Sample 1 - Blog #GIC CapitalSample 1 - Blog #GIC Capitalhttps://lololol.zohosites.com/thoughts/tag/GIC-CapitalTue, 13 Aug 2024 08:19:15 -0700http://zoho.com/sites/<![CDATA[What Are The Foundations Of A Sustainable Successful & Scalable Business? ]]>https://lololol.zohosites.com/thoughts/post/What-Are-The-Foundations-Of-A-Sustainable-Successful-Scalable-Business
Michael Geber in his  Emyth (Entrepreneurial Myth) discusses why so many businesses fail to achieve their true potential, even if they survive the staggering failure rate statistical odds and ultimately what you as a small business can do about it. All this unnecessary failure and consequential suffering it brings stem from lack of awareness of a few fundamentals namely... 
  1. Business is a System
  2. You can't manage People, you can only manage Processes 
  3. Businesses are just vehicles to serve everyone, owners, employees, suppliers, customers, community get what they want from it 
    • For owners, businesses should give more life, lifestyle, choice and abundance but unfortunately for many small businesses the opposite is true 
  4. Most businesses are started for all the wrong reasons and for this, they are already doomed before they are even born.. 

We aim to deliver much needed capital for SME’s and Property Developers.

At the heart of these business systems is a continuous improvement process of.. 
  • Innovation 
  • Orchestration & 
  • Quantification 

If you can't quantify or measure any aspect of your business, how else can you monitor and let alone improve that particular aspect of business or process. It is said, "What gets measured, Gets attention." 


The right "Entrepreneurial Perspective" and the "True Purpose of Any Business." 

Business System's Components 

  1. Marketing: Lead Generation System 
  2. Sales: Lead Conversion System 
  3. Customer Services : Client Fulfilment System 
  4. Finance System 
  5. Operations System 
  6. People Systems 

Lead Generation System - Marketing

Plan and intentional system to create massive targeted performance based reach and awareness, steps #1 & #2.

Lead Conversion System - Sales

Your system to convert the captured qualified leads, steps 3 & 4, generated by reach and awareness activities, steps #1 & #2. This is the selling part of your business systems.

Client Fulfillment System - Customer Services 

Your clients having being sold on your products and services in step 4, step 5 is delivering on the client fulfilment and on-going engagement throughout the customer life cycle and lifetime.

Finance System

Your financial system is all about income & expenditure ensuring business has positive cashflow and reserves to cover operating expenses as well as the unexpected.

Operations System

Technology plays an instrumental and vital part in your business systems, allowing efficient and accurate data capture, processing, reporting providing a 360 degree view of your customers and business whilst also complying to regulation such as data protection etc. 

"Extraordinary business are not built from ordinary people leveraged by extraordinary business systems..." #MichaelEGerber, Emyth author 

People System

Your greatest and most valuable business asset is your people. After all TEAM Work makes the dream not only work but the journey shared and more enjoyable. 

Some of the reasons TEAM's are dysfunctional and not delivery as expected and could be possible are explored in our short video summary, "The Five Dysfunctions of Teams" .

Leaders are only as good as the teams they build!.

By CEO, GIC Capital 


]]>Thu, 28 May 2020 06:33:58 -0800<![CDATA[Property Factors to Consider - Apartment Blocks - Private Rental Sector ...]]>https://lololol.zohosites.com/thoughts/post/Property-Factors-to-Consider-Apartment-Blocks-Private-Rental-Sector-...

Unfortunately, like with any new venture, its not uncommon to see new and sometimes "seasoned" investors getting hung up on the wrong aspects or less viability-breaking elements of an investment property. This is one of the main reasons why lenders funding real estate or property investments emphasize on the mandatory requirement experience in the majority of cases, especially for larger transactions. 


So, what should a potential investor be focusing on? Below are some of the main factors to consider when analysing a property for investment: 

  • Net Operating Income (NOI) 
  • Taxes & Entity Structure (Current and Future) 
  • Physical Condition 
  • Location including 

    • Crime 
    • Employment 
    • Amenities 
    • Transport Links 
    • Future developments and growth trends

We aim to deliver much needed capital for SME’s and Property Developers.

These are just some of the factors to determine whether or not the apartment block investment works not only for you but ultimately makes sound financial sense and you able to get funding and maybe even Joint Venture investors.   

1. Net Operating Income (NOI) Analysis 

Any property investment (apartment building) or business is a good or bad investment based on how much money it makes versus how much you paid, including the cash you used as well as on-going operating costs. 
Since no two owners’ NOIs will ever completely match due to circumstances surrounding tax, funding terms, entity structure, management and management costs etc, you must always look at all the revenue and expenses for the way you plan to run the building to arrive at your own NOI moving forward.
Looking at existing operating expenses and revenue is a good starting point to help you justify for offering price, but not necessarily going to be your financial position ongoing, and one would hope that you would be able to improve/ enhance your NOI through value-add to make this an even more worthwhile investment. 

