ATLANTA GEORGIA Premium Atlanta Investment Property
Axis, your property investment partner
The Atlanta Investment Advantage
ProďŹ t Growth & Financial Investment
Refurbishment & Property Management
Business in Atlanta
Frequently Asked Questions
Why trust Axis?
Working with Axis delivers Value, Speed and Certainty Value. We are experts in negotiation and ensure that we deliver the best investments in terms of discounts and/or rental yields. A wrong
Axis, your property investment partner
decision could be a very expensive one. Speed. In return for these discounts the sellers expect a speedy conclusion to the transaction. We have a specialist department who navigate your purchase through the conveyance and co-ordinate all the professionals involved. Certainty. Experience and thorough market knowledge, coupled with extensive evaluation of an investment adds to the certainty that the investment will deliver what you expect. The Axis team have over 100 years combined investment experience, meaning all our properties undergo careful scrutiny and have to stand up to detailed due diligence.
Rod Thomas Chief Executive OfďŹ cer T: 01273 447 303 E: firstname.lastname@example.org
Phillip Wentworth Designer T: 01273 447 294 E: email@example.com
Geoff Bond Finance Manager T: 01273 447 295 E: firstname.lastname@example.org
Dan Lesser SEO & Social Media Specialist T: 01273 447 209 E: email@example.com
Justin Brownlee Head of Sales & Acquisitions T: 01273 447 302 E: firstname.lastname@example.org
Steve Howson Investment Consultant T: 01273 447 392 E: email@example.com
Shalina Sheikh Completions Manager T: 01273 447 304 E: firstname.lastname@example.org
Zoe Bryant Investment Consultant T: 01273 447 306 E: email@example.com
Az Ahmed Marketing Manager T: 01273 447 305 E: firstname.lastname@example.org
Russell Bonner Investment Consultant T: 01273 447 301 E: email@example.com
Peter Styles Copywriter T: 01273 447 208 E: firstname.lastname@example.org PROPERTY INVESTMENT
tlanta offers a particular combination of factors which make it an ideal investment location for the Premium Investment Properties.
This investment opportunity reﬂects the Axis ‘Maximum Growth strategy’. You beneﬁt from a combination of strong rental income now, coupled with excellent potential for capital growth in the medium term. So what exactly makes this investment opportunity so special?
Evaluation of Investment
New property at 50%+ discounts: You invest in recently constructed (always less than 20 years old, often less than 10 years old) beautifullyrefurbished, tenanted and performing property assets for less than 50% of the replacement build cost. It costs typically US $90 per square foot to buy land and build to this quality. For a 2,000 sq ft house that’s about $180,000. With builders proﬁt it would sell for $220,000. You can invest, through Axis, in a similar property for around $80,000 to $100,000. The beneﬁt to investing at this discounted price is that property values have to rise to at least the rebuilding costs before any new construction is started. So we have a situation where supply is currently stagnant, but demand is constantly increasing as more people move to Atlanta. There will be a point, within the next couple of years, when the current surplus of property simply disappears and as a result, property prices start to increase. Robust rental market: The rental market is incredibly strong as so many Atlanteans lost their homes in the recession. However, the city is now in economic recovery which further boosts the rental market as more people migrate to the city for work and the Atlanta lifestyle. In particular, if you invest in a Premium Property in Atlanta there are two exceptional aspects of the investment which are extremely beneﬁcial for investors: • Three year leasing agreements with the tenants. Most USA rentals are for 12 months, but here the tenants are committing to 36 months. This reﬂects the quality of the property and the quality of the tenants. • Option to purchase agreements with the tenants. The tenant purchase price is typically 50% more than your acquisition cost. Not all tenants will go on to purchase, but the intention is there and therefore you can expect great care to be taken of your property.
8% - 12% net pa
50% in 3 years
Typical property price: $80,000 - $130,000 USD (c. £50,000 - £81,000 at $1.6 = £1) Reasons to invest in Atlanta, Georgia: In our view, there is no other city in the USA which offers this
Evaluation of Investment
exceptional raft of reasons that support real estate investment: ✓ Number one USA rental market (Forbes). ✓ Fourth best place in the USA to invest (CNN Money). ✓ Top ﬁve for all job growth in USA (Moody’s). ✓ Number one fastest growing metro market between 2000 and 2010. ✓ 70% of Atlanta’s residents rent. ✓ Atlanta hosts the fourth largest concentration of Fortune 500 companies. ✓ Gross metro product of $270 billion (2/3 of Georgia’s entire economy!) ✓ One of the best ratios between low property prices and high rental rates in the USA, thus leading to exceptional value and high rental yields. Population Growth One of the key drivers for real estate investment is population growth. Atlanta led the US in growth for the ten years from 2000 to 2010 with 1.75m new residents! That looks set to continue with another million people relocating to Atlanta in the next ten years.
