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Joint Venture Property Opportunities

Oxfordshire

Estimated £700k+ Gross Profit.

Two bungalows - purchase price £800,000 (£400k each) down from £900,000.

Site identified, builder to not place any equity into deal but will build at cost / zero profit.

They will take 30% of profit at end; 3 Houses @ £675k each. 3 Houses @ £275k each.

 

Build cost £900k (actual cost)
Total costs approx £1.8m
Estimated valuation £2.85m

Estimated Gross Profit Investor £735,000
Estimated Gross Profit Builder £315,000

Planning has not been obtained - but based on location and local presidents of similar developments in the area is 85% expected, but not guaranteed.

The project is estimated to take 18 months - so an initial amount of £250,000 could be tied up for 6 - 12 months before further investment is required. Typical projects like this will require funds of circa £700k, £250K in stage 1 and then £450K for the build out - potential of 100% return on capital employed, over 18 months.

The properties will be let on AST's until the build out and will "wash their own face" until planning is obtained and build commences.

An exit strategy is in place, should planning not be granted - this would involve modernising the existing properties and placing back on the market to make a small gain of £100K.

This is basically an armchair deal, as the builder has all the skills sets in place and has a proven track record. A confidentiality agreement will have to be signed, before further details can be made available.

Wales - Over 14% Gross Yield

A small development of up to 10 cottages available for holiday lets are coming soon.

Early details have confirmed the rental potential / gross yield will be in excess of 14%, and as the finally discussions take place it looks like over 20% discount off of RICS valuations will be possible.