How often have you heard the property investment maxim that “you can never lose investing in property”? Given Australian’s affinity with property, and the fact it is so pervasive in our everyday lives with shows like ‘The Block’ and newspaper lift outs each week, it is no wonder everyone thinks they are an expert.
Unfortunately, as an asset class, property requires high levels of equity to take a position and it also has high entry (stamp duty) and exit (agents’ commissions) costs. As such, it is essential that you get your investment right as the cost of poor asset identification and execution can be significant.
In response to client demand, Forza Capital has established a new business, Forza Advisory, which assists clients with their “direct property” acquisitions.
Forza Advisory, which is complementary to our syndication business, provides greater scope for our clients to choose how they wish to obtain their property exposure:
a) Direct: hold title themselves and undertake all property management and have Forza Advisory identify a suitable asset and assist with due diligence and negotiations;
b) Syndicate: hold ownership indirectly and outsource all property and investment management to Forza Capital and have them responsible for asset selection, risk management and execution.
For a direct acquisition, Forza Advisory is retained exclusively by the purchaser. From the outset, a client brief is defined and agreed upon to ensure clarity of investor objectives. From here, Forza Advisory will scour the markets identifying assets which meet the brief and present them to clients for review. Forza Advisory’s service is scalable – we can assist with asset identification, negotiation, due diligence, settlement, strategy and ongoing management – so clients can choose the level of assistance that suits them best.
Forza Advisory is a performance based business whereby the transaction fee is only paid upon successful conclusion of the client brief.
Without an expert with experience in commercial property and negotiation skills, it is difficult for most investors to know:
(a) what to consider in meeting their investment objectives;
(b) how to understand the potential for future value add;
(c) how to identify, measure and mitigate inherent risk, and finally;
(d) what price to pay.
If you are thinking about a direct purchase and would like some expert assistance, give us a call on 03 9650 9300 or email at email@example.com