How Accumulate Capital ensures security within projects

October 03, 2019

Time and time again, investments have been proven to pay off massively with huge revenues, especially in the world of property development. But with so many opportunities out there, how do you find which one is the best for you?

Well, we do all of the hard work for you.

Our tried and tested way of screening new developments ensures that we only accept the most promising projects that are located in prime locations, carried out by reputable developers.

We have a security checklist with six levels that we apply to every development we look at. Because of this, we end up rejecting many more than we accept at a ratio of 20:1.

Being strict with developers that we work with guarantees our involvement with the best. We make sure they have a proven track record, and that they are not taking on more than they can deliver with the project they are offering to us. We want to protect our building standards and make sure they will be followed, ultimately creating a quality product like no other.

We pride ourselves on choosing promising and reliable projects that we as a company believe in. We put up the equity capital on the constructions we offer, so there is zero security for our money. This is why we only choose projects that will reach completion whose progress we can monitor.

We conduct due diligence on each site, its purchase price and build cost proposal, cross-referencing with our own independent QS team.

Further to this, we also conduct due diligence on the current state of the market and the forecasted trends for any specific area that we will be working in. By undercutting the existing market we can ensure an increase in demand for our construction.

As soon as we have completed on the purchase of the building, we begin preparing for the end-users. We start the sale process very early on with 25 per cent deposits taken and ring-fenced in an SPV with a charge in favour of investors.

Our exit strategy is always the same. Developments are refinanced upon completion so that our investor´s revenue can be paid out as soon as possible.

The above criteria has assisted us substantially in the past on every new venture, which is why we still use it to this day. This process of finding the best opportunities allows us to offer our investors the most worthwhile and profitable projects on the market.

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