(Before You Wire a Single Lari)
I’ve watched too many investors land in Tbilisi with stars in their eyes and spreadsheets full of 20% IRR dreams—only to leave 18 months later, lighter by seven figures and heavier with regret.
Georgia’s market is a goldmine. But it’s a goldmine with tripwires.
After closing $520M in deals across Batumi high-rises, Kakheti vineyards, and Kutaisi logistics parks, I’ve distilled the chaos into six non-negotiable steps.
Skip one, and you’re gambling. Follow all six, and you’re building an empire.
Step 1: Kill the Hype—Start with Cold, Hard Constraints
Do this first: Write down your actual limits.
- Max capital exposure?
- Minimum cash-on-cash return?
- Hold period tolerance (2 years or 10)?
Why it matters: Georgia’s “hot” deals evaporate the moment you hesitate. I once had a client chase a “30% yield” Batumi condo—only to discover the developer needed 100% upfront cash.
His limit was 60%. Deal dead. $25K in due diligence wasted.
Action: Create a one-page “Investor DNA” sheet. Bring it to every meeting. No exceptions.
Step 2: Hire a Local Sherpa (Not a Salesman)You wouldn’t climb Kazbek without a guide.
Don’t buy property without one either.
Red flags in “consultants”:
- They push their listings first
- No track record of exits (anyone can sell; few can help you cash out)
- Vague answers on ownership structures
Green flags:
- References from investors who’ve sold profitably
- Fluent in Georgian law and your tax jurisdiction
- Charges flat fees, not commissions
Pro tip: Ask, “What deal did you kill last month—and why?” If they can’t name one, run.
Step 3: Stress-Test the Numbers Like a Banker on Caffeine
Georgia’s public data is… optimistic.
Run these checks yourself:
- Rental voids: Assume 25% vacancy in Batumi (tourist seasonality)
- Currency risk: Model GEL depreciation at 5% annually
- Exit liquidity: Who bought similar assets in the last 12 months?
I use a simple rule: If the deal doesn’t survive a 50% revenue drop, I pass.
Step 4: Lock in the “Silent Killers” Before Signing
Three words: Zoning. Title. Partners.
- Zoning: A Tbilisi “commercial” plot became residential overnight in 2023. $4.1M project scrapped.
- Title: 12% of cadastral records have discrepancies. Use a lawyer who speaks Kadastri.
- Partners: Insist on a shareholder agreement with drag-along rights. No, “we trust each other” doesn’t count.
Cost: $3,500–$7,000 in legal fees.
Savings: Potentially millions in lawsuits.
Step 5: Build Your Exit Before You Buy
Most investors plan the purchase. Smart ones plan the sale.
Ask yourself:
- Who is the exact buyer in 3–7 years? (Local pension fund? Dubai family office?)
- What will they care about? (ESD certifications? Eurocode compliance?)
Case study: A client bought a Kutaisi warehouse in 2021. We pre-negotiated a lease-back with a German logistics firm expiring in 2026.
Sold in 2025 for 42% IRR—because the exit was baked in.
Step 6: Treat It Like a Business, Not a Lottery Ticket
Post-acquisition, assign three roles:
- Local asset manager (weekly vacancy reports)
- Tax advisor (quarterly structuring reviews)
- You (annual “kill or scale” meeting)
I schedule a mandatory “Divorce Day” 12 months after purchase:
We review KPIs. If it’s underperforming, we cut losses.
Emotion-free.
Your Next Move
Georgia rewards the prepared. Not the lucky.
Want the checklist version of these 6 steps + my private “Off-Market Deal List” for Q4 2025?
Drop your email below or DM
@FortenzaGlobal. I’ll send it within 24 hours—no spam, no pitch.
Because the best deals in Georgia don’t wait for daydreamers.
Mari Labadze closes deals in Tbilisi, drinks wine in Kakheti, and still answers emails at 2 AM.
Fortenza Global: Strength in Strategy.
