Investing in property case study.

We would like to share with you a case study of one of our existing customers here at Fossey Taylor.

This particular client was introduced to Fossey Taylor, roughly 18 months ago. He approached us as he had an investment fund of £100,000 and wanted to utilise the funds across as many properties as possible within the next five years.

After attending our discovery days and then coming for a one to one meeting with our customer relationship manager, this resulted in a plan of action to build a property portfolio. He completed on his first property within six weeks of attending our discovery day. The first two bedroom house that this client purchased required a capital investment of £28,970 to purchase the property. The capital investment covered the deposit for the property, Fossey Taylor management fee, legal fees and the refurbishment costs. The refurbishment took four weeks to complete and through our sister company Butterfield

Summary of Financials:

Property One

Purchase price:                 £52,000

Predicted Valuation       £80,000+

Monthly Income              £430

You need this much       £28,970

to invest, for deposit

refurb, management fees

Property Two

Purchase price:                 £53,750

Predicted Valuation       £81,000+

Monthly Income              £495

You need this much       £29,950

to invest, for deposit

refurb, management fees

Property Three

Purchase price:                 £55,000

Predicted Valuation       £90,000+

Monthly Income              £550

You need this much       £31,700

to invest, for deposit

refurb, management fees

Taylor & Co a tenant was in place seven days after the completion of the refurbishment. The property was delivering cash flow just before the second mortgage payment was due. Purchase price of the property was £52,000; in the current market this property will have an end value in excess of £80,000.

The second property required a capital investment of £25,950 to cover deposit, management fee, legal fees and refurbishment. The purchase price of the property was £53,750, the refurbishment took just five weeks and the property is rented at £495 per month. This gives the client a cash

flow of £310 per month. This property was rented within two weeks of the completion of the refurbishment. Both the above properties were sourced and purchased within two weeks of each other.

The third property required a capital investment of £31,700. This property started off as a two bedroom property and was converted to a three bedroom property as part of the refurbishment process. The purchase price of this investment property was £55,000 with a post refurbishment value  of between £90,000 – £95,000. Due to the additional bedroom the property took six weeks to finish the building work. The property was tenanted two weeks after the building work was completed giving a cash flow of £325.67.

The plan is to refinance and release the majority of the capital invested to purchase further properties, usually after a six month period.

We have a few places left on our discovery days next week. Book here to come to see how you can make a hands free income from investing in property.