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FALCON PROPERTIES
07592095214 [email protected]
FALCON Properties
CREATING WEALTH THROUGH PROFESSIONAL PROPERTY INVESTMENT
[email protected] 92095214
PAGE 1
FALCON PROPERTIES
07592095214 [email protected]
OBJECTIVES
STRATEGY
We pride ourselves in providing high quality professional accommodation. Our model is to purchase properties that are in need of refurbishment or renovation, complete the works, refinance these properties and add them to our portfolio or sell them on depending on the market. We will focus on:
• HMOs (House in multiple occupation);• Empty Homes; and• Commercial to residential property.
Bringing back empty homes/ boarded up properties back into use:
• Improves the local environment and neighbourhood;• Reduces vandalism and associated anti-social behaviour; • Reduces the detrimental effect these properties have on the housing market; and • Contributes towards the growing housing need.
Working with the local community to provide high quality co-living accommodation is a keyobjective of Falcon Properties. The aim is to be the ‘go-to’ property company for co-living and professional housing in our targeted areas.
RAISE FUNDS REPAY INVESTORREFINANCEREFURBISHBUY
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FALCON PROPERTIES
07592095214 [email protected]
MISSION
At Falcon Properties, our values are built on providing quality, value and commitment to our stakeholders. We pride ourselves on building great relationships with our investors, real estate agents and landlords.
We are committed to providing high quality professional accommodation and making a significant impact on the local area. We work closely with real estate agents that have great properties and understand the requirements of our perspective tenants in our targeted areas.
Not only do we invest our time and resource into the properties that we purchase, we aim to provide a great home and a fantastic co-living experience for our tenants. Our tenants are our customers and providing great customer service to our tenants is our highest priority.
QUALITY VALUE COMMITMENT
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FALCON PROPERTIES
07592095214 [email protected]
We are professional property investors. Our aim is to create wealth for our investors through professional property investing. We look to deliver great returns for our investors through the buy, refurbish and refinance model.
Owning, operating and managing a residential property portfolio is no longer as easy as it once was. Onerous regulations, burdensome taxes and more demanding tenants are the modern challenges being faced by both agents and landlords. At Falcon Properties, we solve property problems through high quality professional accommodation.
We take care of everything from purchasing the property, developing the property and arranging of the refinance of the property. We also ringfence investor funds against our properties so that the funds are safe and secure.
OUR STORY
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FALCON PROPERTIES
07592095214 [email protected]
FORECAST2020/21 Goals
• Purchase properties which fit the buy, refurbish/develop and refinance model for high cashflow. Each investment when stress tested should yield a minimum ROI of 30%;
• Implement a professional co-living strategy to provide good quality accommodation and partner with reputable corporate clients that have a long term vision;
• Using creative problem-solving strategies, create win-win solutions for motivated sellers that need to sell due to personal circumstances (i.e. divorce, debt, debt); and
• Pair up with investors that have the same vision and values to work on mutually beneficial large-scale projects.
Year Average UK House price % ChangeJan-10 £167,469 -
Jan-11 £167,300 -0.10%
Jan-12 £165,908 -0.83%
Jan-13 £167,716 1.09%
Jan-14 £178,182 6.24%
Jan-15 £190,665 7.01%
Jan-16 £205,464 7.76%
Jan-17 £215,243 4.76%
Jan-18 £224,544 4.32%
Jan-19 £228,314 1.68%
Jan-20 £232,929 2.02%
NATIONAL PROPERTY OVERVIEWProperty prices steadily increase over time, despite smaller peaks and troughs along the way, thus making property a worthwhile asset-backed investment.
Source: http://landregistry.data.gov.uk
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FALCON PROPERTIES
07592095214 [email protected]
CHALLENGES
Concerns with market uncertainties:
Interest rates are expected to rise in the future. The rate of inflation and the political atmosphere are factors the Bank of England Monetary Policy Committee (BoE MPC) considers when deciding official borrowing costs. Thus, all investment calculations are stress-tested at a higher mortgage interest rate (5%) than what is actually achieved (2-4%).
When interest rates rise, the expectation is they will rise incrementally. Therefore all investments must generate a minimum monthly cashflow of £750, even when stress-tested at a 5% interest rate.
When interest rates rise, there is a risk that the number of repossessions will increase. Potentially resulting in an increase to the supply of properties in the market and thus a lower demand for purchased properties. This risk can be countered by the result of an increased number of tenants; people who are unable to buy now or those that may have been repossessed.
House prices could fall. Whilst the expectation is that house prices increase over time, the possibility of house prices decreasing should not be dismissed. When purchasing properties, instant equity is created by purchasing below market value and then adding additional value through refurbishments. This provides a buffer for any price reductions within the local property market ensuring properties are less likely to end up with negative equity. Additionally, since future investing is predominantly for long term cash flow, the investments will be immune to the effects of short-term house price fluctuations.
Thorough research of each property and the surrounding area is carried out. By looking at comparable data available online such as history of sold prices. As well as utilising knowledge from local Estate Agents, Lettings Agents and visiting the investment area to locate contacts will all contribute in deciding whether an investment is worthwhile.
