Guided by Rigorous Due Diligence

MAS License is not sufficient to gain his trust

Before investing with RV, Nicklaus read newspaper articles on RV and was assured that RV is a Singapore registered company with MAS license. However, he still had his doubts and decided to talk to a few friends who are private bankers about RV. These bankers did their own due diligence and reassured Nicklaus that RV is a legitimate investment platform.

Due diligence on deals offered by RV

Despite being convinced that RV is a legitimate investment platform, Nicklaus was still hesitant in investing with RV. He cited the fact that retail investors like him lack the resources and expertise to carry out due diligence on the Sponsors and the financials underlying those deals. Essentially, investors like him are taking a leap of faith, relying heavily on RV to do the due diligence for them.

However, after attending a few webinars by the Sponsors who presented the details of the deals, Nicklaus felt more comfortable and proceeded to invest with RV. It has been six months since he made his first investment. He now enjoys regular distributions from his investment deals.

Ready to invest further once his current deals mature

As a valued client, Nicklaus gets regular updates on new deals offered by RV. He prefers to adopt a more cautious approach and wait for his current deals to mature in a few months, before investing further.

RV enables investors to gain exposure to the property sector

Nicklaus believes that RV provides the ordinary investor with an accessible platform to gain exposure to the property sector. Compared with REITs, RV allows the investor to make decisions according to his risk appetite. For instance, one can invest in low risk core deals, medium risk value-add deals or high risk opportunistic deals. Alternatively, one can invest in a deal that is backed by rental cashflow or seek higher returns through an opportunistic development deal. Furthermore, investors can choose which geography or sector to invest in.

Nicklaus also commented that RV explains the deals in a very straightforward and transparent manner, allowing the investor to understand the risks and rewards involved. This is unlike a REIT where investors would need to go through the prospectus and circulars that are not easy to comprehend.

RV gives a better return compared to insurance policies or fixed deposits

Nicklaus shared with us that the low returns (around 4 percent per annum) offered by insurance policies which come with high annual premiums and long commitment periods are not attractive to him. Nor are fixed deposits where the returns are at 3 percent per annum.

To him, short-dated core deals offered by RV gives him a better return than fixed deposits.

Moving up the real estate risk spectrum

After his core deals mature, Nicklaus is looking to invest in core, value add and opportunistic deals. Specifically, he is working towards investing in four core deals, with one deal that matures every quarter.

About RealVantage

RealVantage is a leading real estate co-investment platform, licensed and regulated by the Monetary Authority of Singapore (MAS), that allows our investors to diversify across markets, overseas properties, sectors and investment strategies.

The team at RealVantage are highly qualified professionals who brings about a multi-disciplinary vision and approach in their respective fields towards business development, management, and client satisfaction. The team is led by distinguished Board of Advisors and advisory committee who provide cross-functional and multi-disciplinary expertise to the RealVantage team ranging from real estate, corporate finance, technology, venture capital, and startups growth. The team's philosophy, core values, and technological edge help clients build a diversified and high-performing real estate investment portfolio.

Get in touch with RealVantage today to see how they can help you in your real estate investment journey.

Disclaimer: The information and/or documents contained in this article does not constitute financial advice and is meant for educational purposes. Please consult your financial advisor, accountant, and/or attorney before proceeding with any financial/real estate investments.