Adavo Portfolio Builder

7/28/2019 Adavo Portfolio Builder

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Pfi Bie

ADAVO


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Bii Y Fe.

2 I PortFolIo BuIldIng WIth adavo ProPrtY PortFolIo BuIldIng WIth adavo ProPrtY I 3


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CmpeeSeice

The Adavo Portolio Builder service delivers high yieldstock with all aspects o the investment catered or.

We work closely with you to fnd out your requirementsand then tailor each project to your needs. All aspects arecovered in-house rom sourcing, renovating, lettings andmanagement. It is a true armchair investment service.

At Adavo we strategically position each property to leadthe market. Our renovated properties are delivered ullyurnished and ready to rent. We employ a specifcation

we know we underpin 95% plus occupancy rates alongwith high end rents.

We deliver an unrivalled portolio building service to ourexclusive clientele that meets an exacting standard. Eachproperty will perorm at a market leading level or years

to come and your portolio collectively will provide ahealthy income as well as a legacy to be proud o.

Each portolio client can look orward to a frst classturnkey service that will provide you with quality, high

yield assets which will generate income or decades.

5,000+ neIesme

Our standard model is a discounted cash pur-chase ollowed by renovation and lettings. Oncethe project is delivered we will then target a re-mortgage at the end value to release as much othe original unds as practicable.

Typically the initial purchase is in the 40,000-

60,000 price bracket. The renovations will bekept to a minimum by trying to fnd deals that donot require a lot o work. We will aim to spendbetween 5,000-10,000 per project. Finally we

will arrange a re-mortgage at the end value whichusually leaves around 5,000-15,000 let in thedeal. This is the net investment fgure per deal.

Our average income level is a 6-8% net yieldper annum. This will be net o all true costs suchas ull management, tenant fnd ees, buildingsinsurance. Ater the re-mortgage the net geared

yield will increase substantially.

Full management is included in the fgures as wellas a hal month tenant fnd ee to allow us to useseveral local lettings agents each year as part o amulti-agent approach. This keeps the occupancyrate high by design.



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20-30%discs

The Portolio Builder service will source suitableproperties that ft your agreed criteria. As part o this

we will look to bid aggressively and achieve a largediscount rom the propertys current market value.

A huge part o making money in property is buyingwell. We are highly experienced in this area and otenachieve discounts that amateur investors didnt evenknow were possible.

I a property is on the market at 150,000 we typicallybid around the 120,000 mark or lower. We look ordistressed property in good locations that we can buycheaply and add value.

Any discount is passed on to the client in ull.

xceece

We are committed to excellence. Adavo is a process orientated business thatdrives standards through every part o our service. We have very exactingstandards that aim to position us ahead o the competition both in returns,security and service level.

Our business is rooted on strong oundations. Years o experience have refnedour business model to a point where we can consistently deliver results. Weuse that experience to deliver your portolio on time and on budget.

Excellence to us at present is successully providing steady, reliable returns. Itis showing a clear, transparent investment processes and strong operationalmanagement o risk. We believe Adavo provides this service.

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We defiete Mkes

Our Portolio Builder investment is driven by its targetmarket. We identiy the target audience in advance andtailor the property to suit. This can be business parks, citycentres, universities, hospitals and large scale employers.

The UK private rented sector enjoys strong demand dueto the growing population. The lack o supply o newhousing stock over the past ew years will likely see thisdemand or rental property increase.

In niche areas localised demand rom large business parks,universities, government employers and hospitals urthersupports this high rental demand. There is a growing

young proessional and student population and both areexpected to remain at a high level over the next decade.

The UK also has a burgeoning under 35 population with

little access to fnance leaving renting as the only option.We expect to see a strong stable demand or many yearsto come.

We can also arrange rental guarantee policies to underpineach tenancy and give you even urther peace o mind.

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no uPFront FS

We aim to buy at a 20% discountrom the current RICS valuation,which means the asset or whichyou hold the title deeds should beworth more than the money usedto purchase it.

DiscountedPurchase

(RICS Valuation)

Value Increased(RICS Valuation)

We then renovate the propertyto increase its value, which is alsosupported by a current RICSvaluation. This gives a urther 10%cover.

th InvStMnt PlaInd

Value Increased(RICS Valuation)

Once let the property will be re-mortgaged to release as much othe original unds as possible.Adavo provides a ull lettingsmanagement service or 10% plusvat on an on-going basis.

2-4 Weeks 2-4 Weeks 0-8 Weeks


No money is paid upront or any aspect o the deal.All ees and costs are billed ater the services have beencompleted including all renovation work.

Impressed yet? You should be. We lead the market interms o the structure we oer. The Portolio Builderproduct is as risk-managed a property investment as youcan design.

