Sample 1 - Blog #property investmentSample 1 - Blog #property investmenthttps://lololol.zohosites.com/thoughts/tag/property-investmentSun, 04 Aug 2024 11:51:17 -0700http://zoho.com/sites/<![CDATA[Are You Making These Common Finance Mistakes?]]>https://lololol.zohosites.com/thoughts/post/Are-You-Making-These-Common-Finance-Mistakes

What You Should Know About Property Development Finance

Many property investors and housebuilders have heard a variety of myths about property investment and property development finance. It is important to separate fact from fiction and have a full understanding of the options available when heading into a property investment or development project.

In this article, we aim to break down the myths and misconceptions surrounding property investment and property development finance so that you can make the best decision for your business.

Myth #1: You need a huge deposit to get started

One of the most common myths about property investment and development is that you need a huge deposit to get started. This is simply not true. While a larger deposit will give you more negotiating power with lenders, there are a number of finance options available that will allow you to get started with a smaller deposit.

Myth #2: It's all about the interest rate

Another myth that is often heard is that the interest rate is the only thing that matters when it comes to property investment and development finance. While interest rates are important, they are not the only factor to consider. There are a number of other fees and charges that can apply, so it's important to compare the total cost of different finance options before making a decision.

Myth #3: You need to have perfect credit to get finance

Another common myth is that you need to have perfect credit to be approved for finance. While a good credit history will give you more negotiating power with lenders, there are a number of finance options available for people with less than perfect credit.

Myth #4: It's all about the market value

Another myth that is often heard is It's all about the market value Myth

While the market value of a property is an important factor to consider, it is not the only factor. If you are planning to renovate or develop the property, the end value of the property is also important to consider.

Myth #5: You need to use a bank

Another common myth is that you need to use a bank to finance your property investment or development project. This is simply not true. There are a number of other finance options available, including private lenders, Bridging Finance and development loans.

Myth #6: It's all about the location

While the location of a property is an important factor, it is not the only thing to consider. The condition of the property, the potential for growth in the area and the development potential are all important factors to consider.

So there you have it, the six most common myths about property investment and development finance. Remember, it's important to do your research and speak to a professional before making any decisions.
  

Myth #7: You need to be an experienced property investor or developer to get finance

Another common myth is that you need to be an experienced property investor or developer to be approved for finance. While experience will give you more negotiating power with lenders, there are a number of finance options available for people without any experience in the property market.

Myth #8: You can't get finance if you're self-employed

Another myth that is often heard is that you can't get finance if you're self-employed. While it may be more difficult to get finance if you're self-employed, there are a number of finance options available for people who are self-employed.

If you're thinking of investing in property, or starting a property development project, it's important to do your research and separate fact from fiction. There are a number of finance options available, so don't let the myths stop you from achieving your goals.

Myth #9: You need a large deposit

Another common myth is that you need a large deposit to get finance. While a larger deposit will give you more negotiating power with lenders, there are a number of finance options available for people with a smaller deposit.

Myth #10: You can't get finance if you have bad credit

Another myth that is often heard is that you can't get finance if you have bad credit. While it may be more difficult to get finance if you have bad credit, there are a number of finance options available for people with bad credit.


1️⃣If you’re a business owner looking for secure financing, now may be the best time to apply for a loan.💳 
2️⃣If you're a property developer thinking of investing, now could be an ideal time to review your funding requirements. 🏗 
3️⃣As a house builder or investor, you may be able to benefit from competitive refinancing packages on offer. 🏘 
4️⃣If you're looking for lender flexibility & creative solutions, GIC Capital has the answers! ✅ 
5️⃣Navigating the current economic climate can be tricky – we’ll be here every step

#GICCapital #propertyinvestment #propertydevelopment #finance #myths #realestate #moneysavingtips #financemyths #realestate #mortgage #debt #credit

]]>Tue, 10 Jan 2023 00:00:03 -0800<![CDATA[How to Get Started with Real Estate Investing in the UK]]>https://lololol.zohosites.com/thoughts/post/How-to-Get-Started-with-Real-Estate-Investing-in-the-UK

Property Investing: Why You Should Embrace Risks and Challenges to Succeed in Your Business

When it comes to real estate investment, the UK is a HOT market. But, as with any investment, there are certain risks involved.

In this blog post, we'll discuss some of the key things to keep in mind when considering a UK real estate investment.

