Finstem Group - Welcome - The World of Real Estate

1
PRESENTATION REAL ESTATE . . . . . . The
magic of earning regular income while multiplying
your capital . . .

• Welcome Finstemians

2
The Going So Far . . .

• How many products do we have ?
• What product line interests us the most ?
• How are we faring in selling these ?
• What kind of incomes have we made so far
  ?
• Which products do we see ourselves selling
  in the coming few months ?
• Which Product line would we like to
  diversify into for a bright future ?

3
PRODUCT LINE EXTENSION

• The most important question is Why do we want
  to diversify into another product line ?
• Alternately framed What would you look for the
  most, in adding this new product line ?

4
Welcome - The World of Real Estate

• Customer base ? Attractive Industry.
  Attracts the bigger league / the Cream of Every
  Town City.
• Transaction Size ? Even small
  commission scale on a large ticket size ensures
  us a huge Income.
• Own Knowledge ? Can help us take a
  better informed decision when we buy our own
  house.
• Own Investments ?
  We can look at investing our Money in Real Estate
  for good returns.
• Commission Structure ? Unlike popular
  belief the Commissions can be as high as 5 to 10
  .
• Targeting Our Earnings ? We need
  a Target Earnings approach to ensure BIG
  earnings.
• Sales Target - Properties ? A
  Backward calculation to see how many deals we
  must close.

• Why Real Estate ? The Industry
  seems attractive. Feels like being part of the
  bigger league.
• Transaction Size ?
  Takes us to all of BIG
  Numbers crunching.
• Own Knowledge ? Helps us take
  a better informed decision when we buy our own
  house.
• Own Investments ? Even we can
  look at investing our Money in Real Estate for
  good returns.
• Commission Structure ? Unlike popular
  belief the Commissions can be as high as 5 to 10
  .
• Earnings Target ? Again
  we need to have a focused target approach to
  ensure our earnings.
• Sales Target - Properties ? Same old backward
  calculation to see how many deals we must close.

5
Adaptation Factors

• APPREHENSIONS ATTACHED TO THIS INDUSTRY ARE
• Ques. Isnt the Property Dealer tag
  derogatory ?
• Ans. Even Insurance selling was considered
  bad. We made the difference in uplifting the
  image.
• Ques. Is not the Industry very different
  altogether ?
• Ans. When we joined Insurance we only learned
  to become good Salesmen and rest was
  history. All we need is time and we can come
  around.
• Ques. What chance do we stand against
  established Dealers ?
• Ans. We will have sessions for our confidence
  building. Paradigm Shifts whenever the
  rules of the game change, new champions emerge.

6
INDUSTRY DYNAMICS
The returns this Industry is offering are
phenomenal compared to others. Even within the
industry, different Projects offer different
returns and experiences.
Understanding the Customers Some who want to
OWN a house in the NCR Vs Others who only want
to CAPITALIZE on the Real Estate boom in NCR.
We have to know the Property we are selling. We
are identifying potential in the Capital Region
because it is more stable and has proven track
record.
You identify their respective need and we help
you understand how to crack them to maximize Your
earnings depending upon Your Customer profile.
The Industry has a huge challenge in confirmation
of Units while we sit across our customer to pick
up his payment cheques.
There is a Trade Off, like in Insurance,
whether to Earn More and give less discount OR
earn less by after giving More Discount.
7
INDUSTRY DYNAMICS
CONT . . .
Options of Down Payment, Flexi Pay and the
Construction Linked Plans, followed also by
Assured Returns and Subvention Schemes.
There are Plots, Villas, Builder Floors and Multi
Storey OR High Rise Apartments, as also Studios
and commercial spaces in Office Retail.
Understanding the difference between Lease Hold
Land and Free Hold Land.
There is a segregation between Super Area,
Built-Up Area and the Carpet Area.
The Ratio between the Carpet Area and the Super
Area. Builders and projects are sometimes rated
upon their efficient layouts based on their
Loading.
G.Noida Xway up from Rs.2,000 psf in 2008 to
about Rs.7,000 psf in 2012. Plots also from
Rs.35,000 psy to about Rs.1,00,000 psy since 2009.
8
KNOWLEDGE Grasping Projects . . .

• Name of the Builder / Promoter ?
• Builder background and projects delivered ?
• Current Project location and USPs ?
• Project Launch and expected Completion Dates ?
• Builder reputation upon meeting time commitments
  ?
• The Project Acreage ?
• Number of Towers no. of Floors in each tower ?
• Residential Vs Commercial Vs Mix Use Land ?
• Neighborhood projects and development around ?
• Infrastructure and connectivity ?

9
TERMINOLOGIES in CHARGES. . .

• Lease Rent
• Service Taxes
• Power Back up
• Club Membership
• Covered Car Parking
• Fire Fighting Charges
• Internal Development Charge
• External Development Charge
• External Electrification Charge
• Sub-Station Installation Charges
• View Preferential Location Charges
• Floor Preferential Location Charges

10
Probing Questions . . . Prospecting and Approach
in your existing Initial Market / Customer base
. . .

• What kind of property do you stay in currently ?
• Any other Property that you are an Owner to ?
• Do you have any further interests in Real Estate
  ?
• Are you interested in buying Real Estate ?
• Have you observed the increment in Property
  prices in the last 2 to 5 years ?
• What do you think are the returns in Real Estate
  ?
• What is the scope of growth of this market, the
  coming few years ?
• Can you think of better returns somewhere else ?
• How much Money, do you think, is required to
  start investments in the property market?

11
Need Analysis / Fact Finding in Real Estate . . .

• What is your current Age and where do you Work ?
• How many members do you have in your family ?
• What is your current monthly income ?
• In what accommodation do you currently stay ?
• Where do you currently stay ?
• Are you buying for self use or is it an
  investment ?
• If Investment then what is your horizon ?
• OR How much time do you have to stay invested ?
• Will it be self funded or will you take a Loan ?
• What is then your total Budget for purchase ?
• Have you any Area or Location of interest ?
• Have you seen any properties previously ?

12
Comparison With FDs . . .
An Investment of Rs.50 Lacs An Investment of Rs.50 Lacs An Investment of Rs.50 Lacs An Investment of Rs.50 Lacs
       
If Money In a FIXED DEPOSIT In a FIXED DEPOSIT In a PROPERTY
Interest At 9 At Interest 10 At Interest 12
       
Period Interest Rs.37,500/- pm Interest Rs.41,667/- pm Interest Rs.50,000/- pm
       
2 Yrs 9,00,000 10,00,008 12,00,000
3 Yrs 13,50,000 15,00,012 18,00,000
4 Yrs 18,00,000 20,00,016 24,00,000
       
       
The Value of the Principal of Rs.50 Lacs The Value of the Principal of Rs.50 Lacs The Value of the Principal of Rs.50 Lacs The Value of the Principal of Rs.50 Lacs
In the Fixed Deposit In the Fixed Deposit The same Rs.50 Lacs The same Rs.50 Lacs
In the Property Investment In the Property Investment Capital Appreciation here is expected to double Capital Appreciation here is expected to double
13
Best Of Luck !
To Conceive is to Achieve . . . . . . So
Dare to Believe !
Thank You For Investing your valuable
time