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4 ways to grow your global portfolio through strategic partnerships

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Takeaways:

  • There are an estimated $25 trillion in real estate assets worldwide, with $150 billion in transactions financed annually.
  • Buyers looking to diversify portfolios can use platforms to find offers internationally and build mutually beneficial relationships with partners.
  • Finding a committed, quality partner is key to your success in international real estate investment.

The real estate market is changing at lightning speed, with an increasing amount of investors turning to global opportunities. There are an estimated $25 trillion in real estate assets worldwide, with $150 billion in transactions financed annually.

This level of global real estate growth is making it even more necessary for investors to form strategic partnerships and use online investment platforms to find financial success.

Crowdfunding platforms are opening the doors to investment opportunities all around the world, expanding the real estate profits in play and making the process more transparent and simple.

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Buyers looking to diversify their portfolio can now use these platforms to find offers outside of their countries and build mutually beneficial relationships with partners.

Below are four ways to choose the best partners that will help you build your global portfolio.

1. Align yourself with partners who are invested and committed

When deciding on an investment partner, it is crucial that you ask the right questions to determine what they want from the deal and how they can bring value to the relationship.

If the potential partner is looking for a one-off transaction or wants to earn all the capital upfront, they are likely not going to be willing to invest as much time and money in the investment as you.

It is also beneficial to find a global partner who is close enough to the property to manage the real estate investment and have a better understanding of their market.

This proximity will make them even more of an asset, and it will ensure their total commitment to the project.

2. Ensure your partners are quality allies

The most valuable partners will be ones who are experts in their industry — with plenty of experience and a solid track record.

If the partner has backgrounds in both real estate and crowdfunding, it will make them an even more useful ally. Also, partners who try to ask questions, as opposed to just answering questions, are likely a worthy partner.

This characteristic indicates they are knowledgeable, that they understand the opportunity, and that they want to ensure you are a good partner as well.

Quality partnerships will lead to quality investments, and all stakeholders will reap the benefits.

3. Build a team that operates systematically

When a team has a system in place, it is easier to overcome any communication barriers that would prevent effectively scaling real estate investments as a team.

Scalability means your team is capable of operating systematically to handle the amount of work that comes from investing in a property efficiently. Your team will have defined roles. They will understand that no one individual is more important than the system.

When a team is well-developed with a shared drive to achieve a common goal of financial success, they will be able and willing to work together on future investments.

With a system already in place, you’ll avoid the learning curve that comes from having to start from scratch with a new team.

4. Establish a local and global presence

It is essential that your partner has a physical presence in the market in which you wish to invest. They can effectively manage the investment, and you will have someone with close access to the property at all times.

In turn, you should schedule face-to-face meetings with the partner and make the effort to be present and involved with your shared investment.

Once you have become more established, you can also consider bringing on an asset manager who can maintain a presence in each country where you have a real estate investment.

Remotely managing investments can be complicated, but building partnerships will allow you to have both local and global presences. And it will allow you to manage your investment from all angles.

As online investment platforms make investing globally easier and more efficient, establishing a strong network of partners to aid in global investment opportunities becomes even more vital.

All markets are cyclical and change regularly, but investing globally is no longer just an option — it’s a necessity. No matter how strong any particular local real estate market is, it makes sense to invest some of your wealth globally, as the payoff can be significant.

By building long-lasting relationships and utilizing crowdfunding and other online investment platforms, you can access numerous global opportunities and expand your wealth to achieve financial success.

Scott Picken is the CEO and founder of Wealth Migrate, the premier global real estate investment marketplace. Scott has more than 16 years of international real estate industry experience, and Wealth Migrate’s leadership team has been a part of $1.34 billion in real estate transactions worldwide.

Email Scott Picken.