Investor- a general understanding!!

Real Estate is probably one such industry vertical in the country that does not ask for any academic qualification or certification from any institute. This factor was a blessing until India was still called as one of the “Under Developing” nations, however over 3 decades now and probably for many more centuries to come, India has been competing with the best of real-estate markets in the world. Today, as we discuss this topic, we know that Mumbai- once the commercial capital of the country is today the second best expensive city in the world for any business. Focusing on Real-Estate as a business, it’s a different game altogether, people have come, grown, withered, mastered and also gambled in this field over the decades. It has probably never changed its ways of doing multiple business or transacting on single deal. It has never demanded for the well-learned or well-experienced. Most of the times, it has just multiplied the monies of the investors, even without a distinguishing the good from the bad or vice versa. Hence, most of the non-real-estate commoners are fooled or bullied by the less known real-estate dealers, who probably took up to work for meagre perks.

The change, I know- we all know, is the only consistent factor and time frame for the change to take-place is anywhere from one second to one century. But in this industry, change is just the least factor to be considered, however with the invent of new technologies, new methods of procuring and methodologies from the government and local bodies, procurement of property is somewhere seeing ray of hope, in its evolution. We at Stratum Ventures, feel proud to be one among the pioneers in implementing the new methods and processes into the purchase/ procurement of Lands. A small contribution perhaps, talking to large masses wanting the change in the business.

From, a Land Lord to the end user, generally real-estate agents, brokers, agencies, freelancers and mere networkers (the list goes on), there is a never ending chain of people involved. From presenting the property to processing to sanctions, auctions, bidding, clearances, taxes, compliances etc, this list goes on as well; there have been a large group of people and mostly this group is expert in one or mostly two kinds of activities, however, that still doesn’t make him a company to rely upon all your trust and most importantly the monies. Hence, BEWARE in bold and underlined, is the alarm that rings in everyone’s mind the moment we say/ hear Real-Estate. Having said that, I still insist your kind consideration in investing in properties, because, we know it and so does the world, that nothing gives you better and/or consistent returns other than property.

The first and foremost investment for any investor or would be investor, is to ensure that he has figured out the source or sources from where he can gain more information on the domain, and its pros-cons etc so-as to thoroughly understand his would-be engagement with the probable expert currently out in the market. Be it apartment, flat, villa, condiment, site, plot, office, showroom etc… everything has its own process and procedure that is to be followed. Only thing common to any procurement if- BEING AWARE.

Understanding Investor: A literal definition of an investor is read as “An investor is a person who allocates capital with the expectation of a future financial return. Types of investments include: equity, debt securities, real estate, currency, commodity and derivatives such as put and call options, etc”

Now, Who is a real-estate investor? The definition says, “A real estate entrepreneur or a real estate investor to a lesser extent is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit.”

Then, who is a Land-investor?

Stratum Ventures, define a Land Investor as, simple someone who is a Real-Estate entrepreneur or Investor interested in procuring “Lands” that are meant for future development and are generally the sect of people who aim for mid-term and long term benefits.

To summarize it in simple words, an Investor, is an individual or a group who has an insight into the market of the particular industry and knowns the spikes of the industry which can multiple the monies invested on small bits and pieces. Generally, investors take 3 to 5 years term to completely understand the market of the products and hence play their cards well when are ready for the game. They know the facts & figures at the tip of their tongue. Their decision making is driven by these facts and figures that project their profits within days/ weeks/ years.

Many a times the predictions from a regular investor is based on their personal experiences, which generally works well for their personal benefits, however when it comes to advising on investments to the newbie, it generally ends up in a tough situation to either convince on the portfolio or even to explain the figures to the would-be investor. For any new person, it is important to understand the portfolio of products, their life and many other aspects before investing into it. A typical case, as an introduction to any newbie looking at investment, is to walk into an insurance company and discuss the products, or walk into any agencies and discuss the values, and better-know is just ask your friend, where has he invested and consider the same option for oneself as well. That’s when you generally realize, that you are either close to 30s or just 30s buddy. Typically, aged enough for transitions in life, from doing unsatisfying work to opting for passion and financial stability, eventually contributing to one’s own personal growth.

Most of the investors are the ones who ventured into investing on various products, pretty early and 30 was never late for them. A typical quality of most of investors is to calculate the ROI in years, invest in 30 and returns in 35, a new investment in 35 and returns in 45 and so on. But there are other types of investors too, who count in months, invest in June’2015 and count on ROI for Jan’2016. To make it simple, a typical investor looks at ROI that can multiply every hour, every day and yes, every year. And this is how, I guess most of the millionaires and billionaires do to be where they are today, ‘learn the multiplication tables in years’