists on platforms and portals.
OTC transactions, your real estate food chain
A much more interesting buying source is the so-called over-the-counter market. Objects in this market are not listed publicly and are therefore automatically available to a small group of interested parties. Possible sources outside the market could be, for example:
+ circle of acquaintances
+ property management
+ The neighbours
+ Tax consultant
+ Divorce lawyers
To find and invest in real estate outside the market, you need a good personal network. It is useful to spread your commitments and interest in investing in property in the right places so that people know what you are looking for. Especially the above mentioned sources are interesting and often know more… E1-Holding has created an established network and supports it regularly – surprisingly, there are often investment opportunities without us having to do anything ourselves.
Over-the-counter sources have the advantage that objects are found with a smaller group of stakeholders than with market objects. As a result, very good conditions for investments can often be achieved. It is also much more likely that you can negotiate prices because there is no competition!
More and more investors prefer off-market transactions over traditional trading methods because they are effective and efficient. Especially in such desirable cities as Munich, where the demand for good properties is high, there are many competitors, tenders often last several quarters and absorb enormous transaction costs, many family offices and institutional investors reject structured announcements from the very beginning.
The investment experts of E1 Immobilien offer you a reliable network of potential properties, and combine speed and discretion in transactions outside the market.
We select the best property
In doing so, we contact a selected group of potential providers from our network whose profile corresponds to the property we are looking for. The investors already have comparable assets in their portfolio or enjoy the reputation of being a highly reliable, professional partner. We carry out transactions outside the market with the greatest possible discretion and without public marketing activities. E1-Holding is your reliable partner you can rely on!
Advantages of an off-market transaction
Off-market operations carried out by our investment experts comply with all the strict rules and requirements of the legislation. There are various advantages for both sellers and buyers.
Better prices – As a rule, we can achieve significantly better prices than in the market or in the traditional bidding process.
Strategic aspects – We can consider more strategic aspects of the transaction outside the market. These are for example long-term business partnerships, the acquisition of asset management platforms or swap transactions.
We are experts for transactions outside the market
We have an extensive network that has grown over the years. We are in constant contact with investors from home and abroad. Thanks to our many years of experience in the investment sector, our expertise and our negotiating skills, we can quickly determine the best property for you. This includes checking the financial requirements for the transaction, such as speed and reliability of the parties or how they behave when drawing up the contract.
Off-market real estate: apartment buildings, commercial real estate and land
Our tasks include not only the marketing of the investment opportunity of the property. We also advise you as a property seller and, if necessary, help potential buyers with financing and find competent financial partners.
Off-market real estate: real estate for own use or as capital investment
If you want to invest in an off-market property, you must first take into account the time and organizational effort involved. As experienced experts, we can be an indispensable partner in price negotiations, especially if you do not have the necessary knowledge in this area. Most providers can only be convinced with plausible arguments. Furthermore, as real estate agents we are object-neutral, because we do not attribute an ideal value to the property. This allows us to assess the strengths of properties in different ways and often to identify competencies even in the case of weaknesses.
Absolute discretion and anonymity for real estate investors
Trained staff and CRM technology enable anonymity & security! Maintaining the anonymity of the real estate investors is an important basic principle that E1 Holding applies. With the help of our trained staff in the industry and practical CRM systems we are able to offer our real estate investors the most suitable off-market properties from the international markets according to different criteria. We always have all requests and projects, all wishes and expectations at hand. Thus our data network is always personal, relevant and up-to-date. Well-known brokers, real estate appraisers, investment consultants and consulting service providers already cooperate with us.
Off Market Real Estate Brokerage possible within only 14 days
Within 14 days you will receive the first interesting off market investment properties! Right after the first contact and the first conversation we can start to research suitable off market investment properties in our system. All presented objects are Off Market real estate offers and are not publicly traded. Thus we protect our investors from price speculation and competitive pressure. As a rule, we broker high-yield properties within the first 14 days.
How much equity is required for a property?
The first question, however, which the real estate investor must ask himself when buying a property is how much equity capital is available for a property purchase. The decisive factor here is whether the investor is a private individual or a business. A private person normally has less capital available than a real estate business. He also invests his personal capital, his own reserves. A disadvantage of small capital is that it can only be spread over one or a few properties. If the purchased property does not make a profit because incorrect calculations were made, the entire capital is lost with the one property.
Commercial or private investors with large capital are advised to spread their capital over several properties. On the one hand, many single properties make more profit than one single property. On the other hand, a property which, due to unexpected or incalculable circumstances, does not yield a profit but losses, can be absorbed by the other properties. The sale of losses is then painful, but can be absorbed by the profit that the other properties bring in. Here the risk is clearly higher for the small private investor.
What type of real estate should be invested in?
If the capital to be invested is available, investments can be made in real estate. The following investment properties are common: Houses, apartments and apartment buildings, commercial real estate, real estate funds
Real estate purchase of single and multiple family houses
The investment in single and multi-family houses has some advantages and disadvantages that need to be considered. In general, the returns are smaller because they come with a high proportion of land that is not habitable and therefore not directly rentable, like the actual living space itself. When reselling the property, however, this extra piece of land can quickly become an advantage and serve to increase the price.
Single-family houses entail a smaller risk of possible vacancies, but also generate less profit than apartment buildings. Compared to residential and commercial properties, however, they have a much lower risk of vacancy and thus provide greater investment security.
A similar risk is involved when investing in a residential building or several apartments. However, if the preliminary costing is good, the investor can directly influence the development of his property by, for example, implementing renovation measures that allow the rent to be increased within the legal framework. The problem with the purchase of a partial property such as an apartment or half of a residential building is the possibly difficult coordination with the partners of the overall property in the case of renovation or renewal plans.
Acquisition of commercial real estate
Commercial real estate carries a higher risk than residential real estate. The risk of vacancy is higher due to its enormous area and often special location. Here, the investor should closely observe the property to be purchased and calculate precisely whether the surroundings will continue to be advantageous for the commercial property in the future or whether the market in the area will flatten out. Consideration should also be given to whether the commercial property being sought is flexible and easy to convert. It may be necessary to convert former large production areas into small office spaces or vice versa to give the property more potential for potential tenants. The advantage of commercial properties is that they promise a high return. A large area that is rented and high development potential at a location that is also profitable for the tenant is definitely a win-win property.
Investment in real estate funds
Buying real estate funds is worthwhile if, for example, you only want to engage in the real estate business as a sideline. Here, the capital is collected by various investors in order to invest the collected capital in real estate. One is thus a shareholder of one or more properties. As a layman, the development of a property and the entire market is difficult to assess. Since banks, insurance companies and real estate companies often trade with the capital, it can be assumed that professional real estate agents invest the money safely. However, there is no guarantee. The fund provider must first be classified as competent so that an investment is worthwhile and does not involve any risks. The disadvantage of real estate funds is the little influence one has on the invested property, as it is under outside control.
Last but not least, investment property is always a very good option for investing your own capital. However, many factors need to be considered before investing in order to minimize the risk of losing capital and make the property a profitable business. What wants to become good must take time. Even professional real estate agents take the necessary time to carefully examine the property in order not to endanger their own capital and the capital of the client, because such a drama can quickly become a livelihood.
Submit your requirement profile now without obligation and benefit from our Off Market property offer:
Geschäftsführer: Muharrem Erdogdu
Tax office: Wiesbaden
Competent supervisory authority: City of Wiesbaden
Public order office: Alcide-De-Gasperi-Straße 2, 65197 Wiesbaden
Approval authority of §34c GeWo
Permission: City of Wiesbaden, Alcide-De-Gasperi-Straße 2, 65197 Wiesbaden