Where do I start?
You’ve been to 3 long lunches with a Project Marketer…
They’ve romanced you with big talk about their special Chinese connection who can bring investment capital from Shanghai, Beijing or even Hong Kong..
They’re throwing around big numbers and you’ve got stars in your eyes.
You can’t wait to hand over your next 50 unit project to this suave hot shot in his Ralph Lauren shirt, you’re equally impressed by his sales associate in fake Paspaley pearls while they drive around in their heavily financed Mercedes.
Don’t fall for this, no matter how charming you think they are.
Be wary of the agent who can’t prove themselves in the local market but promises overseas connections.
Any developer who thinks they can rely solely on Chinese money is kidding themselves.
Capital controls, financing restrictions, and foreign buyer taxes have reduced Chinese investment to a trickle.
Think local and then act global.
Let’s be honest, if a Chinese investor purchases your product, who do you think will live in them?
Do you really think Chinese investors will blindly, freely and willingly drop $1million on your product just because a project marketer has told them the market has bottomed out? Or their University Chinese translator took them to dim sum at the Crown?
If you are a high net worth Chinese investor, do you not think to consider London, New York, Los Angeles, Hong Kong or even Singapore as a more sensible option?
Most Chinese got rich by being frugal, not cavalier with their investment decisions.
And just because they employ 1 or 2 Chinese staff members doesn’t mean they have connections.
In fact, if these staff members have connections don’t you think they will have their own business?
Owning your own business is in the Chinese DNA.
Sure, I have Chinese friends and connections but not all are rich nor investors.
Let’s go back to basics developers… if your project marketer is so convinced they have access to foreign investors, tell them they can have the exclusive listing ONCE they have SOLD a percentage of your stock to the Chinese.
What I’m saying is that overseas buyers should be part of a strategy, not the only strategy.
The Chinese buyer is most likely to already have some local connection – that their children are being educated locally or have a business interest in the country.
If this is the case, why do you need to be promised Chinese connections when they are already locally based?
Securing a Chinese buyer is a bonus and should not be your primary focus.
Times are tough, but don’t get desperate, stick to a sales process and you will succeed.