Diversifying investment portfolios has always been the key to ensuring a secure financial future. It’s widely believed that the most successful members of any society have upwards of seven sources of income, and that ensuring stability later in life depends on the individual taking the initiative to invest in multiple ventures.
Traditionally, the move to invest into real estate has been handled by professional brokers or investors; trained and trusted individuals who are looking out for you, and taking your preferences and best interests to heart. And yet, this trust has perhaps been somewhat skewed in recent years. Banking collapses, recession after recession, and a seemingly never ending supply of revelations about financial practices may go some way to explaining how one Wall Street Journal survey found the public trust their Uber driver more than their broker.
While articles and statistics such as these may raise a skeptical eyebrow, they don’t appear out of thin air. There is a very real difficulty in identifying and engaging with a trusted broker that has real access to investors looking to diversify their portfolio, not to mention investors who are right for your specific case. The exact same could be said for a business case looking for investors; while a broker will always be excited to take on a case, their connections to suitable partners may often leave much to be desired, and you may be one of a dozen current cases.
So, what were the perceived benefits of taking your investment case to a broker? On the face of it, giving a professional with the experience and knowledge of buying and selling businesses seems straight-forward; giving you more time to focus on your own business, and letting someone else take care of finding you the right investment. We’ve already discussed the benefits of diversifying one’s portfolio, and with a trusted broker to guide you in the right direction, that relationship seems solid.
All of this considered begs the further question; what is it about the relationship that has led to such a lack of trust? The truth is, there’s a lot more to it than there appears to be.
Deals brought forward by a broker are not simple. They take a long time to complete, with articles from journals such as Forbes telling stories of incredibly long winded processes taking upwards of three years. Beyond this process, if the individual is not careful, the result may not even be what you’ve asked for.
Business brokerage in North America is certainly no exception; led on by a poetic sales pitch, the number of cases that result in complaints from clients is astronomical. One report into a Chicago based business broker has found itself investigated with 101 complaints since 2000, and even had the audacity to respond to media enquiries by stating they were aware of “only 64” customer complaints within the last two years.
Perhaps it is this reasoning that has led to a recent study, conducted by the University of Minnesota and the University of Chicago finding that mistrust is deeply rooted with financial advisers, who’s role remains prevalent and important to the broker’s process, “consistently ranking among the least trustworthy professionals”.
So, the question becomes one of who should be handling the investment process. Does one entrust their portfolio to an industry that has a habit of letting people down, and even being outperformed by the market index? Should risk be taken in going alone, or are there any alternatives?
What if the focus was moved away from a purely financial vantage, and placed more emphasis on the relationship between investors and projects? The option to find people capable of identifying a case that was perfect for the situation, introducing that opportunity to you clearly, and helping you secure a deal that places exactly what you’re looking for as the top priority.
This is the idea of Investor Introduction.
Within an Investor Introduction approach, deals have the capacity to move quicker than if they were placed within the control of a broker, as investors have been identified prior to business cases. In doing so, the often years long process is reduced to months. Conversations are held with investors that we know, and have shown trust in Naseba’s process, and your pitches are controlled by the people that know your business better than anyone; you.
Naseba’s focus is on building integral relationships, not chasing several cases at once. When we bring an opportunity to our investors, they trust our ability to facilitate a positive and dynamic conversation. We do this by placing our attention on your business case, and ensuring the best possible result for you.
On February 21st-22nd 2017 Naseba will be conducting a two-day Real Estate investor meeting, taking place in both Kuwait City, Kuwait and Doha, Qatar; introducing pre-screened investors to pre-qualified investment opportunities from around the world. Committed to both international and local partnerships, Naseba’s private investor meetings are the perfect way to create a personal relationship with some of the most sought after investors from across the GCC.
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To learn more, contact:
Naseba investor introduction
+971 4 455 7954