26.07.2024

Recycling funds from a property investment: Case Study

FAA Property Property Developer

Recycling funds from a property investment: Case…

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This article aims to elucidate the process of recycling funds derived from property investments. At FAA Property, we comprehend the dilemma of deciding how to allocate the proceeds from such investments. That's why we strive to simplify and streamline the recycling process for all our valued customers.
 
 
 
While the process itself is relatively straightforward, it necessitates preliminary research to ensure data consistency and accuracy. FAA Property specializes in identifying properties with optimal price points and substantial potential for value appreciation. We employ our expertise to add value to properties in various ways. For example, we may encounter properties that require refurbishment or have the potential for expansion to enhance their worth. Our team at FAA Property possesses extensive experience in delivering value-added services that transform properties into desirable investments.
 
To illustrate, let's examine a case study based on a property we acquired earlier this year—a 3-bedroom terrace house located in the North East.

 Purchase Price: £53,000
 Refurbishment Costs: £21,500
 Stamp Duty: £1,590
 Legal Fees: £1,000
 Total Investment: £77,090

 Interest on Investment at 1% per month: £6,167
 Total Capital Invested: £83,257
 Property Revaluation: £115,000
 Financing at 75%: £86,250
 Monthly Rental Income: £575
 Monthly Mortgage Payment: £350
 Passive Income: £225
 
Through this deal, we successfully acquired the property by leveraging investor financing. Subsequently, after a span of 8 months, we were able to refinance the property and return the initial investment to the investor, accompanied by a 1% interest over the 8-month period.
 
 
 
The investors' funds were safeguarded by the property, ensuring the protection of their investment until we refinanced and reimbursed them.
 
If you seek a reliable partner to maximize returns from property investments, look no further than FAA Property. We are poised to assist you with all your needs and ensure a seamless transition throughout the process. Contact us today for more information about our services and how we can help you make astute investment decisions!
FAA Property Investment Property Agent

I am a Co-Founder of FAA Property,  a family-owned property business that operates in the north west of England. With our expertise, we curate a portfolio of properties, specialising in providing…

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