Examples of value add changes 
  • Setting rents and or review to not only maintain your occupancy threshold but perhaps improve? 
    • 100% occupancy may come at the expense of forfeiting some rent, while 
    • Lower occupancy, say 90%, would maximize rent revenue. 

The perfect scenario being 100% occupancy and maximum if not premium rents 

  • Any planned property improvements to the building should increase tenant appeal and improve asking rents compared to market. 
  • Offering anything from pet rent to move-in fees and paid parking allocation could improve your revenues therefore NOI. 
  • Property management? Will you manage the building yourself or hire professional third-party management company? 
  • Property Maintenance? Will you do minor repairs inhouse or via professional maintenance contractor to fix things? 
All these items affect either the revenue or expense, meaning the NOI. Only after determining the NOI based on how you will run the building can you evaluate that number as a return on your investment (otherwise known as a cap rate) to determine what you should pay for the building.  
Potential Gross Income (PGI) aka Gross Scheduled Income (GSI) 

This is about how much anticipated income your property will generate if all units within it are rented and if there are no rent defaults. This can be a very useful measure to compare against your actual income. 

Potential Gross Income = Rental Income + Lost Rental Income from Vacant Units
Gross Operating Income aka Income from Operations 


This figure reflects the gross operating income in addition to all other sources of income from your rental property. This can include revenue from parking spaces, public vending machines, pet rent etc. 


Gross Operating Income = (PGI – Lost Rental Income from Vacant Units) + Other Income 
Net Operating Income 


You first need to figure out your gross operating income. Once you have that figure, you subtract your operating expenses (insurance and maintenance costs etc). You should note, however, that things like investment property depreciation and interest payments do not factor into operating costs.  


Net Operating Income = Gross Operating Income – Total Operating Expenses
Capitalization Rate 


Also known as Cap Rate, is one of the most important real estate formulas. The cap rate formula compares an investment property’s net operating income with its market value, allowing investors to quickly compare properties to see which one is most worth it. 


Cap Rate = Net Operating Income / Market Value of Property 

2. Taxes as well as entity structure, current and future 

Whether you are a new or seasoned investor, always consult with a property tax professional, usually a qualified and chartered accountant. This is no time for DIY, money saving tactics because a significant movement in property taxes can quickly erode all the upside forecast for your investment and make it not only none profitable and maybe even loss making. 
Factors such as the right purchasing entity structure as well as any joint venture agreements etc are all matters for professional qualified guidance and not your mate down the pub. 

3. Physical Building / Property Condition 

Focus here should be at examining the major fixtures and fittings of the building such as  Roof, Heating and Cooling systems, Electrical and plumbing, Windows, Exterior, etc. 
A thorough examination by local contractors who specialize in each building aspect to look at and give you their professional opinions on current state, maintenance repairs required and or replacements, will help you determine if a system is sufficient or needs short- or long-term attention as well as likely costs and timing. 
Awareness of current state of the building and future possible repairs both major and minor will enable adequate expenses provision in your maintenance and repairs budgeting. 
  • For short-term needs (meaning anything within five years), you will need to budget for them as one-time expenses, as well as for other major items you cannot anticipate. These are capital costs, not operating costs, so the full amount should not be included as an annually occurring expense in the NOI. 
  • Instead, a line item in operating expenses should be reserves, which is an estimate of all the major short-term needs of the building spread over time and budgeted on an annual basis. The easily anticipated costs are system replacements — boiler, roof, windows, electrical, plumbing, etc. You should estimate when you think systems will need to be replaced and their cost, and analyse their lifespan once installed. You can then estimate how much money you need to set aside for these items. 
  • Harder-to-anticipate issues are when a tenant wrecks the apartment and moves out in the middle of the night with all the appliances, and you have to renovate and replace everything. 

4. Location, Amenities, Transport Links, Trends 

One of the primary drivers of value in any real estate is its Location & Convenience , Transport Links, Amenities, Employment, Education, Etc. 
It can also be just a matter of supply and demand. Limited supply and high demand coupled with local authority building restrictions or availability of building space are a sure positive factor for a location, the all the other above points also being positive. 
All factors you should consider as to why market rents are as they are and why anyone would be willing to pay anticipated rent for the location. If you cannot come up with three compelling reasons putting yourself in potential renters shoes, you should probably pass on the location. 

In conclusion, do your homework and seek professional guidance and look at market data sources for factual information and to make a well informed investment decision. For your commercial or investment property finance the team at GIC Capital are available to give you professional guidance with any and all your funding requirements. 

