below market value property deals - m3 commercial finance · 2020-01-15 · off market & below...

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M3 Commercial Finance PREVIEW PACK Below Market Value Property Deals m3commercialfinance.co.uk

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Page 1: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

M3 Commercial Finance

PREVIEW PACK

Below Market Value Property Deals

m3commercialfinancecouk

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Hello and welcome to the latest update of our latest below market value property deal preview pack

My name is Chris Song and I help property developers and investors fund their projects source land and properties build their portfolios and connect with the right people

I also help investors and developers finance their deals

Inside this document you will find a preview of some of our below market value property deals

We keep this document regularly updated If you have subscribed with us every time we make an update we will email you the new document so you can keep abreast of some of our latest deals

We often have many more deals not included in this pack and we can also source deals and investments for your specific needs

If you would like to find out more about any of the deals in this pack or talk about sourcing deals specifically for you just drop me a line or email on the details below

Many thanks

Christopher SongM3 Commercial FinanceFounder amp Director

wwwm3commercialfinancecoukinfom3commercialfinancecouk0161 913 2780

Welcome

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For a limited time only we have managed to secure a prime detatched development opportunity for three two-bedroom apartments in a central location in Skewen Neath just seven miles from Swansea Convenient to Neath town centre and within easy access to Swansea and the M4 Motorway at Junction 43

PROPERTY DETAILSLocation St Johns Terrace Skewen Neath West GlamorganTo build three two-bed apartments with planning permission

THE VISIONbull Purchase the property at pound75000 and develop into three self

contained two-bedroom apartmentsbull After build rent out apartments at pound550 pcm each or sell as

individual units at pound80000 eachbull We envisage build cost to be somewhere in the region of pound90000

but please conduct your own due diligence and get the right figures

FINANCIALSPurchase Price = pound75000Finders Fee = pound6500 Build costs = pound90000GDV = pound240000

Development opportunity with planning permission

GDV pound240000

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CAPITAL REQUIREDPurchase Price = pound75000Deposit 25 = pound18750Build cost = pound90000 (Potential to get 100 development funding)Legals = pound1000Sourcing Fee = pound6500

Total Capital Required = pound26250 (with 100 Development Funding)Total Capital Required = pound116250 (with Self Development Funding)

INCOMEPotential income per apartment pound550 pcm = pound6600 per annumPotential income for 3 units pound1650 pcm = pound19800 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcmManagement 10 plus vat = pound198pcm

NET CASHFLOW Managed = pound1277 pcm = pound15324 per annumSelf managed = pound1475 pcm = pound17700 per annum

RETURNThe Return On Investment based on an investment of pound26250Managed = 58Self Managed = 67

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We have the exclusivity to a freehold block of apartments in a popular area of Blackpool There are currently five apartments in the block however one has previously been sold off There are four apartments for sale with the freehold included within the saleIn 2008 flats within this region were achieving circa pound90000 each however today they are within the region of circa pound60000

PROPERTY DETAILSLocation Windsor Terrace Fleetwood Blackpool FY7 6HH4 x Tenanted 1 Bed Flats + Building Freehold

THE VISIONbull Buy and hold for excellent rental yieldbull Purchase and title split the flats allowing you to sell or refinance

the flats individually

FINANCIALSPurchase Price = pound140000Market Value = pound240000Finders Fee = pound6500

Block of four apartments with freehold Blackpool

40 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound140000Deposit = pound35000Stamp Duty = pound4500Legals = pound1000Finder Fee = pound6500

TOTAL CAPITAL REQUIRED = pound47000

INCOMEFlat 1 - 25sqm - Rented at pound368 Tenanted since June 19Flat 2 - 18sqm - Rented at pound34660 Tenanted since Oct 19Flat 3 - 29sqm - Rented at pound368 Tenanted since June 19 Flat 5 - 24sqm - Rented at pound30330 Tenanted since June 19

Total Income = pound138590 pcm = pound1663080 per annum

MONTHLY COSTSMortgage Cost 4 = pound350 pcmManagement 10 = pound167 pcm

NET CASHFLOW Managed = pound869 pcm = pound10428 per annumSelf Managed = pound1036 pcm = pound12432 per annum

RETURNROI BASED ON AN INVESTMENT OF pound47000MANAGED = 22SELF MANAGED = 265

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We have managed to secure this prime development opportunity in Swansea A substantial freehold three-storey former public house with basement and a four-bedroom flat aboveLocated in Clydach Swansea just five minutes from the M4 motorway at Junction 45 and close to the High street which is has seen recent investment with new wine bars coffee shops restaurants and more We envisage works to be no more than pound20000 to retain the residential as a four-bed flat and the commercial unit on the ground floor After works we believe the four-bedroom flat alone will be worth in the region of pound100000 alone

PROPERTY DETAILSLocation Hebron Road Clydach Swansea SA6 5EJFreehold three-storey former public house with residential accommodation ripe for development

THE VISIONbull To purchase the property for pound60000 renovate and rent as a four

bedroom flat with ground floor rented on a commercial leasebull Or apply to planning for conversion to flats HMO

FINANCIALSPurchase Price = pound60000Renovation costs pound20000Market Value (after work) = pound150000Finders Fee = pound6500

Commercial building with four-bed apartment

60 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound60000Deposit 25= pound15000Refurb = Approx pound20000Stamp Duty= pound0Legals = pound1000Sourcing fee = pound6500

CAPITAL REQUIRED = pound42500

INCOMERental Income as 4 bedroom flat = pound500 pcm = pound6000 per annumRental for ground floor approximately pound700 pcm = pound8400 per annum

Potential Income= pound1200pcm = pound14400 per annum

Other Income Potentials1 bedroom flats in the area let for circa pound400 pcm and 2 bedrooms pound450 pcmHMO rooms in the area range from pound350-pound450 per room

MONTHLY COSTSMortgage cost 4 = pound150Management 10 plus vat = pound144 pcm

NET CASHFLOW Managed = pound906 pcm = pound10872 per annumSelf Managed = pound1050 pcm = pound12600 per annum

RETURNTHE RETURN ON INVESTMENT BASED ON AN INVESTMENT OF pound42500MANAGED = 26SELF MANAGED = 30

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 2: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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Hello and welcome to the latest update of our latest below market value property deal preview pack

My name is Chris Song and I help property developers and investors fund their projects source land and properties build their portfolios and connect with the right people