Best Price to Rent Ratio A great indicator for investors is buying in places where rents are high and prices are low. The difference between the two shows up as the percentage that it costs to rent compared to after-tax mortgage payments. The higher, the better. On this measure Atlanta is the best in the country!
Proﬁt, Growth & Financial Projections
Atlanta Number One City for Buyers Fortune magazine reported Atlanta as the number one city for real estate buyers. The data, from a Deutsche Bank report, compares the cost of renting vs home ownership. Atlanta tops the list, essentially meaning two things: • Property prices are low • Rents are high This will, in time, lead to an increase in home ownership, but the current balance provides a perfect window of opportunity for investors plus a robust exit strategy as the market pick up again
Atlanta prices are rising Across the USA there is now much data that indicates than in an increasing number of cities and states the bottom of the property cycle has been reached and passed. As we prepare this Buyers Pack we can report that foreclosures have fallen for 20 consecutive months and across the USA as a whole prices have risen for four consecutive months. Atlanta is no exception. Take a
ProďŹ t, Growth & Financial Projections
look at the table below which shows a signiďŹ cant fall in inventory and a rise in prices in just ONE week!
Picking the right price point In general the lower the cost of housing, the higher the rental yield but the lower the prospect of capital growth. For prudent property investors neither of the two extreme positions are tenable. Buying top priced property gives you little yield and you have to rely entirely on capital growth. Buying right at the bottom of the market gives
Proﬁt, Growth & Financial Projections
you a high potential yield, but in reality problem tenants are likely to produce more problems than you want to deal with. In the USA we categorise property into four bands: Category
Type of Property
Top quality, luxurious single family homes. Few rented. Professionals and business people.
Very low. Rental yields poor. Capital growth won’t make up for it. Great to own as “trophy asset”, but not good investment option
Good sized single family homes. Mid to upper mid neighbourhoods. White collar worker, mid to upper managers and professionals. More than 50% of properties owner occupied
Great mix of income and capital growth potential. Mostly private tenants who may purchase your property in 3-5 years.
Smaller single family homes, town houses, condos. More than 50% of properties rented. Blue collar and lower paid tenants who will rent long term.
Mostly purchased for income with some capital growth potential. Probably 50/50 private-government supported tenants. Good solid rental areas.
Low cost, poor quality housing in undesirable areas
Nil! Looks great on paper, terrible in practice. Easy to catch unwary investors
We have highlighted Category B and Category C properties as this is where investors in US real estate should be focusing. The majority of properties on offer will fall into Category C. However, the Premium Atlanta properties fall into the B+ category. Large single family homes in excellent neighbourhoods offering a mix of income and capital growth, for rental to managers and professionals.
You can also consider the different price points and levels of return by reviewing this graph:
As rents fall, quality of tenant also falls. On the other hand, as rents rise the yield falls. So either of the extreme bottom end, or the extreme top end of this graph are not the places that investors should be selecting. Refurbishment: Properties are fully refurbished to a ‘like new’ condition prior to being released to investors. As all the properties have been built in the last 20 years, most of the refurbishment work is cosmetic. It is also important that the property is attractive to the quality tenants that will be looking in these good neighbourhoods. You can expect that to have been considered carefully during the refurbishment and appropriate improvements made.
Refurbishment & Property Management
New properties which have never been lived in are ﬁnished with new carpets, cabinets, ﬁttings and ﬁxtures and so on. Plus they are freshly painted and decorated. Worktops, appliances, air conditioning units, kitchen and bathroom ﬁttings and units and more will all be reﬁnished or replaced as is appropriate. The refurbishment and maintenance team are highly-qualiﬁed and have extensive experience from developing entire apartment complexes through to standard ongoing maintenance and ﬁnishing.
Refurbishment: To ensure that when you take on the property it is in excellent condition the refurbishment company provide a 12 month peace of mind warranty. This covers the applicances and major systems • Plumbing • Electrical • Water Heater • Air Conditioning • Furnace • Oven/Range • Dishwasher • Refrigerator • Garbage Disposal Property Management: The Atlanta management team only looks after these premium investment properties and therefore only deals with international investors.
