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Trilogy Property Group was founded in January 2009 by the Managing Director Graham Davidson. Graham saw the economic climate at the time as an opportunity to negotiate huge discounts off properties that vendors were unable to sell due to the lack of mortgage availability and the requirement for large deposits.
Graham quickly realised that the very best discounts could be achieved when buying in bulk and that great advantages could be gained by collective purchasing. Teaming up with his largest registered investor, they came up with a simple but unique model for purchasing properties at substantially below market value and helping other fellow investors do the same.
Our business model is simple, (and we believe unique), by personally guaranteeing the entire deal, we secure substantial discounts on a bulk number of properties (often as many as 50 in one deal) this allows us to offer the properties to our registered investors at prices substantially below open market value and at a price far less than could have been negotiated individually. We purchase a number of units in every deal we do and we guarantee the seller that we will also purchase any units where our introduced buyers are unable to proceed. This means that both the seller and our investor buyers can be confident that our deals will proceed to completion.
Many of our deals are agreed with new home developers but we also deal with Asset Managers, Receivers, and Insolvency Practitioners.
Since 2009, Trilogy Property Group has assisted its collective registered investors acquire hundreds of below market value property bargains.
We believe that our unique business model allows us to negotiate substantial reductions against current open market values (often as much as 30%) which in turn create’s potential rental yields of in excess of 8% and thousands of pounds of instant equity.
Trilogy Property Group charge an acquisition fee for each property purchased but we do not charge our investors any registration fee, and our acquisition fee only becomes payable on exchange of contracts. This means that our investors only pay us if we successfully deliver deals that complete.
About Graham Davidson
Now 47 years old, Graham Davidson has been in the property industry since the age of 23 and worked for the largest corporate estate agency group in the UK for over 22 years progressing through the ranks to Director level. 16 of these 22 years were spent working for the companies specialist new homes division gaining both a substantial level of experience of the new homes market, and an exhaustive list of industry contacts.
It was in 2008 whilst specialising in the new build market that Graham spotted an opportunity to provide a service to investors that he thought was missing, whilst also continuing to grow his own portfolio, and since leaving corporate live in late 2008 to form Trilogy Property Group, Graham has helped many new investors start to build a property portfolio and many experienced investors grow and improve their portfolios. |
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Terminology
BMV - Below Market Value
A below market value property refers to a property that can be purchased at a price substantially less than might be achieved on the open market (the open market value) or would be placed on the property by a surveyor if asked to value the property for mortgage purposes (RICS value).
Below market value property is hard to find due to its obvious appeal to property investors. Trilogy Property Group specialise in negotiating prices substantially below market value giving its registered investors the opportunity to secure an investment property with built in equity, a high rental yield, and positive monthly cashflow.
Rental yield
A properties rental yield return is a calculation of the gross rental income of the property when rented out calculated against the initial purchase price of the property. For example; £80,000 purchase price with an annual rental income of £8,000 is a 10% gross rental yield. A gross rental yield is a yield return before costs such as letting agent’s fees, (and in the case of apartment’s ground rent and service charges). The yield return after these costs is referred to as the net rental yield.
Most investors use this calculation to access a properties suitability for investment, however, others may calculate the annual cash positive element of the investment after all cost including mortgage interest payments have been covered when calculated against the total cash invested in the property. For example; a property costing £80,000 may require an initial cash injection of around £25,000 but after all costs are covered should leave an annual cash positive figure of around £4,000 which is a yield return on cash invested of around 16%.
Cash flow positive
Whilst most investors are focused on long term growth and profit, it is important that the property is cash flow positive and does not require further cash investment after the initial purchase. By purchasing property that is substantially below market value, it is possible to create a positive cash flow in the region of £4,000 per annum for every £25,000 invested. An impressive 16% annual return on investment and with built in equity from day one plus the opportunity for future capital growth.
Built in equity
Buying a property with built in equity is the number one rule if you want to acquire a property portfolio but do not have hundreds of thousands of spare cash to invest. If a property that has a realistic RICS value of £100,000 can be purchased for £70,000 then this property would be deemed to have £30,000 of built in equity from day one. In time, this property can be used to capital raise and release back to you your initial cash investment enabling you to use the cash to purchase another property and therefore steadily grow your portfolio.
Equity release
If a property that has a RICS value of £100,000 is purchased for £70,000 then after a period of time (possibly as little as 6 months) depending on your mortgage lender and mortgage conditions, it is possible to refinance the property up to as much as 80% of the properties RICS value. In this example, that would mean a mortgage of £80,000 on a property that only cost you £70,000 to purchase. This means that not only have you recovered your initial cash invested, you have more than covered all the costs of purchasing and are ready to invest again and grow your portfolio.
Register today to start receiving details on our below market value deals and remember registration is free and we only charge an acquisition fee once you successfully acquire a property from us. |
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