Accumulate Capital Review 2022 – that will be the topic of today’s article.
I will look at some of the positives and negatives associated with this solution, alongside asking whether you should invest.
If you want me to invest in better solutions than this, don’t hesitate to contact me, email (advice@adamfayed.com) or use the WhatsApp function below.
Property Development:
Also known as Real Estate Development, Property Development is the process involved with activities related to renovation, re-lease, buying raw land, sale of developed infrastructures, etc.
Usually, property development is different from building a house or construction of other infrastructures. However, many property developers also get involved in the process of building houses as well.
Accumulate Capital:
About them – Accumulate Capital is a company involved in property development. They offer their clients the ability to get access to investment opportunities in property development.
In their own words – Accumulate Capital is a company involved in investment and property development, with the main objective as increasing the personal wealth of an individual investor.
They connect independent investors with strictly vetted property projects located in the UK as well as overseas.
Each development of Accumulate Capital is appraised for deliverability, effective construction timeline, great track record, GDV, and most importantly, profit.
Where is the money invested? The capital raised by Accumulate Capital is used for development finance, which is responsible for getting many projects started.
To make it simple for you to understand, the money invested by the investors registered with Accumulate Capital is used to finance the development of many projects, and offer profits to those investors (profits from the financed development projects).
Their investment model enables property-related projects to be built and provides high returns for investors.
They ensure that the clients have total transparency in terms of security via charges over assets, site visits, and project & portfolio updates.
Accumulate Capital also has a dedicated client portal as well as a smartphone app with the help of which, an individual can view every document relating to each project, review their investments, monitor ROI, and redeem payments.
Now, we will talk about some of the important features of Accumulate Capital, which are actually listed on their own website.
- Property Development:
Accumulate Capital concentrates on creating profitable and deliverable developments, which would be highly sought after by a lot of prospective tenants, landlords, and investors.
- Investment:
They offer market-leading returns to their investors over a short-term period while offering complete returns with a charge over the asset. Not only that, but they invest in each of their projects with our own funding.
- Marketing:
The dedicated marketing team of Accumulate Capital makes sure that their business gets all the required coverage it deserves, and it is currently appearing in 41 titles including ‘The Sunday Times’ and ‘Financial Times’.
- Land & Site Acquisition:
They only prefer selecting 1 in 20 projects approximately, which are presented to them. After carrying out our conscientious due diligence, they try to choose only the most substantial options.
- Planning:
Before hastily going ahead with particular property development, they need access to the project´s full planning permissions so that they can eliminate any obstacles or unwanted surprises throughout the process of construction.
- Legal:
Their attentive due diligence ensures that the projects they take on are completely in accordance with the law, so all funds invested are protected. They maintain this perfection throughout the completion of the whole process.
- Construction:
Accumulate Capital makes use of a reputable construction team that is known to be efficient and consistently provides them with high-end, quality developments that are relevant to the actual proposed plans.
How they work – Every week, as property developers, Accumulate Capital is offered 10 and 20 projects from various constructors, that are located mostly in the UK but also a number from overseas.
Some of the projects taken up by them are large-scale developments, some are small, but all the selected projects would be in the need of either full financial funding or part funding to complete the capital requirement.
They concentrate on every proposition yet very few go into their appraisal process. Accumulate Capital’s due diligence is robust and extremely rigorous.
Moreover, they put their own money into every property development project they take to market, and like most individual investors, they only look for the best and most secure opportunities available.
Their board gets to have a final say on each of the projects brought to them by their Strategic Assessment Team.
Once a project has been selected, then all the due relevant documents are assembled and loaded into the client portal on the Accumulate website.
An Investment Memorandum would be written and published, but only the registered clients would have access to these details.
Accumulate Capital Limited started out in April 2019, with the initial name EQT Capital. It is entirely owned by Paul Howells.
Howells previously used to be a Partner at a capital management company called Signature Capital.
For some unknown reasons, Howells made an attempt to delete his history with Signature Capital from the Internet, by taking some necessary steps such as having removed his details related to that company from his LinkedIn profile and other similar websites such as Vimeo.
Accumulate Capital was initially incorporated by another person from Signature Capital known as Sarah Schofield, who previously used to be a director of two Signature companies.
Later that, Howells took over the company under his control in July 2019.
Live Projects – Some of the live investment opportunities in Accumulate Capital have been given below. Please note that these are live projects of Accumulate Capital by the time of writing this article.
We are just providing some of the brief details as most of the specific details such as ROI, Term, and Level can only be known upon further inquiry.
- Habrough Hotel – Lincolnshire, UK
Accumulate Capital purchased the Habrough Hotel in December 2020, and the work has already started to revise and modernize all the services, facilities, and interior design to transform the building into a boutique hotel and mini spa with 32 bedrooms.
- Doncaster Enterprise Park – Doncaster
This project is located in the manufacturing and logistics hub of the UK. This Doncaster Enterprise Park is expected to have a GDV of almost £12million and the predicted profits are estimated to be around £1.5million.
