Category Archives: funds

Looking out for funds – Hunt for big investors

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If you venture out to do something big you also have to be ready with enough capital to fulfill the monetary needs of the project and in case you do not have enough money with you then the next thing will be to look out for investors who can help you get the money till you are done with the project. Any type of industry requires funding for the inception as well as the completion of the project and it has been generally observed that people who have the idea and the dedication to complete an unique task does not have sufficient money to fund the technological requirements and hence they have to depend upon people who are ready to fund them money and in return they share huge profits or have a bigger stake in the project. So there are investors for everything that you can think of and also for things that you are beyond your imagination but can be brought into existence by some intelligent brains.

Construction companies per say are always in hunt of investors. Be it constructing a hotel or building a bridge or a residential apartment they need investors who are ready to fund their project. In some countries, construction companies do not enter into a project without the consent of their investors. They do not bother to think about how beneficial it will be for the growth of the company but are more concerned about how much profit will the project be able to generate for the investors and accordingly they give their nod once they get a kind of acceptance from their investors. They may not be a normal practice but is increasingly followed by many construction companies.

The big question is how to hunt down a big investor and why will he invest his money into your project. Well the answer is simple. They only invest their money where they see scope of getting high returns in a comparatively shorter time span. So when you get hold of someone whom you know to be an investor and has been funding projects, you got to be pretty sure about your project and what return it will generate for him. Not all investor wants only money out of a project. There are few who are really interested in the type of project that they will be investing their money. So if it is something that goes in sync with conservation of nature and will generate money few years down the line, getting investors for such project is not like having a dream come true. However, finding such men is a bit difficult.

But if you are there to construct a hotel or a bar and you need investments, you will find men willing to fund you. The only clause is the project should be a big one and they should see substantial amount of profit in it. Giving an ad on a website that helps construction companies to find investors will be the right thing to do. You can also check with guys in your business circle and may come up with someone who will be ready to fund your work.

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Invest your money in construction projects globally

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When we think about investments, we come across all sorts of investment avenues that are liquid as well as non-liquid. However, not many consider investing in construction projects globally as a good investment option. There are strong reasons attached to it which is why people are usually deterred to invest in investment projects in a foreign land. One of the strongest reasons is that you do not have a direct control on the project and it may become difficult to monitor the progress of the work by being away from the jobsite.

Other than having a direct control, other reasons also include political turbulence, company getting dissolved. However, these reasons can’t be considered to be too big for one to deter investing globally and can always be worked out before you end up investing in one such project. There are of course few Do’s and Don’ts that needs to checked first before taking a decision of any major investment in foreign land.

Check the viability of the project:-

You can definitely invest in projects that sound to be viable. Alternatively, if the project has all proper sanctions from the different authorities of that country, there is probably no other reason why it may get blocked. Investing in such projects being in a distant place can still be a good option. However, you also have to check your benefit in it. You need to first measure your risk and the returns that you can expect from the work at its completion. It will be worthy to take such risks where you know that it will fetch good returns. There are many American investors that have invested chunks of money into various foreign projects. In this case they do not have to deploy their men for the work and if there is any hurdle that shows up during the tenure of the project that will be managed by the construction company who has undertaken the work.

Reputation of the builder matters a lot:-

When an investor has to invest his money in construction projects, he definitely checks the credentials of the construction company who has taken up the work. In the same way, while investing in a construction project outside US, you have to check the credentials first. Meet the representatives of their company, do some research on their previous projects. By that you will get to know how big the construction company is and if it is prudent to invest in projects constructed by them. The reputation of the construction company should speak louder than anything else and that should be the signal for you to go ahead with them.

Stay away from countries that are politically unstable:-

You investments in a foreign land will bear fruit only if you put your money in a country that is politically stable and there is no fear of the government getting overthrown by rival political powers or the army of that land. Investment of any kind in a politically unstable country is too risky and not even worthy to take the risk.