H+g Brochure 121009-final Version

Hunting for Profit & Gathering Wealth

An Exclusive Members Only offering of investment opportunities, providing it’s members with the ability to profit from a unique and exclusive network of property supply and funding provision.

Contents

Who we are and what we stand for

003 Who we are and what we stand for 004 Mission Statement

Security and Peace of Mind

005 Overview of the UK property market 006 The Problem 008 The Opportunity 010 The Solution 012 How it works – 10 Key Points 013 The Exclusive Offer 017 The Next Step

With over 40 years experience in finance, insurance and property investment, we understand that any investment requires careful consideration and a full understanding of the information on which returns are based.

Managing Expectations Much of our research has shown that highly regarded professionals are expecting growth levels in excess of 30% over the next five years, however our profit predictions are never based on theses ‘best case’ scenarios. We also factor in realistic rental yields and projected resale costs. We are confident that our estimated returns are realistic and may in some cases be surpassed.

Minimising Risk Full due diligence is carried out on every property purchased. From the purchase price which will always be significantly discounted from independent current valuations, to an analysis of the rental opportunity (demand and price) and the exit strategy – the resale at the end of the chosen term. We also diversify your portfolio by offering geographical spread and property type.

Communication

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We provide updates at every key stage of your investment and our experienced investment consultants are available to answer any questions you may have and talk you through all the details before and after you invest.

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Mission Statement

Overview of the UK property market

To provide experienced investors with an end to end, seamless solution for fully packaged property investment.

2007 At its peak from early to mid 2007, we saw mainstream, high street lenders aggressively competing for investors Buy To Let mortgage business at tiny margins above wholesale money market rates or Bank of England Base rate, 100% rental cover ratios and as little as 10% Buy To Let deposits required. We also saw some lenders providing buyers with the ability to buy property at below market value and remortgage at RICS market value the same day to generate significant cash back payments. Such was the voracious appetite for mortgage lending to collateralize for trading, banks and some building societies were lending to Buy To Let “investors” whose own credit record was classified as sub-prime. Now in late 2009, those days and most of those lenders are gone. The wholesale market of CDO’s and MBA’s virtually imploded and many investors have been left holding a Buy To Let property portfolio they may have difficulty refinancing at this point in time.

Q3 2009

Hunting for profits and gathering wealth.

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• • • • • •

Bank of England Base Rate at 0.50% - an all time low. Property Repossessions and landlord / developer liquidations abound. Mainstream, high street bank Buy To Let lending rate margins at a record high. Residential Mortgage products across the market have increased, although demand from lenders for a minimum of 15% deposit remains high. Buy to let products on the other hand, continue to decline with not much sign of slowing or bottoming out and more and more lenders making financing Buy To Let property investment difficult. Property Auction business is booming – although no one really seems to be getting a bargain as competition is so fierce, prices paid are quite often higher than the current market value. Massive opportunity to buy deeply discounted investment property. 005

The Problem

The Lending Problem

•

•

For most investors, the problem right now is that they cannot borrow or leverage against their deposits as mainstream and high street lenders are unwilling or unable to lend to a sufficient loan to value to make Buy To Let investment accessible.

•

In the current market Buy To Let mortgages for new build houses are available to 75% Loan To Value and for the majority of lenders, 65% on new build flats and apartments. This means investors needing to put in 25% -35% using their own cash. They may have this money tied up in equity in their property portfolio but due to restrictive loan to value and lending criteria, most are unable to release it.

•

Banks and building societies appear to have no appetite whatsoever to be the first to reinvigorate the Buy To Let market for investors.

Everyone knows that the property market has taken a huge hit over the last two years and that prices have come down by nearly 30 per cent across the UK. For many this would make investing in property right now seem risky. But the wealthy, the smart and the credit worthy are taking another view. Maybe property is at a low ebb. But maybe this is the time to invest.

•

The main reason for this is that property in the UK typically follows an 18 year cycle of rise and fall. So after a fall (such as the one we have just experienced) it is pretty safe to assume there will again be a rise and therefore a profit can be made.

•

Unfortunately, it is never as simple as just finding a property in which to invest. As much of the credit crunch can and has been blamed on sub-prime lending and on over-lending on investment property, the banks are being understandably cautious about falling into the same trap again. It is therefore now harder than it has been in recent years for individuals to purchase properties - unless of course they have large cash deposits and have the credentials that will enable them to take on responsibility for new Buy To Let mortgages.

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The Opportunity





Why UK Residential Property?