I also help investors and developers finance their deals

Inside this document you will find a preview of some of our below market value property deals

We keep this document regularly updated If you have subscribed with us every time we make an update we will email you the new document so you can keep abreast of some of our latest deals

We often have many more deals not included in this pack and we can also source deals and investments for your specific needs

If you would like to find out more about any of the deals in this pack or talk about sourcing deals specifically for you just drop me a line or email on the details below

Many thanks

Christopher SongM3 Commercial FinanceFounder amp Director

wwwm3commercialfinancecoukinfom3commercialfinancecouk0161 913 2780

Welcome

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For a limited time only we have managed to secure a prime detatched development opportunity for three two-bedroom apartments in a central location in Skewen Neath just seven miles from Swansea Convenient to Neath town centre and within easy access to Swansea and the M4 Motorway at Junction 43

PROPERTY DETAILSLocation St Johns Terrace Skewen Neath West GlamorganTo build three two-bed apartments with planning permission

THE VISIONbull Purchase the property at pound75000 and develop into three self

contained two-bedroom apartmentsbull After build rent out apartments at pound550 pcm each or sell as

individual units at pound80000 eachbull We envisage build cost to be somewhere in the region of pound90000

but please conduct your own due diligence and get the right figures

FINANCIALSPurchase Price = pound75000Finders Fee = pound6500 Build costs = pound90000GDV = pound240000

Development opportunity with planning permission

GDV pound240000

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CAPITAL REQUIREDPurchase Price = pound75000Deposit 25 = pound18750Build cost = pound90000 (Potential to get 100 development funding)Legals = pound1000Sourcing Fee = pound6500

Total Capital Required = pound26250 (with 100 Development Funding)Total Capital Required = pound116250 (with Self Development Funding)

INCOMEPotential income per apartment pound550 pcm = pound6600 per annumPotential income for 3 units pound1650 pcm = pound19800 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcmManagement 10 plus vat = pound198pcm

NET CASHFLOW Managed = pound1277 pcm = pound15324 per annumSelf managed = pound1475 pcm = pound17700 per annum

RETURNThe Return On Investment based on an investment of pound26250Managed = 58Self Managed = 67

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We have the exclusivity to a freehold block of apartments in a popular area of Blackpool There are currently five apartments in the block however one has previously been sold off There are four apartments for sale with the freehold included within the saleIn 2008 flats within this region were achieving circa pound90000 each however today they are within the region of circa pound60000

PROPERTY DETAILSLocation Windsor Terrace Fleetwood Blackpool FY7 6HH4 x Tenanted 1 Bed Flats + Building Freehold

THE VISIONbull Buy and hold for excellent rental yieldbull Purchase and title split the flats allowing you to sell or refinance

the flats individually

FINANCIALSPurchase Price = pound140000Market Value = pound240000Finders Fee = pound6500

Block of four apartments with freehold Blackpool

40 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound140000Deposit = pound35000Stamp Duty = pound4500Legals = pound1000Finder Fee = pound6500

TOTAL CAPITAL REQUIRED = pound47000

INCOMEFlat 1 - 25sqm - Rented at pound368 Tenanted since June 19Flat 2 - 18sqm - Rented at pound34660 Tenanted since Oct 19Flat 3 - 29sqm - Rented at pound368 Tenanted since June 19 Flat 5 - 24sqm - Rented at pound30330 Tenanted since June 19

Total Income = pound138590 pcm = pound1663080 per annum

MONTHLY COSTSMortgage Cost 4 = pound350 pcmManagement 10 = pound167 pcm

NET CASHFLOW Managed = pound869 pcm = pound10428 per annumSelf Managed = pound1036 pcm = pound12432 per annum

RETURNROI BASED ON AN INVESTMENT OF pound47000MANAGED = 22SELF MANAGED = 265

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We have managed to secure this prime development opportunity in Swansea A substantial freehold three-storey former public house with basement and a four-bedroom flat aboveLocated in Clydach Swansea just five minutes from the M4 motorway at Junction 45 and close to the High street which is has seen recent investment with new wine bars coffee shops restaurants and more We envisage works to be no more than pound20000 to retain the residential as a four-bed flat and the commercial unit on the ground floor After works we believe the four-bedroom flat alone will be worth in the region of pound100000 alone

PROPERTY DETAILSLocation Hebron Road Clydach Swansea SA6 5EJFreehold three-storey former public house with residential accommodation ripe for development

THE VISIONbull To purchase the property for pound60000 renovate and rent as a four

bedroom flat with ground floor rented on a commercial leasebull Or apply to planning for conversion to flats HMO

FINANCIALSPurchase Price = pound60000Renovation costs pound20000Market Value (after work) = pound150000Finders Fee = pound6500

Commercial building with four-bed apartment

60 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound60000Deposit 25= pound15000Refurb = Approx pound20000Stamp Duty= pound0Legals = pound1000Sourcing fee = pound6500

CAPITAL REQUIRED = pound42500

INCOMERental Income as 4 bedroom flat = pound500 pcm = pound6000 per annumRental for ground floor approximately pound700 pcm = pound8400 per annum

Potential Income= pound1200pcm = pound14400 per annum

Other Income Potentials1 bedroom flats in the area let for circa pound400 pcm and 2 bedrooms pound450 pcmHMO rooms in the area range from pound350-pound450 per room

MONTHLY COSTSMortgage cost 4 = pound150Management 10 plus vat = pound144 pcm

NET CASHFLOW Managed = pound906 pcm = pound10872 per annumSelf Managed = pound1050 pcm = pound12600 per annum

RETURNTHE RETURN ON INVESTMENT BASED ON AN INVESTMENT OF pound42500MANAGED = 26SELF MANAGED = 30

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 3: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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For a limited time only we have managed to secure a prime detatched development opportunity for three two-bedroom apartments in a central location in Skewen Neath just seven miles from Swansea Convenient to Neath town centre and within easy access to Swansea and the M4 Motorway at Junction 43

PROPERTY DETAILSLocation St Johns Terrace Skewen Neath West GlamorganTo build three two-bed apartments with planning permission

THE VISIONbull Purchase the property at pound75000 and develop into three self

contained two-bedroom apartmentsbull After build rent out apartments at pound550 pcm each or sell as

individual units at pound80000 eachbull We envisage build cost to be somewhere in the region of pound90000

but please conduct your own due diligence and get the right figures

FINANCIALSPurchase Price = pound75000Finders Fee = pound6500 Build costs = pound90000GDV = pound240000

