About our properties and investment success formula …
We apply the following 5 success principals to all our properties before selling them to you:
- We start with brand property(s): Nothing kills your investment returns faster than excessive maintenance or vacancy costs. By starting with brand new properties, your typical maintenance costs are near zero for many years and your vacancies are greatly minimized because everyone likes new!
- Bank loan and leverage: You will never make the big bucks out of property unless you leverage your returns with a competitive bank loan. For example, did you know you can buy one property with $200K and earn a 8% ROI or you could make a 15% return with the same $200K by using it as the loan deposit to buy five properties?
Of course, this is why we sell all our properties with an assumable bank loan already in place. - Multiple doors/tenancies: With the exception of a single tenant corporate space, we sell all our properties with a minimum of 5 separate tenancies/doors. Multiple tenancies/doors (particularly 10 or more) greatly stabilizes your investment income. This principal is clearly illustrated when arrange loans on our properties as the more doors we have the cheaper the loans get. (lenders use interest rates to price risk).
- Right location: Everyone knows this is important but how do you ensure you end up in the right location(s)? We use two methods to make sure we get it right. Firstly we stay near Fortune 500 companies that are spending money because they are experts at economic forecasts, and secondly we use the banks/lenders to check our locations. Because the loans we arrange are non-recourse (ie no personal guarantee), the banks check the location(s) very carefully before agreeing to fund.