The way to get that confidence is to have a clear process for assessing a deal. Follow the process, and if a property makes it through your analysis still looking good, you can move ahead without any niggling concerns to hold you back.
I’ll share my process for assessing an opportunity – which involves answering these questions:
- What’s it worth?
- What will it rent for?
- Does it make sense for me?
- Are there any hidden issues?
In every investment there is an element of risk, be it Commodities, Stocks & Shares and Property Investments or running a Business. No investment comes without risks, however, we limit the following novice investor mistakes :
- Buying in the wrong area,
- Unforeseen circumstances in Properties
- Purchasing the wrong property
- Failing to secure affordable finance
- Letting the property
- High levels of voids
Our aim is to help you build a profitable Buy to Let business.
What we do for you…
We realise that buying property “down south” requires you to have a large deposit and delays substantially your entry into the property investment sector, That’s why investing in the North East enables you to start for a much smaller initial down-payment.
At Kingdom Portfolio Building, we help our clients by:
1. Designing an Asset Acquisition Plan according to personal goals and dreams.
Using our asset acquisition tool we design your investment game plan suitable to your goals, dreams and access to finance.
2. Source the properties that meet your desired financial goals
The support we offer goes far beyond just picking out a property online or an estate agent . We source affordable properties in locations at a price that maximizes the return on your hard earned cash.
Our sourcing process starts with local market analysis, future market needs and viability of location; both short term and long term eg hospital, employers, transport links, proximity to town amenities, schools etc.
Deal analysis – crunching the numbers both for Return on Investment & Gross Yield
Our sourcing methods vary from Estates Agents, Power Team, local Deal Sources, Auction Houses and Right Move / Zoopla searches.
3 Financing Property Acquisition
Using your current savings as deposits you will leverage your money by getting repayment mortgages typically 65% – 75% LTV fixed 3 – 5 year mortgages based on personal goals
Access to BTL Mortgage Brokers ( our Power Team) Access to Bridging Finance to source the best product that match your financial objectives.
4. We refurbish your property to the required legal and letting standard
This will ensure the property qualifies for a mortgage application with many lenders and lets out quickly.
Access to local Power Team ( builders, plumber, electrician, decorators, joiners and tilers )
Project Managing the refurbishment (Draw up Scope of Work, Draw up Schedule of Works Tender Works to tried & tested contractors)
Compliance issue gas & electric certificates, Smoke Alarms Dress Property Ready to Rent
5. Introduce you to our Lettings and Management Power Team in the local area where you purchase property.
Hand Over to Local lettings
6. Company Set Up, Tax Planning.
We educate you on the most efficient tax structure that best suits your personal circumstances and enables you to leverage your existing portfolio to finance future investments
Property Portfolio Example
3 Bed Terrace
Negotiated Price £57,000
Legals, SDLTA etc. £ 3,000
Refurbishment spend. £ 5,000
Bridging cost. £ 2,500
Total Ready to Rent spend. £ 67,500
Refinance 75% on £ 65k. £ 48,750
Cash in the deal. £ 18,750
Net rental ( £ 495 pm ) £ 3,500
Return on Cash Invested 18.6% Vs 0.5% or 0.75% ISA
IF YOU HAD £65,000 YOU COULD EASILY END UP WITH 3 PROPERTIES.