By CEO, GIC Capital 
]]>Fri, 22 May 2020 02:52:17 -0800<![CDATA[#1 Fantastic & On-going Way You MUST Fund & Grow Your Business Without Splitting Profits or Equity... ]]>https://lololol.zohosites.com/thoughts/post/1-Fantastic-On-going-Way-You-MUST-Fund-Grow-Your-Business-Without-Splitting-Profits-or-Equity...
Most entrepreneurs - when thinking about business funding -  the first thought is that of looking for an investor, a business partner with deep pockets, a crowdfunding campaign or a business loan. This often results in un-aligned partnerships with profit splits as well as control over your business - with someone who doesn't know or care about your industry or business as much as you do. Whilst this may solve an apparent immediate cash pressing problem, long term, this mis-alignment ultimately causes problems. Whilst cash is important, it is better to value more the entrepreneurial expertise that can be brought in by potential investors or partners which,  if put into action, will grow the business geometrically and sustainably. 
  • Innovation 
  • Orchestration and 
  • Quantification 


That one fantastic way you must fund and grow your business is through your Marketing System... 

We aim to deliver much needed capital for SME’s and Property Developers.

Guerrilla Marketing

Guerrilla Marketing is a marketing strategy that focuses on using unconventional means, methods or tactics, to achieve conventional outcomes that yield maximum and quantifiable results. 


The focus here is low-cost or no-cost as the primary ingredients are..

It isn't "the lack of resources in most businesses that is to blame but rather, lack of resourcefulness" that's the key and ongoing problem. Fully leveraging the skills and assets already in possession to generate capital, and in the process strengthen the business as well as entrepreneurial skill set of the business owner, is ultimately the true source of sustainable business geometric profitable growth. 

Change your attitude as well as focus and everything in your business changes. Emphasize Results NOT Work, not mistaking activity for productivity. 

Below are a few examples, briefly elaborated, on the key ingredients of guerrilla marketing:

1. Time, Energy, Imagination = Know How = Team 

Business is a Team Sport and will need your guerrilla marketing TEAM, starting with the one or two employees already in the business as well as your existing network of contacts.

Regularly brainstorm publicity stunts, value-add content to share with your target potential customer base, join and contribute to online social media groups and hold online webinars are a few examples 

2. It Costs More to Acquire New Clients than Leveraging your existing client base. 

Its much easier to upsell an existing client than finding and acquiring a new client. Build on existing relationships with a focus on delivering more value than client investment. 

3. Embrace Technology  

For your lead generation, lead conversion, client fulfilment, finance and business operations, technology is central to your business systems and one area you must fully capitalise. 


Social media, social proof, regular blogs & vlogs are  all ways to generate awareness for your business ad business offering in a measurable results based way .

By CEO, GIC Capital  

]]>Tue, 19 May 2020 06:32:07 -0800<![CDATA[Traditional Lenders vs Alternative Specialist Challenger Capital Providers... ]]>https://lololol.zohosites.com/thoughts/post/Traditional-Lenders-vs-Alternative-Specialist-Challenger-Capital-Providers...
Whether you are an established trading business (manufacturer, hospitality business, etc), property investor or house builder, why would you, or why are businesses turning to non-bank lenders for financing - and in many cases paying a premium on the cost of borrowing - even with high-quality assets and or have a solid established profitable businesses? 


There are many reasons why creditworthy borrowers with strong track records and desirable assets turn to non-bank lenders, for which we explore a few reasons below. This also applies to other not so creditworthy companies or investors across entire business sector spectrum. 

Within the Real Estate sector, although not exclusive to real estate, these broad trends driving borrowers toward non-bank lenders, creating high-yield credits that are senior in the capital structure and backed by strong assets and stable cash flows in the UK and around the world are:

We aim to deliver much needed capital for SME’s and Property Developers.

1. Regulation and Regulatory Constraints 

Rigorous and stringent underwriting criteria with banks demanding specific loan-to-value ratios, occupancy rates and average lease lengths etc are some real estate specific examples even when circumstances mean there are significant compensating de-risk factors.

2.  Timing & Simplicity 

Red tape and strict criteria that often doesn’t reflect the nature of SME business models means that the UK’s smallest businesses are often turned away empty handed when they approach mainstream lenders such as banks. 


Fewer questions, less paperwork and instant approval or decline decision with in some cases adverse credit not even negative factor nor none home owner status as is often the case with high street main banks is one big positive factor for alternative lending capital providers. An example of this being "Merchant Cash Advance" or " Bridging Loans".   

3. Business and or Investors' Need For Flexibility 

In the case of Merchant Cash Advance as an example 

This is cash flow finance or funding solution perfectly suited to businesses that have a high volume of customer card payment transactions, such as those firms operating in the retail and hospitality sector. 


Rather than having restrictive monthly payment obligations, you’ll pay a percentage of what you earn - improving cash flow - and loan can be paid off faster, or with time, and in either case not putting pressure on limited cash-flow.   


