high yield property investment by adavo

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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 we approach property. 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.

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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.

High quality renovations also mean that the properties will either sell or let quickly. This part is crucial because the speed of the cycle when selling greatly affects the annual return. We allow in our model for two cycles per year; one every six months. If we can do three cycles per year the return increases significantly. The renovation standard lays the foundation for the fast sales needed to allows three cycles to occur.

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Sell Great Property.
We sell our finished properties to an ever eager market.

As soon as we agree to buy a property we package it up and begin to sell it to our existing investor list and contacts. We are highly experienced in property presentation and our properties are beautifully presented to maximise their features. We tend to sell our houses quickly but it's no accident - the quality of our renovations coupled with our sales skills create a market leading offer.

The sale capitalises both the discount margin and increased value after renovation. It offers exceptionally strong cash flow which strengthens our ability to perform to world class standards as well as generating our deposits for mortgaged purchased. In the current economic environment cash flow is paramount and we are pursuing joint ventures as a way to continually supplement our other revenue streams.

high yield property investment by adavo