South African Property Partners - Cornerstone Property Investments
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South African Property Partners

BUILDING WEALTH THROUGH STRATEGIC PROPERTY INVESTMENT

 

 

Would you like  to invest in high performing UK properties ?

 

 

My name is Sean Brett I am a full time property investor living in Bristol where i have a substantial property portfolio.

I’m offering a handful of people the opportunity to partner with me  to  grow themselves a UK property portfolio leveraging my expertise and contacts to our mutual benefit.

 

Most people I talk to are really keen to

 

a) Hedge against a possible falling South African rand.
b) Make returns in a safe, secure and sustainable manner as possible.
c) Earn income in sterling and have equitable shares in property for long term capital growth.

 

The problem for most South African investors is that there are few options seemingly available other than investing in student accommodation pods and hotel rooms where their funds are being used to fund the actual development usually with little control over the investment and usually with long term 10 year fixed tie ins.

My speciality and niche is turning single let family homes into high yielding houses of multiple occupancy for working professionals.   I like this model because the investment is tangible, you can feel and see your investment.  We buy the property below market value , add value through refurbishment further increasing its value.  The property gives us great return the minute its let and we can sell it at anytime to recoup our equity profits.

For most people investing in individual properties is out of reach which is shame as that is where the real money is when done properly. Partnering with me overcomes the challenges.

 

The Challenge

 

I wrote a post / article on some of the challenges facing expats including South africans titled “Can expats get a UK mortgage” 

In Summary:

  • Its more difficult than ever to obtain finance in the UK for foreigners.
  • You have to have 2 years UK landlord experience
  • You have to be high net worth individual earning over £100K per year and even then the interest rates are poor.
  • Mortgages typically only available for properties over £150K and restricted to certain areas for foreigners – like London.
  • Even If you tick all the boxes do you know who you are giving your money too and how it is secured ?   Is the property genially in a good area and how will you manage it.
  • Most developers treat you as the financier offering a fixed percentage through a loan document as opposed to a true partner aiming to maximise long term profits.  (both through rental income and equity growth)

 

Hotel Rooms and the like

 

As it gets harder for foreign investors to enter the UK property market developers are offering investors cash only opportunities such as buying a hotel room which is ok if you have no other options but comparably a very poor investment to what we do.   Investing in UK hotel rooms

 

Become a partner 

 

The business model is simple and overcomes the challenges mentioned above.

We form a limited company  in the UK in which we are partners. 

The finance partner puts in the initial seed capital as a directors loan to the company to cover the deposit and refurbishment costs.

We source the property below market value and add value through refurbishment.

The increased value allows the company to refinance with the additional  funds paying down the directors loan. 

We aim for a minimum initial ROCE of 12%.   However as the directors loan is paid down the ROCE escalates quickly.  A ROCE of 20% within the 1st year is common.  Once the loan account is paid off the ROCE  becomes infinite as the investor has all his money back and remains an equal partner in the company and property. 

The seed capital can then be reinvested to purchase a second /third/ fourth property.

 

Momentum Investing

 

Momentum investing is a tried and tested property investment model.  Buy below market value,  add value through refurbishment and recycle your cash to rinse and repeat.

I have used the same method to build my own extensive  portfolio from nothing to over a million pounds within 5 years.  

Here is a slide show presenting the type of work we do   Refurbishing properties for profit

If you are interested in learning more about joint ventures please read joint ventures 101 which highlights the typical roles of each party.

Please see the two deal examples of how we use refinancing to maximise our return on capital employed.

Deal 1  is more typical and easily achieved as there are many such properties on the market.   ROCE 26.12%

Each time the market pushes prices up and  allows for a further refinance the ROCE increases until the investor has all his money back. We then end up 50% share in a “free” house which will continue to perform well and ultimately make a further handsome profit when we decide to sell.

Our investments are mostly in Bristol and the surrounds as we know the area well and its often rated as the best place to live in the UK.

Bristol offers a significant opportunity to earn a respectable yield of 15% plus after all costs whilst also enjoying good capital growth.

Situated just 90 minutes from London, Bristol is the most populous city in the south west and has some of the country’s biggest employers including Rolls Royce, BBC, Royal Bank of Scotland, Airbus, Royal Bank of Scotland, Lloyds TSB , Hewlett Packard, Aardman Animations, IBM, GE, and Intel

(Your HMO’s are always full!)

Companies benefit from super-fast broadband, an expanding airport – currently connecting to more than 140 destinations around the world – a deep-water port, a motorway hub and fast train links.

All these reasons make Bristol one of the fastest growing cities and provides a strong foundation for future growth and development and is why we love to live and invest in Bristol.

Our investment strategy emphasises capital preservation and then assesses multiple options to maximise returns through value creation, leverage and proactive asset and development management.

Our purpose is to invest wisely and create value on behalf of an array of sophisticated investors and high net worth individuals. Our investors rely on us to achieve premium returns on their invested capital.

 

We work for our Investors

 

Our belief is the more capital you have at your disposal the better the opportunities you can take advantage of.

We are always seeking new investors and joint venture partners to invest together so if you are interested in participating in our opportunities please contact us at wealth@cpinvest.co.uk and we will explain the qualification process.