With Bridging Loans and or Development Finance, these often have options such as, 
    • Differed interest, allowing for lower monthly payments therefore more monthly cash flow 
    • Rolled up interest therefore no monthly payments during loan term 
    • Interest only options 
    • Conversion to longer term finance if for example unable to sell a property on the market etc

All having being said, it’s best to do your homework to find lenders to best suite your business or property funding requirements and will underwrite and structure a loan tailored to your specific needs. Look for those that can offer flexibility and move quickly as often market opportunities require investors and businesses that can conclude transactions within limited timeframes. 


At GIC Capital we understand that there’s no one size fits all policy when it comes to your business or your property finance requirements and circumstances. Your business model, sector, ambitions, and numerous other factors all play a role in deciding which finance option is the right one for you and is the reason why we are here to guide and facilitate your growth capital requirements so you can focus on your business and business growth... 


We are here to assist and facilitate growth capital for all UK Business sectors and some of those listed below 
  • Commercial Real Estate / Property Sector 
  • Product Wholesale 
  • Manufacturing 
  • Engineering / Fabrication 
  • Transport / Haulage 
  • Recruitment 
  • Marketing / Advertising 
  • Printing 
  • Security / Man Guarding 
  • Reactive Maintenance 
  • Cleaning 
  • Telecommunications 
  • Food/drink 
  • Breweries 
  • Computers / Technology 
  • Recycling / Waste management 
  • Clothing / Fashion 
  • Events management 

By CEO, GIC Capital 

]]>Sat, 16 May 2020 07:11:59 -0800<![CDATA[Independent Contractor Insurance. Who Needs it? ]]>https://lololol.zohosites.com/thoughts/post/Independent-Contractor-Insurance.-Who-Needs-it
Are you new to the world of contracting? Perhaps you’re considering becoming an independent contractor? Or you’re already in the business and might be wondering what sort of insurance you need. 

Unexpected scenario or unforeseen events seem to be part and parcel of life and you need to be covered, from on-the-job injuries to unhappy clients. 

Contractor insurance from as little as 35p a day can give you the cover you need at an affordable price. A small monthly payment that could literally save your business. 

What Do You Get With Contractor Insurance? 

Tailored insurance cover depending on your business and personal circumstances. 

Here are some of the main features and benefits of most regular cover for contractors: 

We aim to deliver much needed capital for SME’s and Property Developers.

  • Public Liability Insurance : Accidents can happen, and everyone makes mistakes. Public liability insurance will cover you if you ever damage someone’s property while on the job. 
  • Professional Indemnity Insurance : No matter what you do, sometimes a client might simply feel dissatisfied with your work. Professional indemnity insurance is your first line of defence against difficult clients and unexpected legal costs. 
  • Business Interruption Insurance: Business interruption insurance will cover you for any lost income, so an unexpected incident can become a minor inconvenience rather than an outright disaster. From a problem with your suppliers to damaged equipment, the smallest thing can make it impossible for you to do your job. 
  • Personal Accident Insurance : Most contractor work is inherently dangerous and even more so for certain sectors. No matter what safety precautions you take, accidents can still happen and do happen daily. So, if you’re put out of action for an extended period of time, personal accident insurance will mean you won’t have to worry about any loss to your income. 
  • Legal Expenses Insurance :  No matter what happens, you can rest assured that everything will be taken care of. Who knows what sort of legal expenses you might incur through your contractor work? From damage to property, to contract disputes, from loss of earnings to debt recovery, all kinds of legal expenses can be covered.   

Which Contractors need Contractor Insurance? 

It’s no exaggeration to say that all contractors need contractor insurance as they all face risk, however, there are some specific circumstances in which contractor insurance could save the day: 

  • Are you a painter, a decorator, or involved in any sort of building work? You’ll spend a lot of time on other peoples’ private property. We all make mistakes, and if you should accidentally damage your client’s property, contractor insurance can help pay for repairs, replacements, and settlements. 
  • Are you involved in construction? for example, you’ll spend a lot of time up ladders, carrying heavy objects, and using dangerous power tools. Most contractor work is inherently risky. . Hopefully you’ll never have to use it, but if you’re ever injured on the job, you won’t have to worry about lost income. Contractor insurance will cover you for personal injury and you can focus entirely on your recovery. 
  • Do you work in IT, or offer any sort of computer support? If so, you’re probably aware of the risks of cyber-crime. Contractor insurance can cover you for many of the effects of cyber-crime, from data loss to legal expenses. 
Peace of Mind at an Affordable Price? 


You can be covered from as little as 35p a day, with no hidden fees. Get an online quote tailored to your specific needs in a matter of minutes. 


]]>Thu, 14 May 2020 06:42:10 -0800<![CDATA[How Can You Maximize Your Investment Property Returns? ]]>https://lololol.zohosites.com/thoughts/post/How-Can-You-Maximize-Your-Investment-Property-Returns
Whether you are new to Buy-to-Let Private Rental Sector or a seasoned professional landlord, Fund manager or Private Equity Asset Manager maximizing returns on your investment property or portfolio will be one of your main ongoing objectives or responsibilities.   