With demand for Small and Medium Enterprise starter units hugely exceeding supply, this property development project will definitely meet the requirements in the market.
Doncaster Enterprise Park would be having 66 high-quality A-grade beginner units that offer low-cost options and flexible contracts for businesses that are looking to have access to storage, workspace, and expansion opportunities.
The area´s advantageous location would be highly beneficial for the industrial pods and will be near to five of the UK´s primary motorways, Doncaster Sheffield Airport, the Humber Ports, Doncaster Railway Station, etc.
- Cheyne Walk Residences – Cheyne Walk, Chelsea, London
This project will oversee the creation of 13 ultra-luxury apartments on the widely renowned London streets.
At present, a 5-storey building is in effect consisting of smaller residential flats with a combination of commercial and retail space on the ground floor.
The basement will be extended with a steel frame structure forming the new and spacious apartments, the type of which is known to have a high demand from buyers all over the world trying to have a Chelsea-based address in London.
Completed projects – Having looked at the live projects of Accumulate Capital, we will now have a look at the completed projects and relevant details.
- The Residences, Barbados:
This was an opportunity to invest in a property development that is already 60% completed. The project started in 2007 and got phased out in 2008 during the global economic crash.
Anyhow, with the economy in the ascendency, the Barbadian government onside and end-user sales assured, this project now presents a wonderful opportunity for investors and Accumulate Capital.
- Thane Villas, Islington (2012):
Total Amount Raised – £220,000
Total Profits – £123,000
Investor returns – £92,250
- Sydenham (2014 to 2016):
Total Amount Raised – £1 million
Total Profits – £111,000
Investor returns – £82,140
- Lewis Crescent, Margate (2018):
Total Amount Raised – £4,650,000
Total Profits – £1,350,000
Investor returns – £1,1012,500
- Hammelton Road, Bromley (2017):
Total Amount Raised – £1,400,000
Total Profits – £247,000
Investor returns – £185,250
- Robert Street, Westminster (2015):
Total Amount Raised – £1,500,000
Total Profits – £3,500,000
Investor returns – £2,625,000
- Calvin Road, Spitalfields (2013):
Total Amount Raised – £4,200,000
Total Profits – £1,950,000
Investor returns – £1,462,500
- Hackney Road, Shoreditch (2012):
Total Amount Raised – £1,800,000
Total Profits – £465,000
Investor returns – £348,750
- Riverside Place, Kingston:
Total Profit – £1,975,411
Safety – It has been found out that Accumulate Capital is offering unregulated loan notes in their property development business, which isn’t actually a good thing when considered.
The current rates are only available on providing the contact details, however, according to the testimonials on their public website, it was estimated that previous returns were up to 15% on an annual basis.
Accumulate Capital generally pays introducers up to 24% of investors’ money as commission, based on what we’ve learned from its website.
Based on an update from 22.05.2020, after this review was published on a reputed website, the page which promoted “up to 24% commissions” was removed from Accumulate Capital’s website.
Accumulate Capital states its bonds to be “AAA – Asset Assured Accumulator” and “Unique to the Property Development market”.
While in actual reality, Accumulate Capital’s “Asset Assured Accumulator” is nothing but just a standard loan note with a charge over Accumulate Capital’s assets.
In a page of Accumulate Capital that has been aimed at their introducers (people who get up to 24% commission), Accumulate stated that with all of their investments and property purchases, security is their main priority.
Whilst their funding remains ‘unsecured’ in the capital stack, the remaining funding that has been acquired from private and institutional investors such as high street banks and challenger banks is secured with the help of charges registered with the Land Registry of the UK
Adding to that, they say that they couple that with high levels of ‘contingency buffers’ within the costing of a scheme, and by doing so, Accumulate Capital ensures its investors that their positions are ‘secured’.
Secured lending is not quite risk-free because there is a risk that if the particular underlying borrower defaults, the asset cannot be sold for enough amount to cover the loan.
Investors involved in asset-backed loans are known to lose 100% of their money when it turned out that there were not enough assets left to pay investors after paying the insolvency administrator (who generally requires to be paid first).
We are not saying that it would happen with Accumulate Capital, yet it is better to be alert and stay on guard. What we are trying to do here is to illustrate the risk that is possible in any loan note even when it is a secured loan.
If you want to completely rely on this security, it is very important that they hire a professional due diligence specialist, who will be working for them and not for Accumulate.
By doing so, the specialists can confirm that in the event of a default, the assets owned by Accumulate would be valuable and liquid enough to compensate all of their investors.
What we suggest is that investors should not entirely rely on what Accumulate Capital tells them about their assets.
As it is the case with any specific individual loan note to an unlisted startup company, this investment is only apt for advanced and/or high net worth investors who have a considerable existing portfolio.
The investors should also be willing to risk 100% loss of their invested capital and deal with the consequences.
Any type of investment that offers returns of around 12.5% – 15% per year would definitely be considered a high-risk investment.
