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With inflation still being well over t & svings rates still being so low, your money could be going down in value if it's sat in the bank. More & more people are looking for ways to invest their money wisely & get a better rate of return whilst investing in something more exciting than a bank. That's where I come in...
Very simply, you invest an amount of money with my property business and I repay the amount with interest at an agreed date in the future.
The loan amount, interest and term (ie timeframe) are fixed at the start and we have a formal agreement setting out all the terms.
I take extensive measures to reduce risk, and I have multiple alternative repayment strategies in place to protect the investment.
As with any investment, it is worth seeking legal and/or financial advice.
Investments of more than £100k are secured against a property as a first and only legal charge (drawn up by your solicitor). Minimum term 2 years and maximum investment £1m.
Investments of less than £100k are typically invested in R2SA / Airbnb / Serviced Accommodation properties which are high cashflow properties. Minimum term of 12 months. Minimum investmnt £3k, maximum £100k investment.
The minimum investment amount is £100k and the maximum is £1m.
There is a minimum term of 2 years, and the maximum is "open-ended" so no set end date. Instead, notice is given (usually 6 months minimum) to end the arrangement.
The loan is secured against a property purchase or multiple property purchases, depending on the loan amount. You have the first and only legal charge and it is registered with Land Registry to protect your invesment.
Investments of over £100k are used to purchase properties. You have the first and only charge. You put in 100% of the purchase price but the property is bought below market value, usually bought direct from vendor, and renovated straight away which forces up the value. Thefore, within weeks of the purchase, the loan to value (LTV) drops to around 70-85%.
The interest is paid either at the end of the term, or in annual payments if it means you can reduce your tax liabiliity by receiving interest over multiple tax years. If so, half the tax is paid annually, with a balloon payment for the balance. This is to ensure a healthy cashflow for both parties.
At the end of the term, the property is refinanced onto a BTL mortgage. These funds are used to repay the loan with interest.
I have multiple alternative strategies to repay the loan, including using a higher LTV, drawing funds from my other properties, refinancing with a new investor, or selling the property.
You will need to seek your own legal advice and request that your solicitor draws up the legal charge, based on the terms that we agree. This is likely to be in the region of £There are no fees or charges from me.
We have a legal charge (contract) in place so the terms are upheld, even in death.
I don't provide regular updates as it's a fairly clean-cut arrangement that takes place the beginning and end of the term. I will, however, get in touch a month or two before the end of the term to touch base and sort out the upcoming payments to repay the loan with interest.
The minimum investment amount is £3k and the maximum is £100k.
There is a minimum term of 12 months, and the maximum is "open-ended" so no set end date. Instead, notice is given (usually 6 months minimum) to end the arrangement.
The loan is unsecured as the funds are used to invest in R2SA (Airbnb) properties so there is no property to secure it against. We use our standard loan agreement which sets out the terms of the loan as agreed by both parties.
The funds are used to secure R2SA properties where I effectively rent a property from a landlord and turn it into an Airbnb. The funds cover the first month's rent, sometimes a deposit and/or sourcing fee, furnishing the property and the bills whilst we get the property up and running. These are high cashflowing investments so repaying the loan at the end of 12 months is fairly straight forward.
The interest is paid either at the end of the term, or in annual payments if it means you can reduce your tax liabiliity by receiving interest over multiple tax years. If so, half the tax is paid annually, with a balloon payment for the balance. This is to ensure a healthy cashflow for both parties.
We portion off some of the cashflow each month in order to have enough at the end of the term to repay the loan with interest.
In the unlikely event that there is not enough saved to repay the loan, we can draw from our existing portfolio to repay the loan.
No, there are no costs or fees. I would recommend you seek legal advice before signing the agreement though which would incur a cost.
We have a legal agreement in place so the terms are upheld, even in death.
I don't provide regular updates as it's a fairly clean-cut arrangement that takes place the beginning and end of the term. I will, however, get in touch a month or two before the end of the term to touch base and sort out the upcoming payments to repay the loan with interest.
I like to listen to what my investors are wanting to achieve, share what I would like to achieve, and see if we can work together in a way that is mutually beneficial. I find the best way to do this is by scheduling a Zoom call and just having a chat. I can share more about how this works, and you can ask any questions you may have.
You are also very welcome to message me if you have any questions.
Once terms have been agreed, we can then sign the loan agreement (unsecured) or instruct solicitors (secured).
This investor's property sale fell through so they had £100k sat in the bank earning no interest. They invested with me for 6-months and moved into a rolling 1-month agreement until the funds were needed for a new property. The loan was repaid in full with interest as per the agreement.
This investor was one of our early Angels who has an open-ended agreement with me. They have invested £200k and take an annual interest payment which pays for the family holiday. It's always lovely to hear where they're going each year!
When this investor retired, she had a £20k pension pot she wanted to invest. She got her money back with interest 2 years later. What a way to start retirement!
Anna Pearce Limited (11384195)
Anna Pearce does not give financial/legal advice