Below are some thoughts on what you may want to do improve your investment and capital returns.

1. Understanding Market Rent & Pricing Your Rent(s) Appropriately

This is not about being the most expensive or the least expensive (cheapest) but rather pricing to maximise value for money for your target market potential tenants, reduce your vacancy rates and ensure long term profitable paying tenants. 


Rent should cover all ongoing costs, take into account inflation and with a margin to absorb any unexpected events whilst still breaking-even and still making you a profit. Its a balancing act where you want the scale to be always on the generating positive cash flow with full occupancy all the time if not most of the time. 


When it comes to determining fair market value for rent, market data is available for free from online portals such as Rightmove, Zoopla, NetHousePrices, HousePrice.AI as well as from local property letting and management agents who would also want to win your ongoing letting management business.   

    We aim to deliver much needed capital for SME’s and Property Developers.

    2. Professional Property Marketing Images, Brochure

    First impressions count the most and getting market rate for your investment property requires finding prospective tenants who aren’t looking for the cheapest property, but rather, exception value for money property that they’ll love to live in and be proud of. 


    Whilst its always tempting to take the pictures yourself and save a few pounds in the process, its more important that these pictures taken by professionals and make your target tenants want to arrange a viewing. Cutting costs on your ultimate sales brochure is not an option if you are serious about maximizing your investment returns.


    Sell & rent safely with for example Spec whom are ready to help with 360º virtual tours, delivered to over 500 agents in London alone. Spec Digital Surveyors are certified by RICS and scan every property using the Leica BLK 360, a revolutionary 3D camera. 

    3. On-going and Preventative Property Maintenance 

    This is much easier said than done as many investors approach is "why fix it, if it isn't broken" which is ultimate the wrong approach and can be costing more than most realise. Along with this common approach to only fix things when they’re in need of repair, is to try and DIY the repairs and maintenance.
    Reactive maintenance is, almost by definition, more costly and far less convenient.


    Better is to have a professional maintenance company that can handle any and every likely property maintenance job that will inevitable occur as its not a matter of "If" but rather "When" required.  Disney is one well know company that does on-going preventative maintenance on a daily basis. 

    4. Mitigating RISK via Insurance 

    Insurance is a usually an afterthought for most people and businesses alike, even though we all know that life is full of unexpected events we should have contingency plans for. 
    Whilst you don't need to be over-insured, adequate insurance is paramount and its adequacy should be reviewed on a regular basis - yearly ideally. 

    Its always a good idea to take the time to get a few quotes to compare with each other but I wouldn't spend too much time on this and also remember you want a reputable insurer that will pay out should the unexpected occur. Insurers claims payment track record is more important than cost in this aspect. The cheapest insurance that wont pay out is just as expensive. ts always a good idea to take the time to get a few quotes to compare with each other but I wouldn't spend too much time on this and also remember you want a reputable insurer that will pay out should the unexpected occur. Insurers claims payment track record is more important than cost in this aspect. The cheapest insurance that wont pay out is just as expensive. 


    Insurance providers will usually give you better rates if they’re insuring more of your assets as a loyalty benefit and also helps with simplifying your administration etc. 

      5. Debt or Mortgage Finance Review 

      Professional advice in the aspect - whilst it is not free - will benefit you timewise and money wise, by taking a review of the mortgage rate you’re currently paying on your investment property, comparing it with today’s mortgage rates and giving you an objective refinance cost vs benefit analysis. Yes, refinancing involves more administrative paperwork and can be a pain, but a lower rate could save you thousands of pounds every year translating into more bottom line profits. 

      Don't forget, when you refinance your mortgage, there’s often an opportunity to pull some cash out for further property investments or portfolio maintenance as well as refurbishments. 

      6.  The Right Ownership Vehicle, Tax & Tax Planning 

      Perhaps the very first consideration at the point of considering acquiring investment property and maybe even review in conjunction with mortgage debt review? 

      The right entity structure, Individual ownership (Sole Trader), Limited Liability Partnership (LLP) or Limited Company (Ltd) will depend on your circumstances and is a decision that should be taken with appropriate professional guidance from a qualified and chartered accountant.

      A qualified accountants guidance will go a long way in looking at and planning for your Wealth Creation as well as Wealth Preservation. 
      Whilst the above suggests a little more administrative time investment that is a limited resource for all of us, its a MUST and Worthwhile endeavour even if you follow through on just one or two aspects, you will have more money in your pocket at the end of the day. Its ultimately not just about earning money but also keeping it... 



