This 2 bedroom flat was bought with none of our own money … So just how did we do it ?
This flat was for sale from a seller, motivated and looking for a quick sale -we agreed a below market price that the seller was happy to sell at.
We are extremely ethical and moral so it has to be a transaction that both parties are happy with, we do our sums and don’t move higher than that, this is a business transaction and not a heart one.
So here’s the way
We released equity from an existing property for the deposit, then raise in mortgage from the property we released from Will be covered by the rental income for that property. The works were carried out.
We have direct relationships and accounts with retailers and hardware, building organisations so make all purchases direct (we’ve done some canny negotiations buying quality, high end materials for exceptional rates and prices – this is the advantage of having a combine 40 years business experience. All materials are purchased on 30 or 60 day accounts and paid for with an 15 months interest free credit card, affectionately known as an investment card.
The building team
We have developed productive working relationships with our build team, they know that we are solid and will work closely with them supporting their growth and business, rates are agreed and incentives are offered in the event that the project finished ahead of schedule, any surplus budget will be split.
Our model is a cookie cutter so 6 projects in we all know what to expect from each other and we have an open flow of communication and expectation, these are fluidly managed and we are all singing off the same hymn sheet (very important) Builders are paid via the 15 months free investment card.
The really clever bit.
This transaction took an age through Conveyancing so we offered to rent the property on an AST for a nominal amount to cover the expenses for the vendor (due to financial challenges) this allowed us access to carry out refurb works. As the contract was a corporate let we were also permitted to rent out the property once we had completed works meaning that we were now seeking tenants and when let at a stage where we are now making profit (which we split with the vendor to support with those financial challenges – win, win and don’t forget it has to be ethical) So, we have refurbed and now had 3 rooms let out with a hearty return. We have added approx 15k in value We bought the property £35k below market value In 6 months time we will start the refinance process and pull all of the money out of the project pay off the investment card balance and recycle the rest to purchase another property.
Summed up
The deposit amount came from raising finance via another property Works and materials were carried out using a interest free investment card Property is fully tenanted by the completion date, no void period at all – we even had a waiting list! Converted from a 2 bed flat to a 3 bed mini hotel.
The catch?
None! Although an education background in property is advisable, an appetite for risk is a necessity and a full action mindset with a no barrier approach is crucial.
What’s stopping you – nothing.
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