A 46% increase in capital value over a few months, without any refurb!
Tuesday 30th April 2024
Buy, Refurb, Refinance and Rent (BRRR) - Without the second R!
A 46% increase in capital value over a few months, without any refurb!
I spoke with a client this morning who was excited about a valuation he received for a recent acquisition.
Interestingly, I recently used the property at my seminar at the Property Investor Show to demonstrate the difference between buying retail and wholesale—the difference between Rightmove, Zoopla, estate agents, and distressed assets. However, we did not have an independent valuation available for the show, but we have one now.
Our one-day Tuna Fish Property Distressed Assets workshop in London, held in November 2023, was a turning point for this investor. It equipped him with the knowledge and skills to understand the sourcing of incredible property deals. Since then, we have provided him with a comprehensive service, from acquisition advice to renovations and property management.
Buy Wholesale, Not Retail
Buying retail (estate agents) and distressed could not be starker. I have many examples over the years, some of which are detailed in my book, but as this is hot off the press, it is a good example of what is available today if you know where to look.
Income Capitalisation Model
The sales comparables are in the picture. The sold comparables were dated. But we undertook an income capitalisation of the market rent (it was under-rented) and arrived at a value (to us). This is a key calculation that is often missing from books and courses.
However, the two comparables were two beds with first-generation roofs. One was on the market for £100,000, and the other for £125,000.
Tuna Fish Property Distressed Assets acquired the three-bedroom FREEHOLD house with a second-generation roof for £75,000.
A few months later, it was conservatively valued for mortgage purposes at £110,000 without any refurbishment. When the required time is reached, the client can draw down funds.
This is an increase in value of 47% over 6 months without the second R!
Tuna Fish Property Distressed Assets One-Day Workshop - London and Online - Saturday, 18th May 2024
Our next Tuna Fish Property Distressed Assets one-day workshop is in Central London on Saturday, 18th May 2024. For the first time, we are beaming it LIVE via the internet for those who do not wish to travel to London/UK.
For further details and to book a slot, please visit:
Distressed Property Investment Workshop
The workshop is suitable for property investors, new and old, who want to explore ways of seeking value in the distressed market - we cover property auction tactics, off-market (genuine, not estate agent marketing), receivers and administrators.
It is also suitable for property sourcing agents who wish to start their journey or examine ways to enhance their model.
Our expert solicitor and bridging/mortgage team also speak and are available to help.
See you there.
Property Investment Courses UK
