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Property Investment Business Plan

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    Property Investment Business Plan

    I'm proposing forming a property rental/development company with some friends. The idea is that 7/8 each stick in 10K toa newly formed company and use this as a rolling fund to finance buying properties/property management etc
    Just wondered if anyone knew of sources of typical contracts for this sort of venture in terms of members rights/selling up etc
    Has anyone else tried a scheme like this?
    Any major pitfalls?

    #2
    1.Yeh.What are you going to buy for 80k?
    2. Because you are acting as an investment trust you will need to take a business type loan/mortgage as opposed to a Buy to Let.
    3. They are more expensive
    4. The housing prices are going to go down.
    5.; Only rents in the North are worth it.
    6. Form a share club and go mad on the FTSE instead.

    Comment


      #3
      The 80K is only for deposits,legal fees,survey fees etc

      We're looking to buy property at around 250K .

      Once it's rented out it should pay for itself, and the company can look towards making another aquisition.

      The costs of borrowing will be more expensive than on an individual basis, but spreading it amongst several people lessens the pain, and the company structure gives expansion opportunities which would be outwith the reach of the average sole investor.

      We're based in Edinburgh. The housing market is stillvery buoyant here, and historically has not been subject to the boom and bust fluctuations of South England's market.

      Comment


        #4
        Well if the figures work out go for it.
        I have a few houses I rent out on BTL as does another poster on the board.
        The best returns are actually within the North of England where 80k could buy you a couple of streets. Returns are also high. A 37k house in Leeds will return 450p/m = 6k per year. (I know a friend owns one ). A deposit of 20% means you could buy 6 or 7 houses with a reutnr of £2500 ish per month - cost of mortgages.

        But then again it is in Leeds

        Comment


          #5
          "But then again it is in Leeds"

          Don't knock it. The last time I looked into BTL market there, there were some stunning opportunities. One of the best was student housing. x quid per head per week in a house, irrespective of how many were willing to share a room. Chuck 'em out in summer and send a few lads on the dole in on a tenner a day to clear up the mess.

          The only snag is that you have to be there to manage it actively.

          Comment


            #6
            edinburgh property investment company

            btw if you're based in Edinburgh and are interested in getting involved in this business venture, then get in touch...

            cheers

            Jim

            Comment


              #7
              Re: edinburgh property investment company

              Might be interested.

              Glasgow based.

              Comment


                #8
                property investment company

                is there a private facility on this board by which you could pass me your email address, and I could forward you the draft business plan etc?

                Comment


                  #9
                  Details

                  [email protected]

                  Comment


                    #10
                    Re: Details

                    Also interested, if not too late.

                    Please email [email protected].

                    Comment

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