Openness, honesty and integrity are three things I pride myself on.
I know investing can cause concerns and worries. I understand that you may be unsure.
So I’ll happily answer all the awkward questions you may be wondering about!
Put quite simply, people lend me money to purchase property.
“Why would anyone lend you money to buy a house?!?” I hear you exclaim…
Well, because they’ve got money sat in the bank earning very little interest, they know I can use property to make them a better return, they want to help me build my portfolio and understand my business model, and very importantly, they like and trust me!
So that’s how I pay for the houses – other people help me, to create a win-win situation for us both.
Loan agreements are individual to each project and investor, and thus vary by each deal.
In all cases, the contract is drawn up by a solicitor, and covers the loan amount, length of term and return on investment.
Each project varies, but a typical loan agreement might be (a minimum of) £25,000 for 12 – 15 months – with the return never being less than 6% fixed rate per annum.
The interest on the loan can either be paid monthly, or more commonly, as a large chunk at the end of the project.
The refinance process happens when the unencumbered property is fully refurbished and rented out.
A broker finds a suitable mortgage product, a surveyor is booked to value the property for the new uplifted higher value, and then the mortgage is placed on the property.
This enables a large portion of the equity value to be drawn out in cash, which is where the funds come from in order to repay the investor their capital and their return.
All this happens within the original agreed time frame stated within the loan agreement.
As well as a legally binding loan agreement contract, some investors may also ask for a personal guarantee or a first charge over the property, dependant on their risk profile.
These requests cause no issue and should be discussed in good time.
Things can and do go wrong in property. It is my job to ensure the process goes smoothly and put right any issues that arise. Common concerns are covered here:
WHAT IF YOU DIE?
Procedures have been put in place so that if I unexpectedly die before the project ends, you will be able to recoup your investment funds easily.
WHAT IF I DIE?
Rest assured, I am not in the nature of doing wrong by a deceased friend’s family. If you should unexpectedly die, your funds will be returned to your designated person, as normally and fairly as if you were still here. Your family knowing about the loan agreement is also most helpful!
WHAT IF THE PROPERTY DOESN’T VALUE UP AS EXPECTED?
As a precaution I move rental funds across into a separate account just in case this scenario should occur. However, because I work on a fixed-rate agreement, your investment will still be the same as agreed in the case of a down-valuation, and any shortfall comes out of my own pocket.
WHAT IF YOU DON’T GIVE ME MY MONEY BACK?
This will not happen, simply because I am not a wretch. I am a fair, transparent, brutally honest Libran.
The investment industry, sadly, does have a few sharks with no integrity or moral compass, and as mentioned previously, you should always do your due diligence on every potential investment opportunity.
Do also know that should anyone you work with suddenly disappear with your funds or turn into an unpleasant character, you should draw on your signed loan agreement and take them to court.
Investing can be risky if you’re not careful, and it’s important you feel comfortable before committing to any investment.
If you’re still undecided, feel free to sign up to receive the monthly update for potential investors. Due diligence is key when working with anyone, so I encourage you to follow my work closely.
Presley Property Ltd is marketing the product and does not provide the product being marketed. Presley Property Ltd does not provide investment advice and investors should undertake their own investigations and / or seek advice from a suitably qualified person as to whether investment in any particular product is suitable, taking into account the investors’ financial circumstances and investment objectives. The value of investments is variable, unless guaranteed, and can go down as well as up. Investors could lose some or all of the money invested. Past performance or experience does not necessarily give a guide for the future performance of a product. Neither Presley Property Ltd or the investment being promoted are regulated by the Financial Conduct Authority and Investors/clients will not have access to the UK Investor Compensation Scheme, Financial Ombudsman Scheme nor the Financial Services Compensation Scheme.