When I woke today I got a genuine xmas feeling.
Matthew Parsons
I help busy professionals and savers with ￡50k+ savings get an excellent fixed rate return on their money completely hands free. Interested? Get in touch
The day started with Wham - Last Christmas followed by a cold and frosty walk with the dogs.
The sky has been blue, the sun shining and it had that real winters morning feel.
I've visited one of my refurbs and the dilemma has been choosing grey or white tiles for the kitchen. Although I was keen on the grey I think as the kitchen is grey white with dark grey grout is the winner.
I've then been on two viewings.
Viewing No 1
An auction property in a great residential area but riddled with damp however, a refurb value of ￡25k would make a glorious family home.
Purchase Price - ￡75,000.
- Deposit - ￡18,750,
- Stamp Duty - ￡2,250
- Legal Fees - ￡1,000
- Refurb Costs - ￡25,000
- Sourcing Fee - ￡2,000
- Auction Fee - ￡6,000
Total Money Invested - ￡55,000
Exit Strategy 1 - Refinance
- Walk In Condition - ￡125,000 - ￡130,000
- Achievable Rent - ￡695
- Money Out from Refinance - ￡37,500
- Money Left in - ￡17,500
- Monthly Cash Flow - ￡319 (after all deductions)
- Potential Return - 22%+
Exit Strategy 2 - Buy, Renovate and Sell
- Walk In Condition - ￡125,000
- Minus - Total Cash Invested - ￡112,375 (Initial Investment of ￡55,000 plus ￡57375 mortgage)
- Minus - Selling Fees - ￡3060
Total Profit - ￡9564
Return of 17%
Viewing No 2
Direct 2 Vendor. Again a great residential area but also has had some water ingress through the chimney stack and also rising damp. Refurb costs about ￡12,500 would make this a lovely home.
Purchase Price - ￡75,000.
- Deposit - ￡18,750,
- Stamp Duty - ￡2,250
- Legal Fees - ￡1,000
- Refurb Costs - ￡12,500
- Sourcing Fee - ￡2,000
Total Money Invested - ￡36,500
Exit Strategy 1 - Refinance
- Walk In Condition - ￡105,000 - ￡110,000
- Achievable Rent - ￡600
- Money Out from Refinance - ￡22,500
- Money Left in - ￡14,000
- Monthly Cash Flow - ￡265 (after all deductions)
- Potential Return - 23%+
Exit Strategy 2 - Buy, Renovate and Sell
- Walk In Condition - ￡105,000
- Minus - Total Cash Invested - ￡93,875 (Initial Investment of ￡36,500 plus ￡57375 mortgage)
- Minus - Selling Fees - ￡3060
Total Profit - ￡8064
Return of 22%
After these viewings I had a great call with an experienced property developer and gave me some real fire in the belly for 2020.
I then went to meet one of my tenants who is 7 days late with rent and also ￡200 in arrears. Having now received this months rent from him I've give him a challenge that if he can pay half the arrears in 2 weeks I will forgo the balance. He has just set up a new business so want to help him get a good start. It's the least I can do as cash flow is important in any new business. He also smashed his phone so have offered to give him my old phone so he can take calls and not miss out on potential custom. I am certainly feeling festive.
I'm now signing off to enjoy my night of eating xmas food and listening to more xmas songs.
Last but not least - Its only 4 days until we go to Prague for the xmas markets.
If your interested in hearing about these property deals or would like to hear if we can help you source great investment opportunities across Blackpool and the Fylde Coast and make your money work harder for you then please get in touch or drop me an email to [email protected]
Ho ho ho....