We specialise on hard assets investing:
We help investors protect and multiply their capital on real cash-flowing hard assets like
- Single family homes,
- HMO. Housing in Multiple Occupation
- Holiday lets or serviced accommodation
These are very secure asset classes. For the investors willing to achieve ultimate higher gains there is the opportunity of participating in our Large Development Projects aimed at building high cash-flow holding assets.
Our Investment philosophy. What do we do with our own capital.
Buy and hold for indefinite ownership, We convert any of our own capital from fiat currency into hard assets. In other words we do not save cash, we “save” into real estate. This asset class benefits from quantitative easing (Government cash creation)
We work only as passive investors and developer landlords not as agents or managers. We stay away from flipping real estate we develop and acquire for cash-flow for indefinite holding. The only exit we plan is through property financing.
Our current average debt to valuation ratio is less than 50%
We focus selecting those real estate that are:
- Undervalued. We try and make sure we are acquiring the asset either at a lower real brick and mortar value or
- Where there is only upside growth potential in the area where the asset is located. We do not invest in areas where the value has already reached the top. This is because this is where the highest risks of assess depreciation or devaluations are are.
- in central locations very close to train stations. Either close to the city centres or in the city centre boundaries.
- With great potential for further development for future rental increase
Our attitude to debt in real estate investing
We stress test the asset vigorously prior to purchasing.
The stress test is done on:
Rental income. We calculate wort case rental scenarios and plan for very poor rental market condition , therefore the asset will be self sustainable with the debt under very stressed rental market conditions.
Suitability of the asset as a collateral to financial institutions. In other words is the asset eligible for a standard mortgage?
The amount of debt on each property is kept at a level where it is sustainable under very stressed rental market conditions.
All our mortgages are on interest only basis.
Any remortgage and equity extraction is made only if the asset can sustain the new debt under stressed renal market conditions.
We do not take into account market appreciation when making our investments decisions we focus on cash-flow only. The final commercial value of each asset is based on the rental income. However we keep only mortgages under brick and mortar valuations which are substantially lower than the real market valuations.
Why hard assets
Hard assets is an asset class that allows not to lose our principle. It is relatively easy to assess in terms of rental demand and brick and mortar valuations. This provides us as investors the peace of mind that despite any market conditions the principal will not be decimated or lost.
It never loses the principal under any market condition.