Refurbishment & Property Management
Three year leases: This is extremely unusual and very good from an investors’ perspective. Tenants who rent these houses except to stay a long time. This reduces voids and ensures more continuity. Option to purchase: Most tenants sign an option to purchase which they can exercise anytime during their three year lease. This will typically be at a price that is 50% higher than the investor price, and reﬂects the value that the tenant sees in the property. Some tenants will go on to purchase, giving the investor a large capital proﬁt with minimal expense or hassle. Strict tenant screening: There is a strict and comprehensive tenant screening process, from credit checking (especially for rent and utility bill related issues), through to ensuring the correct rent-income ratio (including background checking with employers and more). Tenant Visits: The property manager will usually visit the tenant at their existing property to ensure that they are maintaining it in the way that we expect these premium properties to be looked after. Two generations of checking: Where possible landlord checks will be made backwards through the last two properties that the tenant has occupied. Security deposits: Tenants will almost always be required to pay security deposits Typical tenants: The majority of tenants on the management team’s books are mid to senior managers and professionals. Most will have families. Regular communication: The management team provides regular communication with investors. Conﬁrmation of rent collection is made by automatic email and statements are sent every month. Marketing to rent timescale: This need not concern the investor because ALL these properties offered by Axis will be guaranteed to have a paying tenant prior to your purchase. This means that you will purchase a performing asset that is already producing income. In the event that the property you select is not yet tenanted, you can still go ahead and purchase, but closing will be delayed by the vendor until a tenant is in place.
Four Exit Strategies: It is important when you invest to consider possible exit strategies and make sure that they coincide with your planned timescale. We are extremely fortunate with the Premium Atlanta Properties in having four possible exit strategies. Strategy One: Sell to a private tenant using a standard mortgage: Tenants have signed an option to purchase at a pre-agreed price ensuring a large proﬁt to the investor if this option is exercised. After two years in residence, many tenants will qualify for a standard mortgage.
Strategy Two: Sell to a tenant with a land contract: A land contract (also known as a ‘contract for deed’ or an ‘instalment sale agreement’) is a contract between a seller and buyer, where the seller essentially provides ﬁnance for the buyer to purchase the property. Land contracts typically occur in situations where a prospective tenant-buyer wants to buy the property, but is unable to obtain a regular mortgage. In this scenario, the seller/investor is able to provide the required ﬁnancing in a similar way as a bank would. The seller/investor preagrees the purchase price, terms of repayment, interest rate, etc. As the seller, you are able to command these terms, including asking market value (without a discount, thus selling for a proﬁt) and charging a good interest rate. Five beneﬁts of land contracts: 1. You become ‘the bank’ and therefore dictate the terms. 2. You lock in your proﬁt at the agreed re-sale price. 3. You may receive an immediate cash deposit (typ 10% of the re-sale price). 4. Your tenant-buyer becomes responsible for maintenance, insurance, etc. 5. You will be free of any tenancy, management and/or void period concerns. It is also important to understand that there is an active market in buying and selling land contracts. Once it has ‘seasoned’ (the tenant has made a number of monthly payments) then you have the opportunity to sell your land contract to another investor. This is a way of gaining an exit whilst you still have money outstanding on the loan. Sell on the open market: You are investing in a large, new property at less than 50% of the build cost! This means you are sitting on an asset which is projected to grow in value at 50% or more in the next three years. As the availability of mortgages for local buyers gets easier, then selling on the open market becomes a real possibility. In fact the particular premium property we select for investment is located in extremely desirable sub-divisions and will sell to the kind of people who are in solid, high-paying jobs and proﬁtable businesses and therefore are very likely to qualify for ﬁnance. Sell to another investor as a performing asset: US and UK investors love buying property which is tenanted and producing an income. They call it a ‘performing asset’. Typically, they look for a 10% below market value purchase price and a net rental income of around 10% per annum. The unmatched quality of our Atlanta properties, along with their typical net yields of 11% - 15%, make them highly desirable to both US and international investors. 11
Where is Atlanta? Atlanta is the capital of the U.S. state of Georgia. Air: Hartsﬁeld-Jackson Atlanta International Airport (the world’s busiest airport as measured by passenger trafﬁc and aircraft movements) provides air service between the city and many national and international destinations. Hartsﬁeld is the home hub for the world’s largest airline – Delta.
