Genuine examples of opportunities sourced and assessed for investors
Case Study 01 Co-sourced refurbishment opportunity
I negotiated the purchase below asking and reviewed the refurbishment requirement and potential end value before the opportunity was presented to the investor.
Asking price
£80,000
Purchase agreed
£72,000
Negotiated below asking
£8,000
Refurbishment
£20,500
Reported refinance valuation
£130,000
Rent achieved
£850 PCM
Original asking price £80,000 Agreed purchase £72,000 £8,000 negotiated below asking
Illustrative total project cost
£94,500 core costs + £5,000 other-cost allowance£99,500
Reported refinance valuation£130,000
Gross refinance at 75% LTV£97,500
£130,000 × 75% = £97,500 gross refinance
Illustrative capital left in
£99,500 total project cost − £97,500 gross refinance£2,000
This is an illustrative capital position based on the figures and allowances shown, not the exact documented historic cash outcome. Unconfirmed acquisition finance or bridging interest, arrangement and exit fees are excluded unless covered by a stated allowance. Future valuations and lending terms are not guaranteed.
Rent achieved
£850 PCM
Annual rent
£10,200
Gross yield on £130,000 end value
Approx 7.8%
£850 × 12 = £10,200 annual rent
£10,200 ÷ £130,000 = 7.85% gross yield
Rent achieved is historic, not necessarily the current rent. Gross yield is before mortgage interest and other ongoing ownership costs. Those running costs are separate from the capital-left-in calculation.
My part was to identify the opportunity, assess the purchase position and refurbishment requirement, review the numbers and negotiate the price. I considered the potential post-refurbishment position before presenting the opportunity to the investor.
We start with your strategy, budget and target numbers, then source and assess opportunities that fit.
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Purchase and refurbishment
Purchase£72,000
Refurbishment£20,500
Sourcing fee£2,000
Stamp Duty£0
Total core project costs£94,500
No Stamp Duty was paid on this transaction. At the point of purchase, the property had no functioning kitchen and was treated in the transaction as uninhabitable.
Illustrative allowance
Purchase legal / search costs£1,500
Survey£500
Refinance legal, valuation, lender and broker costs£1,500
Holding costs£1,500
Total illustrative allowance£5,000
These are illustrative allowances, not confirmed historic invoices. The complete historic cost records are no longer available.
Before

After

Before

After

During refurbishment

After
