high yield property investment by adavo

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100% Capital Guaranteed
Asset backed investment with intrinsic value.

Adavo Property offers a full capital guarantee over all money used to purchase and renovate any of our deals. We have gone to great lengths to ensure that the joint venture process is as well designed as possible in terms of securing your invested sums. Every joint venture partner owns the title deeds to any property purchased with Adavo simply having the benefit of a legal charge for our share of the deal profits. All fees and renovation costs are draw down in stage payments in line with the joint venture agreement which ensures you have a full knowledge of where your cash is at all times. You have sign off on all capital payments in accordance with the terms and conditions of your agreement.

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 an instant equity buffer is present due to the RICS valuation. 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 property investment has a margin of safety to protect against movements in the general housing market over the 3-6 month period of each cycle. To satisfy even the most cautious investment appetite we go one stage further in that Adavo guarantees any shortfall in the capital amount invested after the property has been sold.

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Guaranteed by Partnership Profits
Going the extra mile.

Adavo Property LLP guarantees all shortfalls on any of our joint venture's capital. We have several areas of business covering property developments, joint ventures, lettings and management for both the partnership and for investors. The profits from each of these areas would be used in the event of default to make up the difference between the value of the secured asset and the original invested sum of the joint venture partner.

The likelihood of the guarantee becoming necessary is very low. The assets bought with each JV are purchased at discount and then renovated to increase their value. The market would need to drop faster than at any point in history to put the guarantee into effect. The rate would need to be around four times the decline experienced in the credit crunch.

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Guaranteed by the Partner's Assets
Every asset is offered in support.

For investors and financial advisers looking for total security, the partners of Adavo Property offer a personal guarantee of all monies invested. We believe in effective corporate governance and a key part of that is having risk management structures in place to ensure senior management do not take excessive risks.

The best way to ensure that in our view is that we are personally liable for all capital invested in the deals of the Adavo Property Partnership. Quite simply, we treat each and every advance as if we were using our own money because we personally underwrite the cost of any mistakes we make. The design of Adavo Property’s model is that assets should always be greater than liabilities, giving a level of security that is unusual in today’s market.

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Treating Customers Fairly
Important Information

We subscribe in full to the FSAs principle of treating customers fairly. No guarantee, whether 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 the partnership 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 the note. At that point the partnership’s other businesses and assets are used to guarantee the original investment. If those assets are not enough to cover the amount owed, the partner’s personal assets are then used to cover any shortfall. If the amount owed still cannot be met by all these mechanisms, the investor stands to lose any outstanding amount. In the unlikely event you should ever lose money we would too.

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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 not sell for any reason. We would then collect the rental income over the year which gives an additional comfort to all JV partners. The rental income can also serve to prop up the capital value of the asset. The yield is high (due to the room-by-room multi-let strategy) which will also help to support and 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. The chances of the value continuing a decline over a protracted period is unlikely.

high yield property investment by adavo