Global investor and real estate mogul Tevfik Arif shares his angle on starting a real estate business. Arif was born to a Turkish family that lived in the former Soviet Union of Kazakhstan, where government work was highly praised. Arif made the most of the resources provided then and started his work as chief economist under the Ministry of Commerce and Trade. He was later promoted to deputy head of the Hotel Management Department.
Arif was exposed to many aspects of the hospitality industry throughout his government career. He brought this knowledge into the private sector as the Soviet Union disbanded in the early 1990s. After 17 years of dedicated work, Arif moved to the private sector.
Tevfik Arif’s next step
After much success in his higher education and career, Arif transferred his passion and skills to global real estate. His first major project was the Labada Hotel all-inclusive resort in Antalya, Turkey. This facility was the first of its kind – featuring all-access amenities for guests on site, including pool and dining areas.
After more projects like this, Arif moved to the US and carried out further real estate developments. In the early 2000s, Tevfik Arif’s Bayrock Group was established in New York City. Under this entity, Arif built new projects and improved previous ones. One of his notable renovations includes the Loehmann’s Seaport Plaza in Sheepshead, Brooklyn.
Bayrock Group moved its headquarters to the Trump Tower on Fifth Avenue after its initial successes in the US. Here, Arif and Trump’s team met for the first time and later decided to collaborate on what would be the famous Trump SoHo. Due to large projects like this, Arif has insights to share with today’s real estate beginners like you and how to eventually reach the top.
Get excited about the benefits of real estate investment
One key benefit of investing in or starting a real estate business is the flexibility and freedom to create unique projects that cater to specific preferences. For example, Arif says crafting specialised customer experiences through real estate helped him create more solution-oriented hospitality businesses. He’s done this at locations worldwide so guests can enjoy their stay, whether on a business trip or vacation. Practicing innovative efforts like this will surely guide beginners toward larger successes down the line.
Another benefit of real estate investment is partnering with others to collaborate on personalised designs, business models, or even more comprehensive economic solutions. Real estate is an excellent opportunity to develop geographic areas while meeting the goals of city planning efforts, government initiatives, and local or national economic stimulation.
Under the umbrella of freedom and true ownership that real estate investment provides, there are many additional benefits regarding taxes, equity, and security. Arif advises that before diving into real estate, read up on the local and international real estate laws concerning your idea. Then, after you equip yourself with trusted lawyers and potential business partners, you may experience the many subsequent benefits attached to real estate projects. For example, tax breaks or deferments are available in many countries depending on circumstances such as a new citizenship status or certain types of business ownership.
An intriguing factor in the real estate business is that it can serve as a hedge against inflation. Naturally, the worth of a property increases every year. However, the mortgage stays the same, providing a net gain to investors who plan early and establish their presence when the market sells at optimal prices. The benefit is ultimately gaining a large amount of equity versus the initial amount invested. Capital gains and dividends would be the product of this benefit, and these income types have plenty of tax options.
Watch out for real estate investment risks
Both individual and company-led real estate investments require large down payments and a deep understanding of the legal landscape in each country. But, aside from this more apparent tip, Arif says there are risks on the ground to which one must also pay close attention.
Arif tells us there are multiple types of risks. These include the structural integrity of buildings themselves (materials, construction performance), overall market and economy implications, and geographical location statistics and projections. While these are usually manageable, one must stay ahead with the latest market information to curb the likelihood of these situations adversely affecting your new business.
Tevfik Arif’s advice for future investors
Arif recommends starting your real estate business to invest in the future and contribute to various communities, building up neighborhoods and housing options. These are continuous necessities worldwide. To reach ultimate success, one must review the benefits and risks of starting a real estate business and understand the consequences of certain legal actions and other more permanent decisions.
Arif advises beginning real estate investors to consider the impact they would like to have on a community and how their project will push that goal forward. Always ask questions and get to the bottom of your development goals so that your real estate ventures can benefit you, your business partners, and the larger community utilising the projects.