We offer two tailored design and build schemes, which provide a way for our clients to acquire a below market value, high-yield HMO.
The schemes are:
- Design and Build.
- Up and Running.
Design and Build Scheme
The first scheme involves HMO Property Designs handling the initial purchase and renovation in the client’s name. This involves utilising the client’s funds, either on a cash basis or through nominated finance packagers.
Commercial financial packagers have available lenders to fund the full purchase price and renovations (subject to the availability of suitable security).
With the right finance, through this scheme it’s possible for clients to fund the total project and recoup the deposit due to the increased valuation of the property at the end of the project.
HMO Property Designs offers the following full service under this scheme:
- Sourcing the property.
- Agreeing the purchase in client’s name.
- Redesign property to become a fully regulated and compliant multi-let, including professionally drawn plans and referring the plans to a qualified building company.
- Agree a suitable quotation for the project.
- Produce schedule of works.
- Ongoing site management.
- Furnishing and tenanting the property.
- Any ongoing management as required.
Under this scheme, a client’s total outlay is approximately £130,000. This includes a figure to cover possible finance requirements.
This outlay will produce the following yield:
- Based on a four bed HMO, the scheme produces a gross yield of 21% per annum.
Up and Running Investment Scheme
The second option consists of inventory that has been pre-purchased and reconstructed by our existing investors with to the intention to sell the completed article fully furnished and rented.
Each property is sold on a going concern basis and their availability is on a first come first served basis. At HMO Property Designs, we market these only if they are from an existing client and if the property has been constructed to our specification.
We also insist that the profit our client is aiming for does not detract from the sale to the purchaser. In other words, a purchase within the scheme still allows for a minimum £10,000 to £15,000 instant equity against the current market value.
We look for investors that will take a reasonable profit while passing on equally reasonable profit to the new investor. These are a complete turnkey instant rent/profit producing unit.
Prices start from £180,000
Each deal has various funding options available through our packager. All sales are subject to an independent RICS valuation.
Joint Venture Scheme
The third scheme, we will fund the initial purchase price on a cash sale basis this can produce real reductions in the purchase price due to the speed of completion. We will source a suitable house that with renovation will have an increased valuation. Once we have agreed a property with both the estate agent and our clients we can schedule the amount of renovations with our client. We will then fund and carry out the total restructuring of the property to the relevant specification. Prior to the works being started we will of course put in to place a contract between ourselves and the purchaser based on a pre agreed ultimate price and valuation. As we do not take finance for any section of the project we only offer this system on a very limited basis and first come first served basis.
Properties can be sold as a turnkey investment in the region of £160,000. The purchase will be contracted with the client in advance with an agreed timescale and includes a high standard of renovation. The unit will be handed over on completion to the purchaser fully refurbished and include furniture and will also be fully tenanted. The greatest advantage of this scheme over other property investment schemes is that there is no expensive development finance required. It is also risk free as you do not take over the ownership of the property until the works are completed.
Based on a worst ways rent of £75 per room this option offer the following yield.
** 4 bed = gross yield of 19.5% **
Prices start from £145,000
Sourcing the property
Redesign to multi let including professionally drawn plans
Schedule of works
Ongoing site management
Agreeing the purchase in your name
Agree a suitable quotation
Carrying out the renovation
Furnishing & tenanting the property and any ongoing management if required.