Development opportunity with planning permission

GDV pound240000

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CAPITAL REQUIREDPurchase Price = pound75000Deposit 25 = pound18750Build cost = pound90000 (Potential to get 100 development funding)Legals = pound1000Sourcing Fee = pound6500

Total Capital Required = pound26250 (with 100 Development Funding)Total Capital Required = pound116250 (with Self Development Funding)

INCOMEPotential income per apartment pound550 pcm = pound6600 per annumPotential income for 3 units pound1650 pcm = pound19800 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcmManagement 10 plus vat = pound198pcm

NET CASHFLOW Managed = pound1277 pcm = pound15324 per annumSelf managed = pound1475 pcm = pound17700 per annum

RETURNThe Return On Investment based on an investment of pound26250Managed = 58Self Managed = 67

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We have the exclusivity to a freehold block of apartments in a popular area of Blackpool There are currently five apartments in the block however one has previously been sold off There are four apartments for sale with the freehold included within the saleIn 2008 flats within this region were achieving circa pound90000 each however today they are within the region of circa pound60000

PROPERTY DETAILSLocation Windsor Terrace Fleetwood Blackpool FY7 6HH4 x Tenanted 1 Bed Flats + Building Freehold

THE VISIONbull Buy and hold for excellent rental yieldbull Purchase and title split the flats allowing you to sell or refinance

the flats individually

FINANCIALSPurchase Price = pound140000Market Value = pound240000Finders Fee = pound6500

Block of four apartments with freehold Blackpool

40 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound140000Deposit = pound35000Stamp Duty = pound4500Legals = pound1000Finder Fee = pound6500

TOTAL CAPITAL REQUIRED = pound47000

INCOMEFlat 1 - 25sqm - Rented at pound368 Tenanted since June 19Flat 2 - 18sqm - Rented at pound34660 Tenanted since Oct 19Flat 3 - 29sqm - Rented at pound368 Tenanted since June 19 Flat 5 - 24sqm - Rented at pound30330 Tenanted since June 19

Total Income = pound138590 pcm = pound1663080 per annum

MONTHLY COSTSMortgage Cost 4 = pound350 pcmManagement 10 = pound167 pcm

NET CASHFLOW Managed = pound869 pcm = pound10428 per annumSelf Managed = pound1036 pcm = pound12432 per annum

RETURNROI BASED ON AN INVESTMENT OF pound47000MANAGED = 22SELF MANAGED = 265

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We have managed to secure this prime development opportunity in Swansea A substantial freehold three-storey former public house with basement and a four-bedroom flat aboveLocated in Clydach Swansea just five minutes from the M4 motorway at Junction 45 and close to the High street which is has seen recent investment with new wine bars coffee shops restaurants and more We envisage works to be no more than pound20000 to retain the residential as a four-bed flat and the commercial unit on the ground floor After works we believe the four-bedroom flat alone will be worth in the region of pound100000 alone

PROPERTY DETAILSLocation Hebron Road Clydach Swansea SA6 5EJFreehold three-storey former public house with residential accommodation ripe for development

THE VISIONbull To purchase the property for pound60000 renovate and rent as a four

bedroom flat with ground floor rented on a commercial leasebull Or apply to planning for conversion to flats HMO

FINANCIALSPurchase Price = pound60000Renovation costs pound20000Market Value (after work) = pound150000Finders Fee = pound6500

Commercial building with four-bed apartment

60 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound60000Deposit 25= pound15000Refurb = Approx pound20000Stamp Duty= pound0Legals = pound1000Sourcing fee = pound6500

CAPITAL REQUIRED = pound42500

INCOMERental Income as 4 bedroom flat = pound500 pcm = pound6000 per annumRental for ground floor approximately pound700 pcm = pound8400 per annum

Potential Income= pound1200pcm = pound14400 per annum

Other Income Potentials1 bedroom flats in the area let for circa pound400 pcm and 2 bedrooms pound450 pcmHMO rooms in the area range from pound350-pound450 per room

MONTHLY COSTSMortgage cost 4 = pound150Management 10 plus vat = pound144 pcm

NET CASHFLOW Managed = pound906 pcm = pound10872 per annumSelf Managed = pound1050 pcm = pound12600 per annum

RETURNTHE RETURN ON INVESTMENT BASED ON AN INVESTMENT OF pound42500MANAGED = 26SELF MANAGED = 30

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 4: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPurchase Price = pound75000Deposit 25 = pound18750Build cost = pound90000 (Potential to get 100 development funding)Legals = pound1000Sourcing Fee = pound6500

Total Capital Required = pound26250 (with 100 Development Funding)Total Capital Required = pound116250 (with Self Development Funding)

INCOMEPotential income per apartment pound550 pcm = pound6600 per annumPotential income for 3 units pound1650 pcm = pound19800 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcmManagement 10 plus vat = pound198pcm

NET CASHFLOW Managed = pound1277 pcm = pound15324 per annumSelf managed = pound1475 pcm = pound17700 per annum

RETURNThe Return On Investment based on an investment of pound26250Managed = 58Self Managed = 67

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We have the exclusivity to a freehold block of apartments in a popular area of Blackpool There are currently five apartments in the block however one has previously been sold off There are four apartments for sale with the freehold included within the saleIn 2008 flats within this region were achieving circa pound90000 each however today they are within the region of circa pound60000

PROPERTY DETAILSLocation Windsor Terrace Fleetwood Blackpool FY7 6HH4 x Tenanted 1 Bed Flats + Building Freehold

THE VISIONbull Buy and hold for excellent rental yieldbull Purchase and title split the flats allowing you to sell or refinance

the flats individually

FINANCIALSPurchase Price = pound140000Market Value = pound240000Finders Fee = pound6500

Block of four apartments with freehold Blackpool

40 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound140000Deposit = pound35000Stamp Duty = pound4500Legals = pound1000Finder Fee = pound6500

TOTAL CAPITAL REQUIRED = pound47000

INCOMEFlat 1 - 25sqm - Rented at pound368 Tenanted since June 19Flat 2 - 18sqm - Rented at pound34660 Tenanted since Oct 19Flat 3 - 29sqm - Rented at pound368 Tenanted since June 19 Flat 5 - 24sqm - Rented at pound30330 Tenanted since June 19