      ]]>      Sat, 09 May 2020 06:37:13 -0800      <![CDATA[No Nonsense Property Offers to Purchase. Do not act like you are buying fruits at your Sunday farmers market... ]]>https://lololol.zohosites.com/thoughts/post/No-Nonsense-Property-Offers-to-Purchase.-Do-not-act-like-you-are-buying-fruits-at-your-Sunday-farmers-market...
      Contrary to much given advice on the subject matter of offering to purchase any real estate, residential or commercial  property, we don't believe in the popularly advised so called negotiation tactics, "knowing how to talk down a price is an integral part of the profession." A lot of time is wasted with these so called tactics and ultimately focus on other profitable use of professional investors limited time is mis-directed. 


      Many situations arise where homeowners or agents overvalue a property to such an extent that it is more than likely the norm than the exception unfortunately and whilst its surprising how many seem to believe it can be hard to have a conversation about how much the property is actually worth, there is a very simple solution to this minor obstacle. 


      Whether the property is overpriced due to inexperience, a lack of understanding of the market, or simply someone hoping for the best, your role as a value focused real estate investment professional is NOT to help guide negotiations to something reasonable for the people involved but rather simply WIN, WIN, WIN! Anything other than WIN, WIN, WIN will more than likely resulted in wasted hours, days, weeks or even months. Take a hint from Warren Buffet's Value Investing Simple & Effective strategy.    

      We aim to deliver much needed capital for SME’s and Property Developers.

      1. Use Objective Market Data 

      The best way to frame a negotiation is the buyer and seller working together to establish a fair market value based on third-party, objective market data and current economic as well as political climate. 


      Being indignant or haggling over price only serves to put the seller in defensive mode. If comparable sold property date is carefully chosen and sound fact based arguments are made for their inclusion, it doesn't need to get emotional or haggling contest. 

      2. Invest for the long term 

      As an investor, you should be making money at the point of purchase NOT some unknown future date. Your initial offer MUST always be 20-30% less than seller/vendors target asking price and must be backed-up with appropriate market data. Whilst many sellers will bury their heads/ frown at your "serious offer" and prefer to wait for the next possible buyer who will over-pay, you must every 30 days or so, check in and remind the vendor or agent of your still standing serious offer and ready to complete transaction within 8 weeks. Such an approach will definitely work best for you, as it allows you to win when at the point you acquire the property with the future even brighter. 

      3. We all know that Cash Is King. Attach a deposit cheque to your offer.

      Showing up or submitting your offer together with a contract stating instruction of solicitors & property survey with the aim to complete within 8 weeks and a deposit cheque sends the message...
       

      a. I am a serious professional 

      b. I am backing my words/intentions with crystal clear actions and ultimately cash 

      c. No time to waste. I respect your time and more importantly mine. Lets transact or lets move on and its really that simple 


      Its a fact not just psychology, putting a contract and hard cash on the table will set you apart from the "competition" and show the seller how serious you are about buying the property. The check must always be made out to title or escrow so you don't have to worry about a random seller running off with your money. Take professional legal advice & assistance on the best way to do this for your circumstances & jurisdiction. 

      4. Transparency Builds Trust, Long Term Relationships & WINS always.

      It's always difficult for a vendor/ seller to disagree with market factual data. Stating the factors behind arriving at a certain valuation will build a collaborative relationship between buyer, agent and or seller. Ultimately contract subject to purchase price not being lower than official survey value and abortive costs undertaking should very easily resolve this minor challenge for a WIN, WIN, WIN outcome. 

      5. Above all Know & Understand Your Seller as well as Motivating Factors 

      The most important and initial task to do is to understand the other party's priorities & motivations including any time factor constraints. You want to know what ultimately is most important offer acceptance factor(s). It is not always the highest price as is generally thought as most buyers don't do in-depth research in this aspect. You wouldn't play a game without knowing the rules, would you? 

      ]]>      Thu, 07 May 2020 21:05:00 -0800      <![CDATA[A Dozen Things to Consider If Seeking Joint Venture Capital for Residential Development ]]>https://lololol.zohosites.com/thoughts/post/A-Dozen-Things-to-Consider-If-Seeking-Joint-Venture-Capital-for-Residential-Development
      They say a Team is only as strong as its weakest link and as you can imagine, investments in real estate can range from the relatively inexpensive to the extravagant, depending on location and the specific asset whether Residential, Commercial or Mixed Use as well as ground up or conversion and not forgetting whether any existing income or not. 


      Either way, even when looking at a modest or starting investment, there is always the risk of unexpected issues and chances are more than likely this will be the case. Planning, Execution & Contingency are crucial - better to spend more time planning than rushing into a project. 
      Part of those crucial steps in the investment process is raising capital both senior debt, mezzanine and for the purpose of this article, Joint Venture Equity which will be our focus. Potential capital providers range from private individuals, private equity firms, asset managers, family offices, pension & investment funds and even housing association to name a few.                                

      Whilst all these named stakeholders are looking for solid returns, there are a number of things they will be considering before stepping down this path, including who makes certain decisions, whether the site is ready to build on, or what kinds of potential downsides there could be ranging from experience, market - economic, political, social etc. 

