After the rapid success of our firts UK application at the Flaxby Country Club we have again partneres with Skelwith Leisure to offer members another UK based application of the strategy - The Woolston Hotel in Bradford. We are pleased to say that some investors were exited from the Flaxby application after just 6 weeks and generated an impressive 25% on invested capital during this period (case study available).
The Secure Exit Strategy (SES) is a unique type of investment strategy providing investors with the ability to generate double figure (typically 25% annualized) returns without the customary risks associated with real estate investment. We believe it offers the most secure investment opportunity under current market conditions.
The current economic crisis has created a global lack of liquidity resulting in banks and financial institutions reluctant to provide construction financing to developers and constructors for planned projects. This situation has created an opportunity for alternative and innovative methods of providing construction finance and finance guarantees to the construction industry on very favourable terms to the investor that were simply unobtainable prior.
The SES model can be applied to a variety of project types and provides investors the opportunity to benefit from substantial equity returns which are only usually enjoyed by developers while assuming the lowest (senior debt) risk typically only offered to banks.
The SES strategy was developed to provide investment returns in flat, volatile, rising and even falling market conditions.
The general characteristics of this unique investment strategy are outlined below:
Capital Preservation:
Deposit is insured or remains inaccessible from the developer in escrow (returned to client with interest in the unlikely event of project failure). In certain SES applications deposits may be accessed, but only on the condition that the developer places unencumbered collateral with at least a 2:1 value ratio (often higher) in escrow also.
Defined Exit Strategy:
Developer is contractually obligated to resell SES units first prior to selling ANY non-SES units for an agreed upon premium.
Protection Against Unforeseen Slow Rate of Sale:
Projects are carefully chosen based on extensive research and within certain market sectors. In the event the unit is not resold within pre-defined timescales the developer must re-purchase all the SES units at the agreed premium, failure to do this would result in a default and the release of the collateral held in escrow (with at least 2:1 value ratio as assessed by an independent valuation company).
Hedge Against Market Decline:
Developer must assume the difference in the event unit is resold for an amount less than the agreed premium ensuring that the investors profit margin is always maintained.
Target Return:
Annualized returns from 25%
Low Capital Outlay:
Investors are required to commit between 10% and 30% of the actual unit value, with investments from £20,000 subject to the chosen SES application.
PLEASE CONTACT FOR FULL DETAILS AND DUE DILIGENCE REPORTS
Ross Kelly
primeinvestorgroup@gmail.com