Investors
Year 2022+ Investment Strategy
The UK property market is currently a sellers’ market, but with rising interest rates, unprecedented 9% inflation, and a looming recession, the next three to five years could present significant buying opportunities. In line with Warren Buffett’s philosophy of “be greedy when others are fearful and fearful when others are greedy,” our strategy focuses on a buy-and-hold approach. Given the expected stagnation in property prices in the South East, we concentrate on acquiring properties where we can add value through permitted development rights, planning permissions, or by increasing the number of units or rooms in existing schemes.
Commercial to Residential
We plan to acquire vacant high street banks, shops, and office buildings for conversion into residential flats. As businesses streamline their operations, many large office buildings will become available due to shifts toward home working arrangements.
The high street is undergoing a significant transformation, with retail stores closing or downsizing. This shift is paving the way for service-oriented and experiential businesses, along with local artisans and independent shops, to take their place.
Land Deals
We directly approach landowners to identify large and corner plots. We secure these sites through option agreements and enhance their value by obtaining planning permission for residential developments, including houses and apartments.
Our Investment Offers
There are FOUR types of funding opportunities we provide to our investors.
- Investment Type: Secured Loan
- Return: 6-10%
- Term: 12-24 months
- Involvement: Hands-Off
- Investment Type: Debt-Based
- Minimum Investment: £25,000
- Experience Required: None
- Property Expertise Required: None
- Investment Type: Joint Venture
- Risk & Reward: Shared
- Profit Share: 50%
- Term: Minimum of 2 years
- Involvement: Hands-On
- Investment Type: Equity-Based
- Minimum Investment: 50% of cash funds required
- Requirements: Cash plus expertise
- Investment Type: Loan
- Purpose: To grow the business
- Return: Fixed 6-8% per annum
- Involvement: Hands-Off
- Term: Minimum of 2 years
- Minimum Investment: £25,000
- Experience Required: None
- Understand Your Requirements: We begin by understanding your specific needs and goals.
- Create a Bespoke Solution: Develop a customized investment plan tailored to your requirements.
- Long-Term Relationship: Focus on building a long-term working relationship.
- Involvement Options: Hands-On or Hands-Off options available.
- Investment Types: Equity and Debt options available.
- Experience Required: Experience may be required depending on the investment type.
Year 2022+ Investment Strategy
Romey & I have raised approx £5 million from angel investors in the last 8 years.
Priory to that we invested our own funds, recycling funds from existing property as further advance, second charge lending & savings.
We work with investors in different capacities.
Joint ventures
This is a popular strategy for working with cash rich and time poor investors. They will invest at least 90% or more of the equity required in the deal. We will do the rest.
A new limited company would be formed in companies house.
And the correct allocation of shares, voting rights and responsibilities agreed.
Some of our high level responsibilities include.
- Find the deal
- Appraise & analyse
- Manage the financing loan / senior debt
- Manage the company structure
- Manage the planning & architectural aspects of the project
- Day to day management of risks , time lines and project management.
- Manage the construction phase
- Manage the exit stages (rent / sell / refinance ) or it could be a combination.
Profit share and responsibilities will be documented in a Joint venture legal agreement.
LOAN
This will be a debt based investment.
We would agree the loan terms.
1. Loan amount.
2. Term of loan.
3. Interest rate .
4. Security.
5. Extension period.
6. Payment of interest.
All of this will be agreed and signed jointly in a legal loan agreement.
LOAN
Part loan & part profit share
Investors would agree to lend part of the funds required as a loan and possibly part of the equity required as profit share.
All the necessary legal documents will be signed .
If you would like to discuss any of the above options please let me know. Please contact me on 07970998993 to engage in a conversation.
I would like to bust some myths around raising finance from angel investors.
Myth
It is difficult to raise funds from private investors.
Answer
You need to become part of a properly community & become an integral part of it . Over time you will find investors within the trusted community.
Myths
You have to exaggerate your experience while speaking to investors.
Answer
Always be honest & authentic with investors. Investors tend to invest as much in you & the project, terms & security .
My top tips are
1. Work out your Unique Selling Point.
2. Become an expert in your strategy (HMO, C2R, SA ).
3. Know your local area that you are investing in.
4. Know your numbers.
5. Have at least 2 exit strategies for each deal.
References From Investors
| Investor | Funding details | Terms |
|---|---|---|
| Mr. C. | A loan | A loan of £70k for 9 months. |
| Mr. T. | A loan | A loan of £140k for 18 months. |
| Mr. K. | A joint venture. | Jointly invested £250k for profit share. |
| Mr. R. | A loan for 12 months. | A loan of £300k for 12 months. |
| Mr. S. | A loan for 2 years. | A £200k loan for 12 months in progress. |
| Mr. R. | A joint venture. | Jointly invested £250k for profit share. |