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LANDSDOWNE PLACE – SUCCESSFUL ROI

Originally a 4 bed ex-holiday home, we sourced this property for our returning investor, designing and creating an 8 bed, all with en-suites making this a perfect professional sharers house with stylish and well considered spaces, the property was tenanted immediately!⠀⠀

Purchase Price: £637,000⠀⠀
Build Costs: £125,000⠀⠀
Furniture: £8,000⠀⠀
Refinance: £900,000⠀⠀
Rental Income: £59,184⠀⠀
ROI PA: 7.6%⠀⠀
or combined YR 1 26%⠀⠀

Valuation Day? ⠀⠀
Preparing for the valuation survey itself is paramount, as part of Target Five’s service to our VIP Investors, we put together a comprehensive valuation report for the surveyor on the day, documenting the details around the project, the current rental income, detailed explanation of current comparable properties for both the rental and sales market, the renovation specification, planning documents and certificates/licences acquired. Meeting the surveyor in person is vital, especially if the property is tenanted, you need to be on hand to answer all questions.

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OUR 2020 HIGHLIGHTS

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It’s been a trying year for all but we are thankful that we were able to achieve so much and cross off a lot from our to do list for the year. Lockdown 1 put us under a bit of strain trying to continue as best we could on skeleton staff and on our renovation project sites, obtaining supplies/orders being the biggest aggravation but we persevered! ⠀

The Lockdown allowed us to ‘ramp up’ our plans that we had for 2020 and bring forward some of our ideas/initiatives, which we were planning to do over the course of the year but we decided to seize the day and get these done. Here’s a short list of what we have managed to implement:⠀

➕ Systemise our practices and procedures, creating and developing our own in house CRM software system⠀
➕ Development and exposure of Target Five on Social Media⠀
➕ Staff undertaking The Property Entrepreneur year long training course⠀
➕ D2V implementation on a large scale⠀
➕ Developed and gone live with our new website⠀
➕ Increased the T5 team ⠀
➕ Forged new partnerships with specialist professionals incl; solicitors, planning officers, architects, building control and construction/development finance brokers⠀
➕ Onboarding with new investors/JV investors ⠀
➕ Completed 11 renovation projects, seeing great returns for our investors⠀
➕ Successfully funded our first crowdfund project ⠀
➕ Won the Best Investment and Development Company – East Sussex award ⠀

We are excited for 2021 and the opportunities we are securing, remaining focused, committed and motivated.

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WEST BUILDINGS, WORTHING – SITE UPDATE

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We are a few weeks into our West Buildings project located in Worthing, West Sussex. Target Five’s Project Manager Tim, popped to site this morning to give us a brief update.⠀

Good news that the first fix of the HMO residential space is nearly complete, with a couple of rooms about to start the 2nd fix/carpentry.⠀

We are so excited to be able to retain a lot of the original brickwork in the upstairs residential portion of the building, which will work so well with designs chosen for the interiors

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We plan to turn the upper part of the building into a 2-bed flat and the lower part into an HMO-style 3 bed flat, all of which can be accomplished under Permitted Development. The ground floor commercial unit will be retained. ⠀⠀

We hope to complete this property in early Feb 2021, we will keep you updated with progress throughout the renovations ⠀

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Bath or Shower? – the great debate

So what’s your preference?, personally a shower for me but I do like the option of a bath. Although there are many different debates out there; aren’t you just sitting in a bath full of dirt?….showers just waste more water, surely? well it’s a debate that continues to rumble on.

?’s are without doubt more relaxing (baths have shown to lower cortisone levels, which in turn helps prevent stress), you can also add remedies into the bath water to ease muscles and help skin conditions, which won’t work under a shower. Remember to moisturise after you step out after a bath, as the bathwater dry’s on your skin it can leave it as dry as before!. Also, unless you’re caked in mud, there is no fear in sitting in filthy water as the dirt settles away from the skin and settles into the entirety of the bath.

?’s, are quick, easy, convenient, especially for property shares, hence why we use them in our developments, it’s not only down to making sure we maximise each sq inch! No professional sharer or student wants to be queuing to use the bathroom. We are all too busy and on timetables. We try to make sure where possible all properties have the ability to have en-suite shower rooms and or additional shower rooms on top of HMO licensing guidelines. People tend to spend less time in a shower, so in fact waste less water than say a 7 bed HMO running x2 baths each a day!

– The pictures here, are of some of our recent shower rooms at our developments. As you can see we love a Vie Diamond floor but as we go into each development now, we are trying something different every time in our designs.

