Our 4 Property Guarantees: taking away the risk in working with us!
I learned early on that people respond better if they don't have to take a lot of risk.
It was a principle that was drummed into me as I studied marketing and advertising. In those circles it's called risk reversal and I've decided to apply it to my own business. This means that rather than having you begin your relationship with us by taking all the risks yourself, we take them from you by giving you a guarantee that certain things will and won't happen.
So what are these guarantees I'm talking about?
Formal Mortgage Guaranteed. The ongoing instability in the mortgage market means that we're unable to continuing offering this guarantee until things settle down.
Rent Received Guarantee. If the rent you receive is not within £50 per calendar month for properties below £200,000 or £100 per calendar month for properties above £200,000 of what our research says, we will pay you the difference for 2 years.
6 Weeks to Let Your Property Guarantee. If we don't let your property out within 6 weeks of completion, we'll pay the rent until you do.
24 Hour Property Sleep Test. Once you have decided to go ahead we'll give you a full 24 hours to sleep on your decision. If you don't have a restful night's sleep, tell us and you'll have lost nothing.
This gives you peace of mind and importantly, makes the entire process predictable. You'll have certainty that things will happen the way we said they will. But if for some reason they don't, you'll be suitably compensated. Every investor has fears when starting out, but this process has been designed to minimise them as much as possible.
As you can imagine we are taking on considerable risk here, but I really believe that our team can perform on each one of these property guarantees. They are trained in my fundamental principles and I believe the quality of our property is so good that only a very small portion of clients will need to exercise any of these guarantees.
Seems too good to be true?
I know it might seem too good to be true but in the spirit of my 1, 2 STOP strategy, I think this will get our relationship off to a fantastic start. After all, you are guaranteed of getting a mortgage, letting the property and receiving a rent that you expected. The bottom line is that if we don't offer you properties that meet these strict criteria we don't deserve to be paid.
The other thing it does is take away some of the emotional hurdles you will encounter as you build your portfolio.
Let's get this relationship started!
Please have a read of the conditions below and if you have any questions please call the team, they will be happy clarify anything.
Live with passion,
Brett Alegre-Wood
PS: Our guarantees are offered in the spirit of building a strong relationship and in creating a massive point of difference between YourPropertyClub and many of the other companies that offer all sorts of properties out there, but yes, as with everything in life there are conditions. It's such a shame that life these days is so complicated, but I feel I should spell out exactly what I mean by each guarantee. These conditions are listed below in the large print. (I have nothing to hide). I reserve the right to withdraw this at any stage if I feel that people are abusing the offer.
The Small Print in Large Type (Terms and Conditions)
Reservation and finders fees:
a. Must be paid on time as indicated on the invoice and normally within 7 days of reservation. This is taken to be receipt of a cheque at our office, receipt of deposit into our bank account, or cash dropped at the office.
b. In the event a cheque does not clear all guarantees are invalid.
c. Valid on property in the UK only.
Mortgage Guarantee:
a. The idea of this guarantee is to give you assurance that we have done our due diligence and that the valuation will stack up for both valuation and rentals and that the property is suitable for mortgage purposes to 80% of the valuation.
b. In the event that you do not receive at least an 80% mortgage we will pay the difference between your mortgage offer and 80%
c. You must have a clean credit file and be suitable for a mortgage. Should your circumstances change at any stage this guarantee will be void.
d. Must use our designated Mortgage Broker and a lender that they advise. Please note that these brokers are totally independent and will represent your interests not ours.
e. We will endeavour to secure you an 80% mortgage in most cases but given the Global Credit crunch and the current tightening of lending criteria this may be impossible.
Rent Received Guarantee
a. The idea behind this guarantee is to give you certainty that we have undertaken our due diligence and to the best of our knowledge you will receive an amount within £50/£100 of our stated amount.
b. For properties above the £200,000 valuation the rent will be within £100 per calendar month and for properties below the £200,000 valuation the rent will be within £50 per calendar month.
b. Taken as being the Realistic Market Rent from the Cash flow worksheet as published on the website at the time of reservation of your property.
c. If the difference between the rent we said you would receive is greater than £50 per calendar month we will pay the difference between gross rent received and £50 for a period of 2 years. So if we said £500 pcm and you actually receive £400 you would receive £1200. (£500 - £50 = £450 less £400. £50 pcm x 24 months) So you would receive £1200.
d. In the event you reject a suitable tenant this guarantee will be void.
6 Weeks to Let Your Property Guarantee
a. The idea of this guarantee is that our due diligence into the area and the development will mean your property has a fantastic chance of being let out within 6 weeks of completion date.
b. The team at Your Property Club must be managing the process of letting through a local agent.
c. In the event flooring is required the guaranteed is 8 weeks after completion.
d. Let out is taken as being a tenant expresses interest and the agent says that they have confirmed they are taking the property. This will normally mean the date the potential tenant lodges an application and not when they actually move in. This may mean that they move in after the expiry of 6/8 weeks.
e. If a suitable tenant is found and they require furniture you must provide this furniture otherwise your guarantee may become void.
f. In the event you reject a suitable tenant this guarantee will be void.
g. If any of the guarantee period falls over Holiday periods such as School holidays, Christmas periods and other extended holiday periods extend the guarantee to 8 weeks.
h. YPC will not guarantee against a potential tenant who does not pass their referencing checks. Estates agents upon receiving an application will stop marketing the property. Referencing can take up to a week or more therefore YPC cannot guarantee that a tenant will pass referencing. In the event an application is rejected due to referencing coming back unsuitable this guarantee will not apply.
General conditions
a. All guarantee payments will be to a maximum value of the Finders Fee Amount that you have paid.
b. If at any point along the process between Reservation and your first let you become uncontactable for more than 48 hours without prior warning or you do not return calls within 48 hours all guarantees become void.
c. Property investment presents many risks and YPC will not underwrite the 'market risk' of property. This means that we cannot predict what will happen with the property's value and market rent within the market over a long period of time. The guarantee is not valid on all developments especially those that are off plan (generally longer than 3 months), you will be told prior to reservation if the guarantee applies to this development.
d. Delayed Completions - We will not guarantee against the 'market risk' and therefore in the case where a development benefiting from the guarantees has its completion delayed and the completion takes place more than three months after the initial YPC launch date we reserve the right to cancel all guarantees.
e. The property must be in a tenantable condition for the guarantee to be valid, this can mean that if major snagging issues arise that affect the ability of the property to be let out this may void the guarantees. Obviously we would work hard at correcting these issues before they affect the lettings but YPC cannot guarantee the overall build quality of each development and plot. This will be at the sole discretion of team at YPC.
f. Should you choose not to use our chosen Snagging company on each development all guarantees will be void.
g. You must use our designated Solicitors for the conveyancing.
h. If at any time it is felt that you have compromised the ability of the property to let out the guarantee will be void.
i. All guarantees may be withdraw without notice at any stage.
Error or Omit Error
(Last updated - 17 July 2008.)