We know because over the years we have oered many

product structures on our way to the best. The only wayyou can reduce client risk to an almost negligible level isto invoice ater the event at every point in the deal.

That is why we do all the hard work o fnding a suitableproperty, negotiating a discount, RICS surveyors, legalteams, local authorities and more without billing a singlepenny. You only pay or the services when you have legalcompleted the purchase o the property.

We then, remarkably, undertake all o the renovationwork with no money upront. We operate a standard 30day turnaround and only invoice the renovation ee oncompletion o work. I we havent done the work, yousimply dont pay us.

There is no better way to structure the investment andAdavo Property are unique in oering this structure.


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Fis CssSeice

Adavo is built on a oundation o frst classservice. You can expect red carpet treatmentor the entire term o your investment.

Our investments have been well designedand contain a level o service that can trulycompete with the best in the world.

A dedicated member o sta will walk youthrough all the options available to you. You

will have one point o contact who providesall the product knowledge, inormation, anddocuments to allow you to take an inormeddecision.

We oer all aspects o portolio building,rom portolio design, sourcing, renovationright through to lettings.

Every aspect o your needs are catered or.We want all our exclusive investor amily toeel assured and confdent.

rICS vis

Each asset comes with a current valuation up ront so you know allthe fgures rom the outset. We only use the most reputable panelso RICS valuers including:

Knight Frank Savills E-surv Cushman & Wakefeld Spinnaka

We believe investors can have confdence in the transparency and

reliability o these frms. They are consistently vetted and all arecurrent use by global corporations around the world and havebeen chosen due to their ability to provide a trustworthy servicethat can be relied upon.

All o the solicitors we engage are vetted by and accountable to theLaw Society. We only select frms o the highest quality.



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xpece res We guarantee delivery o property that will have a 6%panet yield or better. For mortgaged purchases we guaranteea 15%+ return on investment actoring the net income atermortgages & ees versus your deposit.

The Portolio Builder benefts rom a discounted purchase,a net equity proft rom renovations and a strong monthlyincome once completed.

This gives the best o both worlds. You secure an equityproft as part o the process which is oten a healthy returnin its own right.

You then also beneft rom the high net income that the re-mortgage approach generates. It gives the investment botha paper and cash ow proft.

Each property usually rents on the frst or second viewing.This can mean your rental income will begin in as little asone or two weeks rom the day we complete renovations.

Each part o the process has been designed to be as easy aspossible or the client. It just works.

hw I Wks

gie Pice Mey lef I ne gee Yie

1 Bed 30,000-40,000 5,000-10,000 15% +

2 Bed 40,000-50,000 5,000-15,000 20% +

3 Bed 50,000-70,000 5,000-15,000 20% +

4 Bed 70,000-85,000 10,000-20,000 15% +

5 Bed 90,000-120,000 15,000-30,000 15% +

6 Bed 120,000-150,000 15,000-30,000 15% +

7 Bed + Bespke

Discounted

Purchase

Standard

Renovation

Re-Mortgage

Once Let

60,000 Market Value

20%+ Discount

45,000

Cash

Purchase

Title

Deeds

70,000

End Value

10k/15kMargin

5k/10k Cost

PropertyBoughtAt Discount

Renovations toAddValue

EquityProftOnce Completed

4 Weeks toBuy

4 Weeks toRenovate

4 Weeks toLet

70,000 End Value

Timescale



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Once we have delivered your new investment on time and on budgetwe then get down to the day in, day out task o letting & managingthe property.

We have completed hundreds o these assets over the years and haverefned our processes to oer a seamless lettings service.

This will start with a To-Let board being arranged on the frst dayo ownership and a staged marketing campaign. During renovations

this will cover around 90% o the open market via Rightmove, DPG(which encompasses Prime Location, Find a Property etc) and theleading student site Accommodation or Students. We will use stockimages rom past houses at this stage to give an indication o howthe property will look once complete.

Ater renovations completion the property is urnished and cleanedimmediately. We then dress the property with sot urnishings andbedding to make it stand out.

A proessional set o photos are taken which are then used to adver-tise to the whole market. The initial sites used (Zoopla, Rightmove,

AFS) will have the stock images replaced with the fnished actualsand we will then uploads to 30+ websites via our Jupix proessionallettings sotware.

The fnal stage is engaging several local agents which gives us awhole o market approach. A strong proposition designed to givethe highest possible occupancy rate all year round.

IsceWe arrange buildings insurance as part othe investment service rom the day you frstpurchase the asset.

During renovation we arrange FLEA coverwhich insures the structure o the building.

Once the work is complete ater our weekswe then extend this to include the urnitureas part o the service.

aes memeFrom time to time some tenants all behindon their payments.