“Much wealth that once was, has been lost. Now is the perfect time to Hunt & Gather.” •

The biggest transfer of wealth happens during a recession so, if you are ever going to invest in property, right now is, in our opinion, the time to be doing it. Many people will remember when property investment via Buy To Let began and provided ordinary people with the ability to invest in property and amass a fortune. That wave crashed devastatingly last year and we are still feeling the effects. For some this is disaster, but for the smart investor, it is opportunity.

•

Research and historical records show that the UK housing market follows a similar pattern of growth after each property price crash or economic recession, making it easier to predict growth rates on an ongoing basis. Leading property professionals Savills are predicting property market growth of approximately 10% across the UK within the next three years, followed by a spike taking the total growth from today’s prices to over 30% in just five years (from Savills Residential Property Focus Research May 2009).

•

Finance is more difficult to get from mainstream lenders and property bargains are screaming to be snapped up. We hunt down heavily discounted property deals for our members and offer them for sale to those with cash in the bank, liquid assets in other classes or a credit record which allows them access to finance. We hunt for investments which offer Day 1 equity profit and our members gather wealth in their growing property portfolios.

•

Traditional Investments are currently less attractive with higher risk levels as a result of the credit crunch.

•

The rise in repossessions and the drop in property sales over the last 18 months means more attractive opportunities for buying high quality stock at preferential deeply discounted prices.

•

Overall demand for UK housing is still and will continue to be strong as the supply of new build homes has declined whilst the population continues to increase.

•

Overseas and Commercial property can be very volatile and at a time when security is as important as returns, the UK residential market offers more predictability based on historic trends.

•

Some parties say prices are still falling and some say last month saw a fractional rise but what is safe to say is we are at the bottom. This means that there are agents in the market who will source and sell for well below the current market value. If you find the deals you can buy 25% below the current RICS valuations without any research. However the leg work costs in time, every time.

We know many ‘investors’ are waiting until the market has turned until they start buying again. If that is what you want to do, that is fine but don’t expect to find such big discounts when the market starts to rise. When the market does start to rise, there will inevitably be more investor competition fighting for those deals, as all the amateurs jump back in and start to buy as well. So now really is the time to buy at the& right price. Hunt Gather i n v e s t m e n t

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The Solution The 4 investing Golden Rules If you are buying now (or want to) there are 4 Golden Rules which we suggest are always absolutely followed to minimise the risks of investing in the current market. These are:

1) Always buy below market value (current RICS valuation). 2) Buy in an area with strong rental demand. 3) Only buy property that will give you a positive cash flow. 4) Buy for the long term (5 to 10 years).

The investors getting into trouble are those who have to sell their investments now. We know this, because we are offered their properties at least twice a week. We can’t and don’t take on every one but we research and re package the best ones. It is not a good time to sell, however if you follow the 4 Golden Rules you should not need to sell. It does not matter if the value comes down as long as you believe the value will go up in the long term. In the meantime, your property will make positive cash flow for you. By the way, if you don’t believe that property prices will go up in the future, you probably should not be buying property, as it is for the long term growth that we invest, even though at the moment it is good practice to buy property AS IF you do not expect prices to ever go up again. So the big questions are: • • • •

Are you making the most of this fantastic buying opportunity? Do you know how to finance deals right now? Do you know how to buy no money or little money down? Are you sourcing enough / any investment deals?

If you have answered “no” to any of these questions then you could be missing out on one of the best buying opportunities in the last 20 years. If you are standing on the side lines watching other investors snapping up deals because you are unsure of what to do contact us and we will send you an invitation. Now is the time to Hunt & Gather.

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How it works - 10 Key Points





The Exclusive Offer “An enduring desire to hunt for profitable investments in order to gather wealth”

We will : • • • • • • • • • •

Undertake a ‘decision in principle’ within 48 hours to ensure that ‘Hunt & Gather’ will be suitable for you. Support you in creating a portfolio of properties using our highly experienced team who are scouring the country looking for ideal investments from distressed developers, banks and liquidators. Offer a mixture of new build and second hand properties geographically spread around the country Obtain an independent RICS valuation on every property Negotiate on the properties and secure them for you at a deep discount from their current market value. Use independent solicitors and brokers to secure you the right buy–to–let mortgages or commercial funding with little or no money down. Ensure that each property is cash–flow positive after paying the mortgage Help you find tenants for the property if you wish... 78% of our current properties sourced come with tenants. Do everything for you from hunting down the best deals to successful completion. An end to end seamless solution for fully packaged property investment. Put you in touch with a tax advisor should you wish to ensure you run your portfolio as tax efficiently as possible and allow you to off-set costs such as petrol and other related expenses.

