FTOP Investor pitch

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    17-Jan-2017
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Transcript of FTOP Investor pitch

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Opportunities to investProviding higher returns on your cash

Opportunities to investSome examples of property typesHouses of multiple occupancyResidential buy-to-let

Some options for investmentLong termShort termMinimum risk, fixed returnShared risk, shared returns

HMOsHouse of multiple occupancy

backgroundAn HMO is a house where individual rooms are rented out and areas such as kitchens etc are shared, may have communal or en-suite bathrooms

HMOs are (re)financed with commercial loans

Commercial loan valuations for HMOs are based on multiples of 6 8 times gross rental income

Example Property A acquisition proposalLess than five minute walk to Birkenhead Central stationCurrently with 6 tenants two further rooms permanently vacant to avoid licensingPossible to upgrade to an 8 bed HMO as well as a general uplift in standards and rentCurrently generates 22k gross p.a.

Example Property B acquisition proposalHigh end, established HMO, very close to St Catherines Health CentreGenerates 30k gross p.a.

Property AAgreed offer of 120kProposed work to enhance the accommodation and increase capacity and rentsTarget rent gross p.a. 31.5k ( Achieved with 325 pcm per room)Target valuation 220kTarget loan at refi 165k

Outcome is no cash left in and 15k+ p.a. net cash generation ongoing

Property BAgreed offer of 200kSimple acquisition for cash flowGenerates 31k gross p.a.Commercial valuation expected 210k+Refi loan 157.5k

Overall 12 month pictureInitial loansRefinanceProperty A120000165000Property B200000157500Total320000322500

Gross rental incomeCosts e.g. utilities, interest, council taxNet rental incomeProperty A (Assumes 8 rooms rather than 6)315001350018000Property B300001400016000Total588002750034000

37 Hampden roadAcquired November 28, 2016 for 85kConversion ongoing from 3 bed semi to six bed HMO 64k budget. 12 week programmeTarget rent = 28k p.a.7 x 28k = Revaluation of 196kRefi @75% LTV = 147kRefi & Rent = 165k in 12 months having invested 150k.. 10% ROI in year one with an ongoing net income of around 14k.p.a. With ZERO cash invested going forward

10 Rockville streetNew 6 Bed HMO acquired for cash 8/12/16 @ 85k ready to rent!Target valuation when tenanted as follows:325pcm x 6 = 1950 pcm / 23.4k p.a.23.4k x 7 = Valuation of 164k164k loan at 75% = 123kPAYS US around 20k at refi and generates net cash of around 10k p.a.

Buy-to-letPurchase, refurbish, rent, refinance

Property cAccepted offer of 30k2 bed end terraceMarket valuation of property in good order 55kRefurb budget of 5k turnaround 3 weeks34k to acquire incl fees etc, + refurb total budget 40kSell on as tenanted property at 55k with an ROI of 10%+ for the new landlord with a monthly rent of 475 pcm

11 tudor roadAcquired cash July 2015 for 41k15k refurbishmentRevalued at 72kRefinanced with 60k loanRented at 550pcmAll cash out with a steady net income of around 3k p.a.Equity in the property

Investment optionsTerms and risk profile

Long term investmentSimple cash invested over fixed period e.g. 12 months minimum, more likely 3 5 yearsFixed annual return at agreed rate e.g. 5%Finance secured with a legal charge over the property (May be first or second charge depending on investment)Specific property identified and agreed with the investor in advanceFTOP Properties Ltd takes full control and riskValuationRefurbishmentRental

Short term investmentPerhaps to test the water?Agreed target property such as Property C and full finance package from investor e.g. 40kFTOP Property Limited does all the workFixed return on investmentE.g. 5% is paid regardless of time elapsedInvestor fully paid out within 12 months

Minimum riskFixed returnCharge on propertyLong term investment e.g. deposit element for large purchaseShared riskJoint venture styleInvestor funded, FTOP ManagedReturns split equally at defined point e.g. sale or refinance etc.Risk profiles

Some examples of Todays opportunities120k purchase of HMO full funding or deposit = 30k 120k200k purchase of HMO full funding or deposit = 50k 200k30k outright purchase 2 bed terraced - Possible JV or short term investment95k purchase of 3 bed terraced - full funding or deposit = 25k 95kMany more out there! Just ask!

Planning to have a prosperous New Year?

So are we! Call us on 0151 305 0194 to make sure of yours!