Q: How does the portfolio builder investment work?

At its heart the process is very simple - we sign a contract to source, renovate and let a high yield property for you. The criteria is agreed at the outset and you know the full cost of each deal before any major costs are spent. No money is charged up front and the process is entirely transparent throughout. The typical investment is around £150,000 which includes purchase price, legal fees & costs, renovation and furniture.

We listened to 100’s of investors, IFA’s and institutions, and we found that people are looking for two major things; capital security and reasonable returns. This is the reason we bill every aspect of the deal only after each stage is completed. It is also why we offer a capital guarantee over the investment to give each portfolio builder investor peace of mind that the end property will always be worth more than the money you have invested.

The renovations are undertaken on a fixed price basis and this price is agreed at the outset before we purchase the property. All costs are set out in advance and we tailor each deal to suit the budget you outline in the beginning. This way there are no hidden costs and no unwanted surprises throughout the deal - just a great investment experience and a fully modernised property that will bring in substantial income every month for years to come.

Q: How long does the process take?

You are as little as 12 weeks away from your first monthly rent as you read this. Once you have signed the contract it usually takes 2-4 weeks to identify a suitable property, 2-4 weeks to buy it and 4 weeks to complete the renovations. After this the lettings process usually takes 4-6 weeks to find tenants. A pragmatic figure would be a 4 month turnaround but we have several examples of an 'agreement to rent' cycle of 8-10 weeks. It's is not unusal to pre-let the rooms in advance so that tenants are moving in on the day of renovation completion.

Adavo has spent years perfecting an investment process that is streamlined and fast. We have a good operational capacity in each area which allows us to deliver a quality product in a set timescale. The quality of the process management, as well as the financial management, means that we are comfortable with these timescales and expect to exceed them as part of the customer experience. We are simply reproducing the same quality product over and over again throughout the UK.

Q: Do you guarantee my capital?

Yes. Adavo offers a 100% capital guarantee though the portfolio builder investment process. Adavo operates a business model that is as low risk as possible. We guarantee all invested capital because we have a full commmand of what the money is to be used for, how it will be used and the timescale it will be used in. Our tight control ensures that the appropriate checks and balances are in place which provides the foundation for offering a capital guarantee. The guarantee ends upon completion of renovation works and a successful RICS valuation that shows the end value is more than your total invested capital.

There are two important features of all property investment with Adavo. Firstly any property bought via the portfolio builder strategy is owned by the client in full. You own the title deeds to any property that your funds have been used to purchase. This ensures that in any event that property is solely yours and our creditors do not have any claim to it. Secondly Adavo does not hold any cash on account; we simply invoice the fees and renovations costs once the work is complete. This gives the portfolio builder investment transparency and offers you full financial control with sign off at each stage.

These structural features of the portfolio builder investment with Adavo lay the foundation for a risk-managed investment process which has a significant safety margin built in from the outset. Every property we purchase comes with a RICS valuation of its current market value and an assessment of its market value after renovation works have upgraded the value of the property. We buy at a discount from this valuation which means that as soon as the property is purchased there is a margin of safety that protects against a drop in current market prices.

Q: How do I know my money is safe?

Your capital is 100% protected throughout the entire process by your ownership of the title deeds and Adavo's guarantee of any shortfall. We have considered every step of the process and selected the best, most secure option to build safety into the core mechanism. The 'no money upfront' aspect of the structure is also testament to our bona fide status and the strength of our cash flow as a business.

The investment contract has set criteria and covenants meaning the money can only be used for asset purchase, associated costs and renovations. This ensures the cash is spent where it should be and physically cannot move otherwise. You are in control at all times. Due to the structure, we believe this to be one of the safest models available on the market today.

Q: Can I re-invest?

Yes. Subject to demand and timing, you can opt to re-invest. You can also undertake more than one project at the same time. We invite your to tell friends and family as well.

Q: Is there a deposit?

No, we do not require an upfront deposit or a reservation fee. The entire process has no upfront fees. We bill in two stages. Firstly, when you legally complete the purchase of the property we bill a sourcing fee. Secondly, when we complete the renovation of the property we bill the renovation fee and contingency. The fact that you do not pay each stage until the work is done is the best way to ensure the work is done on time and on budget and greatly reduces your risk.

Q: What fees are payable?

We bill two fees; a sourcing fee and a renovation fee. The sourcing fee is £2,000 plus vat and is billed for finding a suitable property at a 15-20% discount from its market value. This is usually more than £10,000 in equity so we feel it represents extremely good value. The sourcing fee covers the cost of the time spent finding a suitable property.

The renovation fee of £1,000 plus vat covers the entire cost of the renovation including project management, creation of the professional documents (drawings, specification, schedule of works, bill of quantities) and the project management of the on-going works.

Each project includes a contingency of £1,000 plus vat which allows us to fix the renovation costs. If there is any over run or unexpected item this is taken out of the contingency. From experience there is always something in each deal that the project will benefit from. We charge each fee only when the work is completed.

At the end of the process you have a income-producing property that is worth more than all costs and fees combined including our sourcing fee and renovation fee. Typically you can expect that the total cost of each project will represent a 10-15% net discount from the end RICS value of the property.

The great aspect of the Adavo model is that we create the value that gives us a profit. You get to enjoy a hands-free, transparent investment and make both a capital and rental profit at the end of it. A win/win relationship.