Successful strategies for satisfied clients
Building ethical wealth for others lies at the core of my efforts and creating quality homes for quality tenants is the focus of my business. Below is a selection of recent investment projects that have produced fantastic returns for my clients and superior homes for their tenants.
To find out what I could do for you and how I will work alongside you to make your money work harder and smarter for your future, simply get in touch.
Case Study 1:
We invest in the North of England, focussing on the “Northern Powerhouse” areas. Currently these areas provide opportunity for improved cash flow and lower levels of investment to create a return.
We had an investor who was looking for a “toe in the water” investment, with limited capital. On this basis, a simple buy-to-let opportunity provided the perfect vehicle. The property sourced was a 2 bedroomed house in a popular area of Leeds for rentals. The figures were as follows:
Purchase Price: £70,000 (£15,000 below similar properties in the area)
Fees and Costs £ 6,300 (including stamp duty, sourcing and decorating)
TOTAL INVESTED £76,300
Rental Income £6,360 per annum (gross)
Costs £1,440 per annum (Insurance, agents fees)
NET INCOME £4,919 per annum
This equates to 6.4% Return on Investment, we paid the investor 6% fixed rate for the period this money was tied up in this property. At 6 months, we re-financed the property based on a £90,000 valuation, and 80% Loan to Value ratio, producing £72,000 of funds, which we paid back to the investor.
We then offered 2 options:
We refund the £4,300 to clear the loan, or
The investor leaves the £4,300 with us and we split the net monthly profit on a 50:50 basis.
The investor opted for option 2, and received £1,000 per annum (after mortgage payments), which represents 23% Return on Capital Employed.
Case Study 2:
In this case we had an investor interested in creating higher returns, and to enable this one of our associates found a suitable property, a 4 bedroomed house in Wakefield that converted in to a 5 bedroomed HMO. The investment included purchase and conversion of the property
Purchase Price: £140,000
Conversion Costs £ 45,000
Fees and Costs £ 18,000
Rental Income £26,000 per annum (gross)
Costs £ 6,500 per annum (Insurance, agents fees, other costs)
NET INCOME £19,500 per annum
In this example we agreed an interest rate of 8% with the investor while the funds were tied up in the property. At 6 months, we re-financed the property based on a £260,000 valuation, and 75% Loan to Value ratio, producing £195,000 of funds, which we paid back to the investor, leaving £8,000 outstanding
We then offered 2 options:
We refund the £8,000 to clear the loan, or
The investor leaves the £8,000 with us and we split the net monthly profit on a 50:50 basis.
The investor opted for option 2, and received £4,875 per annum (after mortgage payments), which represents 61% Return on Capital Employed.