Putting property investments to the test

Here at Propio, each property deal for our investors has to go through a rigorous process of diligence and assessment before being offered on our platform. We spend time evaluating the suitability and associated risks, ensuring only the best is available for our investor community. But don’t just take our word for it, we’ve laid out this process below to give you a behind the scenes look at what it takes for an investment to get the Propio seal of approval.

We put all our investment opportunities through three layers of tests and scrutiny to ensure that they are right for our platform.

1. Investment Strategy 

All our deal choices are driven by an overarching strategy based on our experience in the property sector and our analysis of current trends – meaning we know what to look for when it comes to property investments. This strategy is constantly evolving, allowing us to target a broad range of geographic locations and asset classes for our investors.

2. Provider Due Diligence

Once we’re happy that the investment is a strategic fit, we assess all third-party providers based on previous track record and suitability. We take a thorough look at the background of all our providers ensuring they have the right experience and financial record to deliver the project advertised. This process ensures that we only work with the highest quality property professionals in the industry.

3. Investment Assessment 

Every deal that makes it to this stage is subject to a detailed assessment which looks at potential macroeconomic and local property market characteristics as well as the complexity of the investment from a funding and execution perspective. At the core of this process is Prop’s proprietary risk model – a 52-criteria analysis tool which allows us to highlight risks relating to the market, the deal itself and the provider. Whilst this level of detail may seem like a lot of work, it helps us to ensure risk is minimised and a fair level of return is provided for our investors. For us, the only downside to this conscientious approach is that many of the deals we assess never actually make it to our site.

Whilst we pride ourselves on the care that goes into our investment selection process, our investors should always be aware that risk can never completely be removed from a deal. Property investing is inherently illiquid and some real estate risks can never be entirely mitigated. We would always strongly advise our investors to assess each deal themselves using the comprehensive documentation that we provide in the deal page and use that to decide whether the deal is suitable for them.

For more detailed information on our diligence processes, please check out our how we assess risks page.