BHA are experts in the alternative investment sector. You could say that the investments we specialise in are ones where the business deals direct with the investor cutting out the middle man, the banks. These investments used to be only available to large funds and ultra rich investors with the minimum investment required running into the tens of millions. The benefits to both parties are the businesses get cheaper loans with usually less red tape and the investors get higher returns than normal.
With the advent of the internet and then the financial crash of 2008 this sector has been growing steadily with more investments becoming available at far more moderate entry levels. The advent of crowd funding marks the ultimate in alternative investing where minimum investment levels are in the tens of dollars and investors number in the thousands.
The type of investments we deal in usually start around the £30,000 mark and are in the green, lifestyle or high yield categories. Our ideal investments are the ones that benefit both the investor and society in general. We continually look for good alternative investments that meet certain criteria such as track record of the developer, the business model, the target market etc. In other words is it a good investment opportunity. If we believe an investment meets these criteria we will only then market them. However it is always recommended that investors do their own due dilligence on all investments they are interested in and get independant financial advice before making any commitments.
Understanding the underlying fundamentals of what the investment actually does, its target market and unique selling points.
Establish what is the realistic current market value of the asset.
Assess how much realistic profit the property / business will deliver over the investment period.
How much borrowing does the developer / business have, is it good borrowing, what has been spent on business assets v directors salaries.
What does the balance sheet look like.
What is the management team like do they have a good track record.
It is also good practice as an investor to make sure you diversify your investments to avoid bubbles.
Try to avoid borrowing to invest,though current low interest rates can make this enticing.
Don't make investment decisions based on emotions rather use hard facts.