Portfolio Builder Service
Portfolio Building Service
RJM Properties are able to help you build your own buy-to-let property portfolio. We can source suitable Investment Properties in areas of high capital growth, producing excellent rental yields. These are generally 2-3 bed-terraced houses in east Lancashire, let to DSS tenants.
From an initial cash investment of as little as £30,000, you can build yourself a buy-to-let property portfolio of 12 Investment Properties in less than 3 years, allowing you to retire and escape the rat race.
This is now possible due to the fact that;
- There are very few mortgages for properties valued under £40,000There are very few mortgages for properties requiring refurbishment
Because of these reasons properties that have a value under £40,000 or need refurbishment are selling significantly Below Market Value.
The only people that can buy these Investment Properties are cash buyers. Since the fact there are very few true cash buyers and that it is currently a buyer’s market, prices for these properties are forced downwards.
Take for example a property that is in poor condition that would be valued at £50,000 if it was in good condition. Since there are very few mortgages for properties priced at £50,000 let alone properties requiring refurbishment you can deem the property un-mortgage able.
Based on this you can pick these properties up from £25,000 or 50% Below Market Value. You can spend £5,000 to refurbish them and easily re-mortgage the property at 75% LTV and get £37,500+ back.
Once you have paid back your initial investment and refurbishment costs you can be sitting on a £7,500 cash back.
The other exciting thing is you can generate these cash backs as quickly as you refurbish and re-mortgage the property. You can refurbish in 2 weeks and re-mortgage in 2 weeks and hence generate £7,500 surpluses over your original capital every month if the right Property Investment Deals come along.
The Investment Cycle
Once a client has instructed RJM Properties to source Investment Properties for them, this is how the process works;
- Investment requirements are discussed
- A suitable Property Investment is sourced by RJM Properties
- Client lodges his/ hers funds with our solicitors’ client account
- Property is purchased after approx. 14 days for cash
- RJM Properties carries out refurbishment work to make the property tenantable
- Safety certificates are issued
- A letting agent is assigned to the property
- Tenant moves in
- Property is re-mortgaged based solely on rental income
- Mortgage Company releases funds to solicitorProcess starts again
Now here is the good news.
We can source, refurbish, re-mortgage and manage these BMV properties. We can build you a property portfolio very quickly with an initial starting capital of around £30,000.
Example Investment Property - 3bed terraced house, in Burnley Lancs, cost £30,000 re-furbished.
Producing £3,900/ PA. Valued and re-mortgaged @ £50,000.
The process relies on the client having at least £30,000 available in cash. This is because
RJM Properties only sources Investment Properties at Below Market Value, from motivated sellers.
This means an Investment Property Portfolio can be built in record time, with no additional funds needing to be added by the client. Once the property is refurbished it is ready for re-mortgaging, so the client can buy more Investment Properties at Below Market Value.
This starting capital can be borrowed.
The cash to purchase the property can be raised through a re-mortgage on your existing residential property, re-mortgaging other Investment Properties or through an un-secured loan, or secured loan.
The refurbishment costs can be paid for on you credit card.
Typical Investment Properties
Shown above are properties of the type RJMProperties source and refurbish.
All are available around 50% BMV and let on assured shorthold tenancies producing 10-12% rental yield.
