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ETHICS & TRANSPARENCY WITH INVESTORS

This is really aligned with win-win and is a cultural thing. Investors are partners, they are critical to your business, but rather than being schmoozed and flattered, they need to be dealt with as business people. With respect and with transparency.

I have always believed in a consultative approach to sales. I am not a salesman, but I am good at sales. I just tell it like it is, relate it to the client and demonstrate to them how it is a solution for their requirement. In order to do this correctly you need to be absolutely straight. I have not always been as straight. When I started off I tried too hard to make things seem better than they are – and it never ever worked! Sure the deals worked, but not as they expected, which is what they remember.

At T5 we are lucky – we have made that luck and sweated for it, but we are in a fortunate position. We are oversubscribed almost all of the time. How have we got there? By treating our investors as equals, this means being nice but not too nice but especially it means being respectful. Almost all our business comes through referral and recommendation. This is the ultimate vote of confidence.

We will soon be looking for more funding and it’s different to what we have done before. How will we do it? By engaging with people, educating them and treating them with respect. It takes longer at first but it will pay dividends! (TOP PUN ALERT).

– Andy Babbayan

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Blog

Assessing a site – how we do it

This is in no way designed as a quick short cut to what is, in many ways, the hardest element of property development. It is certainly where a lot of mistakes are made and ones that are often then realised very slowly and tortuously.⠀

Key considerations – hardly breaking ground but…⠀
➕GDV and ease of sale/ refinance (location consideration).⠀
➕Purchase Price⠀
➕Additional costs and taxes⠀
➕ALL In Refurbishment cost⠀
➕Finance Costs⠀
➕Profit⠀

AND⠀
➕Look and feel of the project.⠀

We have spreadsheets and checklists for all of the above. We are constantly amending them to represent latest costs and values / square footage.⠀

The last bit is VITAL – does it feel like a project that fits within your broader strategy and plan. This isn’t just about size but also about what it will look like, will it improve your brand and increase your experience base. The ADD to the ADD.

– Andy Babbayan; Target Five Group Managing Partner & Acquisitions Director

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New Development – Arundel Road, Angmering. In Partnership with Chesterman Homes

Target Five are partnering with Chesterman Homes and their new development Arundel Road, Angmering, Littlehampton. Chesterman Homes secured this off market development opportunity on an option and dealt with the planning, which went to a parish appeal.

The development of x2 4 bed semi-detached houses began in March but as soon as it started it, construction stopped due to the Covid-19 pandemic. Works restarted in June.

We are excited to share the final CGI’s for the development, which are now ready for marketing the property, with the construction due to complete early next year.

About:-
These impressive homes are situated in the picturesque village of Angmering, with easy access to the village centre. The bright and spacious accommodation comprises living room, family room being the width of the house leading onto the garden, consisting of open plan kitchen/dining room with utility room and a separate wc. Upstairs, there are four bedrooms with en-suite shower room to the master bedroom and a family bathroom. Outside, there is off street parking for two vehicles and a generous westerly aspect rear garden.

Facts and figures:
Purchase – £250,000
Build Cost – £500,000
GDV – £950,000

with thanks to:
www.facebook.com/Chesterman-Homes-Property-Developers
www.chestermanhomes.co.uk

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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!

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What stage are you currently at in your investing in property journey?

What stage are you currently at in your investing in property journey? 

Seasoned Investor? 

Accidental Landlord? 

First Time Investor? 

It is not a ‘one size fits all’ industry.

Most of our investors have these common goals: 

  1. To achieve appropriate returns on the investment made, in line with market competition.
  2. To carefully consider the risks involved
  3. To look for financial freedom

How can we help you?

Through our various investing opportunities: 

  1. Passive Investing with our associates LEOpropcrowd
  2. Portfolio Review and Improvements
  3. Strategic Investing Opportunities 

Of course, there are no guarantees and that is a very important first lesson that we discuss in our initial meetings.  There is an element of risk that must be considered when investing in property and although we aim to invest well and offer the potential returns that we are asked for, it can sometimes not work out as planned. 

What do we do? 

Assess your needs

Find The right strategy 

Offer a few opportunities

Work with you throughout the process. 

