ethical & profitable investment opportunity

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Ethical & Profitable Investment Opportunity Property Trading Business Proposal

TRANSCRIPT

Page 1: Ethical & profitable investment opportunity

Ethical & Profitable Investment Opportunity

Property Trading Business Proposal

Page 2: Ethical & profitable investment opportunity

Background• Bought my first property in early 2003, 3 bed semi for £64,000• In 2013, same property is valued at £120,000 with a mortgage of £22,000• Bought 2 additional properties in 2008 using 25-30% deposits!• Financed by fee earned from freelance project management• Quickly ran out of seed-capital so started sourcing properties for investors• Involved in a total of 12 property transactions to date (part time)• Built up excellent relationships with agents over 5 years. Source of deals!

Lessons Learnt• A strong desire of home ownership in Britain. Rent is lost money.• First time buyer properties go up in value over long term (12-15 years)• Distressed properties can be purchased at huge discounts often 25-30% off

their true RICS valuations. Cash is King! Even better discounts available.• Property is a seasonable business with busiest periods from Easter to July.

Page 3: Ethical & profitable investment opportunity

The OpportunityAcquisition Strategy• Purchase properties with cash at 30-35% discount to valuation• Offered 2-3 hugely discounted properties that require a cash purchaser weekly• Acquire properties with no kitchen or bathrooms (cash only)• Add value: tidy up clear the property of rubbish to showcase its potential• Make property mortgageable: add 2nd hand sink/cooker a few old units

Exit Strategy• List at most prominent local auction at a guide price of original purchase price!• Competitor and less sophisticated investors buy often over the guide price• Target to make between at least £10,000 per property every 3-4 months• Leave a some profit in the deal for the next buyer making it a true ‘win win’• Auction activity picking up as a result of lending conditions & economy

Page 4: Ethical & profitable investment opportunity

An Illustration….• Type: 2 bed room investment property• Purchase Price: £45,000• Legal fees: £1,500 (includes preparing an

Auction Pack with Searches)

• Guide Price: £45,000 (similar properties sold in auction in excess of £55,000+)

• Achieved Price: £57,500 minus fees• Fees: £2,000 Auctioneer plus conveyancing fees

of £500

• Profit: £10,000 after all costs.

Page 5: Ethical & profitable investment opportunity

Investment Proposal• Angel investment of up to £100,000 on a draw-down basis, not upfront• Property remains in Angel Investor’s name with a contract for profit drawn• Angel investor receives 60% of all profits for first five deals then share

reduces to 49% of all profits going forward on a permanent basis • Angel investor is given a weekly update on progress of each trade• Totally hands-off investment and all works is done for Angel Investor

• Scalable model – One could buy 2-3 properties per month• Economies of Scale – Purchasing & trading more properties results in greater

discounts being achieved• Leverage – Leveraging our expertise/contacts to make a profit• Security – Property in name of Angel Investor therefore, peace of mind!

Page 6: Ethical & profitable investment opportunity

Investment Proposal• Angel investment of up to £100,000 on a draw-down

basis, not upfront• Property remains in Angel Investor’s name with a

contract for profit drawn• Angel investor receives 60% of all profits for first five

deals then share reduces to 49% of all profits going forward on a permanent basis

• Angel investor is given a weekly update on progress of each trade

• Totally hands-off investment and all works is done for Angel Investor

Page 7: Ethical & profitable investment opportunity

Reasons to Invest• Tried and tested model by other investors e.g. National Home Buyers• Offer a much better, honest and transparent to distressed home owners e.g.

no upfront survey fees or further reduction in price just before completion!• Scalable model – One could buy 2-3 properties per month or more…• Economies of Scale – Purchasing & trading more properties results in greater

discounts being achieved• Leverage – Leveraging our expertise/contacts to make a profit• Security – Property in name of Angel Investor therefore, peace of mind!• Property turning around the corner – low interest rates and First Time Buyers• Bricks and mortar cash rich, less sophisticated investors’ appetite to buying• Model can work equally well unsold auction properties to open market….• Investment in individual leading to other opportunities ‘forgotten properties’• Start with just one property and see how it goes…

Page 8: Ethical & profitable investment opportunity

Realistic Profit Projections• Year 1: £50,000• Year 2: £100,000• Year 3: £250,000

• Vision is to become largest property trading company in the UK• To give money, help and time to others less fortunate than us.

Page 9: Ethical & profitable investment opportunity

Thank you for listening.

Questions?