Road: Atlanta is encircled by Interstate 285 (“the Perimeter”), which marks the boundary between the interior of the region and the surrounding suburbs. Three major interstate highways also converge in Atlanta (I-20, I-75 and I-85), with 75 and 85 forming the Downtown Connector, a combined highway which carries more than 340,000 vehicles per day. Public transport: Atlanta has its own subway system, operated by Metropolitan Atlanta Transit Authority (MARTA) and is the eighth busiest in the country. MARTA also runs a bus system (14th largest in the country); and rail lines connect many key destinations in the area. Who Lives in Atlanta and Why?
There is a population of 6 million in the greater metro area, with around 420,000 people living in the center of Atlanta • 1.6 million people migrated to Atlanta between 2000 and 2010. During this 10 year period it was the fastest growing city in the USA • Atlanta residents enjoy a low cost of living (94% of the national average). • Atlanta is the sixth best USA state for total individual tax burden. • Atlanta also attracts the ‘baby boomer’ generation due to a sub tropical weather climate, excellent hospitals and healthcare services. • Atlanta is the USA’s seventh leading tourist destinations for both Americans and international visitors, with around 35 million visitors a year, generating more than $10 billion in visitor spending and sustaining 223,000 jobs. • American Style Magazine ranked Atlanta the ninth best US city for the arts, playing home to numerous galleries, museums and theatres. • Atlanta is known as the “city in a forest” due to its abundance of trees, with 36% tree coverage - the highest of all the major US cities. • Atlanta features the world’s largest indoor aquarium, the Georgia Aquarium, containing more than sixty exhibits in eight million gallons of water. 12
Business in Atlanta What Atlanta’s most inﬂuential business people have to say:
“For a century and a quarter, Coca-Cola has literally grown up right alongside our city of Atlanta. We’ve shared the triumphs, we’ve faced the challenges. We’ve worked together to create a better future as only best friends can do.” MUHTAR KENT, CHAIRMAN AND CEO OF COCA-COLA
Business in Atlanta
Atlanta’s Top Employers Atlanta plays home to some of the world’s most recognised brands, including (with number of employees): • • • • • • • • • • • • • • • • • •
Delta Airlines (22,257) AT&T (21,915) Emory University (21,000) Cox Enterprises (13,583) United Parcel Service (10,745) Wellstar Health Systems (10,112) SunTrust Banks (7,700) Lockheed Martin Aeronautics (7,531) IBM Corporation (7,500) Georgia Institute of Technology (7,342) Northside Hospital (7,100) Turner Broadcasting Systems (6,600) The Southern Company inc. Georgia Power (6,000) AirTran Airways (6,000) The Home Depot HQ (5,500 - not inc. retail branches) Children’s Healthcare of Atlanta (5,220) Coca-Cola (5,136) Wachovia Corporation (5,100)
“I think this deal and this merger [with T-Mobile] can be nothing but good news for Atlanta. Atlanta will be home to a unit of AT&T that is the growth engine, that will continue to grow for the foreseeable future.” RALPH DE LA VEGA, PRESIDENT AND CEO OF AT&T
” PROPERTY INVESTMENT
Q. How do you select the Premium Atlanta Properties? A. Selection is critical from a number of perspectives. These factors are the most important: • Property less than 20 years old - sometimes never lived in! • Typically 2,000 to 3,000 sq ft. Single Family Home on large plot. 3-5 beds, 2-3 baths, 1-3 garages. • Priced between $80,000 and $130,000. This is the ‘sweet spot’ for good income and high growth potential, plus obtaining quality tenants • Speciﬁc high demand locations that have a majority of owner occupiers in the sub-division • Most properties located South, South-East and North-East of the city • Desirable neighbourhoods - areas people want to live in. • Rented on three year lease • Tenant takes option to purchase at typically 50% price uplift for investor
Q Frequently asked questions
Q. Is there a reservation fee? A. Yes. The reservation fee is $5,000 USD and this is held by the vendor’s attorney and credited against the total cost at completion / closing. This $5,000 USD reservation fee is sent by you, directly to the attorney’s account in the USA. Q. Is the price ﬁxed and do I pay in $USD or £GBP? A. The price is ﬁxed in USD. Therefore the exact amount you pay will vary with the exchange rate. We have assumed an exchange rate of $1.6 = £1 for illustrative purposes throughout this Buyers Pack. Axis ﬁnder’s fees are invoiced and paid in GBP sterling in the UK. Q. How do I send funds in US dollars (USD)? A. Axis will recommend an exchange company which will give you far better rates than your bank. It is also very easy because you can send them GBP sterling and they will change to USD and transfer to the payee efﬁciently. Q. Will I need a bank account in USD? A. You will not need a USD bank account for the purchase, but you will deﬁnitely need to set one up shortly afterwards. Please ask us for current recommendations for opening a US bank account. Q. How long does it take to purchase? A. Typically 3 - 5 weeks, depending upon time allocated for property inspection/s and title examination. This time may be extended to ensure that you have a tenant in place and paying rent prior to your completing the purchase. PROPERTY INVESTMENT
Q. What exactly am I buying? You are buying a top quality house with performing property asset which is less than 20 years old and has already been refurbished to a high standard for rental. Q. What costs are involved in purchasing property in Atlanta? A. Closing costs are typically 2% of the investor purchase price (typically $1,250 to $1,500) and this includes: • • • •
