Property Investment; Strategies for Success!

Successful property investment can only be measured in terms of profit - either short, medium or long term. There are different ways of generating profit and at Axis we have simplified and clarified the investment choices down to three powerful strategies.

These three strategies for success will help to define the way that you build your property portfolio. They can be 'mixed and matched', and sometimes you'll get two strategies working in one investment! A double whammy.

We recommend that before you make any investment in property you ask yourself two simple questions:

1. Which strategy (or strategies) does this investment fit?

2. Is this appropriate to add to my portfolio right now?

If you have clarity of understanding about the investment, and know that it's right for your property portfolio, then you've passed the first investment decision point.

Investing in the UK versus the USA

Whilst we apply these principles to all investment opportunities offered by Axis, there is a clear difference between the UK and the USA. At the time of writing, the highest returns across all three strategies are clearly in the USA. That doesn't mean we think the UK is a bad place to invest. Far from it. The UK remains a key part of our investment focus for many reasons that we explain here.

However, it is true to say that for investors looking for the highest returns either in short term cash, regular income or high level growth, and willing to invest outside the UK, the USA offers many outstanding opportunities.

Strategy One: Rapid Cash Profits

We love Rapid Cash Profits. This strategy does your bank balance a lot of good! Rapid Cash Profits delivers what it says on the tin. Short term cash profits, no long term commitment.

How can you do this? Essentially you have to buy and sell property in a short space of time. This is called 'flipping'. In a buoyant market property investors could buy and sell without doing anything to the property. That is difficult to achieve right now... the property market is far from buoyant.

The second option is to buy - renovate - sell. This was a favoured approach by many UK property investors, again in buoyant times. You were likely to make a profit even if you made mistakes! Paid too much for the property... no problem because it was going up anyway. Spent too much on renovation... no problem because the price was rising anyway. It was incredible how easy it was to make money.

No more... we have to be cleverer than this to create Rapid Cash Profits.

Here's the plan

Find a country where it is very easy to buy and sell quickly. Sorry but that leaves out the UK.
Find a location where you can buy well below market value because of a specific opportunity
Find a way to refurbish quickly, like 15-30 days!
Know that you can resell quickly into the local market because of specific reasons

This is a tall order, but Axis has a location, and a process in place that covers all these points.

How much cash can you make, and how quickly? Our target is 20% return on your investment in 90-180 days.

That's pretty astonishing and ideal for investors looking to grow their cash resources quickly.

As an example, a £50,000 investment could return £10,000 profit in 90-180 days (120 days would be a reasonable average). Realistically investors could do three projects back to back in a 12 month period and make around 60% return on investment. We think that's exceptional.

Of course there's lots more for you to know, so if you are interested in Rapid Cash Profits please download our Smart Guide. Where do we offer the best cash return? Memphis, Tennessee, USA.

Download The Axis Smart Guide To Rapid Cash Profits

Strategy Two: Accelerated Capital Growth

Buying Investment Property the 'Traditional' Way

Here's how many investors have purchased property.

Step One: Pay retail price from an estate agent.
Step Two: Buy at the top of the market.
Step Three: Pay cash.

Let's say that the property doubles in price over 10 years - you'll receive 100% on your investment.

Buying Investment Property the 'Axis' Way

Now let's see a different approach, the Axis way.

Step One: Pay wholesale through Axis. Buy from 15% to 68% below market value
Step Two: Buy around the bottom of the market
Step Three: Find locations that have fallen further and have greater recovery potential than 'average' properties
Step Four: Add value wherever possible
Step Five. Finance with other people's money wherever possible.
Step Six: Wait for tme to deliver the growth we expect. Typically we are looking at 3-5 years rather than the 10+ years that is more 'normal'. (At Axis we don't do 'normal'!)

Let's take a simple example and suppose that we achieve just step one, two and six. We'll ignore 3,4 and 5 for now.

Example of Property Investment Using Accelerated Growth

Because we purchase at a different time in the property cycle, the £100,000 property that our previous investor purchased is actually now worth £80,000.

Then we negotiate a 25% discount on behalf of our clients - so they purchase for £60,000.

In 10 years time the property is still worth £200,000 (a 100% profit on £100,000). In fact because we bought at the bottom of the cycle it is likely to be less than 10 years before we reach the top of the next cycle!

Our profit - £140,000 on a £60,000 investment - that's 233% significantly more than double the investment return from purchasing the 'traditional' way.

Not to mention that we can massively improve the return beyond 233% by engaging in steps 3,4 and 5 above!

Some Axis properties chosen for Accelerated Capital Growth have the potential to deliver 300% ROI in a 3-5 year period!

Why is Accelerated Capital Growth So Important?

We're sure you've got it by now..

Instead of 100% growth in 10 years, make 300% or more ROI in 3-5 years!

Where is the very best place to benefit from Accelerated Capital Growth? Florida, USA. Download the Axis Smart Guide right away.

Strategy Three: Robust Cash Flow

We are all familiar with cash flow that maybe just covers the mortgage, maybe not quite covering the other costs like service charges. We think that's stressful, and hardly what an investor looking for cash flow needs.

Depending on where you look, 4% to 10% gross yield is normal. After costs 3%-7%. Use maximum leverage and borrow as much as possible and your net return after interest can fall to close to zero. Not great for cash flow investors.

Let's remind you that Axis doesn't do 'normal'. Choose your locations wisely, and we can deliver properties that offer 25% - 40% pa gross yield... about 15% - 20% per annum NET (before financing costs)! That beats 2% pa in a savings account, plus you benefit from growth in capital and income over the years.

We call that Robust Cash Flow. It's something to shout about!

We've got two great locations that deliver this exceptionally high level of Cash Flow. The properties have to be purchased for cash, so our apologies to investors looking for maximum leverage. But if you do have cash, then our Robust Cash Flow strategy will deliver 15%-20% net income pa, plus the prospect of reasonable growth in income and capital.

Where can Axis deliver the highest cash flow right now? Buffalo NY, and Detroit, Michigan, USA. Download the Smart Guide now.