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Basera
Funded

Basera

Profitable real estate in Dubai

Fund
Real estate
UAE
Vadim Markov

Vadim Markov

Co-Founder & CEO

About the company

Webinar with Vadim Markov (CEO & founder of Basera) and Nodari Andguladze (Project office director, Basera)

webinar recording from November 2, 23

 


 

About company Basera

The company's specialization is the leasing and efficient management of residential and commercial economy class properties in Dubai.     

They provide investors with the opportunity to receive a stable income in foreign currency from rental payments, thanks to our expertise and high profitability of a portfolio of properties. A team of professionals guarantees maximum management efficiency and maximization of investment opportunities. 


 

The essence of business

 

UAE law protects all parties.

The company rents the entire premises for a long period, receiving a cheap rental price, puts the facility in order and re-rents the apartments separately for a higher monthly price. The occupancy rate of such buildings is almost 100%.

Due to experience and some tricks, such as paying the first payment from investments, and the second payment from incoming rental payments, the return on the invested funds is several times higher than the market.


 

Current situation September 2023

 

  • 5 houses for rent
  • $200 thousand revenue
  • $60 thousand net profit
  • $2.2 million net assets
  • $1.3 million invested by founders
  • 24-35% return on invested capital
  • +20 objects in the funnel
  • +15 employees on the team ready to scale the business
  • 100% occupancy

 

Why does this work?

 

  • State protection. The real estate market is registered - for example, the tenant pays a fine if he evicts early, and the landlord can evict the tenant only by notifying him 12 months in advance.
  • Payment guarantee. The tenant prepays at least a month in advance and leaves a deposit that will cover 1 month of downtime if the tenant moves out without notice.
  • High demand. Most buildings are fully occupied at the time we rent them. We only need to maintain the premises, collect rent and renew contracts.
  • Low chance of downtime. According to the rules, the tenant is required to give notice of termination of the contract 2-3 months in advance. This minimizes downtime and allows you to find new tenants by the time the premises are handed over.
  • No expenses for major repairs. In the vast majority of cases, major repairs (elevators, structural repairs, ventilation and other communications) are not covered by us, but by the building owner.
  • The market is not overheating. The market for management companies is quite closed. This market is mainly occupied by expats from India and Pakistan. For everyone else, there is a high barrier to entry into this market, which leads to less competition.

 

Fact and Development Plan

 

Basera is the market leader in management efficiency of apartment buildings in the economy class segment.

  1. We pay an advance for half a year, not for the whole year (we reduce the investment amount paid in advance).
  2. We rent an object for 12-36 months with a grace period of 2-3 months. We preliminary analyze the contracts and prices of all 100+ residents
  3. When renewing, if possible, we always raise the price within the limits of the law, even if we need to find new tenants.
  4. We collect fees from residents. We increase the attractiveness of the building, rent out commercial space, and restructure it if it is profitable.
  5. We get 24-35% on invested capital for the investor.

 

Unit economics of one building

 

All amounts in the table are in US$.

In this example, the investor, having invested $300k, ultimately receives a profit of 96k, which is 32% on the invested funds.


 

Examples of objects

 


 

Area of ​​responsibility

 

  1. Registration of all necessary DLD (Dubai Land Department) agreements.
  2. Collection of payments from tenants.
  3. Renewal of contracts with current tenants.
  4. Search for new tenants.
  5. Minor repairs.
  6. Cleaning of common areas.
  7. Provided water, electricity, and air conditioning in common areas.
  8. Management of other issues related to building maintenance.

 

The market is now 2023 and in → the future 2040

  • 3 million migrants → 7 million migrants
  • $10 billion economy rental market → $25 billion economy rental market
  • 14 thousand target buildings → 25 thousand target buildings

 

Projected growth       
from $28 million to $204 million in 4 years

 

 

  • 6 houses for rent by the end of 2023
  • +20 houses for rent by the end of 2024
  • +80 houses by the end of 2026 = x2 per year, without new investments

 

Financial indicators

  • +20% net profit margin
  • 100% CAGR organic, no new investments

 

Our advantages  

 

  1. Financial management culture 24-35% (17-25% after commission), on investor capital vs 10-15% on the market.       
     
  2. An accomplished team of successful founders (+20 years together).       
     
  3. Multicultural team (Russians, Indians and Pakistanis) and access to the Indian diaspora of brokers and real estate agents.       
     
  4. Business is completely independent of the dynamics of rental and housing prices.       
     

 

Next object

Required amount: $575 000

 

 

  • A unique investment offer for investors in the UAE market
  • Transparent and legal business model
  • Team with +20 years of experience
  • High profitability and rapid growth of capitalization

 

Investment for 12 months, with the possibility of extension

 

 

  • Regolith platform commission is 30% of the profit received. (Investor's net return is 17%-25%, after commission)
  • The decision to extend or return the body of the debt for 3 months. until the end of the term.
Team
 Vadim Markov
Vadim Markov
CEO Basera and founder
“Founder of the A.INVEST group of companies, creates new business areas. Manages the financial, legal and investment blocks of Awatera. Over the past 3 years, he has created 5 new businesses from scratch with a total turnover of more than $55 million per year. Resident of the Equium business club.”