There are a few key things to remember when considering a UK real estate investment:

1. Location, Location, Location

The old adage still rings true when it comes to real estate investment. The location of the property is key to its success. Make sure to do your research on the surrounding area before making any offers.

However, there are other factors to consider as well when it comes to real estate investment. The following are a few other things to keep in mind when looking to invest in property.

1. The condition of the property.

2. The age of the property.

3. The property's rental history.

4. The amount of repair work needed.

5. The zoning of the property.


All of these factors should be considered when making a decision on whether or not to invest in a certain property. Paying attention to detail and being thorough in your research will help you make the best decision for your investment.

2. The Brexit Effect

The UK's vote to leave the European Union has caused a great deal of uncertainty in the country. This has had an effect on the real estate market, with prices fluctuating. If you're considering a UK real estate investment, it's important to be aware of the potential risks involved.

3. Research, Research, Research

The Demand for Property

The UK has seen a high demand for property in recent years. This is due to a number of factors, including population growth and the influx of foreign investors. This demand has caused prices to rise, which is something to keep in mind when considering a UK real estate investment.

The Rental Market

The rental market in the UK is booming. This is good news for investors, as it provides the potential for high returns. However, it's important to be aware of the competition in the rental market. There are a number of landlords competing for tenants, so make sure you're offering a competitive rate.

The Type of Property

When it comes to real estate investment, there are a number of different property types to choose from. Whether you're looking for a single-family home, an apartment complex, or a commercial property, there's a UK property that's perfect for you.

Making a real estate investment can be a wise decision. However, there are a number of things to keep in mind before making an investment. By taking the time to do your research and understand the market, you'll be on your way to making a successful investment 

As with any investment, it's important to do your research before making a purchase. This is especially true with UK real estate, as there are a lot of different factors to consider. Be sure to speak with a professional before making any decisions.

4. Have a Plan: Strategy

As with any investment, it's important to have a solid plan in place before making a purchase. Know what you're hoping to achieve with the investment, and have a exit strategy mapped out. This will help you avoid any potential pitfalls.

The UK real estate market is full of opportunity, but it's important to approach any investment carefully. By keeping these key things in mind, you can minimize the risks and maximize the potential for success.

Conclusion: 

Real estate investing can be a great way to build wealth, but it can seem overwhelming to a beginner. Fortunately, getting started in real estate investing in the UK is not as difficult as one might think. Here are a few steps to get you started:

1. Research the market and understand the different types of real estate investment available.

2. Create a financial plan and set realistic goals.

3. Find a property that meets your criteria and analyze its potential for profit.

4. Analyze the market and the local economy to determine the best areas to invest in.

5. Obtain financing for your purchase, either through a bank loan or alternative finance lender via GIC Capital

6. Complete all necessary paperwork and purchase the property.

7. Manage the property, either through a property manager or yourself.


By following these steps, you can get started in real estate investing in the UK and start building wealth for yourself.


Don't let the daunting prospect of investing in real estate keep you from getting started! With GIC Capital, you can easily access secured mortgages with flexible terms and competitive rates. Learn more about how to get started with real estate investing in the UK: #GICCapital #RealEstateInvesting #GICCapital #BusinessFinance #realestate #investing #uk #property #success #wealth #passiveincome

]]>Fri, 30 Dec 2022 02:16:20 -0800<![CDATA[Property Factors to Consider - Apartment Blocks - Private Rental Sector ...]]>https://lololol.zohosites.com/thoughts/post/Property-Factors-to-Consider-Apartment-Blocks-Private-Rental-Sector-...

Unfortunately, like with any new venture, its not uncommon to see new and sometimes "seasoned" investors getting hung up on the wrong aspects or less viability-breaking elements of an investment property. This is one of the main reasons why lenders funding real estate or property investments emphasize on the mandatory requirement experience in the majority of cases, especially for larger transactions. 


So, what should a potential investor be focusing on? Below are some of the main factors to consider when analysing a property for investment: 

  • Net Operating Income (NOI) 
  • Taxes & Entity Structure (Current and Future) 
  • Physical Condition 
  • Location including 

    • Crime 
    • Employment 
    • Amenities 
    • Transport Links 
    • Future developments and growth trends

We aim to deliver much needed capital for SME’s and Property Developers.