Investing in property with Hunt & Gather is a simple, straight forward way to build your UK property portfolio and future&wealth. Hunt Gather

Hunt & Gather is totally exclusive and by invitation only. Members will be investors who want to build or expand a portfolio of property and retire wealthy. This is not ‘Get Rich Quick’ it is ‘Get Rich Slow’ but the point is that Hunt & Gather investors will get rich. Hunt & Gather members will receive remarkable client service, exclusive deals and a way to invest in UK residential property using the unique commercial funding available to our members (Subject to status. Terms & Conditions apply). There are no monthly charges and you invest when you choose to. You are under no obligation to buy any of the properties we offer. Hunt & Gather offer a complete property investment solution. You can select from any of the properties we have available, you pay a reservation fee, we arrange financing, valuation and solicitors.

Members will: • • • •

Build their portfolio with as little of their own money or capital as possible. Benefit from buying below market value as it means instant Day 1 equity is created. When one buys at below market value, the benefit is instant. Typically on a property valued at £200,000 members would have £30,000 in Day 1 equity if we had negotiated a 15% discount .

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Portfolio Example •

Five properties worth £1,000,000 (assume £200,000 per property).

Equity growth over a three year period:

•

So let us assume that over a period of time, say 30 months, we secure you five properties with a market value of £1,000,000. With a conservative discount of 15%, this means you would have made £150,000 in Day 1 equity.

Predicted Growth Rates

Year 1

Year 2

Year 3

Gross Profit

Government predicted 5.50%

1,055,000

1,113,025

1,174,241

324,241

•

Then over time if we apply a realistic figure of 8.5%* growth which is the average between the government predicted figure of 5.5%* and the actual figure of the last 30 years which is 11.74%* you can see that after 3 years of growth you would have over £372,289 of equity in your portfolio net after taking off fees.

Actual (last 30 years) 11.74%

1,117,400

1,248,582

1,395,166

545,166

Average 8.50%

1,085,000

1,177,225

1,277,289

427,289

•

Hunt & Gather is an innovative way of building long term wealth and financial freedom. We source and secure for you on average five distressed properties at 15 percent below their market value which creates for you instant equity of around £150,000. Because we have a hands on service we can help you tenant them and ensure that they are cash flow positive after paying the mortgage.

and over an eight year period:

•

The aim is to build you equity from a small initial investment. We do all the hard work from finding the properties by scouring the country and negotiating hard with developers, banks and liquidators on your behalf, securing the mortgages and finding tenants, where possible with little or no money down.

Predicted Growth Rates

Year 4

Year 5



Government predicted 5.50% Actual (last 30 years) 11.74%

1,238,824

1,306,959

1,558,958

Average 8.50%

1,385,858

Year 6



Year 8



1,378,842

1,454,678

1,534,685

1,741,980

1,946,488

2,175,006

2,430,352

1,503,656

1,631,467

1,770,141

1,920,603

Gross Profit

Year 7

684,685

1,580,352 1,070,603

The two charts opposite show how your equity could grow based on three growth rate projections:

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DIY vs Hunt & Gather





The Next Step

The DIY Way • • • • • • • •

You spend your weekends and evenings looking for properties. Find a good investment and make an offer and fight it out with other buyers. Put down 25% to 35% deposit on property (eg £50,000 on £200,000 property). Three months to contract exchange. Find a tenant for new property. Wait a few years to get money or equity for another property investment. If 8.5% growth P/A, then £105,457 equity on 1 property after 3 years. £105,457 - £50,000 deposit = £55,457 equity profit.

Contact us today and let Hunt & Gather build your equity. Email us via:

[email protected]

Or visit our website to apply for an Invitation:

www.handginvestment.co.uk

The Hunt & Gather way • • • • • • •

We source properties for you. We offer properties that stack up financially. We handle the solicitors, vendors, brokers & finances. Swift completion so you can move on to next property. Properties already tenanted or we help find tenants. Typically complete on 5 properties in 18-36 months. If 8.5% growth P/A, then £427,289 portfolio equity profit on 5 properties after 3 years.

All information is illustrative and the figures suggested are given purely as guidance is not intended to be relied upon by readers. All subject to market conditions. *5.5% is the predicted Gov. average growth. 11.74% is the actual figures for the last 30 years. 8.5% is an average between the 2 figures. (The Office Of The Deputy Prime Minister) or www.cebr.com (The Centre For Economics And Business Research) provide these figures and more. All figures shown are gross. Growth rate is calculated by multiplying %i prediction n v ebysthet Gross m eMarket n tValue.

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Hunt & Gather i n v e s t m e n t

Hunting for Profit & Gathering Wealth

Hunt & Gather Investment Ltd. 5 St Helens Place Bishopsgate London EC3A 6AU

Telephone +44 (0) 207 959 6880 Email [email protected]