If the secondary market is where the value is, how do you actually find the deals?
The short answer: motivated sellers.
Not every seller is motivated. Most want top dollar and will wait. But a meaningful percentage need to sell — and need to sell fast.
Where motivated sellers come from:
1. Divorce settlements
Asset needs to be liquidated and split. Neither party wants to manage it. Speed matters more than maximum price.
2. Visa/residency issues
Investor leaving Dubai. Complications with maintaining property from abroad. Wants clean exit.
3. Liquidity crunch
Business needs capital. Other investments require funding. Property needs to convert to cash quickly.
4. Estate sales
Inherited property. Heirs don't want to manage it. Often located abroad. Want simple, fast transaction.
5. Portfolio rebalancing
Investor exiting Dubai market. Selling multiple units. Willing to discount for speed and certainty.
6. Failed investors
Bought wrong property. Underwater on cash flow. Bleeding money monthly. Will take a loss to stop the bleeding.
How to find them:
1. Agent relationships
Agents see motivated sellers before properties hit public listings. The best deals often transact off-market. Building relationships with agents who specialize in secondary sales is critical.
But remember — most agents push off-plan because commission is higher. You need agents who understand investor buyers.
2. Direct marketing
Target owners in specific buildings with direct outreach. Some investors do mail campaigns, door-knocking, or digital targeting.
3. Auction and distress channels
Banks occasionally sell foreclosed properties. Courts liquidate assets. These require relationships and quick execution.
4. Patience and volume
For every 50 properties you analyze, maybe 2-3 are genuine deals. Most are overpriced. You need deal flow and discipline to wait for the right ones.
Our filtering criteria:
We don't just look for "below market." We filter for:
- Location: Prime areas only (more on this next email)
- Building: Strong resale liquidity, good management, no red flags
- Unit type: 1-2 bedrooms with broad tenant appeal
- Price: Genuinely 10-15% below comparable transactions
- Condition: Renovation potential or already updated
- Seller motivation: Confirmed urgency, not just testing the market
The key insight:
The deal is made at acquisition. No amount of good operations can save a bad purchase. But a good purchase can survive bad operations.
We spend most of our time on sourcing. It's not glamorous. But it's where returns are actually created.
Next email: Which locations actually perform — and which are just marketing
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Arman