These are just some of the factors to determine whether or not the apartment block investment works not only for you but ultimately makes sound financial sense and you able to get funding and maybe even Joint Venture investors.   

1. Net Operating Income (NOI) Analysis 

Any property investment (apartment building) or business is a good or bad investment based on how much money it makes versus how much you paid, including the cash you used as well as on-going operating costs. 
Since no two owners’ NOIs will ever completely match due to circumstances surrounding tax, funding terms, entity structure, management and management costs etc, you must always look at all the revenue and expenses for the way you plan to run the building to arrive at your own NOI moving forward.
Looking at existing operating expenses and revenue is a good starting point to help you justify for offering price, but not necessarily going to be your financial position ongoing, and one would hope that you would be able to improve/ enhance your NOI through value-add to make this an even more worthwhile investment. 

Examples of value add changes 
  • Setting rents and or review to not only maintain your occupancy threshold but perhaps improve? 
    • 100% occupancy may come at the expense of forfeiting some rent, while 
    • Lower occupancy, say 90%, would maximize rent revenue. 

The perfect scenario being 100% occupancy and maximum if not premium rents 

  • Any planned property improvements to the building should increase tenant appeal and improve asking rents compared to market. 
  • Offering anything from pet rent to move-in fees and paid parking allocation could improve your revenues therefore NOI. 
  • Property management? Will you manage the building yourself or hire professional third-party management company? 
  • Property Maintenance? Will you do minor repairs inhouse or via professional maintenance contractor to fix things? 
All these items affect either the revenue or expense, meaning the NOI. Only after determining the NOI based on how you will run the building can you evaluate that number as a return on your investment (otherwise known as a cap rate) to determine what you should pay for the building.  
Potential Gross Income (PGI) aka Gross Scheduled Income (GSI) 

This is about how much anticipated income your property will generate if all units within it are rented and if there are no rent defaults. This can be a very useful measure to compare against your actual income. 

Potential Gross Income = Rental Income + Lost Rental Income from Vacant Units
Gross Operating Income aka Income from Operations 


This figure reflects the gross operating income in addition to all other sources of income from your rental property. This can include revenue from parking spaces, public vending machines, pet rent etc. 


Gross Operating Income = (PGI – Lost Rental Income from Vacant Units) + Other Income 
Net Operating Income 


You first need to figure out your gross operating income. Once you have that figure, you subtract your operating expenses (insurance and maintenance costs etc). You should note, however, that things like investment property depreciation and interest payments do not factor into operating costs.  


Net Operating Income = Gross Operating Income – Total Operating Expenses
Capitalization Rate 


Also known as Cap Rate, is one of the most important real estate formulas. The cap rate formula compares an investment property’s net operating income with its market value, allowing investors to quickly compare properties to see which one is most worth it. 


Cap Rate = Net Operating Income / Market Value of Property 

2. Taxes as well as entity structure, current and future 

Whether you are a new or seasoned investor, always consult with a property tax professional, usually a qualified and chartered accountant. This is no time for DIY, money saving tactics because a significant movement in property taxes can quickly erode all the upside forecast for your investment and make it not only none profitable and maybe even loss making. 
Factors such as the right purchasing entity structure as well as any joint venture agreements etc are all matters for professional qualified guidance and not your mate down the pub. 

3. Physical Building / Property Condition 

Focus here should be at examining the major fixtures and fittings of the building such as  Roof, Heating and Cooling systems, Electrical and plumbing, Windows, Exterior, etc. 
A thorough examination by local contractors who specialize in each building aspect to look at and give you their professional opinions on current state, maintenance repairs required and or replacements, will help you determine if a system is sufficient or needs short- or long-term attention as well as likely costs and timing. 
Awareness of current state of the building and future possible repairs both major and minor will enable adequate expenses provision in your maintenance and repairs budgeting. 
  • For short-term needs (meaning anything within five years), you will need to budget for them as one-time expenses, as well as for other major items you cannot anticipate. These are capital costs, not operating costs, so the full amount should not be included as an annually occurring expense in the NOI. 
  • Instead, a line item in operating expenses should be reserves, which is an estimate of all the major short-term needs of the building spread over time and budgeted on an annual basis. The easily anticipated costs are system replacements — boiler, roof, windows, electrical, plumbing, etc. You should estimate when you think systems will need to be replaced and their cost, and analyse their lifespan once installed. You can then estimate how much money you need to set aside for these items. 
  • Harder-to-anticipate issues are when a tenant wrecks the apartment and moves out in the middle of the night with all the appliances, and you have to renovate and replace everything. 

