Be a Partner for Profit

Would you like to make a healthy profit on your capital in a short period of time?

The North of England has another opportunity for investment which in our opinion is being overlooked. Historically, great capital gain has been made by buying investment property and selling at a later stage for considerably more than was paid for it.

As you have already read, we specialise in sourcing investment property for a clients specific needs, and one of the main areas is relatively low cost property that has a decent rental return. However, there are properties which fall outside of the criteria set for buy-to-let property. This is specifically because of two reasons:

If purchased by cash, the yield may not be attractive. Also, lenders will not offer a buy to let mortgage for the investment property because the rental income falls outside of their main criteria of the rent having to be 120%-150% of the repayment. The problem is, that property in this area that costs £50000 may attract a rent of £80-£85 per week, yet a property that costs £75000 may only obtain a rental income of £90 per week. In terms of yield, this would mean the £50k investment property returns around 9%. The £75k property returns around 6%. If the yield does not work, there is still a great opportunity for profit from these properties by selling to the owner-occupier market.

In the past, if an investment property sourced to us does not look like it has a reasonable yield initially, we have rejected it. Not any longer.

An area which has not been maximised for potential by investors, and possibly overlooked because of the buy-to-let industry, is the first time buyers market. There is a shortage of good affordable stock. A lot of affordable property is in a poor condition, and although mortgage payments are realistic, the buyer may not have the funds to improve to the standard expected by an owner occupier.

How you can be a partner for profit with the 1 Stop Property Shop

We source a property that is available at considerably less than the potential market value. This could be because it needs extensive refurbishment, or is "distressed" property. A cash offer in conjunction with these, and many other possible reasons for a vendor to sell at comparatively reduced prices, enable us to procure the property for a bargain price.

Once the offer is accepted, we underpin our decision to buy with a valuation report from a R.I.C.S Surveyor who is on the panel of the major lenders. This indicates the existing condition and worth of the property, and details the work required to maximise its market value.

The normal purchase process ensues, with you buying directly from the seller (not us) at the agreed price. The property will belong to you after purchase. Before you proceed, due diligence will have been carried out, and your solicitor will ensure a safe purchase. 1 Stop Property Shop will also have agreed a contract with you for our responsibilities (see below)

Please note that all projected costs will be agreed and strictly documented pre-purchase.

Example of Partners for Profit potential

Property cost	£50000	We only acquire property that is structurally sound but needs some degree of refurbishment.
Refurb cost	£8000	Possibly incorporating new kitchen, bathroom, internal doors, laminate flooring in living room/dining room etc. All refurbishment is agreed in advance and documented. Any expense has to be authorised by you, the property owner.
Resale price	£72000	Pre-determined by survey/valuation report
Your profit (gross)	£14000	Yielding 24.13% on invested capital
Estimated time for turnaround of property from purchase by investor to sale to 1st time buyer would be 3 to 4 months. This could mean a return of around 60% on your capital if 3 properties are bought and sold in one year.
Further costs would include: 1 Stop Property Shop fees Estate Agent & legal fees for selling

Our fees are based on an agreed percentage of the profit margin, and are only paid to us upon sale of the fully refurbished property. There may be opportunites where the return is greater than above, but we have already easily achieved these margins recently. Your gross profit in the example above is over 24% of the capital employed (the purchase price plus the refurbishment costs.) in a relatively short time.

You would authorise a contract agreeing to the payment of our fees and in return we would sign the document and agree to act on your behalf for the duration of the project. . Our involvement would include:-

Sourcing the property and negotiating purchase price in the first instance.
Organising the refurbishment work and supervising until complete to an acceptable standard.
Finding a buyer or engaging the services of estate agent for resale when refurb is complete.
Updating you, the owner, on an agreed regular basis throughout progress of the project

The most common question we are asked about the Partners for Profit scheme is "why don't you just do it yourself instead of involving other people and their capital?"

SImple. We do it ourselves but we don't have the capital or the finance facility to buy every investment property that comes our way! It makes sense to utilise our experience and abilities in conjunction with investors and their resources.
Then everyone benefits.