Total Income = pound138590 pcm = pound1663080 per annum

MONTHLY COSTSMortgage Cost 4 = pound350 pcmManagement 10 = pound167 pcm

NET CASHFLOW Managed = pound869 pcm = pound10428 per annumSelf Managed = pound1036 pcm = pound12432 per annum

RETURNROI BASED ON AN INVESTMENT OF pound47000MANAGED = 22SELF MANAGED = 265

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We have managed to secure this prime development opportunity in Swansea A substantial freehold three-storey former public house with basement and a four-bedroom flat aboveLocated in Clydach Swansea just five minutes from the M4 motorway at Junction 45 and close to the High street which is has seen recent investment with new wine bars coffee shops restaurants and more We envisage works to be no more than pound20000 to retain the residential as a four-bed flat and the commercial unit on the ground floor After works we believe the four-bedroom flat alone will be worth in the region of pound100000 alone

PROPERTY DETAILSLocation Hebron Road Clydach Swansea SA6 5EJFreehold three-storey former public house with residential accommodation ripe for development

THE VISIONbull To purchase the property for pound60000 renovate and rent as a four

bedroom flat with ground floor rented on a commercial leasebull Or apply to planning for conversion to flats HMO

FINANCIALSPurchase Price = pound60000Renovation costs pound20000Market Value (after work) = pound150000Finders Fee = pound6500

Commercial building with four-bed apartment

60 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound60000Deposit 25= pound15000Refurb = Approx pound20000Stamp Duty= pound0Legals = pound1000Sourcing fee = pound6500

CAPITAL REQUIRED = pound42500

INCOMERental Income as 4 bedroom flat = pound500 pcm = pound6000 per annumRental for ground floor approximately pound700 pcm = pound8400 per annum

Potential Income= pound1200pcm = pound14400 per annum

Other Income Potentials1 bedroom flats in the area let for circa pound400 pcm and 2 bedrooms pound450 pcmHMO rooms in the area range from pound350-pound450 per room

MONTHLY COSTSMortgage cost 4 = pound150Management 10 plus vat = pound144 pcm

NET CASHFLOW Managed = pound906 pcm = pound10872 per annumSelf Managed = pound1050 pcm = pound12600 per annum

RETURNTHE RETURN ON INVESTMENT BASED ON AN INVESTMENT OF pound42500MANAGED = 26SELF MANAGED = 30

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 5: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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We have the exclusivity to a freehold block of apartments in a popular area of Blackpool There are currently five apartments in the block however one has previously been sold off There are four apartments for sale with the freehold included within the saleIn 2008 flats within this region were achieving circa pound90000 each however today they are within the region of circa pound60000

PROPERTY DETAILSLocation Windsor Terrace Fleetwood Blackpool FY7 6HH4 x Tenanted 1 Bed Flats + Building Freehold

THE VISIONbull Buy and hold for excellent rental yieldbull Purchase and title split the flats allowing you to sell or refinance

the flats individually

FINANCIALSPurchase Price = pound140000Market Value = pound240000Finders Fee = pound6500

Block of four apartments with freehold Blackpool

40 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound140000Deposit = pound35000Stamp Duty = pound4500Legals = pound1000Finder Fee = pound6500

TOTAL CAPITAL REQUIRED = pound47000

INCOMEFlat 1 - 25sqm - Rented at pound368 Tenanted since June 19Flat 2 - 18sqm - Rented at pound34660 Tenanted since Oct 19Flat 3 - 29sqm - Rented at pound368 Tenanted since June 19 Flat 5 - 24sqm - Rented at pound30330 Tenanted since June 19

Total Income = pound138590 pcm = pound1663080 per annum

MONTHLY COSTSMortgage Cost 4 = pound350 pcmManagement 10 = pound167 pcm

NET CASHFLOW Managed = pound869 pcm = pound10428 per annumSelf Managed = pound1036 pcm = pound12432 per annum

RETURNROI BASED ON AN INVESTMENT OF pound47000MANAGED = 22SELF MANAGED = 265

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We have managed to secure this prime development opportunity in Swansea A substantial freehold three-storey former public house with basement and a four-bedroom flat aboveLocated in Clydach Swansea just five minutes from the M4 motorway at Junction 45 and close to the High street which is has seen recent investment with new wine bars coffee shops restaurants and more We envisage works to be no more than pound20000 to retain the residential as a four-bed flat and the commercial unit on the ground floor After works we believe the four-bedroom flat alone will be worth in the region of pound100000 alone

PROPERTY DETAILSLocation Hebron Road Clydach Swansea SA6 5EJFreehold three-storey former public house with residential accommodation ripe for development

THE VISIONbull To purchase the property for pound60000 renovate and rent as a four

bedroom flat with ground floor rented on a commercial leasebull Or apply to planning for conversion to flats HMO

FINANCIALSPurchase Price = pound60000Renovation costs pound20000Market Value (after work) = pound150000Finders Fee = pound6500

Commercial building with four-bed apartment

60 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound60000Deposit 25= pound15000Refurb = Approx pound20000Stamp Duty= pound0Legals = pound1000Sourcing fee = pound6500

CAPITAL REQUIRED = pound42500

INCOMERental Income as 4 bedroom flat = pound500 pcm = pound6000 per annumRental for ground floor approximately pound700 pcm = pound8400 per annum

Potential Income= pound1200pcm = pound14400 per annum

Other Income Potentials1 bedroom flats in the area let for circa pound400 pcm and 2 bedrooms pound450 pcmHMO rooms in the area range from pound350-pound450 per room

MONTHLY COSTSMortgage cost 4 = pound150Management 10 plus vat = pound144 pcm

NET CASHFLOW Managed = pound906 pcm = pound10872 per annumSelf Managed = pound1050 pcm = pound12600 per annum

RETURNTHE RETURN ON INVESTMENT BASED ON AN INVESTMENT OF pound42500MANAGED = 26SELF MANAGED = 30

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 6: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPurchase Price = pound140000Deposit = pound35000Stamp Duty = pound4500Legals = pound1000Finder Fee = pound6500

TOTAL CAPITAL REQUIRED = pound47000

INCOMEFlat 1 - 25sqm - Rented at pound368 Tenanted since June 19Flat 2 - 18sqm - Rented at pound34660 Tenanted since Oct 19Flat 3 - 29sqm - Rented at pound368 Tenanted since June 19 Flat 5 - 24sqm - Rented at pound30330 Tenanted since June 19

