Property Secrets have developed a brand new investment strategy which aims to overcome some of the issues facing investors in today’s credit crunch climate by providing an exit strategy before entrance to a market.

The Assured Exit Property Investment (AEPI) strategy aims to lock in profit from property investing in relatively short time frames.

Neil Lewis, CEO at Property Secrets, explains how this new and exciting concept works:

“Assured Exit Property Investment is all about creating a credible and profitable method of sale within a fixed time frame before the initial investment is made.”

”We are turning the conventional approach to overseas property investment on its head, by building the exit before we have the entrance.”

AEPI has all the benefits of hands off and low risk fund investing secured by direct ownership of residential property in emerging high growth markets.

“This strategy makes sense in emerging regional capitals (or third tier cities) in Central and Eastern Europe where we can expect to see a spike of property price growth. Investors will therefore want to be able to exit the market with a property sale once this growth has taken place,” Neil continues.

“The "assured" bit is about having confidence that a credible route to re-sale exists prior to making the original investment.”

“It is also about having the knowledge that the agent responsible for delivering the re-sale is massively incentivised to make the sale - whilst guaranteeing a minimum profit level for investors and all delivered within a set time period.”

“The strategy is based on securing an agreement with the developer which allows the customer to benefit from buying a property below market value and then being in a position to sell the property quickly at an agreed price to maximise that capital gain.”

“The developer, instead of taking his profit on the first sale to our investors, will make his profit later - at the point where he then re-sells the unit to the local market whilst booking a profit for our investors. All the mortgage finance can be set-up prior to the investment too as the units will already be close to completion.”

“You might ask what type of developer will agree to this and how will he benefit?”

“There will be a net profit share in place between the investor and the developer. This means that if the units are sold within the agreed time frame at the agreed price the developer will receive a 50% share of the profit AFTER the deduction of the cost allowance applied to each unit.”