The Entrepreneur
Revolutionising the way people invest in property worldwide.
A sophisticated investment strategy but for the man on the street.
The credit crunch was really biting hard, and it was affecting us as much as anyone else.
Our service of sourcing undervalued properties in student dense locations, renovating them to add value and letting them on a room by room basis was a great product which offered the highest yields in the buy to let industry. However, if the public cannot get the lending to enable them to buy the properties we were mindful that we could be hit badly.
We realised that we needed to sidestep the volatile mortgage market, if we were to continue growing our market leading business.
We came up with the idea of using underperforming pension capital, which would avoid the need for bank lending. We go then out and deliver a consistently competitive yield, whilst also securing capital uplift. (Based on the discount and renovations uplift which does not require and market appreciation)
If we could set up a fund it would allow us to continue to do what we do best.
We could never have forecasted the amount of obstacles we would need to overcome in order to launch an FSA sponsored fund. It has been incredibly difficult but we are on the home straight and it is due to launch next week.
Our goals are to raise the standards of student accommodation as well as revolutionise the way people invest in property.
Additionally, we decided to set up a syndicate strategy which takes all the aspects of a sophisticated investment strategy but makes it readily available for the man on the street. We believe everyone should have access to quality investments and not just the rich and famous.
Our strategy is to allow people to group together to be able to become cash buyers to buy an undervalued property, renovate it to increase value, fill it instantly with students renting on a room by room basis and sell it to a pension fund or high net worth individual who is looking to buy an investment, rather than a home.
In the present climate, the property developers have really struggled because they all build homes.
At the Collins & Bone Partnership, we build investments which put money in your pocket each month as well as give you a long term capital strategy.
The universities are expanding at a vast rate amidst the recession as governments pour more money in to education, but, the developers and buy to let landlords cannot cater for the students as they rely on the banks.
By using high net worth cash, pension money and opening it up to everyone to invest in a product we have proven for nearly 10 years works over and over again, we have developed a product insulated from market variables, which can be profitable in any up-cycle, down cycle or stagnant period in a property market.
It has been an incredibly difficult 2 years and the challenges have tested every mental and physical sinew of all of the Collins & Bone team, but I am so proud of everyone we have involved working with us and it is a pleasure to be working with my family in this business through these demanding times. I honestly think we would never have come up with solutions like we have to market problems had we not had so many obstacles to overcome daily I believe truly that the worst is behind us now and the future is bright.
A very famous American Football Coach Vincent Lombardi once said. “We didn’t lose the game, we just ran out of time.” This is something I can definitely relate to with getting the fund and the syndicates launched. Running out of time was our biggest motivator but it looks like the timing could not come better at a time where many commentators are saying we are close to the bottom of the market.
Sometimes I wish there were more hours in the day or maybe a way to sleep less.
"Great act but what I found particularly inspiring was the innovative use of masks, it's that kind of lateral thinking combined with talent and energy, which is the reason the Collins & Bone Partnership is going to go far. I am glad I've hitched my horse to your wagon!" - Tony Hogg.