Total Income = pound138590 pcm = pound1663080 per annum

MONTHLY COSTSMortgage Cost 4 = pound350 pcmManagement 10 = pound167 pcm

NET CASHFLOW Managed = pound869 pcm = pound10428 per annumSelf Managed = pound1036 pcm = pound12432 per annum

RETURNROI BASED ON AN INVESTMENT OF pound47000MANAGED = 22SELF MANAGED = 265

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We have managed to secure this prime development opportunity in Swansea A substantial freehold three-storey former public house with basement and a four-bedroom flat aboveLocated in Clydach Swansea just five minutes from the M4 motorway at Junction 45 and close to the High street which is has seen recent investment with new wine bars coffee shops restaurants and more We envisage works to be no more than pound20000 to retain the residential as a four-bed flat and the commercial unit on the ground floor After works we believe the four-bedroom flat alone will be worth in the region of pound100000 alone

PROPERTY DETAILSLocation Hebron Road Clydach Swansea SA6 5EJFreehold three-storey former public house with residential accommodation ripe for development

THE VISIONbull To purchase the property for pound60000 renovate and rent as a four

bedroom flat with ground floor rented on a commercial leasebull Or apply to planning for conversion to flats HMO

FINANCIALSPurchase Price = pound60000Renovation costs pound20000Market Value (after work) = pound150000Finders Fee = pound6500

Commercial building with four-bed apartment

60 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound60000Deposit 25= pound15000Refurb = Approx pound20000Stamp Duty= pound0Legals = pound1000Sourcing fee = pound6500

CAPITAL REQUIRED = pound42500

INCOMERental Income as 4 bedroom flat = pound500 pcm = pound6000 per annumRental for ground floor approximately pound700 pcm = pound8400 per annum

Potential Income= pound1200pcm = pound14400 per annum

Other Income Potentials1 bedroom flats in the area let for circa pound400 pcm and 2 bedrooms pound450 pcmHMO rooms in the area range from pound350-pound450 per room

MONTHLY COSTSMortgage cost 4 = pound150Management 10 plus vat = pound144 pcm

NET CASHFLOW Managed = pound906 pcm = pound10872 per annumSelf Managed = pound1050 pcm = pound12600 per annum

RETURNTHE RETURN ON INVESTMENT BASED ON AN INVESTMENT OF pound42500MANAGED = 26SELF MANAGED = 30

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 7: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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We have managed to secure this prime development opportunity in Swansea A substantial freehold three-storey former public house with basement and a four-bedroom flat aboveLocated in Clydach Swansea just five minutes from the M4 motorway at Junction 45 and close to the High street which is has seen recent investment with new wine bars coffee shops restaurants and more We envisage works to be no more than pound20000 to retain the residential as a four-bed flat and the commercial unit on the ground floor After works we believe the four-bedroom flat alone will be worth in the region of pound100000 alone

PROPERTY DETAILSLocation Hebron Road Clydach Swansea SA6 5EJFreehold three-storey former public house with residential accommodation ripe for development

THE VISIONbull To purchase the property for pound60000 renovate and rent as a four

bedroom flat with ground floor rented on a commercial leasebull Or apply to planning for conversion to flats HMO

FINANCIALSPurchase Price = pound60000Renovation costs pound20000Market Value (after work) = pound150000Finders Fee = pound6500

Commercial building with four-bed apartment

60 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound60000Deposit 25= pound15000Refurb = Approx pound20000Stamp Duty= pound0Legals = pound1000Sourcing fee = pound6500

CAPITAL REQUIRED = pound42500

INCOMERental Income as 4 bedroom flat = pound500 pcm = pound6000 per annumRental for ground floor approximately pound700 pcm = pound8400 per annum

Potential Income= pound1200pcm = pound14400 per annum

Other Income Potentials1 bedroom flats in the area let for circa pound400 pcm and 2 bedrooms pound450 pcmHMO rooms in the area range from pound350-pound450 per room

MONTHLY COSTSMortgage cost 4 = pound150Management 10 plus vat = pound144 pcm

NET CASHFLOW Managed = pound906 pcm = pound10872 per annumSelf Managed = pound1050 pcm = pound12600 per annum

RETURNTHE RETURN ON INVESTMENT BASED ON AN INVESTMENT OF pound42500MANAGED = 26SELF MANAGED = 30

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 8: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPurchase Price = pound60000Deposit 25= pound15000Refurb = Approx pound20000Stamp Duty= pound0Legals = pound1000Sourcing fee = pound6500

CAPITAL REQUIRED = pound42500

INCOMERental Income as 4 bedroom flat = pound500 pcm = pound6000 per annumRental for ground floor approximately pound700 pcm = pound8400 per annum

Potential Income= pound1200pcm = pound14400 per annum

Other Income Potentials1 bedroom flats in the area let for circa pound400 pcm and 2 bedrooms pound450 pcmHMO rooms in the area range from pound350-pound450 per room

MONTHLY COSTSMortgage cost 4 = pound150Management 10 plus vat = pound144 pcm

NET CASHFLOW Managed = pound906 pcm = pound10872 per annumSelf Managed = pound1050 pcm = pound12600 per annum

RETURNTHE RETURN ON INVESTMENT BASED ON AN INVESTMENT OF pound42500MANAGED = 26SELF MANAGED = 30

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 9: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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A readymade income producing seven-bedroom HMO split over two apartments close to Stoke City Centre and Staffordshire University The property is currently let to a company for 12 months who are paying pound19200 per annum This is a new agreement and tennants are due to take occupation from January 2020 The property is split into two separate flats negating the need for a HMO licence however it is currently on one title which could be changed into two and sold individually in the future

PROPERTY DETAILSLocation Ruxley Road Stoke-On Trent Staffordshire ST2 9AZ7 Bedroom HMO Split Over 2 Flats

THE VISIONbull To purchase the property for pound150000 and enjoy immediate

cashflowbull Refinance the property against its commercial valuationbull To furnish the property to a higher standard and get a favourable

valuation

FINANCIALSMarket Value = pound190000Purchase Price = pound150000 Finders Fee pound6500Current Income = pound19200 per annumPotential Income = pound27300 per annum

Seven-bed HMO over two apartments Staffordshire

21 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 10: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound50000

INCOMEThe property is let to a company let on a 12 month agreement currently producing pound19200 per annum