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FALCON PROPERTIES
07592095214 [email protected]
HMO EXAMPLE 1
Purchase Price £100,000
Mortgage (75%) £75,000
Deposit (25%) £25,000
SDLT £3,000
Other Purchase Costs £3,000
Purchased all in with £31,000
Build Cost + Garden Works (@ 20% VAT)
£60,000
Furniture and Fittings £9,000
TOTAL £69,000
Total cash for Purchase & Refurb £100,000
STAGE 1Property Purchase of a 2 bed, 1-bathroom terraced house
STAGE 3Cashflow
STAGE 4Re-finance
STAGE 2Property Renovation to convert into a 5 en-suite bedroom professional
property
Rent £1,821 / £21,852
Mortgage at 3.80% £238
Provision for voids at 8% £146
15% monthly expense, management and maintenance (Estimated) £273
Cashflow £1,164 / £13,968
Commercial valuation £195,000
New 80% mortgage £156,000
Re-paying old mortgage £75,000
Re-mortgage costs (legals and broker) £1,200
Money left in the deal £20,200
Net ROI = 69% £13,968/ £20,200
Yield = 11% £21,852/ £195,000
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FALCON PROPERTIES
07592095214 [email protected]
Clifton Road, Darlington, DL1
This great five bedroom, fully furnished house with two bathrooms and one WC is located minutes away from Darlington railway station. This property houses a Darlington Company’s professional employees.
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FALCON PROPERTIES
07592095214 [email protected]
HMO EXAMPLE 2
Purchase Price £90,000
Mortgage (75%) £67,500
Deposit (25%) £22,500
SDLT £2,700
Other Purchase Costs £3,000
Purchased all in with £28,200
Build Cost + Garden Works (@ 20% VAT)
£57,500
Furniture and Fittings £7,500
TOTAL £65,000
Total cash for Purchase & Refurb £93,200
STAGE 1Property Purchase of a 2 bed, 1-bathroom terraced house
STAGE 3Cashflow
STAGE 4Re-finance
STAGE 2Property Renovation to convert into a 5 en-suite bedroom professional
property
Rent £2,142 / £25,714
Mortgage at 3.50% £197
Provision for voids at 8% £171
15% monthly expense, management and maintenance (Estimated) £321
Cashflow £1,453 / £17,436
Commercial valuation £187,500
New 80% mortgage £150,000
Re-paying old mortgage £67,500
Re-mortgage costs (legals and broker) £1,200
Money left in the deal £10,700
Net ROI = 69% £17,436 / £10,700
Yield = 14% £25,714/ £187,500
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FALCON PROPERTIES
07592095214 [email protected]
Sailsbury Terrace, Darlington, DL3
This five bedroom fully furnished house with two bathrooms is located 5 minutes away from Darlington Memorial Hospital. This property comes with a large driveway and back garden to enjoy the summer sunshine.
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FALCON PROPERTIES
07592095214 [email protected]
“I have lived in a property that is owned by Falcon Properties for 6 months and have had an excellent professional experience. It is evident that Falcon Properties take pride in managing their properties and put their customers first.”
Laura Hall - Local Company employee
“Falcon Properties bought our property 9 months ago. The process to sell the property was seamless and it was clear Falcon Properties had experience in purchasing property. I highly recommend working with Falcon Properties as a multi-let solution”
Matthew Rolph – Landlord
WHAT OUR CLIENTS SAY
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FALCON PROPERTIES
07592095214 [email protected]
MEET THE TEAMSANDEEP SINGHFOUNDER/DIRECTOR
Sandeep, as a tax advisor, has worked at some of most reputed firms in the world including PwC and Deloitte. In his tax career, Sandeep has worked in the UK, Europe and the Middle East. With Sandeep’s accountancy and legal background, he has become an excellent relationship builder with the ability to achieve great results in a timely manner.
As a professional property investor, Sandeep has a sheer passion for property, building portfolios and working with investors. Sandeep specialises in houses in multiple occupation (HMOs), innovative property solutions and providing high quality professional accommodation.
ALI MOURCHID
SARB MANN
WEBSITE DEVELOPER/SOCIAL MEDIA CONSULTANT
HEAD OF PROPERTY MANAGEMENT
Ali is our website developer and social media consultant. He ensures that Falcon Properties is producing regular marketing and social media content. He leverages the Falcon Properties brand to generate leads for us and helps us build relationships with our stakeholders. Ali specialises in finding suitable agents, landlords and properties to work with within Darlington.
Our head of property management ensures that all of our properties are inspected on a weekly basis, remain compliant with HMO regulations and are regularly serviced and maintained. Sarb also focuses on the operational side of business including procurement of suppliers, finances, legal and design.
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FALCON PROPERTIES
07592095214 [email protected]
CORE OFFERTo enable Falcon properties to develop and set up HMOs, the minimum investment we require is £10,000 per property. A simple bank transfer and a signed loan agreement will allow us to implement one of our proven investment strategies and then once the property has been re-financed, the investor will have the opportunity to reinvest their money or simply receive their initial investment back, plus interest.
Loan Agreement
The loan term can be 12 months – 36 months.
High Fixed Rate Interest
Beat the bank with significantly better returns on your investment.
Guaranteed Repayments
Guaranteed monthly repayments made throughout the duration of the
term of the loan.
Regular Updates
Quarterly updates of the property that the investment is ring-fenced against.
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FALCON PROPERTIES
07592095214 [email protected]
COMPLIANCE
Property Redress Scheme (PRS)
We are a member of the Property Redress Scheme (Membership No. PRS020157) to ensure that we comply with any decision taken by the property ombudsman, if a complaint is raised against the business.
National Residential Landlords Association
We are an accredited member of the National Residential Landlords Association which requires continuous professional development within the business.
HMO Licensing
We have great relationships with the boroughs that we operate in so that we can seamlessly process HMO license applications, organise inspections and ensure we are meeting all compliance requirements.
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FALCON PROPERTIES
07592095214 [email protected]
CONTACT US
To find out more about Falcon Properties and how we can help you earn better returns on your investments, please contact Sandeep Singh on
07592095214.
Alternatively, you can get in touch with Falcon Propertiesvia the following:
www.falconpropertiesltd.com
