REI Capital Holding LTD business strategy is designed to benefit from the different cycles of the real estate industry that can be defined in four stages: growth, oversupply, slump and recovery.
Capital preservation and growth go hand in hand when doing the simple thing we do.
General Rules
What is our business model
Do the right property acquisition
Purchase at a discount to valuation and choose property with the right future prospects.
Improve earning potential and earn
Either stage, furnish or fully transform to get the right rental thus the right price afterwards.
Enjoy the cash flow until sold
Offer and sell in the market
Either stage, furnish or fully transform to get the right rental thus the right price afterwards.
Enjoy the cash flow until sold
Repeat
Why recreate the wheel, continue doing what works and repeat it as many times as you could.
Understanding Real Estate
Cash Flows
- Property is known for its great Cash flow characteristic.
- When you buy a property you are paid a rent periodically while such rents work their way up with time averaging out with inflation.
- We have created and are growing a portfolio of properties that can grow with time not only by value due to capital appreciation however also cash flow consistently which allows us to expand the portfolio from within.
- The consistent returns allow us stability and sustainability of gains.
*REI Capital Holding LTD Usual investment risks persist even if mitigated. At no time is REI Capital Holding LTD or any of its subsidiaries or mother entities providing a guarantee of any profit or risk elimination
Good entries, Lucrative property management / Relevance
- Good entries, Lucrative property management/ Relevance Wrong decision: a decision taken without enough knowledge about the repercussions and a proper
evaluation for the risks and opportunities attached. - What would a wrong decision cost you. 5%, 10%, a comfortable position? Could you end up taking a series of bad decisions trying to recover from one.
- What is the value of knowledge presented the right way?
- The difference between a 10% profit and a 10% loss is a 20% of your capital.
- A Good decision: a decision that puts you in a comfortable place to take another good one.
How does Real estate Stack against other investments
Capital appreciation |
Risk | Cash flow | Access | Historic Rate of Return |
|
---|---|---|---|---|---|
Bank Deposit | < 0 | Low | 0.2% to 1% | 1-5 Yrs. | 0.2% to 1% |
Equities | – 20% to + 20% | High | 0% to 4% | 1 Day | 6% to 8% |
Bonds | 0 | Medium | 3% to 7% | 2-10 Yrs. | 2% to 5.5% |
Commodities | – 40% to + 40% | High | 0 | 1 Day | 4.5-6% |
Real estate | – 20% to + 20% | Medium | 4.5% to 10% | 4 weeks | 4-12% |