However if the HMO where to be let out on a room by room basis it could achieve

Room 1 ndash Potential to rent at pound325 pcmRoom 2 ndash Potential to rent at pound325 pcmRoom 3 ndash Potential to rent at pound325 pcmRoom 4 ndash Potential to rent at pound325 pcmRoom 5 ndash Potential to rent at pound325 pcmRoom 6 ndash Potential to rent at pound325 pcmRoom 7 ndash Potential to rent at pound325 pcm

Potential Income = pound2275 pcm = pound27300 per annum

MONTHLY COSTSBased On Company LetMortgage Cost 4 = pound375 pcmManagement 10 + Vat = pound192 pcm

Based On Individual LetMortgage Cost 4 = pound375 pcmBills based on pound65 pp pcm = pound455 pcmManagement 10 + Vat = pound274 pcm

NET CASHFLOW Based on Company LetManaged = pound1033 pcm = pound12396 per annumSelf-Managed = pound1225 pcm = pound14700 per annum

Based on individual letManaged = pound1171 pcm = pound14052 per annumSelf-Managed = pound1445 pcm = pound17340 per annum

RETURNBASED ON AN INVESTMENT OF pound50000

ON COMPANY LETMANAGED = 248SELF MANAGED = 294

ON INDIVIDUAL LETMANAGED = 281SELF MANAGED = 347

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 11: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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A four-bedroom terraced house with HMO potential in Burnley The property is in good general condition and doesnrsquot need much if any work done We envisage cost of refurbishment to be in a region of pound1000 maximum The house can be used as a single let or HMO due to its convenient location close to local amenities This house will appeal to working professionals in the area where there are a lot of industrial workers nearby

PROPERTY DETAILSLocation Owen Street Burnley BB12 6HLFour Bedroom Terraced House with HMO Potential

THE VISIONbull Carry out any minimal works (pound1000) to get the property to good

standardbull Rent as single let or four-bed HMObull If let as HMO furnish property (pound3000 max) and refinance at

market value of pound85000 leaving pound15400 in the deal bull High cashflowing investment

FINANCIALSMarket Value = pound85000Purchase Price = pound70500Finders Fee = pound4500

Four-bed terraced house with HMO potential

17 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 12: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPurchase Price = pound70500Deposit = pound17625Stamp Duty = pound2115Legals = pound1000Refurb Cost = pound1000Finders fee = pound4500

TOTAL CAPITAL REQUIRED = pound26240

INCOMEPotential Rental Income as single let = pound500 pcm = pound6000 per annumPotential To Rent As 4 Bed HMO = 4 Rooms x pound325 pcm = pound1300 pcm

MONTHLY COSTSAs single letMortgage Cost 4 = pound180 pcmManagement 10 = pound60 pcm

As four-bed HMOMortgage Cost 4 = pound180 pcmManagement 10 = pound160 pcmUtilities = pound260 pcm

NET CASHFLOW As single letManaged = pound260 pcm = pound3120 per annumSelf Managed = pound320 pcm = pound3840 per annum

As four-bed HMOManaged = pound700 pcm = pound8400 per annumSelf Managed = pound860 pcm = pound10320 per annum

RETURNROI OF pound26240

AS SINGLE LET =MANAGED = 119SELF MANAGED = 146

AS FOUR-BED HMO =MANAGED = 32SELF MANAGED = 393

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 13: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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A Below Market Value four-bedroom terraced house in a fantastic location in Doncaster just 2 miles from the city centre Previously used as a HMO from 2004-2014 (no current HMO licence) Close to local amenities and transport links this makes an ideal investment opportunity

PROPERTY DETAILSLocation Warmsworth Road Doncaster DN4 0TN4 Bed Terraced House as Former 4 Bed HMO

THE VISIONbull To purchase the property for pound70000 and enjoy immediate equity

profitbull Complete a light refurbishmentbull Rent the property and enjoy immediate cash flowbull Refinance the property against its true valuation and recoup

some of your deposit money

FINANCIALSMarket Value = pound95000Purchase Price = pound70000Finders Fee = pound5500Potential Gross Income = pound15600 per annumImmediate exchange with 10 deposit and completion within 28 days required

Four-bed terraced HMO near Doncaster city centre

26 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 14: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPurchase Price = pound70000Deposit 25 = pound17500Stamp Duty = pound2100Legals = pound1000Sellers Fees = pound7140Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound33510

INCOMEThis property could potentially achieve the following

Room 1 = Potential to achieve pound325 pcmRoom 2 = Potential to achieve pound325 pcmRoom 3 = Potential to achieve pound325 pcmRoom 4 = Potential to achieve pound325 pcm

Potential Rental = pound1200pcm = pound15600 per annum

MONTHLY COSTSMortgage Cost 4 = pound175 pcm Management 10 + vat = pound144 pcm Utilities = pound260 pcm

NET CASHFLOW Managed = pound621 pcm = pound7452 per annumSelf Managed = pound765 pcm = pound9180 per annum

RETURNROI BASED ON AN INVESTMENT OF pound33510MANAGED 222SELF MANAGED 274

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 15: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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A five-bed apartment based in Gateshead a short distance from Newcastle Upon Tyne available to be rented as a five-bed HMO on a rent-to-rent basis The property would need a light refurbishment to attract the top end tenants as it comes unfurnished Also you would be required to apply for a HMO Licence

PROPERTY DETAILSLocation Woodbine Street Gateshead NE8 1SSFive-bedroom apartment with HMO potentialFive year rent-to-rent opportunity

THE VISIONbull Rent this property from the Landlord for pound575 a monthbull Once refurbished either rent as a single let or a five-bed HMObull If refurbished as a single let generate an income of around pound975

per month after costsbull If refurbished as a HMO it has potential to generate an income of

pound1300 per month after costs

FINANCIALSRent To Landlord = pound575 pcmFinders Fee = pound6500

Five-bedroom rent-to-rent opportunity Gateshead

POTENTIAL 94 ROI

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 16: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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ALS CAPITAL REQUIRED

1 Monthrsquos Rent = pound5751 Monthrsquos Deposit = pound575As a HMO Would require a licence = pound855Refurb Cost = pound2000Sourcing Fee = pound6500

TOTAL CAPITAL REQUIRED = pound10505

INCOMESingle Let Potential pound1000 = pound12000 per Anum

HMO Potential IncomeRoom 1 ndash Can potentially rent for pound345 pcmRoom 2 ndash Can potentially rent for pound345 pcmRoom 3 ndash Can potentially rent for pound345 pcmRoom 4 ndash Can potentially rent for pound345 pcmRoom 5 ndash Can potentially rent for pound345 pcm

