Markus Beforth has been investing in residential and commercial real estate for over 15 years, both in Germany and abroad. In addition to a "buy–and–hold"–strategy, he successfully trades in real estate. He has also worked as a coach for real estate investors for several years.
Coincidence brought Markus Beforth into the real estate business: he had to rent out an apartment he had initially bought for his own use for professional reasons. When he discovered that it was more than profitable, he invested in a second one. From then on, his enthusiasm for buying and renting out real estate continued. At some point, he expanded his personal portfolio to include apartment buildings as well as commercial properties and land. Today he passes on his knowledge. In coaching sessions, Markus Beforth provides information on the basics of real estate investment and explains the opportunities and risks involved.
You acquired a taste for real estate around 15 years ago. What accounts for this enthusiasm?
First of all, it's certainly my penchant for buying and then renting out. When I came up with the idea of a second or third apartment, I thought it could be a good addition to closing the pension gap, without knowing how big the pension gap actually is. The whole thing then developed from 2014 onwards to the point where I no longer did anything other than my real estate investments. From 2018, I also let other people participate, set up a very large real estate regulars' table in Bielefeld, advised other interested parties on investments free of charge and simply out of collegiality, and realized that this somehow suits me.
At the end of 2020, I joined the Immocation coaching team because they had the best concept and are still pursuing it today. I am one of over 20 coaches there who accompany people on their way to becoming real estate investors. It is a six-month training program that works in a variety of ways online and offline, tailored to each individual.
Mallorca is currently experiencing another „real estate hype“ - how do you see this hype?
Basically, Mallorca has always been in demand. And crash experts keep saying "this is as good as it gets". And what is happening? Demand continues to rise. Why is that? Not because the island is becoming ever more attractive and ever more fantastic. More and more people are deciding to escape dreary Germany and relocate their home office to the island. Incidentally, this trend doesn't just affect Mallorca, but many European countries. This applies to long-term rental properties as well as to property purchases, across all income brackets. However, many buyers do not approach a purchase with economic considerations or rational returns in mind, but rather with emotional returns. This is not always a good thing and leads to price distortions on the market.
You are represented here on the island this year with Immocation - is this due to the beauty of the island or the potential market here? The idea is not to get investors interested in investing in Spain. The primary reason is the love for the island of my two fellow coaches for the event and myself. This event is a weekend for graduates of the immocation Masterclass who want to gain further knowledge in a very small setting and also appreciate a great network. Mallorca is easy to reach, it offers a special flair and great hotels, such as our partner Hipotel, where the guests stay. The aim is to provide people with knowledge about investment and real estate. We have chosen one of the most beautiful places in the world for this: Mallorca with its Playa de Palma.In recent years, investors have mainly focused on hotel projects. That seems to have changed.
Why do you think that is?
Mallorca has been my favorite island for over 20 years. Of course, I can hardly keep my hands off real estate there either. I take a very close look at the market, buy here and there or trade in real estate, which means buying, renovating and selling. I am involved in other investments, but always at a level where I can still talk about "my vacation island". The island is my home base, not the business I know from Germany. The last few years in particular have been characterized by major transactions on the island, but the other area has not really fared any worse. Wherever houses and apartments came onto the market with good offers in good locations, they were sold very quickly. The locations have developed further and the hotspots have become "hotter". Palma in particular, with the Palma Beach concept, is becoming increasingly attractive. There are an unimaginable number of options.
"Real estate investment for everyone" is one of your topics as a coach at Immocation. What is behind this, and does it also apply to Mallorca? As I already mentioned, we don't broker real estate at Immocation. There are no offers, you can't buy real estate or anything similar. We only impart knowledge. We are classified as a German educational institution and are TÜV certified. Everything revolves around real estate knowledge, working it up and imparting it practically. In a way that is understandable and comprehensible for everyone. Real estate investment offers amazing opportunities: You can secure your retirement provision, create a second income or even become a self-employed investor. Everything is possible. But: you can make an unimaginable number of mistakes. The participants really do undergo a kind of transformation during this six-month course. At the end, they have a high level of real estate expertise, significantly more than a "normal" tax consultant, but above all much more than most real estate agents.
What distinguishes the Mallorca market from the German market?
The application of the themes is completely the same. Just like everywhere else in the world. We have participants who are mainly active in Spain, others in France, others in Austria, Switzerland and, of course, in Germany. We even have people who are very familiar with the industry in the Czech Republic or Poland. Of course, the legal basis is always different, but the basic things that need to be considered when investing in real estate are the same. Tax and legal aspects differ from country to country, so you have to familiarize yourself with them. However, this works just as well in Mallorca as anywhere else in the world.
As an expert on Mallorca, what advice would you give a future buyer or investor?
If someone wants to invest in Mallorca, then as an active investor there, but also in other countries, I would generally suggest first acquiring knowledge. That is the „A & O“. There is a lot of free knowledge available on YouTube and other online channels. It is important not to rely on opinion, but to stick to facts. So: always compare sources of information. At a certain point, however, this knowledge should also be supplemented with well-founded sources, although these are subject to a charge. Valuable and sustainable information does not come for free. You want to invest hundreds of thousands of euros in real estate, so you should not shy away from this investment. When buying a used car, it goes without saying that the garage you trust should take a look beforehand. So why not with high-value products such as real estate? You should be prepared to invest in your own knowledge, especially in Mallorca.
Just a few examples of the basics on the island: Is everything that is built legal? Can it be used like this? Can it be sold like this? This is where expertise and expert knowledge are immensely important and crucial.
Then it's about the right location. In my opinion, this is incredibly important. It's less about your own taste and more about the logical consideration of whether it will appeal to others in the case of rentals. What advantages tenants have in this or that location.
And the question always arises: Can I also sell on comfortably in this location? Keyword real estate trading: It is no use getting a great offer only to find out afterwards that nobody wants to live there or that nobody is prepared to pay profitable rents. So you shouldn't do the whole thing blindly and, above all, not from afar, but you have to be on site. You have to look at it, you have to look at many options. You need a reputable estate agent, a building expert who is familiar with all the issues and can verify what you see. Then at some point you can say: „Now I've found the place, I can live very well with it, I can easily achieve my return targets there.“ Then you can buy.
The last point you should clarify beforehand is the financing. It is important to know the Spanish rules of the banks. This is (unfortunately) different than in Germany.
More information about Markus Beforth at Instagram: @der.renditedoktor
