Once we’ve found the investment that fits your requirements, PSP will proceed to take care of every step of the process, overseeing the purchase procedure, project managing the refurbishments, and letting out the property, to provide you with a truly hassle-free turn-key investment.
Most of us have heard that property is a good investment right? Well, it is the only proven investment that (although can sometimes fluctuate in the short term) over the long term is almost always guaranteed to increase in value.
Coupling this with a positive cash flow per month, property really can indeed be a superb vehicle to secure yours and the future of your loved ones.
That said one bad investment can stop you before you’ve started!
Getting your due diligence and numbers wrong could cost you £1000’s and leave you having to sell on a poor performing property at loss just to end the pain.
Our dedicated team have years of experience, market knowledge, and proven results in providing investments generating high Returns on Investment (ROI)
Speak to any experienced property investor and they will tell you that the holy grail of investments is to buy at 25% BMV (Below Market Value). Then refinance at the true market value using the standard lending ratio of 75% LTV (Loan to Value) to draw all of your original capital back out to go again.
This indeed is possible and we have done this numerous times. However, finding motivated sellers willing to sell their properties at such a reduced price isn’t always possible.
Therefore how you consistently generate a high ROI is to use the BRRR model.
For the ease of making the numbers simple.
If you can lock in between 7.5-12.5% BMV at the point of purchase then add 7.5-12.5% to the end value through refurbishment you have your 25%. Then as before you refinance drawing most of your original capital out, rent the property generating positive monthly cash flow, and go again.
Buy and hold is best for creating legacy wealth but flipping (selling) a few along the way can be a good strategy also. It can free up more capital for other projects as you grow.
Sounds easy, and it can be: provided you know what you’re doing.
With great potential for success come great risks for failure. Having an experienced property sourcer on board will reduce the chance that you will fail, and increase your likelihood for success.
Why should I invest in property?
Investing in assets not liabilities is the first and golden rule of being financially intelligent. Spending your earned income on things that will put money back in your pocket (not take it out) without you needing to be there should be everyone’s financial goal. Without assets, you’ll always be exchanging your time for money.
Investing is about building an asset base steadily and properly; investing your time and money at the start so you can reap the rewards in the future through a continuous income stream. Property is the perfect vehicle to achieve this.
You are in charge and can choose:
You can also choose how hands-on or hands-off you want to be. Some investors choose to be very hands-on and manage their portfolio themselves while many others have full-time jobs and trust investment companies to manage their investment from sourcing the right property to finding the right tenants and supervising ongoing maintenance and repairs.
Investing in property means that you can secure leverage, a loan or mortgage in order to maximise your own investment. You are unlikely to be able to secure a loan from a bank in order to increase the amount of money you have to invest in shares.
The return you receive from property investment is split into capital appreciation and cash flow.
Capital appreciation is the increase in value of the property itself and cash flow is the profit you make each month from rent. If you are investing wisely, as well as improving the value of the property over time, you should also receive a positive monthly income. Even taking into account void periods, this income is steadier than other forms of investment.
If you purchase property at below the market value you can, in many cases, instantly add equity to your investment simply by buying cheap.
Unlike other investment vehicles, by investing money into your property you can increase the value of the investment significantly. If you’re creative and spend wisely you could add considerably more than you spend.
Investing in property is a way of hedging against inflation. With high inflation, your rental income and property value would increase significantly. As the cost of living goes up, so will your cash flow.
Pav Sharma
Derbyshire
Oli Saul
Lancashire