      Below we explore some of the crucial factors that real estate developers should keep in mind when raising funds for an investment and why those considerations are so vital to their long-term success. 

      We aim to deliver much needed capital for SME’s and Property Developers.

      1. Transparency & Expectations... 

      Transparency as well as setting clear expectations for all parties is crucial at the start and ultimately builds trust for should be a long term WIN, WIN, WIN business partnership. Typically the developer is the general partner with the equity capital provider being the limited partner and may or may not have any say in the finishes chosen for a rehab / development scheme. Can they stop by the property and give direction? Generally, they provide funds for an agreed-upon rate of return plus profit share proceeds. As can be expected if you are dealing with the more seasoned private equity, asset management or family offices, do expect dictation of level of involvement, reporting etc. 

      2. The Financials & Projected Returns... 

      If experience is one critical factor, the reputation is next and just as important as your most valuable asset, and investing in real estate is a long term game with each project lasting anything from 15 months to 60 months or even longer. This means that you'll want to raise funds again and again hopefully and preferably with the same investors. Will those investors want to work with you again? The answer is  YES & IF you deliver on and execute according to budget, timeframe etc as promised. It is therefore important to be very cautious with your projections, planning for the worst and any and all unexpected events - the proverbial, under promise and over deliver. Ultimately impossible to foresee every eventuality with COVID 19 global health pandemic being an example however, RISK planning and CONTINGENCY are prudent ways to mitigate the unexpected. 


      RETURNS 

      • Typical expectations is IRR in the twenties and or 1.5 - 2x Equity multiples subject to development circumstances. 
      • Fixed & preferred return on capital drawn 
      • Profit share ranging from 50/50 to weighting in favour of majority capital contributor of 70/30.

      Simply put, if you are risking the least of hard cash, its reasonable not to expect profit share in your favour. Not forgetting the fact that you will have earned a development management fee before anyone else. 

      3. The Right Perspective 

      Simply put, "put yourself in the other persons shoes". When you are raising capital like in an business negotiation or exchange, you MUST look at things through the investors' eyes as well as yours for a WIN, WIN, WIN and more importantly be able to anticipate concerns and therefore address them satisfactorily. "Failing to plan is planning to fail!" and many real estate developers and business people alike fail to prepare for what should be most basic expectations like

      • How is my money secured? 
      • What is my guarantee should things go wrong? 
      • What market data can you provide to back your financials, back your property sales values? 
      • What independent cost consultants or quantity surveyors reports can you provide to back your build cost assumptions 
      • Do you have adequate Net-Worth to back your personal guarantee? 
      • Is the corporate guarantee you are offering, backed by adequate assets? 
      • Is the business even solvent? 

      Capital is primarily concerned with half a dozen key factors

      • Demonstrable ample experience of executing similar projects successfully on-budget, on-time and anticipated returns. 
      • The Team thats going to deliver the project and their demonstrable credentials 
      • Prudent business plan backed by concrete data, market etc as well as risk and contingency assumptions 
      • Project timeframe - the longer the risker and the more difficult to determine risk factors 

      Simply put what investors what to know is 

        • Whats the RISK and 
        • Whats the RETRUN offered and putting into the mix, is this project and developer worth investing in and with? 

      4. Co-Investment Capital - Your Contribution 

      Your monetary, quantifiable commitment to the project is not an option but a MUST when raising funds for real estate investments. If you can't put your own CASH into a project and are not even willing to provide appropriate personal guarantees (PG), it says one thing and one thing only - I want you to risk your capital but not mine. Its surprising how many "so called" developers as well as business people want to take third party capital on a handshake that they would not do themselves if the tables were turned. Be prepared to fully commit if you believe in your business plan as much as you say. After all, "Actions Speak Louder Than Words."

      5. Professional External Team Players

      Note. Raising money for real estate development investment should be from professional capital lenders (specialist development senior debt providers, private equity, family offices, asset managers and the like) who understand the market and the risks. Professionals will provide a service of giving real feedback on your investment and if successful in partnership will bring a lot more to the table than just capital - their experience and market expertise; network of industry contacts etc. 

      Corporate & Commercial Law 
      • Your legal advisers to review and assist with all contractual law matters from joint venture agreements to contractors, acquisition and ultimately disposal and dissolution Sherrard Solicitors 

      Cash Flow Finance, Invoice Finance, Development Debt, Mezzanine & Joint Venture Equity Capital 
       We understand that there’s no one size fits all policy when it comes to business finance. Your business model, sector, ambitions, and numerous other factors all play a role in deciding which finance option is the right one for you.  

