Here are some of the questions that potential clients have.  Of course, please do ask if we have not covered something that you would like to know the answer to.

  • How much of the house do I own?

This is dependent on how we structure the property purchase.  However, usually, you have 100% ownership of the property and I do not have any rights over the house. This means you have complete control and are able to re-mortgage, sell or hold as you wish.

  • How much money do I need?

You need money to cover all the buying costs of the property.  This includes a deposit, legal fees, valuation fees, any refurbishment costs and our fees.  We provide a full breakdown of the refurbishment costs as these change dependent on the house.  Usually, we ask you to have available a minimum of £25,000 and this should cover all the costs of getting a 2-4 bedroom property in the West Midlands. With this investment, you will get a minimum yield of 8% on your money.

  • How do you charge your fees?

The fees for our straightforward property sourcing service, where we find, fix and fill a property for you, is £3500. This will be in staged payments.

The first payment will be £200 to start the process.
The next payment will be 10% on acceptance of a property.
50% on exchange of contracts on the purchase
25% on completing the refurbishment
And the remaining £325 on finding a tenant for you.

  • When do I pay the refurbishment fees?

As detailed in the contract the full projected refurbishment fees (including Project Management and Contingency allowance) are due on Completion of the purchase and prior to any refurbishment work being undertaken. I then pay the team as and when they complete the work, providing you with photo updates.

  • Are there any other costs involved?

With any investment property there will be costs involved with marketing and tenanting your property. These costs are covered in the Letting Agreement.

  • Do you help find the tenants?

Yes, we help you find a tenant and can even manage it for you for 10% of the monthly rent.  This really gives you the benefit of a ‘hands-free’ investment service.

 

  • How long will it take to rent out my property?

We start to market the property even before completion (with the agreement of the vendor and dependent on the state of the property) so we try to have a tenant ready and waiting as soon as the property is ready to let.  It generally takes a maximum of 4 weeks.  The areas we invest in, tend to attract people who want to stay long term

 

  • What kind of tenants will live in my property?

For the best yields in the area, we have chosen an ex-council area.  Most, not all, of the tenants we serve have their rent paid by the Government.  With this in mind, we have a system in place that allows us to collect the payment directly from the government.

We have found the government to be a very regular and reliable payer, even more so than private, working tenants especially in the current climate.  We perform very extensive upfront checks to ensure we get good tenants – Tenants who want to stick around for the long term.  The tenants we house do not aspire to own their own house so they treat your property like home.

Of course, we also offer a guaranteed rent service which may be useful to you, dependent on your attitude to investments.  Although, our upfront checks do tend to weed out the ‘not so good’ tenants.