It is the end of the year and going back over the files and learning what we did right and what we did wrong. In this post want to share and example of fantastic buy we made in Eccles which is a part of Salford in Manchester. This is not a normal deal . On most properties depending on how long we keep them profits range from £ 20,000 to £35,000.
Myself and my Joint Venture partners made jointly £47,081.81 in only several months.
Prices are shifting rapidly and as myself and my Joint venture partners are cash buyers we can offer a vendor a quick sale. This property on Watson street needed full refurb in order to make modern, safe and desirable. At this same time myself and my Joint venture partners were working on 4 Hmo properties at the same time.
Completion statement on Purchase
Total Cost and time of Refurbishment
Rental
This property was rented to a corporate tenant on a 5 year guaranteed lease. There were no voids…no management..plus the corporate tenant covered all maintenance.
Sold
We have sold properties like this to London investors, Offshore investors plus a crowd funding site at approx a net return of 9%. Plus we have Joint ventured with liquid investors. The investors own the property, receive the quote from our builders, put in escrow and released based on work completed. We require a RX1 on the property and we split the deal 50/50 both on rents & sale. The investor is safe with a BMV property and we are safe that the property is not sold out underneath us.
Completion Statement
The key to successful investments in HMOs various key issues are needed. My Joint venture partners grew up in Manchester and own themselves many properties. They know good streets…good areas and more importantly bad areas. One of the brothers lives on computer connected to Rightmove and many other property sites. One of his greatest thrills in life( besides his children) are finding GREAT deals in Manchester. More so, need a good architect, good & honest builders plus we have a fantastic solicitor. She is hard working and dedicated. Together this is what makes a team. Currently we have 13 HMOs that some we keep…some we sell. Plus 3 at our solicitors to convey. We are now starting to build blocks of affordable flats. We are trying to stay recession proof. Interest rates will rise and we look to collect rents & create value.
Any questions or thoughts…Just let me know…
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