Investors sought for real estate: how to find capital – or sell better
If you are looking for a property investor, there are four common routes: a private investor (informal investor), a joint venture with a real estate party, mezzanine or subordinated financing, and sale-and-leaseback. Investors almost always assess the same five points: location, cash flow, exit, securities and the experience of the initiator. If your capital requirement is primarily due to time pressure, direct sale of the property is usually faster and cheaper than finding an investor.
Four ways to find capital for real estate
Choose the route based on your goal: maintaining control, spreading risk, speed or releasing liquidity from a property you use yourself.
| Route | When appropriate | Core of the deal | Speed |
|---|---|---|---|
| Private investor | Smaller projects, existing network | Equity against yield or profit sharing | Weeks to months |
| Joint venture | Development and repurposing | Investing together, risk and profit together | Months |
| Mezzanine / subordinated loan | Funding gap alongside the bank | Higher interest, no control | Weeks to months |
| Sale-and-leaseback | You use the property yourself | Sale and leaseback, capital released | Weeks |
In practice, we see that entrepreneurs often ask for an 'investor sought' when the underlying need is liquidity. If your capital is tied up in bricks and mortar that you use yourself, then sale-and-leaseback is almost always faster and simpler than looking for an investor for your business.
What do property investors look for?
On five points: location and marketability, cash flow and tenants, a demonstrable exit, the securities (mortgage rights, LTV), and the track record of the initiator.
- Location and alternative usability: what is the property worth if the plan does not succeed?
- Cash flow: current and expected rent, term, creditworthiness of tenants.
- Yield: expected GIY/NIY and IRR, with a substantiated exit value.
- Securities: first or second mortgage right, loan-to-value, personal guarantee.
- Team: previous projects, own contribution and how you have solved setbacks before.
What do you put in an investment proposal?
- Property details: address, m², year of construction, zoning, energy label, photos and floor plans.
- Rent roll: rent, term, indexation and security deposit per tenant.
- Investment setup: purchase price, buyer's costs, renovation, sustainability, unforeseen costs.
- Operating budget with owner charges and vacancy reserve.
- Financing structure: equity, bank, investor, ratio and seniority.
- Exit: sale, refinancing or continued operation, with timeline and assumptions.
- Risk paragraph with scenarios and management measures.
When is selling better than looking for an investor?
If you need the capital within a few weeks, if the project involves mainly risk and little margin, or if you do not need to continue operating the property yourself. In those cases, selling is faster, cheaper and without dependency on a third party.
Attracting an investor takes time (networking, due diligence, documentation), money (advisory and notary fees), and control. Selling provides immediate liquidity without a repayment obligation. If you wish to continue using the property, sale-and-leaseback combines both: you receive the purchase price and lease the property back at a market-conforming rent with a fixed term.
- Sale-and-leaseback frees up equity without changing your business operations.
- The rent is in principle tax-deductible as a business expense – have this verified by your accountant.
- You fix the lease term and renewal options in advance, so that continuity is guaranteed.
Frequently asked questions
How do I find an investor for my real estate project?
Via your own network, real estate investor associations, specialised platforms, and regional investors. First, ensure a complete investment proposal with property data, rent roll, investment setup, exit, and risk scenarios – without that file, almost no conversation progresses beyond an introduction.
What is sale-and-leaseback?
You sell your commercial property and rent it back immediately from the buyer. This way, you free up the capital tied up in bricks while you continue to use the building. The lease term, rental price and renewal options are established at the time of sale.
What yield does a real estate investor expect?
That depends on risk and priority. For let, marketable property, investors calculate with initial yields that differ per segment; for subordinated financing and development projects, the expected yields are considerably higher because the risk is greater.
Do you also invest in projects of others?
We purchase properties for our own portfolio and work with sale-and-leaseback. We do not provide loans and do not take minority stakes in third-party projects.
Can I sell my property and still remain in it?
Yes, that is exactly what sale-and-leaseback does. Indicate in your application how long you wish to continue renting, and we will incorporate that into the offer and the lease agreement.
Compiled by the Pandverkoop.nl editorial team. Pandverkoop.nl may be the buyer; our offer is not an independent valuation. Our approach and sources policy. Last updated: .
Further reading
- sell investment property — Yield calculation and tax points
- buyer of commercial real estate — Sell directly to a regular buyer
- sell business property quickly — When liquidity is urgent
- business property agent — To use or not to use mediation