Q Frequently asked questions
Title search Title insurance Attorney fee Recording fees
There is an optional home inspection which typically costs $300 to $350. Atlanta is unique in the fact that there is an option to transfer property into a land trust. Closing costs for this option are only $350. Ask us to explain this option further. Q. Will I need to visit Atlanta? A. Most of our clients do not visit. Axis takes great care to present a level of information and attention to the buying and management process so that is not necessary. However, if you wish to complete an inspection trip that can be easily arranged either before or after purchase. Please ask for details. Q. What is the Axis ﬁnder’s fee for Atlanta? A. The ﬁnder’s fee for purchasing a Premium Investment Property in Atlanta is £3,950 for one property, or £3,450 if you invest in two or more properties at one time. This is paid separately in GBP and is exempt from VAT as it is a USA property transaction. Q. What does the Axis ﬁnder’s fee cover? A. The Axis ﬁnder’s fee covers the following, implemented between ourselves and the US company: • • • • • • •
Selection and negotiation of property purchase. Supervision of refurbishment. Finding of initial tenants. Completion of due diligence. Presentation of Investment Guide / Buyers Pack. Assistance from reservation to completion. Provision of general information about investing in Atlanta and the USA. • Introduction to USA property professionals including: accountants; attorneys; title agents; tax advisors; banks; and more. The ﬁnder’s fee is payable with your completed reservation form and is subject to our standard terms and conditions in the Client Engagement Agreement (CEA) and on the property reservation form. 15
Q. What do I, as an investor, need to do? A. Whilst we and our partners do all we can on your behalf, investors need to be aware you do still have certain responsibilities with your ‘armchair’ investment - primarily to ensure your investment is set up correctly. We and our partners are able to introduce you to the necessary professionals, but it is your responsibility to: 1. Open your USA bank account. 2. Set up your LLC (if using - please see overleaf for more info on LLCs). 3. Organise your USA tax returns. 4. Pay your insurance and property taxes. If you are in any doubt about your investor responsibilities, please ask us and we will be happy to clarify the relevant items for you.
Q Frequently asked questions
Q. Do the properties come tenanted? A. Axis have negotiated a special arrangement with our partners, such that ALL properties come tenanted at the time you complete the purchase. Tenants will have entered into a three year lease. Q. Is there a rental guarantee? A. A rental assurance is in place for the ﬁrst year, at no charge. This is not the same as a rental guarantee, but ensures you do not incur costs if a replacement tenant is needed. If a replacement tenant is required after the ﬁrst year, a fee of 75% of the ﬁrst month’s rent plus a $250 renewal fee may be applicable. Q. What happens about property management? A. We have a full team of highly-professional and experienced partners in Atlanta who take care of this for you. They only manage the Premium Atlanta Properties and are not distracted by taking on other properties. The management team charges 10% of the rental income to look after your property. National ERA Servicing is available as a local property manager to create a positive ownership experience for remote investors. Investors will purchase properties subject to a Master Lease that is in place, with National ERA Servicing as the master tenant. Q. So I can relax and know that everything will be taken care of? A. Absolutely, yes you can! We only work with one partner company in Atlanta which manages all properties sold to investors. Our partners have their own refurbishment and maintenance teams and are able to ﬁx problems quickly, for a modest price. Rod personally visited our Atlanta partners during his recent trip to the USA and was very impressed by their professionalism and efﬁciency. Since you are investing in recently constructed property that has had a full refurbishment in general maintenance bills in the ﬁrst few years should be low. However, as with all property investments there are no guarantees that systems will not fail or unexpected maintenance bills arise. Investors should be aware that this is part of the investment risk when purchasing property. PROPERTY INVESTMENT
Q. Who in the USA represents my interests? A. There is a title agent or attorney who completes the purchase process on your behalf and reports directly to you. In the USA it is standard practice for the title agent or attorney to represent both buyer and seller. You can appoint an additional attorney to represent you at additional cost, but most clients don’t feel this is necessary. Q. What is an LLC? A. An LLC is the US equivalent of a UK limited company. Some clients choose to purchase US property in an LLC. Q. So should I purchase property as an individual, or form an LLC? A. This is a frequent question and requires some consideration of your future strategy. The ﬁrst point is this - if you are unsure you can always purchase in your personal name/s and transfer to an LLC at a later date. This is easily and cheaply done. We can introduce you to expert tax accountants who can advise on your personal situation.
