Atlanta Buyers Pack [3].indd

INVESTMENTPROPERTY

ATLANTA GEORGIA

Premium Atlanta

Investment Property

BUYER’S PACK

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Contents Axis, your property investment partner 3

The Atlanta Investment Advantage 4

Profi t Growth & Financial Investment 6

Refurbishment & Property Management 9

Exit Strategies 11

Location 12

Business in Atlanta 13

Frequently Asked Questions 14

Conveyance Process 20

Next Steps 21

Why trust Axis? 22

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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

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.

Axis, your property investment partner

The teamRod ThomasChief Executive Offi cerT: 01273 447 303E: [email protected] Geoff BondFinance ManagerT: 01273 447 295E: [email protected] Justin BrownleeHead of Sales & AcquisitionsT: 01273 447 302E: [email protected]

Shalina SheikhCompletions ManagerT: 01273 447 304E: [email protected]

Az AhmedMarketing ManagerT: 01273 447 305E: [email protected]

Peter StylesCopywriterT: 01273 447 208E: [email protected]

Phillip WentworthDesignerT: 01273 447 294E: [email protected]

Dan LesserSEO & Social Media SpecialistT: 01273 447 209E: [email protected]

Steve Howson Investment ConsultantT: 01273 447 392E: [email protected]

Zoe BryantInvestment ConsultantT: 01273 447 306E: [email protected] Russell BonnerInvestment ConsultantT: 01273 447 301E: [email protected]

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Atlanta offers a particular combination of factors which make

it an ideal investment location for the Premium Investment

Properties.

This investment opportunity refl ects the Axis ‘Maximum Growth

strategy’. You benefi t 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?

New property at 50%+ discounts: You invest in recently constructed

(always less than 20 years old, often less than 10 years old) beautifully-

refurbished, 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

profi t it would sell for $220,000. You can invest, through Axis, in a

similar property for around $80,000 to $100,000.

The benefi t 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 benefi cial

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 refl ects 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.

Evaluation of Investment

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Target yield: 8% - 12% net pa

Target growth: 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

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 fi ve 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.

Evaluation of Investment

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Best Price to Rent RatioA 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!

Atlanta Number One City for BuyersFortune 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

Profi t, Growth & Financial Projections

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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

look at the table below which shows a signifi cant fall in inventory

and a rise in prices in just ONE week!

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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

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 Investment Potential

A

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

B

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.

C

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.

DLow 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.


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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.

New properties which have never been lived in are fi nished with new

carpets, cabinets, fi ttings and fi xtures and so on. Plus they are freshly

painted and decorated.

Worktops, appliances, air conditioning units, kitchen and bathroom

fi ttings and units and more will all be refi nished or replaced as is

appropriate.

The refurbishment and maintenance team are highly-qualifi ed and have

extensive experience from developing entire apartment complexes

through to standard ongoing maintenance and fi nishing.

Refurbishment& Property

Management

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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.

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 refl ects the value that the tenant sees in the property. Some tenants will go on to purchase, giving the investor a large capital profi t 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. Confi rmation 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.

Refurbishment& Property

Management

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Exit Strategies

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 profi t 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 fi nance 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 fi nancing in a similar way as a bank would. The seller/investor pre-agrees 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 profi t) and charging a good interest rate.

Five benefi ts of land contracts:1. You become ‘the bank’ and therefore dictate the terms.2. You lock in your profi t 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 profi table businesses and therefore are very likely to qualify for fi nance.

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.

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Where is Atlanta?

Atlanta is the capital of the U.S. state of Georgia.

Air: Hartsfi eld-Jackson Atlanta International Airport (the world’s busiest

airport as measured by passenger traffi c and aircraft movements)

provides air service between the city and many national and international

destinations. Hartsfi eld 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.

Location

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Business in Atlanta

Business in Atlanta

What Atlanta’s most infl uential 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

“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

Atlanta’s Top EmployersAtlanta 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)

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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

• Specifi c 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. 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 fi xed and do I pay in $USD or £GBP?

A. The price is fi xed 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

fi nder’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 effi ciently.

Q. Will I need a bank account in USD?

A. You will not need a USD bank account for the purchase, but you

will defi nitely 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.