Potential Income Fully Let = pound1725 pcm = pound20700 per annum

MONTHLY COSTSAs a single letRent to Landlord = pound575 pcmManagement 10 = pound120 pcm

As a 5-bed HMORent to Landlord = pound575 pcmUtilities = pound325 pcmManagement 10 + Vat = pound210 pcm

NET CASHFLOW As a single letManaged = pound305 pcm = pound3660 per annum = pound18300 Over 5 YearsSelf Managed = pound425 pcm = pound5100 per annum = pound25500 Over 5 Years

As a 5-bed HMOManaged = pound615 pcm = pound7380 per annum = pound36900 Over 5 YearsSelf Managed = pound825 pcm = pound9900 per annum = pound49500 Over 5 Years

RETURNBASED ON AN INVESTMENT OF pound10505

SINGLE LETMANAGED = 348SELF-MANAGED = 485

5 BED HMOMANAGED = 70SELF-MANAGED = 942

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 17: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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We have exclusivity to a single buy-to-let investment in Liverpool The property has been recently renovated The property consists of an open-plan reception with kitchen three bedrooms and one bathroom This property is in very close proximity to a train station schools and town centre

PROPERTY DETAILSLocation Hebdon Road Liverpool L11 2AWSingle Let 3 Bed Terraced House

THE VISIONbull Purchase the property to let out as a single letbull After six months refinance against the open market value to pull

out your initial capitalbull Potential to buy and sell back on the open market for capital gain

FINANCIALSMarket Value = pound90000Purchase Price = pound68000Finders Fee = pound5500Potential Gross Income as a single let = pound6000 per annum

Three-bed buy-to-let terrace in Liverpool

24 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 18: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPurchase Price = pound68000Deposit = pound17000Stamp Duty = pound2040Legals = pound1000Finders Fee = pound5500

TOTAL CAPITAL REQUIRED = pound25540

INCOMERental Income = pound500pcm = pound6000 per annum

MONTHLY COSTSMortgage cost 3 = pound128 pcmManagement 10 = pound60 pcm

NET CASHFLOW Managed = pound312 pcm = pound3744 per annumSelf Managed = pound372 pcm = pound4464 per annum

RETURNROI BASED ON AN INVESTMENT OF pound25540MANAGED = 147SELF MANAGED = 175

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 19: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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A three-bedroom terraced house which will make an ideal buy-to-let investment for a first-time investor The property is in good general condition and doesnrsquot need much if any work done Maybe could do with some TLC to give it a fresh look Property consists of three double bedrooms one bathroom an open plan reception with a kitchen and a garden

PROPERTY DETAILSLocation Estcourt Street Hull HU9 2RTThree bedroom terraced house for buy-to-let

THE VISIONbull Purchase the property rent it out and enjoy the cashflowbull Possibility refinance after a period of time to recoup the initial

investment made

FINANCIALSMarket Value = pound80000Purchase Price = pound65000Finders Fee = pound5000

Three-bed buy-to-let terrace in the North East

19 BELOW MARKET VALUE

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 20: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPurchase Price = pound65000Deposit = pound16250Stamp Duty = pound1950Legals = pound1000Finder fee = pound5000

TOTAL CAPITAL REQUIRED = pound24200

INCOMESingle let rent for pound495 pcm = pound5940 per annum

MONTHLY COSTSMortgage Cost 4 = pound163 pcmManagement 10 = pound59 pcm

NET CASHFLOW Managed = pound273 pcm = pound3276 per annumSelf Managed = pound332 pcm = pound3984 per annum

RETURNRETURN ON INVESTMENT OF pound24200

MANAGED = 135SELF MANAGED = 165

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 21: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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An opportunity to refurbish a three-bed semi detached property in Southend The property is in need of a full refurbishment costing approximately pound20000 The layout lends itself to be converted into a HMO as it is not in a Article 4 area The property offers easy access into Southend town centre and South Church Village and is also close to Southend Tennis amp Leisure centre

PROPERTY DETAILSLocation Newington Avenue Southend-On-Sea SS2 4RDThree bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished either rent as a single let or a five bed HMObull If refurbished as a single let sell back on the open market for the

full market value of pound280k +bull If refurbished as a HMO refinance against the new open market

value at pound280k + based on bricks and mortar valuation or even better a commercial valuation allowing you to pull out the majority of your initial capital

FINANCIALSMarket Value After Works = pound280000Purchase Price = pound210000Finders Fee = pound5500Potential Gross Income = pound28860 per annum

Three-bed semi-detached refurbishment opportunity

25 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 22: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPURCHASE PRICE = pound210000DEPOSIT 25 = pound52500STAMP DUTY = pound8000LEGALS = pound1000REFURB COST = pound20000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound87000

INCOMEAs a single let Rental Income = pound1105 pcm = pound13260 per annum

As a 5-bed HMORental Income as 5 bed HMO = pound2405 pcm = pound28860 per annum

MONTHLY COSTSAs a single letMortgage Cost 4 = pound525 pcmManagement 10 = pound132 pcm

As a 5-bed HMOMortgage Cost 4 = pound525 pcmBills = pound325 pcmManagement 10 = pound289 pcm

NET CASHFLOW As single letManaged = pound448 pcm = pound5376 per annumSelf Managed = pound580 pcm = pound6960 per annum

As a 5-bed HMOManaged = pound1266 pcm = pound15192 per annumSelf Managed = pound1555 pcm = pound18660 per annum

RETURNBASED ON AN INVESTMENT OF pound87000

AS SINGLE LET =MANAGED = 62SELF MANAGED = 8

AS 5-BED HMO =MANAGED = 175SELF MANAGED = 214

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 23: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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A below market value three-bedroom house in Walsall in need of a full refurbishment costing approximately pound12000 The property has the potential to be converted into a HMO to generate further incomeEasy access into Walsall Town Centre transport links and local amenities

PROPERTY DETAILSLocation Stephenson Avenue Walsall WS2 7EUThree-bedroom house for refurbishment

THE VISIONbull Purchase the property and carry out the refurbishment works to

increase the valuebull Once refurbished put back on the open market for sale to realise

a capital gainbull Once refurbished refinance against the open market value to

pull out your initial capitalbull Once refurbishment rent as a single let

FINANCIALSMarket Value After Works = pound135000Purchase Price = pound87500Refurb costs = pound12000Finders Fee = pound7500Potential Gross Income as single let = pound6600 per annum

