Take your pick of studios, apartments, cabanas, luxury plantations and penthouse suites on the tropical island where Pirates of The Caribbean was filmed. Potentially a 'No Money Down' deal on completion. Properties are 30% below market value with predicted rental yields of over 23%. 10% rental guarantee for first two years, followed by a 50% Revenue share with a 5* Hotel Group...
You might understand this in general terms but how about the specifics? Your immediate thoughts might be that due diligence is the research we do to prove an investment is worthwhile, but it's more than just the amount of discount you're offered…
thought needs to be given to things like actual market rent, potential for growth, possible times when the property could stand empty, type of tenant and possible re-sales.
So what is due diligence? It’s a fundamental part of the property investment industry and the most important thing to recognise is that some aspects of it remain consistently the same while others vary with each opportunity.
When purchasing property it is important to buy something tenantable which is below market value. It’s always possible to make money in property but let’s consider how we might enhance our chances of a good return.
Due diligence can be broken down into 4 areas; macroeconomic, microeconomic, development specific and portfolio specific. The last one can be quite unique, but let’s look at each it turn…
MACROECONOMIC - these are large scale factors such as airports, roads, regeneration, government incentives, major industry investment, market forces or the property cycle and supply & demand at a national level.
MICROECONOMIC - these are issues on a more local level like schools, transport, shops, community facilities, local government, surrounding environment, local neighbourhood, tenant demand and re-sale potential.
DEVELOPMENT SPECIFIC - this includes build specification, size, design such as parking, flooring, the builder, workmanship or previous workmanship, location and selling points.
PORTFOLIO SPECIFIC - this is how the investment relates to an individual’s portfolio. Some might say that this is sales rather than diligence but it demonstrates the need to link your portfolio with the individual plot and property.
Due diligence is a process that is personalised to each investor. To begin with you won’t be focused on personalisation, but as the process progresses you need to take into account the individual needs of each investor. To truly achieve this you need to have an understanding of each person’s portfolio and circumstances rather than just flogging them property because you need to sell.
It’s worth putting together a checklist that you can use as a benchmark for each of your investments.
Stunning Water Chalets in the extremely desirable area of Port Dickson, Malaysia. Each unique water home has its own private swimming pool and open air garden and sits four metres above sea-level in the Malacca Straits.
The development is a great investment proposition aimed at the growing tourist market from Hong Kong, China, the Philippines and Singapore.
"Since my intitial contact with BTLI I've never looked back and now buying my second Caribbean property. I've had calls and emails from many other companies, but have never entertained them. BTLI are always willing and helpful, their service is fantastic and my confidence building in time. Not only this, BTLI offer excellent property deals and I wish I could purchase them all! I will no doubt continue my relationship with BTLI on a long term basis and would recommend them to anyone."
"I wish I’d had access to the Below Market Value Profits report twelve months ago when I first started investing, if I did, I’d own three times as many properties as I do now!" Richard B, Hayling Island.
"A most professional company providing excellent service with all the help and assistance you need. Having now purchased several units through Buy To Let Investors including units in the Caribbean I am more than happy to recommend their services to others." Stephen F. Southampton
"It has become increasingly difficult over the past couple of years to source the right deals, Buy To Let Investors fill that gap by coming up with great deals time and time again. As well as investments in the UK I have now followed them abroad in some of the best deals I have come across anywhere. The last three properties I have purchased have all come from the team." Martyn H. Leicester
"Having already purchased through Buy To let Investors and personally experiencing their bridging system first hand has given me the confidence to go out and source my own BMV deals. I have already negotiated two deals which are now proceeding to completion and I hope to purchase many more over the coming months."