Based on the testimonials of Accumulate Capital, they also offer returns equivalent to the above-mentioned returns.
This risk is doubled when an investment is paying extremely high rates of commissions to introducers.
If Accumulate Capital opts to pay 24% of an investor’s money out as commission (to go by the figure on its own website), it has to make a 32% return before its own overheads and costs.
This would be needed just to get the actual amount that was in the first and would need to make more returns before any interest can be paid out to the investor.
Individual securities that aren’t liquid come with a risk of total and permanent loss, Accumulate Capital’s loan notes come with a greater amount of risk compared to a traditional diversified stock market fund.
Not just with Accumulate Capital, but when making a high-risk investment, the individuals making the investment should make sure of the following.
- How would the individual feel if that investment defaulted and that respective individual lost 100% of my invested capital? Would they be able to deal with such a loss and get on with their financial status?
- Are the individuals having a robust and substantial portfolio so that the loss of 100% can be dealt with in a way without having any financial damage.
- Are the individuals conducting due diligence on their investments in order to make sure that asset-backed security is reliable.
When looking to put money in an assured and reliable investment opportunity, individuals should not make an investment in corporate loans that come with a risk of 100% loss.
Our Verdict:
Based on 21 reviews provided on Trustpilot, Accumulate Capital had a 4.3-star rating out of 5 stars. To make it more specific, 76% of the people gave a 5-star rating, 19% of the people gave a 4-star rating, and 5% gave a 1-star rating.
Only one person gave a 1-star rating and that too wasn’t about Accumulate Capital’s property development or investments.
The customer who gave that review was facing difficulties related to emails after unsubscribing from Accumulate Capital.
This is not that much of an issue to be taken into consideration though because there were no negative reviews related to their performance.
There were some good reviews about Accumulate Capital regarding their customer support, excellent investment opportunities, and other aspects.
We will now have a look at some of the pros and cons of high-risk investments as the property development projects of Accumulate Capital happen to be one among them.
Advantages – To begin with, we will see the advantages related to high-risk investments, which are quite a handful.
High-risk investments are the gateway for acquiring huge gains over investments. However, there’s always a risk of losing the entire capital along with the chance of earning larger than usual gains.
These come with limited liabilities. When involved with these types of investment vehicles, an investor is only allowed to invest with limited liability, which means the amount invested initially would be the maximum that can be lost during an event of liquidation (if it were ever to occur).
Easy buying and selling process. Typically, an investor has the option to sell it any time they want or invest more in that very specific financial instrument.
Investors could earn capital gains by getting paid out dividends. This means investors could benefit from these types of investments in two ways in high-risk investments.
Disadvantages – Now, we will discuss some of the major drawbacks of making an investment in high-risk investments. As much as there is an option of getting huge returns, there is also a possibility of having huge risks.
One of the major drawbacks of high-risk investments is the risk factor involved. The returns can be volatile and there might even be a possibility of fluctuations.
If an investor makes an investment in high-risk investments and then that respective company liquidates, the investor won’t get paid until creditors, employees, suppliers, and the tax administrators get paid first.
You can try and pull out your funds just in time but because there won’t always be a consistent behavior, and predicting their performance is difficult.
When a person makes an investment in a high-risk investment vehicle, the success of their investments depends on the managing company and its practices and strategies.
Since an investor could not just walk into their offices and ask for a copy of their business plans and strategies, they would have to research them in other possible ways.
Not only that but hiring a specialist who has a substantial amount of expertise is also necessary for knowing about the failproof strategies while investing in such types of investment opportunities.
Therefore, hiring a specialist would cost some more money, and investors should find an expert who will work for them instead of the company.
Final word:
Instead of opting for a single investment vehicle such as this, it is better to create a diversified portfolio that will enable you to gain maximum returns on all of your assets.
Accumulate Capital has its own set of pros and cons as we have discussed, but one must not forget that this is a high-risk investment and we highly suggest that you proceed with caution while investing.
You should also try to design that portfolio in such a way that loss of capital in one of the assets should not affect your overall returns.
All of this process is easy said than done, which means that you would be to put a lot of time and effort into this (especially if you are a beginner-level investor).
Therefore, you would need the help of an expert who is experienced in this particular field and will be able to help with all your financial needs related to investments and wealth management.
We assure you that we can be able to provide you some of the best-in-class financial solutions, which will not help you in growing your financial career but also help you in getting maximized fixed returns by paying a moderate amount every month.
That being said, we hope that you were able to find all the relevant information in this article, for which you have been searching. In order to get access to the expert financial solutions offered by us, click here.
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Further Reading
The article below discussed :
- Why is it important for most investors to hold a diversified portfolio? Or is the question wrong in itself? Perhaps diversification isn’t the be all and end all?
- Bill Gates didn’t complete his college degree but ended up successful. Is there a broader meaning here?
- Considering most wealthy people are older, is hard work overrated?
- is being a movie star really glamorous?
- Why do some successful people imply that making money is easy?
To read more click below.
