At Investor Grove, we do property deals and investments, primarily with the help and partnership of investors, to make it successful.

Receiving Deals

We often received off market deals, or deals that is specific for our strategy. These deals are from our network of people that specifically deals with properties that will pass on these deals if it falls into our strategy and in our pricing class (of which they have been briefed on).

Investigating Numbers

Once we receive it we do a extensive check on the deal – to ensure we do have any surprises once we acquire the property. This involves due diligence checks, like building inspections, costings, market conditions, area checks and titles.

We then run the numbers and once we happy that that the numbers stack up for the deal, we then would make an offer and negotiate with the vendor.

Raising Finance

Once we have the property under contract, we then start looking at raising finances for what’s required for the properties.

This is where you come in – we have a mixture of Angel investors, Joint Ventures and Partnerships. The structure is totally dependent to the investors’ needs, appetite, and security.

Our offerings are based on this appetite and/or the investment size and term for the investment.

We also try to have some funds in the deal – be it a mortgage or a percentage of the funds that we contribute.

We then would sign a solicitor approved agreement with the investor.

Once the funds are then received, we would settle the property and start the works as soon as possible, to ensure our timelines are as short as possible.

Security for Funds

Depending on the investors requirements, we would negotiate the offered security for the safe keeping of the funds.

Note that any investment has its risks, and the larger the return, the more risk a investment takes. However, with a physical asset like property, it largely reduces the risk.

We have done a mixture of the below securities we offer:

  • Shareholding in a Company
    • If we purchase the assest in a company structure, we can offer the investor a shareholding (based on their portion of investment) or directorship (with profit share) withing the business.
  • Joint Ownership of the Asset.
      • We can purchase the assest along with the investor, to have the investors name on the title.
      • There are a few that things we need to consider on this and have a few requirements on this – however, this does give the investor great protection.
  • 1st Mortgage on the Assest
    • In the case where we purchase the asset in cash, the investor(s) can get a first mortgage on the property (like the bank does)
  • 2nd Mortgage on the Asset.
    • In cases where the 1st mortgager agrees to this, the investor can be assigned as the 2nd mortgager.
  • Caveat on the  Mortgage
    • 1st Mortgagers might sometimes not allow a 2nd mortgage, but sometimes do a allow a caveat on the mortgage, giving the investor a say in the distribution of the returned funds
  • Verified Agreement
    • We always ensure that we provide a solicitor drafted agreement with the lender. The lender will then need to supply this to their solicitor, and we do the same to the solicitor that does the property purchase, so that if anything goes wrong, proceeds are paid to creditors where required.

Paying Back Investment

When the property is sold (for project specific investments), we then payout the investor their loan, along with the agreed interest portion / profit.

For long term investments, we will cycle the funds as much times as possible, and pay our partners / investors yearly.

Once the end of term comes along the partner have 3 options to exit:

  1. Re-Invest all current Loans and Interest for the next period (Compound Interest)
  2. Re-Invest all current Loans, and draw out the interest
  3. Draw both the current Loan and Interest totally.

And then we go again, or might do multiple projects simultaneously.

Please join our mailing list below to receive information on the deals and investment required, as and when they come to us.
** Note the we suggest you obtain the necessary information from a qualified solicitor and accountant / financial advisor for any legal or financial advise, as we are not  qualified to provide that, other than what returns we can offer on the deals that we have.
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