4. Location, Amenities, Transport Links, Trends 

One of the primary drivers of value in any real estate is its Location & Convenience , Transport Links, Amenities, Employment, Education, Etc. 
It can also be just a matter of supply and demand. Limited supply and high demand coupled with local authority building restrictions or availability of building space are a sure positive factor for a location, the all the other above points also being positive. 
All factors you should consider as to why market rents are as they are and why anyone would be willing to pay anticipated rent for the location. If you cannot come up with three compelling reasons putting yourself in potential renters shoes, you should probably pass on the location. 

In conclusion, do your homework and seek professional guidance and look at market data sources for factual information and to make a well informed investment decision. For your commercial or investment property finance the team at GIC Capital are available to give you professional guidance with any and all your funding requirements. 

By CEO, GIC Capital 
]]>Fri, 22 May 2020 02:52:17 -0800<![CDATA[How Can You Maximize Your Investment Property Returns? ]]>https://lololol.zohosites.com/thoughts/post/How-Can-You-Maximize-Your-Investment-Property-Returns
Whether you are new to Buy-to-Let Private Rental Sector or a seasoned professional landlord, Fund manager or Private Equity Asset Manager maximizing returns on your investment property or portfolio will be one of your main ongoing objectives or responsibilities.   


Below are some thoughts on what you may want to do improve your investment and capital returns.

1. Understanding Market Rent & Pricing Your Rent(s) Appropriately

This is not about being the most expensive or the least expensive (cheapest) but rather pricing to maximise value for money for your target market potential tenants, reduce your vacancy rates and ensure long term profitable paying tenants. 


Rent should cover all ongoing costs, take into account inflation and with a margin to absorb any unexpected events whilst still breaking-even and still making you a profit. Its a balancing act where you want the scale to be always on the generating positive cash flow with full occupancy all the time if not most of the time. 


When it comes to determining fair market value for rent, market data is available for free from online portals such as Rightmove, Zoopla, NetHousePrices, HousePrice.AI as well as from local property letting and management agents who would also want to win your ongoing letting management business.   

    We aim to deliver much needed capital for SME’s and Property Developers.

    2. Professional Property Marketing Images, Brochure

    First impressions count the most and getting market rate for your investment property requires finding prospective tenants who aren’t looking for the cheapest property, but rather, exception value for money property that they’ll love to live in and be proud of. 


    Whilst its always tempting to take the pictures yourself and save a few pounds in the process, its more important that these pictures taken by professionals and make your target tenants want to arrange a viewing. Cutting costs on your ultimate sales brochure is not an option if you are serious about maximizing your investment returns.


    Sell & rent safely with for example Spec whom are ready to help with 360º virtual tours, delivered to over 500 agents in London alone. Spec Digital Surveyors are certified by RICS and scan every property using the Leica BLK 360, a revolutionary 3D camera. 

    3. On-going and Preventative Property Maintenance 

    This is much easier said than done as many investors approach is "why fix it, if it isn't broken" which is ultimate the wrong approach and can be costing more than most realise. Along with this common approach to only fix things when they’re in need of repair, is to try and DIY the repairs and maintenance.
    Reactive maintenance is, almost by definition, more costly and far less convenient.


    Better is to have a professional maintenance company that can handle any and every likely property maintenance job that will inevitable occur as its not a matter of "If" but rather "When" required.  Disney is one well know company that does on-going preventative maintenance on a daily basis. 

    4. Mitigating RISK via Insurance 

    Insurance is a usually an afterthought for most people and businesses alike, even though we all know that life is full of unexpected events we should have contingency plans for. 
    Whilst you don't need to be over-insured, adequate insurance is paramount and its adequacy should be reviewed on a regular basis - yearly ideally. 

    Its always a good idea to take the time to get a few quotes to compare with each other but I wouldn't spend too much time on this and also remember you want a reputable insurer that will pay out should the unexpected occur. Insurers claims payment track record is more important than cost in this aspect. The cheapest insurance that wont pay out is just as expensive. ts always a good idea to take the time to get a few quotes to compare with each other but I wouldn't spend too much time on this and also remember you want a reputable insurer that will pay out should the unexpected occur. Insurers claims payment track record is more important than cost in this aspect. The cheapest insurance that wont pay out is just as expensive. 