Q Frequently asked questions
Generally, our view is if you plan to purchase just one or two properties, it is probably not worth it. However, if you plan to build a larger USA portfolio (as many of our clients do!), then the answer is often yes to forming an LLC. Q. What are the advantages of an LLC? A. There are potentially ﬁve beneﬁts from forming an LLC to hold your Memphis properties: 1. We can quickly and easily assist with getting an EIN number from the US Government. This enables your rent to be paid gross and not with a deduction for withholding tax of 30%. If you hold the properties in your individual name you would need to obtain an ITIN number, which because of recent changes in US legislation has become problematic and painful to obtain. This would mean that a 30% withholding tax would need to be applied by the management company to any rent paid to a foreign individual who did not have an ITIN number. 2. The Management company can open a US bank account quickly and easily in a LLC company name. The same is not true for an individual account which has progressively got harder to open in the US and really requires you to turn up in person. 3. When it comes to sell your property if you hold it in an LLC it is quicker, easier and cheaper for your attorney to transfer the property to a new owner. • One LLC can be used to hold all your properties. It makes no difference, either higher or lower, to the taxable proﬁt or the tax due if you hold properties in a LLC. PROPERTY INVESTMENT
4. Over time, because you have an LLC, you will start to build a credit proﬁle in the USA which could mean that you could borrow money in the name of the LLC in the future. This might enable you to reﬁnance your properties and extract cash to invest elsewhere for example. 5. The LLC adds another layer of protection against legal claims. The USA is known for issuing legal actions more frequently than, say, in the UK. Whilst you have insurance cover that should be more than adequate, some high net worth individuals have a policy of ring-fencing individual assets so that no matter what, other valuable assets cannot be touched. We should say, however, that in all the years our clients have been investing in the USA we are not aware of one legal case that has been taken and settled by insurance, let alone a case against a LLC. So this is very much a risk with a very small chance of happening. • The cost of forming an LLC is currently $600-$700 depending on who does it for you. • There is an annual ﬁling fee in the state of Tennessee of $300. • One LLC can be used to hold all your properties.
Q Frequently asked questions
It makes no difference, either higher or lower, to the taxable proﬁt or the tax due if you hold properties in a LLC. Q. What is the current prices of these properties compared to peak values in 2006? A. Unlike high foreclosure markets (Nevada, California, Florida, etc.), property values in Atlanta, Georgia did not see as extreme price ﬂuctuations – both high and low – as other more volatile markets. Properties are being purchased for about 60% of peak values, or half of replacement value ($40 to $50 per square foot). Q. Is ﬁnancing available? A. No. Due to unpredictable and inconsistent appraisals, properties are only available to cash buyers. Q. How do I know I am getting clean title? A. All properties have been cleared of any potential liens and encumbrances that could cloud title. Additionally, properties are delivered with title insurance to protect the investor as an added redundancy. Q. How long does it take to rent properties? A. Properties are typically rented within 30 days of renovation completion. For Axis clients we have a unique situation in that investors will not complete the purchase until renovation is complete and a tenant is in place with a three year lease agreement! PROPERTY INVESTMENT
Q. When do I collect rental income? A. Rental income is distributed at the end of each 3-month quarter. Investors can view their monthly income/expense statements anytime via their online account portal. Q: How long are the properties rented for? A. Tenants are not accepted unless they sign a 3-year lease with an option to purchase Q: How does the option to purchase work? A. Tenants will pay $1,000 to $3,000, at lease signing, to buy the purchase option. The option price is typically 50% higher than the investorâ€™s purchase price. A pro-rated amount of the option money is passed on to the investor at time of purchase. In some cases, tenants agree to pay an extra $100 per month, above and beyond the projected rent, to apply to their future purchase price. In these instances, the buyer will receive a credit of $100 for each month of rent paid on time.
