Project Bamber has been a long project.
The property was initially brought to us via a referral. We use Facebook as means of direct to vendor marketing.
In May 2021, somebody told us about a property their family had inherited and wanted to sell, they put us in touch with the owners and we managed to view the property in August 2021.
October 2021, we finally managed to agree a price that worked for both us as the buyer and the seller with the aim to complete the purchase in 8 weeks before Christmas 2021.
However, we were unaware that the family hadn't applied for probate, we now had a long wait for probate to finalised, we finally completed the purchase in August 2022. We Thanked the person who told us about the property with £500 in cash once we completed, just in time for his summer holiday.
The strategy from the outset for Project Bamber was to convert the property into a 4 bedroom House of Multiple Occupation and then handover to Serco, a social housing provider on a long lease.
The house was in a very poor condition when we bought it, this has been our biggest refurbishment to date spending over £55,000 on the renovation programme but we are over the moon with the results.
Now the property is completed, it has been handed over on a 5 year lease which has the benefit of:
- no maintenance
- no voids
- no bills
- no management fees
As part of any project we do we have learned so much throughout the refurbishment process, we owe a lot to our Project Manager Zack for his work on this one, which was by no means an easy project to work on.
Like all our project we worked with private funders on this one. We utilised £110,000 of private funding, providing a 6% return over a 12 month term. Our funders will receive their loan back along with £6,600 in interest. We also utilised some of our own funds to ensure we also had skim in the game, like we do on all our projects.
Legals and other costs: £3,433.61
Refinance Costs: £1,494
TOTAL REQUIRED: £131,266
How it was funded....
Private Loan Funds: £110,000
Interest Paid: £6,600
Our Own Funds: £21,266
TOTAL ALL IN: £137,866
New Value: £150,000
75% LTV: £112,500
Money Left In: £25,366
Building Insurance: £2-
Return on Capital: 29%
We will be looking to add more of these properrtieis to our portfolio in 2023, they provide fantastic returns and they are as passive as you can get once handed over to the social housing provider.
Copyright © 2018 C&W Homes Ltd - All Rights Reserved.