FAQs

FAQs ( Frequently Asked Questions) 

1. Do I have to have funds to invest to purchase the property?

Yes. I am afraid we cannot help you if you are looking to build a portfolio with no money down or only investing a very small amount of your own money and relying on borrowing money for the rest

2. You say you remortgage the property when purchased. Why can we not purchase with a mortgage?

There are two reasons. The first is that the secret of getting the right deal is being able to move fast. That is what a cash purchase allows us to do. Often we will buy at Auctions  or from Sellers for whom our attraction is we  do not need a mortgage. The second is that mortgages these days are very slow because of all the new requirements to check that you really qualify. Also as a Limited Company we can only borrow from a small pool of commercial lenders most of whom give relatively low loan to value rates. The point is our strategy is not based on lending. We do lend via a remortgage when the property is purchased but only to give some more cashflow for deals or to begin the process of repaying loans.

3. You say you are going to be looking for a “ Partner”. What does that mean?

It means there has to be the right chemistry between us.  We are going to have a long term relationship. We have to both agree that we have the same investment objectives and the same approach to how to deal with Investments. That will not always be the case. That is why any potential Investor has to be prepared to meet with us and see how we work and  gives us details about themselves. We need to check we are both on the same page about what we want from any Investment. For example we are relying on the fact that you have the funds to invest. We will want to check that this is true. We are not looking to buy and sell. We believe that is a waste of effort. We need to know you want to hold for the medium to long term etc etc

4. What happens if there are problems with the Property?

Inevitably when you invest in property you get problems. You have to deal with them. The advantage of investing with us is you have an experienced Property Partner who is motivated to solve those problems in the most cost effective way possible because any losses belong to us as much as you. But equally when there are problems you need to be able to ride them out. That is why we need to ensure that Investors who partner with us are not putting their last penny into this Investment. There may be void periods, there  may be difficult tenants , there may be unexpected repairs. We will solve these problems  together but we are not guaranteeing that there will be no problems and they have to be sorted out by us as Partners. Our first port of call for funds will be the Company but if there are not enough funds  ( which is unlikely ) then both parties have to put in sufficient funds to deal with any problems. Equally though we will put in our cash to fund our 50% if required. Remember though the more properties you buy the more likely it is that any problems will have minimal affect on your overall performance. Clearly if you only have one property any problem impacts immediately on you. If you have 10 you will usually not notice.

5. What is the Exit Strategy?

That is something we will decide together and will differ from Investor to Investor. Our hope is that you and your family will want this to be a long term investment and neither of us will want to exit but instead we will want to grow the portfolio. However if circumstances dictate that we need to bring matters to an end then as 50/50 partners either party can call time and ask for the properties to be sold and the proceeds divided between the parties.

6. Can I sell my shares?

Yes but only to a shareholder who we approve of. We are hoping that this new form of Investment will be something that continues for many years. We are investing in management resources so that if any of the current team who manage the properties are not here the management company can replace them and we can carry on. So if an Investor wanted to transfer or gift their shares in principle that would not be a problem so long as we approve the new shareholder / partner