Q Frequently asked questions
Q: Will I have help reselling the property in the future when I want to exit? A. Yes. National ERA Servicing is available to market your property for a 6% listing commission, which will be shared with the buyerâ€™s agent in the future. There are no up-front costs to the investor to market and sell their property.
Purchase Process 1.
Sign Axis reservation form along with acceptance of Client Engagement Agreement (CEA) and pay Axis commitment fee of £500 GBP immediately, by credit or debit card. This £500 commitment fee is deducted from the remainder of the Axis ﬁnder’s fee payable.
2. Pay balance of Axis ﬁnder’s fee by bank transfer within two working days.
3. You will receive a Purchase Agreement and international wiring instructions. Sign, date and return the purchase agreement to vendor with the $5,000 deposit immediately. This deposit fee will be deducted from the ﬁnal amount payable on closing. 4. As soon as our US acquisition company receives the signed Purchase Agreement and $5,000 deposit, they will conduct a home inspection. 5. Assuming there are no surprises on the home inspection, the $5,000 deposit becomes non-refundable and closing preparations will be made. 6. Closing documents will be emailed to you with a Settlement Sheet itemising closing costs and the balance due to close. Sign all closing documents and return by express mail to meet the closing cut-off date (as speciﬁed in the instructions). Wire the balance of funds to close. 7.
Upon receipt of the wired funds and original signed closing documents, clean title will transfer and the new deed will be sent to the County to be recorded in the public records. Allow 60-90 days for the return of the recorded deed. Once it is recorded in the public records, your deed will be mailed to you.
8. Shortly after closing, your property manager will contact you for a seamless transition.
Next Steps 1.
Please review all information carefully.
2. Call us with any questions and to request a list of currently-available investment property in Atlanta. 3. Select your property from the currently-available list as provided and call us to reserve.
Our USA Investment Consultant is Russell Bonner: Russell: +44(0)1273 447 301 / email@example.com For investors who decide to reserve a property we will need the following:
Payment of the commitment fee and signing of the reservation form (immediately).
Payment of the remainder of the ﬁnder’s fee, by bank transfer within two working days.
Acceptance of the current Axis Client Engagement Agreement (CEA) provided to you with the reservation form.
Please note: You have NOT reserved a property until all three elements speciﬁed are in place. Following receipt of the ﬁnder’s fees and documentation we will provide all the details you need to complete the transaction smoothly and efﬁciently. Axis Property Investment Gemini Business Centre 136-140 Old Shoreham Road Hove BN3 7BD Tel: +44 (0) 1273 447 300 • Fax: +44 (0) 1273 203 073 Email: firstname.lastname@example.org
ROPEIDRETY US PME NT GU INVEST
• Read in conjunction with the
TES UNITED STA
USA’S NUMBER 1 RENTAL LOCATION
• Consult with Your Axis Investment Consultant
Making the correct investment
with ary homes ily Homes y contempor Quality Fam High qualit rning l location. ct for disce er one renta growth. Perfe re, USA’s numb tial for price s-off, secu Invest in the strong poten and want hand l returns and y properties excellent renta value in qualit rstand the unde who investors tments. USA inves
s family home Atlanta Large, single oods in metro tial neighbourh g growth poten Top quality pa, plus stron new’ e 8%-12% ished to ‘as Net incom – fully refurb ey’ property ‘turnk y Totall to purchase to tenanted prior & tenant option standard and ment l agree 3 year renta Exceptional antial proﬁt ing in subst at less , investing purchase result to $130,000 $80,000 Price range build cost! nt curre than half Property Ref:
447 300 +44 (0) 1273 9AM TO 5:30PM
e appreciate the trust and conﬁdence in Axis that you need to have when considering the purchase of an investment property. This information may help you make an informed decision about whether to work with us:
Registered with The Property Ombudsman scheme (TPOs) The Property Ombudsman has powers to make awards of compensation for ﬁnancial loss and/or aggravation, distress and inconvenience (where deemed appropriate). Therefore, this is critical to ensure clients have an impartial source of recompense if they believe they have been unfairly treated. Few acquisition Agents are registered with TPOs www.tpos.co.uk
Registered with the Ofﬁce of Fair Trading (OFT) Axis is registered with the Ofﬁce of Fair Trading (OFT) to comply with Money Laundering Regulations which came into force on 15 December 2007. The OFT supervises registered businesses to ensure all legal obligations are met and adhered to. See www.oft.gov.uk for more information. Professional Indemnity Insurance (PI Insurance) Axis carries PI Insurance to ensure the company has the resources to pay if a penalty was awarded to you by the court. Please call +44 (0)1273 447 300 or email enquiries@axiscontact. com for details of our PI policy.
