Blue Wealth Acquisition Process

Posted by Dominic Cavagnino

A question often asked is how we acquire stock, of course our research model dictates where we are looking for property but the ways in which we go about identifying particular projects and assessing them can vary. There are two types of project reviews, passive and pro-active reviews.

Having built a significant reputation among developers in our approved markets, Blue Wealth Property has become a household name. Our large team and expansive network of financial professionals provides us with a strong database of clients. Having such a reputation means that we are constantly contacted by developers asking us to review their project, giving us access to a wide range of properties to choose from. Projects which are brought to us rather than us searching for them are referred to a passive project reviews or acquisitions.

Passive Project Reviews

For new developers, our assessment begins with a due diligence process. This ensures they have a long track record of successful projects, while allowing us to gauge their financial position. Our preference is always to continue to work with a network of successful developers who have delivered numerous projects with Blue Wealth in the past. But of course, with the goal of finding our clients the best opportunities, we are always open to building new relationships with the country’s top developers.

Pro-Active Project Reviews

Much of the Blue Wealth Research & Acquisition Team’s time is spent identifying the areas within approved markets that present new opportunity. Once these areas are highlighted, we use development approval records and project databases to retrieve details of developer’s activity in the area. This does not necessarily mean that the project is then automatically approved, it is then put through a strict approval process.

Making a project work

Often there are aspects of a project which don’t meet our model, however, with minor amendments the project could potentially tick all the boxes. We always negotiate pricing to provide our clients with great value opportunities. More recently, we’ve become more involved in the planning stages of a project to assist developers in delivering well-designed efficient floor plans. This ensures the stock meets the market and benefits our clients over the long term.

The Next Step

When either approached with a project or beginning a new conversation, we’ll often ask for some preliminary information such as an address, price list and floor plans. The key aspects which result in an automatic rejection are size, location and price. This information allows us to assess the project on these factors. If the project passes this preliminary vetting, we’ll encourage the developer to come in and meet with us in our office. This is followed by a site visit and an inspection of previously completed projects.

At this point, projects are either approved or rejected. In 2017, Blue Wealth recorded a rejection rate of 90.7%, rejecting 226 projects and approving 23. This rate is likely to increase in 2018. Once a project is approved we typically only list 40% of the project, cherry picking the best stock a project based on size, value, aspect and design.

The importance of investing in the right property cannot be overstated. Our acquisition process and ability to access high quality property ensures our clients are purchasing the best possible property in our strategically selected locations.

Posted by Dominic Cavagnino, on 4th Sep 2018