We have an established process to chase rentsstarting rom phone calls and letters as soonas the rent is missed.

This will then escalate to collection visits andletters to the guarantors. It is rare that wereach the stage o legal recourse.

My epiEach monthly you can expect a ull statemento rental income, management charges andany extraordinary items.

We use the Jupix lettings system to provideus with accurate fgures on demand whichallows us to keep you ully inormed o theaccounts rom your portolio each month.

You can expect up to date ino all the time.

leis & Meme


depsi peci scemeEach tenant is required to provide a 1 monthbond. This is then registered with one othree national bodies to ensure its security.

Any damage, scus or cleaning that is oundat the end o each tenancy will be correctedusing unds rom the deposits. We undertakea ull inventory at the start o each tenancy

which allows us to highlight any issues andarrange or their prompt correction.

MieceThe Portolio Builder investment deliversa newly renovated property by design. Allmajor items will have been addressed at thisstage.

This approach reduces the maintenance thateach property will require.

Should any issues arise we have maintenanceteams to correct things quickly.

uiiies & bbYou have the choice to let your properties ona inclusive or exclusive basis.

We arrange package deals which cap the cost

o utilities and broadband at 10 per personper week. This includes gas, electricity, waterand broadband as standard.

It is also an option to let the rooms exclusiveo bills and leave it or the tenants to arrange.

F memeOur Portolio Builder service is an armchairexperience with all aspects o managementaccounted or.

We are highly experienced in managing thesetypes o properties and have successullycompleted thousands o tenant fnds to date.

Any calls, lock outs, burst pipes or otherwiseare dealt with by our capable lettings team.

te efeeciEach tenant is reerenced as routine part oour quality control process. This ensures wefll the rooms with credit worthy individualsrom the outset which in turn minimises latepayments and arrears.

We also obtain guarantors rom parents whenletting to students. This provides an extralevel o security and recourse should the rentnot come in on time.

te fi seiceWe use several local agents in each city tofnd tenants. This whole o market approachmeans that we have as wide a reach as possi-ble or potential tenants.

Adavo also uses over 30 websites to advertiseeach property. Your fgures already take thisee into account which means that year ater

year we can engage local agents to maintain aconsistently high occupancy rate.


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rece Pess

11 NOVEMBER 2012 - Investors pile into buy-to-let: Rents are expected to soar 18% over fve years

Investors could secure an annual 8% return over the next fve years by putting their cash into buy-to-let property, according to new fgures. Rents will rise 18% overthe next fve years across the country and 26% in London, uelled by demand rom young workers unable to get on the property ladder, said Savills, the estate agent.

However, the sharp rise in rents promises impressive total returns or investors, which take into account both yield and capital growth. Savills has calculated thatlandlords could secure average annual total returns o 6.4% over the next fve years, or 33% by 2017. In London, total returns could hit 7.8% a year, or 40.3%over fve years. New mortgage deals are also making it easier to enter the market. There are 527 buy-to-let loans on the market, more than double the numberthree years ago and up rom 467 six months ago, according to Moneyacts, the data frm. Several lenders, including Paragon, Kensington and Accord, added moredeals last week..The Sunday Times

08 NOVEMBER 2012 - Buy-to-let owners view property as pension

Research reveals that many private landlords view property to be a saer bet than investments such as pensions. Four in fve private landlords say their proper-ties are their pensions, with the majority, 61 per cent, stating that they plan to live o the rental income, research rom BDRC Continentals landlords surveysaid. Many private landlords in the research said they view property to be a saer bet than investments such as pensions. O the 10 per cent o private landlords

that used previously invested unds to purchase their property outright, a third said it was because they believe investing in property will produce a better returnon their money.

Other reasons include providing an income (19 per cent), acting as a long term investment and o-setting poor pension perormance (15 per cent). A urther8 per cent said property was an alternative investment and 6 per cent believe property carries less risk than more traditional orms o investment, or examplestocks and shares.The Financial Times

heies

12 NOVEMBER 2012: Why you should be optimistic on house prices.The Times

06 NOVEMBER 2012: Plenty to be positive about in buy-to-let.Mortgage Introducer

30 AUGUST 2012: Property investors still positive on buy to let. FT Adviser

12 NOVEMBER 2012: Buy to let investors win.The Guardian

08 NOVEMBER 2012: Value o buy-to-let mortgages continued to grow in the third quarter.The Telegraph



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Cick e sbmi b se is Fm i emi [email protected]. aeiey pese ess wie eqiy fms a Ppey llP, Q16, Qm Bsiess Pk, Be le, newcse p ye, n12 8B. Y c s fx y eqiy 0845 519 3249.

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: [email protected]: adavo.Co.uK

ADAVO

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Adavo Portfolio Builder