Time and experience in the marketplace Axis has been sourcing investment property for our clients since late 2005. Our senior managers have more than 50 years’ combined experience of investment property.
Why trust Axis?
Management Our CEO is Rod Thomas FCA (a Fellow of the Institute of Chartered Accountants). To verify this please call the Institute of Chartered Accountants (ICAEW) on 0906 614 0906. He is also a well-regarded speaker at national property exhibitions, workshops and seminars; and the author of ‘The Property Investment Property System’ (PIPPS), the ﬁrst major home study course for aspiring property investors. He has developed his own international property portfolio over 30 years of active investment.
Website and depth of knowledge Visit www.axispropertyinvestment. com. You will ﬁnd more than 300 articles, plus numerous investment guides packed with original analysis from the Axis research team. Rod regularly writes for Your Property Network magazine www.yourpropertynetwork.co.uk Level of due diligence and risk management Our current due diligence checklist runs to more than 125 points which we take into account when assessing a deal. You are welcome to review our due diligence checklist - please request a copy by calling the ofﬁce on +44 1273 447 300 or email email@example.com.
Axis never handles client money Axis never takes or holds money destined for your investment. It is always paid directly to either your own legal representative or the vendor’s legal representative. The only monies ever paid to Axis are the appropriate introductory/ﬁnder’s fees.
Testimonials Most of our clients wish to keep their affairs private, but we do have some public testimonials and feedback which you are welcome to view. In certain instances we may be able to arrange for you to speak with a satisﬁed client.
Your visit is welcome The senior managers at Axis welcome client visits to our ofﬁce and will happily make time to discuss your proposed investments. You can also meet us at national exhibitions and Axis workshops and training events. Please call the sales team on +44 (0)1273 447 300 if you’d like to schedule a visit.
Deﬁned complaints procedure In the unlikely event that you are ever concerned about your purchase/s, you will have access to a deﬁned complaints procedure which ends up with the direct responsibility of the General Manager.
Deﬁned legal relationship We want to make sure that you understand what our obligations and your commitments - are when you enter into a transaction with Axis, so there is total transparency in our relationship with you. This is all carefully deﬁned in our Client Engagement Agreement CEA), similar to any other professional’s terms of engagement letter which you can download from our website.
This is not an offer to solicit investment, but a presentation of available property. Actium Property Ltd is not a regulated or licensed investment or ﬁnancial advisor. We do not provide ﬁnancial or investment advice about whether this property is suitable or appropriate for you. We strongly recommend that you take appropriate professional advice before entering into any contract. Actium Property Ltd acts as an Agent and not a principal. If the product is suitable and you choose to invest through a Self-Invested Personal Pension (SIPP), we will introduce you to our approved Independent Financial Advisor (IFA) who is licensed to provide advice on the regulated aspect of your investment. This presentation is subject to the terms and conditions of Actium Property Ltd, contained in: a)
The Client Engagement Agreement (CEA), which contains disclaimers and restriction of warranties. Clients must acknowledge agreement to the CEA prior to entering into any business with Actium Property Ltd.
This Investment Guide and the Buyer’s Pack (available on request), which may contain speciﬁc terms and conditions that are additional to, or may vary, from the standard CEA.
The Reservation Form.
Why trust Axis?
Membership of FIABCI Axis is a member of the International Real Estate Federation (FIABCI) and has agreed to abide by FIABCI regulations for fair dealing. Visit www. ﬁabci.co.uk for more information.
Disclaimer Whilst we endeavour to provide accurate, up to date and complete information, we make no warranties or representations as to the accuracy, reliability or completeness or otherwise of the information and assume no responsibility or liability for any omissions or errors. Information provided by Actium Property Ltd should be regarded as an indicator and general guide and not be relied on as a statement, recommendation or representation of fact. As with all investment products, clients should be aware that property prices can go down as well as up and that rental returns can be affected by voids, non-payment and other issues. Therefore any potential return is subject to normal investment risk and investors should be aware that they may not get back the amount invested. © COPYRIGHT 2012 Actium Property Ltd. All rights reserved worldwide. No part of this publication can be reproduced or distributed in any form or by any means, or stored in a data or retrieval systems without the prior written permission of the copyright owner.