An Ideal Investment Structure
Minimised financial risk throughout the entire process.
Adavo Property offers a unique portfolio building service with strong financial controls. We understand that an important part of our customer experience is to have comfort throughout the entire process. Adavo charges no upfront fees; which means no reservation deposits are involved and we only bill each element of the project once the work has been satisfactorily completed. In addition, all fees are transparent and agreed in advance.
We have taken great care to ensure that the Portfolio Builder process is as well designed as possible in terms of security. Every client owns the title deeds outright to any property purchased which gives a tangible asset to support your investment. With the Portfolio Builder investment you control where your capital is at all times.
100% Capital Guaranteed
Take comfort with our Portfolio Builder property investment guarantee.
Our Portfolio Builder investment comes with a 100% capital guarantee over all money used to purchase and renovate any of our deals during the investment process. The heart of the guarantee is the business model itself. We only use the capital to purchase one or several properties in cash at a discount from their current RICS valuation. This means that on the day of legal completion the true value of the asset is greater than the capital used for the discounted purchase.
It is a designed process that ensures every Adavo project has a margin of safety that protects our investors against movements in the general housing market. To satisfy even the most cautious investment appetite we go one stage further in that Adavo guarantees any shortfall in the capital amount invested until the property is signed off.
Guaranteed by Partnership Profits
Going the extra mile.
Adavo Property guarantees all shortfalls on any of our Portfolio Builder invested capital. We have several areas of business covering property funds, joint ventures, mortgaged deals and lettings for both Adavo, our partners and for investors. The profits from each of these areas can be used in the event of a development loss to make up the difference between the value of the secured asset and the original invested sum of the Portfolio Builder client.
The likelihood of the guarantee becoming necessary is very low. The assets bought with each Portfolio Builder investment are purchased at discount and then renovated to increase their value. The market would need to drop faster and harder than at any point in history to put the guarantee into effect.
Treating Customers Fairly
Important Information.
We subscribe in full to the FSAs principle of treating customers fairly. No guarantee, not even from banks or governments, is ever 100% safe. The validity of the guarantee depends on the assets and financial soundness of the person or party giving the guarantee. In this circumstance the property you purchase is the asset that provides the bulk of the security, with Adavo guaranteeing any shortfall beyond that. Should the market drop faster than at any point in history, then the value of the asset could fall below the value of your original investment. At that point the partnership’s other businesses and assets are used to guarantee the original investment. If the amount owed still cannot be met by these mechanisms, the investor stands to lose any outstanding amount. In the unlikely event you should ever lose money with us, we lose money with you.
The Intrinsic Value of the Underlying Assets
Real estate outweighs paper assets.
Due to the fact that the assets we create are well presented properties with good yields, often over 10%pa, the income from the asset is a good fall back position should the property market fall in the short term. Regardless of what happens in the wider market you collect the rental income over the year which gives you a solid investment in its own right.
The rental income can also serve to prop up the capital value of the asset. If the yield is high to begin with due to the business model we employ then this will help to maintain the property's overall value. Should the capital value of the property drop, the effect would be to increase the yield proportionately. A £100k property with a £15k per annum rental income represents a 15% yield. If the capital value drops to £80k, that same £15k pa rental income becomes an 18.75% yield; a saleable asset of rare quality.
