100% ROE Formula: How to Invest Like a Pro in Dubai Real Estate
Mohammed Zohaib
713 views • 19 hours ago
Video Summary
This video highlights a successful real estate investment strategy focused on identifying undervalued properties with strong fundamentals, promising a 100% return on equity. It emphasizes the importance of understanding developer legacy, like Shapurji Palanji, over new market entrants, and how strategic relationships and professional guidance are crucial for navigating complex investments. The speaker, a Dubai-based real estate professional with 17 years of experience, showcases a specific apartment that, despite initial negative stigma and delays, yielded significant returns due to its prime location and the developer's reputation. A particularly interesting fact is that the investor, who initially faced skepticism, is now a business partner with hundreds of millions of dollars in deals.
Short Highlights
- A specific apartment was purchased for around $4.4 million, with $1.32 million paid upfront, aiming for a 100% return on equity.
- The investment strategy prioritizes developers with a long, established history, such as Shapurji Palanji, over newer market entrants.
- An example is given of an investment that overcame significant negative stigma and project delays to yield substantial returns.
- The importance of an "eye for deals" is coupled with understanding fundamental strengths like developer reputation and location.
- The speaker, with 17 years of experience, now offers comprehensive services through 3X Capital, including business setup, mortgage services, and property management.
Key Details
Luxurious Lobbies and Investment Appeal [0:05]
- The lobby of the building is highlighted as one of the best in downtown, contributing to client satisfaction.
- A sense of pride and fulfillment is associated with making good investments for clients.
- The speaker emphasizes a selective approach to sales, only offering products that make financial sense.
It's so nice. Look at that business center over there.
Achieving 100% Return on Equity [1:00]
- A promise of 100% return on equity was made for a specific investment.
- The property was acquired for approximately $4.4 million, with an initial down payment of $1.32 million.
- The remaining balance was financed, with bank approval for up to $6.5 million.
- Any amount above $5.8 million was considered 100% return on equity.
Anything above 5.8 million is a 100% return equity.
The Art of Identifying and Seizing Deals [1:30]
- This particular apartment investment has a story of overcoming significant challenges.
- It was considered one of the most "dreaded investments" due to potential issues like project delays, which lasted for three to four years.
- The investment carried a substantial negative stigma.
- Despite the stigma, deals in this tower were selling at the original price (OP) due to international investors being misled by brokers.
If you come to the tower, okay, I'll take you to some of the nicest towers in downtown, okay, and you're not going to find that valet area.
The Foundation of Trust: Developer Legacy [2:49]
- Beyond just spotting deals, understanding fundamental strengths is crucial.
- The contractor, Shapurji Palanji, has a significant history in Dubai real estate, being one of its cornerstones.
- Shapurji Palanji and Shoba are identified as foundational developers who "built Dubai."
- With over 40 years of experience as contractors, their legacy provides a strong basis for trust.
- The speaker contrasts this with developers who entered the market recently, acquiring numerous plots quickly.
Would I trust them or would I trust a legacy?
Transforming Challenges into Partnerships [3:47]
- People who lacked trust or did not hold onto their investments during difficult times lost money.
- This specific investor is presented as a "classic example" of success.
- The investor, initially facing a challenging investment, is now a business partner.
- They have successfully completed hundreds of millions of dollars worth of business together, particularly in Australia, with plans to launch a company there.
Now, this investor is one of my business partners.
Strategic Relationships and Financial Foresight [4:20]
- The success is attributed to strategic relationships developed over years, including with banks.
- The initial investment was $1.32 million, with the rest financed.
- The speaker reiterates the focus on 100% ROE, not including other return metrics (ROIs) or less common high-ROE products.
- The apartment's location, opposite Saint Regis and Waldorf, is noted for its value proposition.
You're right in front of Saint Reges.
Navigating Future Investment Hotspots [5:14]
- The discussion pivots to identifying future investment hotspots where 100% ROE can be achieved.
- It emphasizes the need for a comprehensive understanding of investment trajectories and end-to-end planning.
- Finding the "right consultant" is presented as a key factor for success.
- The speaker, Mohammed Zahib, with 17 years of experience since 2009, founded 3X Capital to go beyond mere consulting.
We approach every client with a luxury concierge mindset trying to ensure you receive seamless end-to-end support on every step of your investment journey.
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