Frequently askedquestions

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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:

• 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 fi nder’s fee for Atlanta?A. The fi nder’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 fi nder’s fee cover?A. The Axis fi nder’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 fi nder’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.


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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. 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 fi rst 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 fi rst year, a fee of 75% of the fi rst 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 fi x 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 effi ciency.Since you are investing in recently constructed property that has had a full refurbishment in general maintenance bills in the fi rst 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.


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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 fi rst 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.

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 fi ve benefi ts 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 profi t or

the tax due if you hold properties in a LLC.


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4. Over time, because you have an LLC, you will start to build a credit

profi le 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

refi nance 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 fi ling fee in the state of Tennessee of $300.

• One LLC can be used to hold all your properties.

It makes no difference, either higher or lower, to the taxable profi t 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

fl uctuations – 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 fi nancing 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!


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QQ. 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

investor’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: 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 buyer’s agent in

the future. There are no up-front costs to the investor to market and sell

their property.

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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 fi nder’s

fee payable.

2. Pay balance of Axis fi nder’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 fi nal 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 specifi ed 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.

Purchase Process

21

INVESTMENTPROPERTY

Next Steps

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 protected]

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 fi nder’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

specifi ed are in place. Following receipt of the fi nder’s fees and

documentation we will provide all the details you need to complete the

transaction smoothly and effi ciently.

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: [email protected]

• Read in conjunction with the

Investment Guide

• Consult with Your Axis

Investment Consultant

•

•

+44 (0) 1273 447 3009AM TO 5:30PM UK TIME

Premium Quality Family Homes

ATLANTA, GEORGIA, UNITED STATES

Large, single family homes

Top quality neighbourhoods in metro Atlanta

Net income 8%-12% pa, plus strong growth potential

Totally ‘turnkey’ property – fully refurbished to ‘as new’

standard and tenanted prior to purchase

Exceptional 3 year rental agreement & tenant option to

purchase resulting in substantial profit

Price range $80,000 to $130,000, investing at less

than half current build cost!

Investment Highlights

INVESTMENT

PROPERTY

USA INVESTMENT

Invest in the USA’s number one rental location. High quality contemporary homes with

excellent rental returns and strong potential for price growth. Perfect for discerning

investors who understand the value in quality properties and want hands-off, secure,

USA investments.

Property Ref: ATL1112V2

unitedstates

INVESTMENT GUIDEUS PROPERTY

USA’S

NUMBER

1 RENTAL

LOCATION

Making the correct investment

22

INVESTMENTPROPERTY

Whytrust Axis?

We appreciate the trust

and confi dence 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

fi nancial 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 Offi ce of Fair Trading (OFT)Axis is registered with the Offi ce 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 marketplaceAxis has been sourcing investment

property for our clients since late

2005. Our senior managers have

more than 50 years’ combined

experience of investment property.

ManagementOur 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 fi rst

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 knowledgeVisit www.axispropertyinvestment.

com. You will fi nd 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 managementOur 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 offi ce

on +44 1273 447 300 or email

[email protected].

23

INVESTMENTPROPERTY

Axis never handles client moneyAxis 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/fi nder’s fees.

Your visit is welcomeThe senior managers at Axis welcome

client visits to our offi ce 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.

Defi ned legal relationshipWe 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 defi ned in our Client

Engagement Agreement CEA), similar

to any other professional’s terms of

engagement letter which you can

download from our website.

TestimonialsMost 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

satisfi ed client.

Defi ned complaints procedureIn the unlikely event that you are ever

concerned about your purchase/s,

you will have access to a defi ned

complaints procedure which ends up

with the direct responsibility of the

General Manager.

Membership of FIABCIAxis is a member of the International

Real Estate Federation (FIABCI)

and has agreed to abide by FIABCI

regulations for fair dealing. Visit www.

fi abci.co.uk for more information.

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 fi nancial advisor. We do not provide

fi nancial 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.

b) This Investment Guide and the Buyer’s Pack (available

on request), which may contain specifi c terms and

conditions that are additional to, or may vary, from the

standard CEA.

c) The Reservation Form.

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.

Disclaimer

Whytrust Axis?

Atlanta Buyers Pack [3].indd

Documents

Transcript of Atlanta Buyers Pack [3].indd