Deals secured. Plans in motion.

Last week we spoke about why we got started in property.

This week, its about where we are right now and a insight into what a property business looks like day to day.

We’ve secured two deals in Sheffield (S6), both with a clear plan to exit by doing a full renovation and forcing up the end value.

Long term, the goal has always been to build a buy to hold portfolio and generate enough rental income to become ‘financially free’

But the reality is - buy to hold is capital intensive and capital doesn’t last forever.

So the focus right now is simple:

Build a active income business first. Then use the profit to fund the long terms holds.

We currently have two projects in the planning stage.

What does that actually look like?

Step one: Architect instructed > Draft drawings complete:

Project one:

Project Two:

Next step: Review the draft drawings and make edits

Stress test every decision against ROI (Return on investment) - not emotion.

For example; one recommendation was to install a spiral staircase as shown on ‘Project One.’

Looks great on paper.

But the question is:

Does it increase value relative to cost?

If not, it doesn’t go in.

Simple.

Both properties are a very similar layout and would benefit from removing the chimney breast to improve the flow.

We’ve done this plenty of times before.

However, in this case both chimneys are shared with the neighbouring property - meaning a Party Wall Agreement is required.

Current position:
Project One - agreement signed
Project Two - agreement outstanding

The complication is the neighbouring property is empty and owned by a landlord.

We’ve pulled the title, but the registered address for the landlord is out of date.

So we are trying our best to track him down to get a agreement in place directly.

If that fails, we can proceed under a Party Wall Award via a surveyor, which allows work to move forward after formal notice periods.

But that comes at a cost:

Time and Money

Both of which directly impact the deal.

Whats Next

This is where profits are either made or lost - in the detail.

🗓️ Upcoming Deadlines

We’re currently allocating £100,000 across both projects ahead of June Completion.

Funding the Refurbs

This is the stage we’re now moving into.

This is where the model gets proven.

Up until now, we’ve funded both the purchase and the refurbishment ourselves.

That works - but it doesn’t scale.

So we’ve changed the approach…

We fund the purchase.

We bring in capital from investors who want their money working - not sitting in the bank.

Clear structure. Short term. Fixed return.

If you want to see how it works or get involved in current projects, just reply and I’ll send the details over.

Did You Know?
Leaving your money in the bank right now is likely earning you less than inflation, meaning your cash is actually losing value over time.

Till next time,