Liverpool Property Fund

In this episode Nicolas Duque, David Daza and Leo Suarez are joined by in Liverpool by Jane Baylor, a very influential woman, Amazon Best-selling author, property investor and coach. They discuss what the Liverpool Property Fund is about and why LAUK Holdings is so excited about this venture. Jane asks the team questions investors might ask about what the fund is, what it does and what opportunity it represents.

Why did LAUK Holdings decide to launch a fund, as opposed to building its own portfolio or helping other people build theirs?

David mentioned that in fact, that building their own portfolio is precisely what they have been doing over the last few years. They have systems in place that allowed them to have over 5000 bookings last year alone. In total they are managing over 60 properties in London and Liverpool.

The fund’s directors have their own portfolios in addition to properties under management. Based on a proven model where they buy tired properties, fully renovate them and then let them by individual rooms or on a short-term basis in what is known as serviced accommodation (via platforms such as Airbnb, booking.com).

How do they manage the sourcing and refurbishment of the properties?

Over the last few years the team has built relationships with state agents, so that the agents offer properties to them before they go into the market, this is because they have been buying properties from them for many years.

They feel very lucky to have that privileged information before it goes to anybody else thanks to having a proven record. The estate agents know that the team is reliable, basically committing to what they say, when they put an offer to avoid letting the estate agents down.

In terms of managing the refurbishment of the properties, the team informed that they have a team of contractors that have proven to be very reliable over the last few years. At the beginning it was basically trial and error, to the extent that in some of the early projects they ended up losing money, for instance one contractor just run away with their money after receiving a down payment!

How does the property fund work?

The fund was created based on two principles. Wealth creation and leaving legacy for the next generation. Property is a fantastic vehicle to achieve that. The Fund benefits of the economies of scale associated to buying properties in bulk. For instance, banks, treat you differently, offering better lending terms, also it allows you to have a team of experts (solicitors, accountants, contractors) around that clearly understand the business model. Having several properties also allows employing an operations manager and a handyman to look after the properties.

The fund provides a completely hands-off approach to investors, where they can relax and don’t worry about buying, refurbishing and managing a property portfolio.

Who can invest in the fund?

There are clear guidelines in the UK in terms to whom a Fund like this can be promoted to.

The Fund is classified as an Unregulated Collective Investment Scheme, therefore, can only be presented to Sophisticated Investors or High Net Worth Individuals.

A Sophisticated Investor is someone with extensive investment experience and knowledge of complex instruments who are better able to understand and evaluate the risks and potential rewards of unusual, complex and/or illiquid investments. A High Net Worth Individual is an individual with an annual income of more than £100,000 or investable net assets (i.e. not including their home) of more than £250,000.

Who could anyone interested in exploring the fund could make contact and find more about it?

Jane Bayler is assisting LAUK holdings to introduce potential investors that qualify to the above criteria to the Fund. If you would like to discuss this opportunity in more detail you could contact Jane at  [email protected] or request a pre-bookable call at www.investdevelop.co.uk