Case Studies

Case Study 1.

Scott wanted a traditional buy-to-let investment property, with a good return on his investment. He had £70,000 in savings and wanted to invest in something that had long term capital growth, that he could potentially pass onto his kids.

He was seeking a 3 bed house in Basildon, Essex which he could let to a single family.

This was Scott’s first investment property, so we made sure that we were able to talk through his options and various exit strategies with him. We also recommended our mortgage broker and building team to assist with the finances and the refurbishment.

Here are the top-line figures for the off-market BMV property that we presented to Scott, which he went ahead and purchased:

Purchase price: £220,000
Mortgage: £481.25 per month
Rental income: £1,400 per month
Management & Maintenance: £280 per month
Refurb costs: £9,780
Return on Investment: 28%

We understand investing for the first time, can feel daunting, so we are here to talk through figures and allow you to have all the tools you need to do your own due diligence.

Case Study 2.

Lori wanted higher returns than a standard buy-to-let, so after a discussion with us and having a look at what deals we were working on, she decided that she wanted a HMO (House of Multiple Occupancy).

We had a 6 bed in Borehamwood, Hertfordshire which was in good condition, with rooms exceeding minimum sizes; however there were various bits, such as fire doors, etc which was needed to bring the property to HMO compliant regulations.

Lori had a team of people who were ready to get to work, so once we bought her the deal and she finished her due diligence on it, she was ready to go ahead.

Here are the top-line figures, which we presented to Lori:

Purchase price: £690,900
Mortgage: £1,295 per month
Rental income: £4,860 per month
HMO license: £608
HMO conversion: £12,000
Yield: 8.5%

Case Study 3.

Derrick was on a hunt for his next development as him and his joint venture partner had just sold the last units of their previous one. Derrick was open to developments or commercial conversions, with or without planning permission, but ideally wanted it to be in Surrey as he lives close-by.

We presented Derrick with an off-market opportunity to purchase land in Surrey, that had granted planning permission for the demolition of the current warehouse and the erection of a residential block, consisting of 4x 3 bedroom maisonettes, 2x 2 bedroom maisonettes and 3x 3 bedroom flats, with associated amenity space, parking and landscaping.

We also provided him with market comparables, architect drawings and plans from the local council, so he had all the tools he needed, to conduct his own due diligence. Once this had been done, he went ahead with the purchase:

Purchase price: £920,000
Build cost: £1,000,000
Realistic GDV: £2,750,000 – £3,000,000

Case Study 4.

Aaron already had a small property portfolio of buy-to-lets that he had been building up over the past 9 years, and was nicely generating a steady income. For his next project, he wanted less upfront costs and didn’t want the stress of buying a property, but he had more time on his hands, so felt that he had the opportunity to be hands on. After talking through the strategies and how we could help him, he decided he wanted to run his first Serviced Accommodation unit.

We had an off-market rental in Milton Keynes and the landlord agreed that it could be used as a serviced accommodation unit, for a term of 3 years.

We went through the potential costings with Aaron, as whilst there are less outgoings than a buy-to-let; organisation, staging and set-up are all key factors.

The key features we presented to Aaron, for the 3 bed apartment which he proceeded with, were as follows:

Rent (to landlord): £600 per month
Rate: £125 per night
Toiletry packs: £4 each
Cleaners cost per change: £17
Insurance: £40 per month
Utilities: £300 per month
Breakeven point: 40% occupancy

Case Study 5.

Alesandro was looking for a project for him and his family to work on. He wanted something in London, as his current portfolio consisted of high-end luxury apartments and homes around the West and Central London areas.

Alesandro wanted a hotel or HMO, which he could modernise and add a concierge desk, if this wasn’t already fitted.

We presented Alesandro with a below market value 30 bed boutique hotel in West London, who proceeded with the purchase after conducting his own due diligence:

Purchase price: £11,000,000
9,178 Sq Ft
HMO Licensed
GDV: £14,500,000

Whilst we do our research prior to presenting deals to our investors, we always recommend that parties go away and conduct their own due diligence.