We recently blogged about the ‘top 5 property investment strategies’ that we would expect you to see being used when people make money from property.
Buy Refurbish, Refinance property investment strategy
The Buy, Refurbish, Refinance (BRR) model is Realm’s go to strategy. It is a variation of your BTL strategy with very similar principles. Often you’ll be on the lookout for a property that is below market value (BMV). Quite often you’ll find properties that may require a lease extension, or may have some structural issues. It’s very likely the property will be run down and need some work and refurbishment, having not been well maintained. Ideally you’ll find a property where there is potential to add value through refurbishment or creation of additional space.
Funding your project
You will need to have the funds to purchase the property either entirely (as a cash buyer) or the 25% deposit at least and then use a loan to buy the property. This loan could be investor finance or a bridging loan. Basically funding that can be used for short periods of time whilst your refurb is being done.
You’ll also need the money to add value to the property. Whether this is a lease extension, adding an additional room or relocating a kitchen for example to provide more space. It is likely that the whole property will probably need modernising and a lick of paint.
Refinancing
Once the refurbishment is complete then you can refinance the property by putting it on a mortgage. The property value would have risen due to this refurb. Depending on the time frame in which your refurb was completed you may need to provide evidence of the money you’ve spent on the property to your mortgage lender. When the mortgage completes you can pull the extra money out to repay your short term lender whether it was a bridging loan or investor.
Additional bedroom 
Original bathroom 
New bathroom 
Original master bedroom 
Refurbished master bedroom
Realm Property Investment are still actively pursuing opportunities. We are out actively viewing properties and will pay good referral fees for any opportunities that go through to purchase.
We offer great returns on your investment but without the hassle. Get in touch if you would like to learn more. To read more about our recent projects head to our projects page.