When we buy property, we need to have deal, fund and also proxy.
In ChatPropertyMalaysia.com platform, we always talk about leveraging.
Imagine, if we only investing using our own name as proxy:
First property – 90% loan & 10% downpayment
Second property – 90% loan & 10% downpayment
Third property – 70% loan & 30% downpayment
How far can you go with 30% downpayment every time?
That’s why we need to leverage on other proxy, who has no fund but keen to invest, work together and moving further.
If we invest alone, maybe the most we can go is 2 or 3 properties
If we invest as two person partnership, at least we can go for 4 to 6 properties
If we invest as a team and partnership, we can go farther, 10 or 20 properties or even more!
If the timing has arrived, we should upgrade ourselves to form a more formal JV, which is Investment holding company (IHC), and for us to invest in commercial properties or land.
What’s matters? Quality or quantity of properties we owned?
We should focus on quality properties with positive cashflow, and potential booster for capital appreciation.
Sometimes, we are ready with fund and proxy already, but no class A deal.
If we can get ourselves ready with the structure, both the funding and loan availability partner, mean we are ever ready for any class A deal to come
When the GEM deal come, we are ready to go in.
Whenever there are good deal, we will share the deal with you all if you are interested
As investors, by looking at the property info being provided, you all will have to do your own due diligent, and calculate all the cost involved
Tips: By using the ChatPropertyMalaysia.com success factors and criteria.
Once had decided, then pull the trigger, make sure no one force you to buy
And most importantly, get the mutual agreement done with black and white.
Maybe you will ask us, how to find proxy? Only look for trustworthy and responsible one?
Our suggestion is as follow:
| First approach | Second approach | Third approach |
| friend | friend’s friend | Go to public |
| family | family’s friend | |
| colleague | colleague’s friend |
Below is the tendency of the person will partner with us to become proxy:
| Tendency to partnership | Fund | Property Knowledge |
| very high | no | no |
| high | yes | no |
| medium | no | yes |
| low | yes | yes |
| Proxy must have intention for property investment | ||
When we buy property in a partnership or in group, normally will have some issue.
But no worry, all can be settled.
Most importantly, have to had the same mindset during especially when encounter with worst case scenario and also exit plan.
Next session: If we are in the same group, how is the profit sharing works?
What if one of our JV partner die, then how?
