Be Inspired! Drive your property portfolio forward into 2018
If you’ve been thinking about property investment but are unsure where to start – or you’re already an investor and considering your next move – then let us provide you with some inspiration.
Here’s a case study of a couple who worked through our Mentorship Programme and took their first steps in property investment this year.
A compelling case study from Mithila and Mahmoud Rollings-Kamara
The first venture for Mithila and Mahmoud Rollings-Kamara was a mixed-use property in West Byfleet, Surrey. The property comprised of a commercial unit with two flats above.
The first floor flat consisted of four bedrooms, and the second-floor flat had three bedrooms. The property existed under one title and was initially marketed for £800k; however, the couple managed to secure it for £750k after negotiating with the vendor.
Before purchase, they had managed to secure a commercial tenant on a 15-year FRI lease, which meant they had income from day one.
In another smart move, Mithila and Mahmoud immediately added value by splitting the titles on purchase. They then boosted the flats value even further by refurbishing them. Work started in January 2017 and finished towards the end of March 2017. It involved creating two new en-suites, redeveloping the bathrooms, adding fully integrated kitchens as well as installing central heating and new windows throughout.
To finance the deal, the couple used a combination of bridging finance and investor money for the purchase and refurb. They’ve since refinanced the property to pay down the bridge and investor money (with interest).
The combined market value of the properties is currently just over £1m. However, as there are regeneration plans for the area scheduled for 2018, the couple will be holding onto the properties as they believe their value will rise further.
Mithila and Mahmoud are letting out the rooms on an HMO basis, which together with the commercial rent, generates a monthly cash flow of £6.5k, and net cash flow of £2.2k. This is currently providing a total yield of 7%.
Has that given you food for thought?
With many other inspiring case studies from attendees of our mentoring programme, it’s not surprising our mentees have won the New Investor of the Year Award at the Property Investor Awards in 2014, 2015 and 2016.
If you have a strong desire to succeed and achieve significant goals in 12 months, then this is the programme for you.
The group meets to brainstorm ideas and discuss aspects of property investment to move their businesses forward including topics such as:
- Building your business plan
- Researching and establishing your area
- Establishing your strategy
- Sourcing deals and marketing
- Raising private finance/joint ventures
- Serviced apartments and holiday lets
- Lease options
- Assisted sales
- HMO (Houses of Multiple Occupancy)
- Commercial property strategies
- Structuring your deals
Want to learn more about property investment from our property mentors?
Look out for the next PMA Mentoring Programme; we’ll be running one in Jan/Feb 2018.
Our property investment strategies are designed to equip you with everything you need to get out there and make your mark in the world of property.
Join our Facebook Group to ask property questions, share knowledge, vent frustrations – and, you never know, it could also lead you to potentially lucrative deals.