We are always looking for the best way for our clients to potentially achieve success through investing.  Through our partnership with @Leopropcrowd we feel we have found an interesting and considered way to invest small and potentially build to bigger returns. We are excited to be working on our first project with them and although we are not quite ready to ‘lift the lid’ on that yet, we have some similar recent project case studies on their website now.  Take a look and ask any questions you have through the forum or message us directly. 

 

You can see an example here https://www.leopropcrowd.com/property/detail/case-study-hmo-preston-street-brighton-by-target-5

Risk Warning: Investment in property related assets puts your capital at risk and returns are not guaranteed.  Past performance is not a reliable indicator of future success.  

 

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The future is bright, or perhaps a little less dark?

An announcement is expected imminently according to This is Money Magazine from the Royal Institute of Chartered Surveyors (RICS) that it is readying itself to begin valuation on properties again.

Could this mean the housing market will be back up and running again soon? What does this mean for investors, and homeowners?

The inevitable suspension of valuations and house moves due to the social distancing guidelines that were essential to the fight against COVID-19 meant that the housing market all but stopped. This resulted in lenders pulling mortgage deals overnight and subsequently a lack of confidence set in and immediately affected house prices .

A spokeswoman for RICS told the magazine that the return to valuing properties will come with a set of new guidelines for valuers and we suspect it will be a minimised service, but this is good news for the property market.

It is likely that the government advice not to move will remain in place, and the impact on business’ and employment will be significant.

It is unlikely that the market will be a buoyant one, but for us and our investor clients that is no bad thing.

This means we are seeing a number of investment opportunities surface and our local contacts in Brighton, Hove, Worthing and Littlehampton have already started to approach us with excellent off market property investment opportunities. Now is the time to invest and maximise returns. OK, these returns may take longer to show in terms of capital value gain, but our success model of adding value, size or design will means that your money could work harder than ever for you. Even if you don’t want to own an entire property or only have a small amount to invest, we have property investment opportunities for you to invest in. Now is the time to contact us to be involved in our next project.

We are also starting to see some of the darkness lift, our constructions sites are starting to return (safely of course) and our suppliers delivering again which means we will again be able to offer excellent quality accommodation in shared living environments.

All of this means that slowly, steadily but most certainly surely, the future economic picture is looking a little less dark. Actually no, a lot less dark and almost bright.

Tina Wenham – Director of Target Five

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Maintaining a healthy pipeline

For a number of different reasons, it is key to our business to plan ahead to ensure we have an appropriate stream of projects coming up.

Our extended teams of contractors need to be kept ‘well fed’, our sister company Sussex Property Partnership needs to forecast and prepare for what properties will become available for let, our clients forecasts and business plans require an element of strategic flow of investment and return options and finally our business plan relies on the income stream from these projects.

It was, therefore, a challenging process during lock-down to maintain a healthy pipeline of projects and purchases to ensure the interruption to this was minimised.

We had to ensure the purchases still made sound investment sense for our clients and continued to meet our targeted yield return figures, despite and change or disruption to the market. This meant we had to negotiate a few of the offer prices and analyse the investment again.

In addition to this we had to ensure that we continued momentum in sourcing new investment opportunities to prepare and mitigate against any lull or break in the projects that could have been a by product of this unprecedented time.

In the end we continued with all but one of our purchasing commitments and have managed to secure some potentially very exciting new opportunities for ourselves and our investors, with many more coming through everyday.

Now that the government guidance has restarted the property market we are working closely with our teams of professionals to progress the matters as quickly as possible to exchange and get started on the refurbishment and redevelopment to realise the returns on our clients investments with as little delay as possible.

We have most certainly hit the ground running and are excited about what the future holds and we look forward to working with our clients to provide sound investment opportunities and aim to hit the target yield returns that our clients are looking for.

If you are interested in hearing about any of our new investment opportunities get in touch.  information@targetfive.co.uk or 01273 525656

Tina Wenham – Target Five Director

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Projects Completed

WESTERN ROAD, LITTLEHAMPTON

Target Five acquired this very rundown 7 bedsit property, with a separate studio flat in Western Road, Littlehampton.

Working in cooperation with the local licensing officer, Target Five renovated this property to legal requirements to a 6 bedroom, 4 bathroom HMO and a 3 bedroom, 2 bathroom self contained flat.

The property has been finished to the highest Target Five design specification, making this an attractive rental proposition to either students or young professionals.  This property has recently been revalued at nearly double the purchase price!