For a successful property business expanding your portfolio is vital. One property will not be enough unless of course you own the Shard!
In order to buy more properties a certain amount of money is always needed especially if you are planning to keep these properties rather than flip them. A certain amount of money will be ‘left in’ even with the best deals in an affluent expensive city like Bristol. Leaving as little of your own money in a deal can leave more to move onto the next property which in turn allows faster progression in your business. A way to minimize the money left in a deal is to add as much value to any property as you can. In this way the post refurb value will be as high as possible and so you can remortgage as much LTV (Loan To Value) as possible from your commercial bank. The better the refurbishment and finished product also encourages banks, who can be sensibly very worried where their investment is going, to be more than ready to lend you more money for your next projects. Remember this is an ‘I’ll scratch your back if you scratch mine’ type arrangement. Banks when lending large amounts of money will not suffer fools gladly! You need to show them what a high quality team you work with and a finish to your properties that shouts out ‘attention to detail’.
This 4 bedroom property overlooking the Paintworks in the ever up and coming and increasingly trendy Totterdown/Arnos Vale part of Bristol show us an example of adding value. This tall 3-storey townhouse is close to central Bristol and Temple Meads station with the bustling Bath Rd and its transport links outside the door. The new Bristol Arena is literally being built across the road.
The plan here was relatively simple. To convert the loft and provide 2 more ensuite bedrooms. Aside from this was to convert what was a property left to rot from a state of ugly disrepair into a thing of beauty.
This sounds so easy but it was a challenging project but the finished product will provide us with a property that can house parts of the thriving and growing population of Bristol for years to come.