We purchased this 2 bed mid terrace property in Great Harwood in July 2021.
We viewed the property initially in March 2021, following a lead that came via Facebook marketplace, so this was another successful off market deal for us.
The owners were very motivated to sell and although 6 other people had booked to view the house, there was only us that actually turned up which was a huge advantage for us. We managed to agree a purchase price with the owner on the day we viewed the house with the sale progressing straight away.
The property was in disrepair, it had severe damp to the ground floor meaning we had to go back to brick throughout and completing a damp proof course to the ground floor. This property needed a full refurbishment including full rewire, full plaster/skim throughout as well as a new kitchen, bathroom and some structural work to the front elevation.
We worked with 5 private funders on this project, providing a 6% fixed return on their funds over a 12 month term. Full loan agreements and guarantees for all.
The sums from funders varied:
Loan 1: £20,000 (£21,200 return)
Loan 2: £15,000 (£15,900 return)
Loan 3: £15,000 (£15,900 return)
Loan 4: £15,000 (£15,900 return)
Loan 5: £10,000 (£10,600 return)
Total funds from funders: £75,000
Total Interest Paid: £4,500
Funds returned: £79,500
Purchase Price: £48,000
Survey, Stamp Duty and Legals: £2,600
Holding Costs: £1,285
Private Loan: £75,000
Private Loan Interest: £4,500
C&W Homes Funds: £4,498
Resale Price: £119,950
Selling Fees: £2,000
Total Initial Costs: £83,998
OUR PROFIT: £33,952
We have now completed the sale and the money is in the bank, which is always a great feeling.
We repaid our funders along with their agreed interest at the end of their term. The remaining funds is our profit, which is £33,952.
Our funders have already agreed to lend again for another 12 months for our next project, with 2 of them increasing their loan amount with us, earning money on their savings while we do all the work.
This project has not been without its problems and has been a huge learning for us. We wrote a blog post about it so check it out for the headaches, lessons and learnings from the project using the link below.
All in all, our first flip project has been a success.!!! on to the next we go!!
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