Our Key Principles
Our goal is clear and un wavering, to facilitate the generation of wealth for our clients through intelligent and carefully structured property investments. The guiding principles supporting our daily activities on behalf of our clients can be summarised below;
Transparency, Trust and Integrity
Our strongly held belief is that first and foremost the foundation upon which all other activities must be based is that of Transparency, Trust and Integrity. These qualities are firmly incorporated into the DNA of everything we do.
Comprehensive Due Diligence
Our research and due diligence begins with the macro, socio economic, geographic, political and fundamental analysis and concludes with the analysis of the myriad of small details such as warranties and property management. We ensure we examine the full spectrum of aspects that are incremental to the success of all our investment opportunities. This process has become second nature to us and a large proportion of all opportunities listed for examination are often rejected, due to various risks and unknowns that we prefer not to expose our clients to. We are very selective when it comes to the people and partners we work with and are careful to know their financial status, background and business dealings. This has enabled us to avoid some unfortunate situations for our clients, and this confirms that this level of due diligence is essential.
Entry Price Points and Below Market Values
The potential profits and incomes are essentially created on the purchase, and the analysis and determination of fair value and then what is Below Market Value is fundamental to any property investment model. Our overriding influence when analysing and projecting is to be conservative. Too often we see very attractive figures for many opportunities however once actually examined carefully we find the assumptions used to base the calculations are simply unrealistic. We prefer to lean heavily on the realistic side of any assumption used in our due diligence and base any assumptions upon current and credible market data not hopes and dreams. Our Proprietary analysis methods are a matter of company confidentiality as they are significant asset that has taken considerable time and resources to develop and we are keen to protect the finer details of the detailed analysis that we conduct. However what we can say is that the level of analysis is far greater than what is usually required to determine the validity of the investment model.
Intelligent Use of Leverage to enable Positive Cash Flow
Where beneficial and safe to do so we prefer to negotiate and structure competitive finance products to enable effective use of the capital employed. The use of finance at favorable rates when available can add to an investments returns substantially and we try hard to negotiate excellent terms for our clients with our partner financial institutions. In this challenging financial environment our focus is on cash flow positive investments. We do not focus exclusively on opportunities based purely on potential capital appreciation as we prefer to select opportunities that pay investors to wait for any potential appreciation in capital values, this reduces risk and ensures the long term success of our clients and in return the long term success of Property Investment House.
Passive Income Generation
Time is a finite resource and has a substantial monetary value. Any investment that requires large investments of clients time must be avoided in our opinion. Passive income is the tried and tested path to sustainable wealth and our goal is to ensure all our opportunities are as passive as possible. This is achieved through many individual considerations and intelligent and careful selection of property management partners.
Long Term Investment Horizon
Any model based upon the assumption of immediate profits we take with extreme caution. That is not to say when opportunities arise where significant discounts are available and a guaranteed exit strategy is in place that we do not take advantage. However we keep in mind a simple guideline which can be expressed adequately below;
“He who wishes to be rich in a day will be hanged in a year.”
– Leonardo da Vinci.
Secure Purchase Process
This is a critical component to any investment and one in which we pay close attention. We prefer to only offer opportunities where the legal framework and financial protection in place is more than sufficient to cover all eventualities., ensuring a straightforward and secure purchase process.
Clearly Defined and Tried and Tested Exit Strategies.
This is mentioned last, however it is one of the foremost considerations we examine when analysing property investment opportunities. Once again we adopt a conservative approach and only base the validity of the investment on clearly defined, credible and tried and tested exit strategies.