Discounted Purchase.
Cash buying position drives deep discounts.
Our business model has three major components; the first of which is to buy property at a discounted purchase price from an independent RICS valuation. The great investors in history have invariably pursued a value investing strategy and that is exactly how the portfolio builder investment works. If you buy a property at a great price it is the best way to secure profit. It gives you a 'margin of safety' from the effects of the wider market whilst making it difficult to lose money.
We secure our discounts by only buying in cash. Cash on account lets us prove funds quickly and means that there is no mortgage lender to drag the buying process out. With cash in place a property can be purchased inside 2 weeks, and need never go beyond 4 weeks. Adavo has a reputation for buying quickly and following through on our agreements. This helps with sourcing because people bring great deals to us. A reputation for buying is a very valuable commodity.
Renovate to Add Value.
Make the asset intrinsically more valuable.
We then renovate the property to a market leading standard, which in turn, adds value and extra living accommodation. Adavo has in-house teams that renovate our properties which has three major benefits. It will typically add between 10% and 15% to the capital value of the property. The renovations also reduce maintenance costs going forward because the materials used are high quality and designed to be durable.
Our high quality renovation process also mean that the properties will reach income generation quickly. This part is crucial because the speed of the renovation greatly affects the initial annual return. The portfolio builder investment comes with a 'no money upfront' renovation, meaning we undertake the renovation first and invoice only when the work has completed. This removes a major risk factor and gives our clients exceptional peace of mind.
Let Great Property.
We let the finished properties room-by-room to an ever eager market.
As soon as we agree to buy a property we package it up and begin to advertise it to the lettings market. We are highly experienced in property presentation and our properties are well presented to maximise their lettings features. We tend to let our houses quickly but it's no accident - the quality of our renovations coupled with our lettings marketing skills create a market leading offer.
The room by room aspect of the model greatly increases the level of income you can expect. It offers exceptionally strong cash flow which strengthens our ability to perform to world class standards as well as generating deposits for further client purchases. In the current economic environment cash flow is paramount and we are always looking for improvements to both our margins, model, speed and systems.