Three-bed refurbishment buy-to-let opportunity

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 24: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPURCHASE PRICE pound87500DEPOSIT = pound21875STAMP DUTY = pound2652LEGALS = pound1000FINDER FEE = pound7500

TOTAL CAPITAL REQUIRED = pound33027

INCOME Potential Income Fully Let = pound550 pcm = pound6600 per annum

MONTHLY COSTSMortgage Cost 4 = pound219 pcmManagement 10 = pound66 pcm

NET CASHFLOW Managed = pound265 pcm = pound3180 per annumSelf Managed = pound331 pcm = pound3972 per annum

RETURNBASED ON AN INVESTMENT OF pound33027

MANAGED = 96SELF MANAGED = 12

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 25: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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We have managed to secure a readymade five-bedroom HMO in Burnley The property has recently been renovated and is done to an extremely high standard The property is fully tenanted and is located to close to local amenities and transport links

PROPERTY DETAILSLocation Cope Street Barnsley S70 4HYReadymade licensed five-bedroom HMO

THE VISIONbull Continue to rent out the property and enjoy good cashflowbull Potential to refinance against its commercial valuation and pull

out some or all of your capital

FINANCIALSPurchase Price = pound150000Finders Fee = pound5500Gross Income = pound24960 per annum

Five-bed HMO producing pound25000 per annum

35 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 26: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPURCHASE PRICE = pound150000DEPOSIT 25 = pound37500STAMP DUTY = pound5000LEGALS = pound1000SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound49000

INCOMEThe property is currently rented out as follows

Room 1 ndash Current Rented for pound95 pwRoom 2 ndash Current Rented for pound80 pwRoom 3 ndash Current Rented for pound95 pwRoom 4 ndash Current Rented for pound95 pwRoom 5 - Current Rented for pound115 pw

Rental Income as 5 bed HMO = pound2080 pcm = pound24960 per annum

MONTHLY COSTSMortgage Cost 4 = pound375 pcmBills = pound325 pcmManagement 10 = pound250 pcm

NET CASHFLOW Managed = pound1130 pcm = pound13560 per annumSelf Managed = pound1380 pcm = pound16560 per annum

RETURNBASED ON AN INVESTMENT OF pound49000

MANAGED = 277SELF MANAGED = 338

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 27: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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An eight-bed semi-detached house in Newcastle Upon Tyne The property has been running as an HMO for more than 10 yearsThe property is currently vacant and in need of minor works but could potentially achieve pound35040 per annum if managed correctly

PROPERTY DETAILSLocation Brighton Grove Newcastle Upon Tyne NE4 5NTEight-bedroom HMO

THE VISIONbull Potential to purchase and produce an income of pound35040 per

annumbull Potential to refinance against its commercial value to pull out

some of your initial capital

FINANCIALSMarket Value = pound250000Purchase Price = pound199500Finders Fee = pound6500

Eight-bed HMO potential to make pound35000 per annum

20 BELOW MARKET VALUE

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 28: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDPURCHASE PRICE = pound199500DEPOSIT 25 = pound49875STAMP DUTY = pound7475LEGALS = pound1000SOURCING FEE = pound6500

TOTAL CAPITAL REQUIRED = pound64850

INCOMEPotential Income

Room 1 ndash Potential Rent pound380 pcmRoom 2 ndash Potential Rent pound380 pcmRoom 3 ndash Potential Rent pound380 pcmRoom 4 ndash Potential Rent pound380 pcmRoom 5 ndash Potential Rent pound380 pcmRoom 6 ndash Potential Rent pound380 pcmRoom 7 ndash Potential Rent pound320 pcmRoom 8 ndash Potential Rent pound320 pcm

Potential income when Fully Let = pound2920 pcm = pound35040 per annum

MONTHLY COSTSMortgage cost 4 = pound499 pcmBills = pound520 pcmManagement 10 + Vat = pound350 pcm

NET CASHFLOW Managed = pound1551 pcm pound18612 per annumSelf Managed = pound1901 pcm pound22812 per annum

RETURNBASED ON AN INVESTMENT OF pound64850

MANAGED = 287SELF MANAGED = 352

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 29: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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We have exclusivity on a two-bedroom terraced property in Burnley which is in need of full refurbishment and we have contractors that think they could do the refurb for around pound12000This would suit an investor who is happy to do the work themselves to icrease the profit potential The property should produce enough cashflow even as a single let to fund the purchase and refurbishment works within the 10-year lease option periodWe would like to think that over the 10 years the property value will also increase therefore not only will you make cashflow from this property but also benefit from the capital gain

PROPERTY DETAILSLocation Oxford Road Burnley BB11 3TAEight-bedroom HMO

THE VISIONbull Take the property on a 10-year lease and bring back up to

standard with limited capitalbull Once refurbished let out as a single letbull Within the 10-year period possibility to sell at the full market value

and benefit from a capital gain

FINANCIALSPurchase Price In 10 Years Time = pound42000Finders Fee = pound55000Monthly Payment To Landlord = pound124 pcm

10-year lease option on terraced property

pound326pcm PROFIT

POTENTIAL

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IALF

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 30: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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CAPITAL REQUIREDCAPITAL REQUIRED TO GET INVOLVED (NOW)1 MONTH RENT TO LANDLORD = pound124PCMLEGAL FEES = pound1000REFURBISHMENT CIRCA pound12000 (COULD BE LOWER)SOURCING FEE = pound5500

TOTAL CAPITAL REQUIRED = pound18624

INCOMEPotential to rent at pound450 pcm = pound5400 per annum

COSTSRent To Landlord = pound124pcmManagement at 10 + Vat = pound54pcm

NET CASHFLOW RETURNManaged = pound272pcm = pound3264 per annum = pound32640 Over 10 YearsSelf Managed = pound326pcm = pound3912 per annum = pound46944 Over 10 Years

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF

Page 31: Below Market Value Property Deals - M3 Commercial Finance · 2020-01-15 · OFF MARKET & BELOW MARKET VALUE DEALS Hello and welcome to the latest update of our latest below market

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wwwm3commercialfinancecoukTwitter M3FinanceFacebook m3commercialfinanceinstagram m3commercialfinance

M3 Commercial Finance 3 Hardman StreetSpinningfieldsManchesterM3 3HF