"A Perceptive Approach" The Provo Group, Inc ("TPG") was founded in 1985 to provide an alternative for the sophisticated investor -- an alternative to the syndication fervor of the late 70's and early 80's. Unlike syndicators and brokers, TPG is paid for performance, not promotion.
TPG emphasizes client service, not brokerage and sales. Its staff is dedicated solely to creating value in your properties -- without the conflicts of interest inherent in other real estate organizations.
Too often, the attention of an investor in a limited partnership is not focused on the property development and management skills of its sponsors. Passive investors lose sight of the fact that real estate is a business, not merely a tax-oriented vehicle or inflation hedge.
Most real estate deals have been and will continue to be generated by those in the pursuit of commissions.
A syndicator's motivations are often in direct contrast to the client's profit requirements in real estate. Correspondingly, a broker representing both buyer and seller, and anxious to close the transaction, has an interest beyond client representation.
Syndicators and brokers take their money up front, eliminating their incentive to monitor the long term progress of a property on behalf of the investor.
TPG's payment structure is just the opposite, because its incentive is long-term client representation. Advisory services are billed currently, but acquisition and development profits are earned after the deal succeeds -- after investors have received their total investment back, plus a market rate of return.
TPG assumes the client engagements under these terms because it is confident in its capabilities. The firm understands the properties acquired, developed or managed on behalf of its clients. TPG is therefore quite selective -- and will not accept projects without potential.
Obviously, TPG's emphasis is not on being in the middle of transactions to earn a commission. Rather, as the professional staff works to represent its clients, the goal is to develop a long-term advisory relationship -- exploring and enhancing your best opportunities and interest in real estate.
Knowledge and Experience for Intelligent Acquisitions Real estate advisory is no less demanding a professional discipline than tax or legal counseling. It requires a company with expert capabilities in several fields to give investors the straight, no frills advice needed in real estate.
TPG is a professional organization which analyzes the full scope of its clients' needs. What are the client's short-term and long-term business objectives? What type of real estate and relative risks are consistent with these objectives? What rate of return should the investor demand. Are there unique liquidity requirements?
Answers to these and many other questions help TPG find the appropriate property for an investor. This analytical approach means that, instead of flooding you with a wide array of possibilities, TPG can sift through available opportunities and present its clients with only the most viable transactions consistent with their objectives.
Is Real Estate Overbuilt? Working effectively as your private real estate group, TPG's role is clearly not to peddle property to you. In fact, you will be advised against the wrong transaction -- TPG's income is not derived from closing the deal.
TPG targets specific kinds of properties and an appropriate return for the risks assumed for each client. TPG's motivation is properly guided by performance because the company's acquisition and development profits depend on the ultimate success of the project selected.
Real estate is a business first and foremost, not a passive investment. As such, it experiences business cycles. Timing your acquisitions and dispositions to these cycles is vital to real estate profitability.
In either bullish or bearish cycles, opportunities will exist. No matter what the market conditions are today or tomorrow, real estate isn't going away. There will be profitable investments niches. However, in the absence of inflation, appreciation will only be achieved through intensive management , astute market analysis, and creative transaction structures.
Those principles guide TPG in tracking down excellent acquisitions and adding value to them. Conversely, TPG is conscious of those windows of opportunity that offer premium prices for the disposition of property.
Creating Value and Realizing Profit While TPG provides leasing and property management as an accommodation to clients, the primary strength of the firm is asset management.
TPG is able to foresee and avoid many problems because it looks beyond the scope of ordinary leasing and management companies. TPG does not just collect rent and pay bills; the firm represents its clients and their properties strategically. Its horizons extend far beyond next month's mortgage payment.
TPG is an expert in overseeing lease negotiations, not as a broker, but as your representative. The firm goes to great lengths to research and hire the right leasing and management professionals for you.
TPG will handle all phases of planning and zoning. Our firm will negotiate and work directly with architects, government agencies and clients. TPG can present the client a turn-key project with the efficiency and effectiveness necessary to enhance a project's profit potential.
Your Private Real Estate Company TPG will provide professional real estate services for an hourly fee, a percentage fee or other reasonable arrangements. The company's services include a broad spectrum of capabilities:
- Direct Acquisition
- Acquisition Advisory
- Acquisition Due Diligence
- Development
- Development Management and Advisory
- Asset Management
By design, TPG works for a limited, select clientele, including banks, pension funds and wealthy individuals. The company's shareholders, directors and officers are uniquely qualified to serve its clients.
TPG's shareholders are a diverse group of highly successful entrepreneurs. They include a major mortgage banker, a lawyer specializing in real estate tax, a national shopping center developer, two investment bankers, the president of a national construction and fixture company, as well as owners of other multi-million dollar privately held corporations.
The board of directors was selected from the company's shareholders.
--------------------------------------------Published: September 1987
