PREMIUM & PROFESSIONAL PORTFOLIOS - OVERVIEW

Whilst the potential rewards are very attractive, entering the US market and buying investment properties on a ‘one here, one there’ basis can be very risky. The Estero Premium and Professional Investor plans specialise in offering investors turn key property portfolios (or single commercial lease properties) that have been designed to mitigate many of these typical property investment risks, and give Investors a level of comfort that would otherwise be difficult to attain.

In particular, these investment plans target the following issues:

Right location – The biggest risk of all... “How do we (estero) know we’re buying in the right areas and properties that are safe long-term investments?” Quite simply, other than the obvious on site checks, we borrow 70% or more of the property's value from a US Bank that independently checks the location and economic outlook for each property to ensure the Bank does not lose its money in the investment. Therefore, by protecting themselves, the Bank also protects us and our Investors. We term this ‘Location Assurance’ and describe this in more detail here. There are also many, many other benefits to borrowing mortgage funds from a US bank. More details here

Vacancy – We offer protection against the many thousands of dollars Investors can lose through excessive Vacancy - with our various Rent Guarantees - More detail about the Rent Guarantees, in particular how the protection is calculated as an average across all the properties in the portfolio, here

Refurbishment cost overruns – We eliminate this risk by only selling properties that are new or have been refurbished and approved by the property managers as ‘rent ready’.

Rental income is less than forecast – We only sell properties with tenants in place, so the properties’ income potential is known from the beginning.

Excessive maintenance costs - unexpected and/or excessive repair costs can seriously erode an Investor’s income. Fortunately most of the properties we sell are constructed new and therefore have no significant maintenance issues, however if we do sell a refurbished property, we offer a maintenance guarantee of between 1-2yrs to protect the investor against any excessive maintenance/repair costs. - More detail about the Maintenance Guarantees, in particular how the protection is calculated as an average across all the properties in the portfolio, here

Tax structure – To protect our Investors from the mistakes that many others have made in the US market (and continue to make), we have spent thousands of dollars on conference calls between NZ and US tax specialist’s to ensure we have the structure right. The benefit of this knowledge, and payment for all NZ/US set up costs, is provided free of charge to our Premium Investor clients.

In summary
Could an Investor do better than what we are offering through our ‘Premium Investor Product’? Sure they could. Any reasonably savvy Investor who has the time, energy and is prepared (like us) to fly 100,000 miles backwards and forwards to the US checking out the market, meeting the people, forming the relationships, buying properties at foreclosure auctions, arranging local funding and so on, could (and should) expect better returns than what we are offering, because effectively the extra income they are making is our profit!
But for those Investors who haven’t got the time or energy to do what we have done, and think our Premium Investor Product is already ‘pretty darn good’!, we are ready when you are email us here