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NEW PROJECT UNDERWAY – WEST BUILDINGS, WORTHING

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West Buildings, is a late Victorian mixed-use property in the centre of Worthing, adjacent to the seafront. this building is doing nothing for the local community and economy! But once we’re finished with it it’ll be part of a bustling parade of shops and flats, providing accommodation for professionals, and a shop for locals.⠀

We plan to turn the upper part of the building into a 2-bed flat and the lower part into an HMO-style 3 bed flat, all of which can be accomplished under Permitted Development. The ground floor commercial unit will be retained. ⠀

Our designs for this project are based on the concept of ‘urban industrial’ here you can see a couple of our mood board ideas.

We will be sharing a video of the inside of this property soon, as we have started the satisfying stage of ripping out! ⠀

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BRRR-Yield Vs Capital Uplift

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My take:⠀
For a long time the key to portfolio building has been the ability to recycle cash. This means adding value and achieving a refinance sufficiently high that once you⠀
refinance onto a new longer term product, as much of your initial deposit, refurb costs and other fees is pulled out for the next purchase. This is now referred to as BRR, BRRR, or even BRRR (depending on how many Rs you want to add). ⠀

The key to making this happen therefore is capital uplift rather than yield created. Whilst the Yield – the income from the property, is important, it only needs to be sufficient to drive the loan. It is the capital uplift against the capital employed – the profitability of the project that drive the ability to recycle cash.⠀

My recommendation? Create an arbitrary figure for Yield that works for you. For us it’s 10% Gross Yield – this means we know it will make good cashflow. Our main focus is⠀
on Capital uplift – creating value. This is what allows us to keep moving our money, creates sensible equity, de-risks the project and allows the wonders of leverage and⠀
compound interest to do their work.⠀

The critical number – 25% profit on GDV. If all costs come to 75% of GDV then you can recycle your cash.⠀

If you are interested in working with us then get in touch! on information@targetfive.co.uk⠀

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Target Five Property Consultants – HMO Journey So Far

Since our formation in 2013 we have established ourselves as experts in the HMO property development field having undertaken 350+ renovations.⠀
It has been interesting putting together this post and pictures to see how far we have evolved from what was; I guess we shall call ‘standard & compliant’ HMO renovations that were similar across the country.⠀

The type of HMO being offered to let now has vastly changed due to the changing needs and expectations of the tenant, who want and deserve a level of luxury in their shared accommodation. Taking the above into account, we have had to evolve and adapt our model quickly and with consideration. ⠀

Changes we have made: – ⠀

? We view every new property as an opportunity and challenge to shake things up. With each new property we hold interior design brainstorming sessions, which we then develop into mood boards.⠀
? Each property is CAT 5 & broadband ready, with USB ports located in the ‘useful’ places.⠀
? Considered and thoughtful living spaces, designed to be practical for coliving homes.⠀
?Casual spaces such as hallways and landings are not forgotten and are given a little extra something, whether it be a feature wall, amazing paint effect or vinyl art.⠀
? En-suite showerrooms: this change we feel is a must given the current climate of the coronavirus, being able to offer your tenants as much of their own safe space as possible! not to mention the end rental figure achieved for our investors.⠀
? Bespoke furniture: here we focus on our interior design and what will work within budget but also be durable! Using companies that specialise in landlord furniture packages, such as @landlordfurnitureco who offer fantastically designed furniture for all concepts and budgets.⠀

And much more!⠀

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Projects Completed

LANSDOWNE PLACE, HOVE

Finally we can reveal our first projects since Covid-19, Lansdowne Place, Hove. Given a new life, 2 houses which were originally both 4 beds are now 7 beds each with en-suites making this a perfect professional sharers house with stylish and well considered spaces.

Both properties were sourced by Target Five and renovated for our returning Property Investor Clients.

As you can see the property is moments from Hove seafront – perfect

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Projects Completed

PRESTON STREET, BRIGHTON

We sourced and developed this property for a new investor.  This was a tricky development, as the property itself was a 4 bed flat over 3 floors above a restaurant, to access the flat you had to go through the restaurant itself!  So there was a lot of legal constraints to iron out during the conveyancing process re: leases and then obtaining planning permission to reinstate the separate entrance to the the property, which we cordoned off from the restaurant itself.

Target Five renovated this property in a six week time frame that our investor had to work to.  The property is now a stunning 6 bed HMO located in the centre of Brighton.

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Projects Completed

LANSDOWNE PLACE, HOVE

We are delighted to share our recent property renovation, the second of our two properties in Lansdowne Place, Hove.  Both properties were sourced and acquired for our returning Property Investor clients.  Although progress was slowed due to the Covid-19 lockdown, we have managed to complete both properties ready for the summer rental market.

The property was originally a four bed family home, which we have designed and renovated to an 8 bed/9 bathroom house.  The Target Five team also designed and furnished each room, maximising the space available by raising the beds in some of the rooms.  Each bedroom has it’s own en-suite bathroom, making the rental yield for this property fantastic!