To invest in our investor pool you will need to allocate at least £25,000 for a minimum of 2 years. This investment is not secured on property but is secured by a personal guarantee from the company directors. You will receive our best annual interest payment using this method. Interest will be paid after years one and two with the capital also returned after year two.
As an example, we could offer a 6% return
· This would get you £3,000 (£125 pcm) over 2 years for doing nothing.
· You would also get your capital back at the end of 2 years to use again.
· You get roughly same as you would have if you had bought the £85k property without any of the risks in mortgage pricing, repairs, void periods etc.
· You also have your capital available again in 2 years with an extra £3k in your pocket
· You would also have access to the BLG Property team and the knowledge contained within for the period of the loan
How do we do this?
We utilise our deal pipeline to enter and exit 3-6 deals over the 2 years which allows us to scale profits to pay the interest.
Anyone can find deals but it takes a network of knowledgeable people to find the best deals. We have spent the last few years cultivating these sourcing relationships and have “off market” property crossing our desks regularly. We also source our own properties and have worked hard to build a pipeline of deals that we are costing and earmarking for future investment if nobody else finds them before we secure investment or free up our own cash.
Property is a great vehicle for making money but don’t be expecting to replace your income on one deal. That is just not realistic in most cases. You also need to think about whether you are investing in your own name or through a limited company as tax handling vs income varies hugely between the two methods.
With the current rise in interest rates and legislation changes preventing rent raises and evictions it is a more risky time to be a landlord. But, if you find off markets deals, run the numbers correctly and stress test, you can find suitable deals but they are becoming rarer.
A directors personal guarantee is secured on the directors’ personal assets such as their family home and car(s), and any other property they have. In our case our assets include our property portfolio and a consulting business so there is scope to recoup funds from multiple sources.
This represents a large risk for the company director if things go wrong but makes sure that investors are satisfied from personal assets if the worst happens.