Governance and reports

The 8 keys to Bluebird governance

1. Fiduciary arrangements  

Investor funds never reside with the Borrower or Bluebirders, they are held by the Attorney.

The investor places the required funds for their chosen Bluebird into the Attorney's trust account.  The Attorney only releases the funds in exchange for security over the property.

2. Investor agreement         

Bluebirders engages one of the best real estate attorneys in Nevada and one of the best mortgage solicitors in Australia to prepare the contracts. The Investor receives first mortgage lien over the property.

3. Security over property    

Mandatory requirement to obtain security over the property in exchange for funds.

4. Refresh costs       

The payment of Refresh costs is only upon receipt of correctly rendered invoices and confirmation that the work was completed to standard.

5. Capital and return            

Paid to the Investor at the completion of a Bluebird cycle.  There is a clean and transparent separation of funds from one Bluebird to another.
Investors may choose to receive their funds; hold their funds in the Attorney's trust account for short durations between Bluebird cycles; or hold their funds in their OFX account for up to 90 days before repeating a Bluebird cycle.

6. Profit, loss and rental      

The Investor and Borrower share the profit. Throughout the system’s decade of operation every Refresh has returned a profit, with the median Internal Rate of Return of 22%.  That’s fantastic, but we do need to cater for the potential of a loss, as all investments carry risk.  In the event of a loss, the Borrower still needs to repay the full loan amount to the Investor.

Where the Bluebird is a rental property, only the Investor receives the net rental income after performance bonus – the Borrower is not entitled to any of the net rental.

7. Analytics  

We use the experience of the Borrower, who has bought and sold thousands of properties in the area. The Borrower also operates the proven decade-old system that is now the Bluebirders model.  Analytics is also a core function of Bluebirders and is used to improve the opportunities that are targeted, selected, bought, refreshed and sold.

8. Refresh information        

The Refresh work is tracked against budget and is available for the Investor to view.