      Building and Construction Contractors 
      Want a Turn-Key Building Contracting Solution? With a team of Planners, Architects, Structure Engineers and M&E Consultants that can design your dream house with a fixed price. Durisbuild take full responsibility to deliver your project from concept design to completion. 
      For more information check out the Durisbuild-Durisol-construction-method 
      ]]>      Thu, 07 May 2020 00:17:20 -0800      <![CDATA[Customers! Finding them & keeping them is the life-blood of any business. How can your business go about this? ]]>https://lololol.zohosites.com/thoughts/post/Customers-Finding-them-keeping-them-is-the-life-blood-of-any-business.-How-can-your-business-go-about-this

      Through methods like networking, social media posts, hosting events,  online advertising etc to get  your business's name out there, how can businesses effectively gain profitable new customers? 

      Gaining new customers and maintaining the ones you already have is an on-going daily endeavour for an businesses survival and ultimately profitable existence. 
      Here are a few pointers whether you are a new business in town or an existing business looking to grow or maybe even entering new international markets. 
      "aim" - you MUST define your target audience 

      Who are your ideal and most profitable target customers. Whats is their demographics, geographics and psychografics?.  This involves knowing and understanding your current customers to create a description for your target customer for those already in business. If you are a new starter, exploring existing similar business can reveal a lot of valuable information. 


      Who are your competitors? 

      These including same sector, similar companies but could also include alternatives to your product/ service offering by other none similar or same sector businesses. Differentiation is the key factor for a unique customer proposition, so creating a product or service that hits the same target market can be effective so long as it’s unique. 

      We aim to deliver much needed capital for SME’s and Property Developers.

      Word-of-mouth referrals & loyalty programs 
      It may be a good idea to set up an incentive program so your loyal customers can benefit from bringing in new business as there’s nothing more powerful than a genuine business referral. Asking both all your customers and none customers to refer potential clients is simple, easy and zero-cost way to generate new business. 


      Networking 

      It is said, "Our Network is our Net-worth," and networking is a key aspect of businesses ongoing lead generation marketing acquisition efforts.  Getting your business’s name out there and showing you’re an active member in the local community are essential ways to not only keep your business afloat but also awareness with your target potential customers base. Keeping in mind for when the need does arise to be 1st potential problem solver they turn to. 


      Social media & content marketing 

      Social media & all digital marketing is the future of small business marketing and engagement. Not only is it another platform for networking, it can be the most efficient as well as cost effective, not to mention measurable. Not only can you easily connect with both new and loyal customers, the platforms enables to reach a far much greater audience through content likes, retweets / shares.  Staying active on social media is no longer an option but a MUST for business now and in the future. 


      Strategic partnerships & collaboration with a complementary business 

      Life and certainly business is a "Team Sport" and you must find ways to collaborate with complementary businesses with the immediate benefit being reach to your target market in a cost effective and efficient manner which would have otherwise been costly if not out of reach. 


      Online webinars & other events you could host 

      The aim here is to be creative and build fun events for your customers, target customers, strategic partners to attend with a focus on delivering value for them whilst positioning yourself as thought leaders as well as keep at the forefront of their minds and even educating your target market on problems they could be facing, thus providing possible answers or solutions to those problems. 

      Call Now +44 (0) 203 2909019

      ]]>      Mon, 04 May 2020 03:33:50 -0800      <![CDATA[You can only buy it when you don't need it cause when you do need it, its too late. Public Liability Insurance... ]]>https://lololol.zohosites.com/thoughts/post/You-can-only-buy-it-when-you-don-t-need-it-cause-when-you-do-need-it-its-too-late.-Public-Liability-Insurance...

      Insurance has never been on most businesses or peoples top of their priority list although it should. Adequate cover not a luxury but a necessity as it gives you peace of mind and can come in handy if something adverse happens and you need to make a claim. Some of those adverse events are not a matter of IF but rather When they occur. 

      The reality is that all the risks associated with the work you do as a business or self-employed in a professional capacity fall squarely and solely on your shoulders. This includes any accidental damage or bodily injuries to third parties that happen on your premises, whether you are working from an office or your home.  

      We aim to deliver much needed capital for SME’s and Property Developers.

      How Does Public Liability Insurance give you Peace Of Mind & Protection? 

      Simply put, Public Liability insurance protects you if you are being sued by a customer or client who is injured, has an accident or damages their possessions or property while on your premises. It also protects you if you damage something belonging to them while you are visiting their premises. If they sue you as a result, it covers your legal costs and any financial compensation awarded. 

      For any business, every penny counts and having the right cover is a necessity and worthwhile investment as well as a smart move. It means you’re financially protected if you are presented with a bill for damages for thousands of pounds. Irrespective of whether it was your fault or not. 


      The consequences of not protecting yourself and your business with Public Liability Insurance can be devastating is an understatement. 

      Call Now +44 (0) 203 2909019

      Find out more about Tapoly Public Liability and check our full list of products and prices. 

      ]]>      Sat, 02 May 2020 04:35:12 -0800