    Insurance providers will usually give you better rates if they’re insuring more of your assets as a loyalty benefit and also helps with simplifying your administration etc. 

      5. Debt or Mortgage Finance Review 

      Professional advice in the aspect - whilst it is not free - will benefit you timewise and money wise, by taking a review of the mortgage rate you’re currently paying on your investment property, comparing it with today’s mortgage rates and giving you an objective refinance cost vs benefit analysis. Yes, refinancing involves more administrative paperwork and can be a pain, but a lower rate could save you thousands of pounds every year translating into more bottom line profits. 

      Don't forget, when you refinance your mortgage, there’s often an opportunity to pull some cash out for further property investments or portfolio maintenance as well as refurbishments. 

      6.  The Right Ownership Vehicle, Tax & Tax Planning 

      Perhaps the very first consideration at the point of considering acquiring investment property and maybe even review in conjunction with mortgage debt review? 

      The right entity structure, Individual ownership (Sole Trader), Limited Liability Partnership (LLP) or Limited Company (Ltd) will depend on your circumstances and is a decision that should be taken with appropriate professional guidance from a qualified and chartered accountant.

      A qualified accountants guidance will go a long way in looking at and planning for your Wealth Creation as well as Wealth Preservation. 
      Whilst the above suggests a little more administrative time investment that is a limited resource for all of us, its a MUST and Worthwhile endeavour even if you follow through on just one or two aspects, you will have more money in your pocket at the end of the day. Its ultimately not just about earning money but also keeping it... 



      ]]>      Sat, 09 May 2020 06:37:13 -0800      <![CDATA[No Nonsense Property Offers to Purchase. Do not act like you are buying fruits at your Sunday farmers market... ]]>https://lololol.zohosites.com/thoughts/post/No-Nonsense-Property-Offers-to-Purchase.-Do-not-act-like-you-are-buying-fruits-at-your-Sunday-farmers-market...
      Contrary to much given advice on the subject matter of offering to purchase any real estate, residential or commercial  property, we don't believe in the popularly advised so called negotiation tactics, "knowing how to talk down a price is an integral part of the profession." A lot of time is wasted with these so called tactics and ultimately focus on other profitable use of professional investors limited time is mis-directed. 


      Many situations arise where homeowners or agents overvalue a property to such an extent that it is more than likely the norm than the exception unfortunately and whilst its surprising how many seem to believe it can be hard to have a conversation about how much the property is actually worth, there is a very simple solution to this minor obstacle. 


      Whether the property is overpriced due to inexperience, a lack of understanding of the market, or simply someone hoping for the best, your role as a value focused real estate investment professional is NOT to help guide negotiations to something reasonable for the people involved but rather simply WIN, WIN, WIN! Anything other than WIN, WIN, WIN will more than likely resulted in wasted hours, days, weeks or even months. Take a hint from Warren Buffet's Value Investing Simple & Effective strategy.    

      We aim to deliver much needed capital for SME’s and Property Developers.

      1. Use Objective Market Data 

      The best way to frame a negotiation is the buyer and seller working together to establish a fair market value based on third-party, objective market data and current economic as well as political climate. 


      Being indignant or haggling over price only serves to put the seller in defensive mode. If comparable sold property date is carefully chosen and sound fact based arguments are made for their inclusion, it doesn't need to get emotional or haggling contest. 

      2. Invest for the long term 

      As an investor, you should be making money at the point of purchase NOT some unknown future date. Your initial offer MUST always be 20-30% less than seller/vendors target asking price and must be backed-up with appropriate market data. Whilst many sellers will bury their heads/ frown at your "serious offer" and prefer to wait for the next possible buyer who will over-pay, you must every 30 days or so, check in and remind the vendor or agent of your still standing serious offer and ready to complete transaction within 8 weeks. Such an approach will definitely work best for you, as it allows you to win when at the point you acquire the property with the future even brighter. 

      3. We all know that Cash Is King. Attach a deposit cheque to your offer.

      Showing up or submitting your offer together with a contract stating instruction of solicitors & property survey with the aim to complete within 8 weeks and a deposit cheque sends the message...
       

      a. I am a serious professional 

      b. I am backing my words/intentions with crystal clear actions and ultimately cash 

      c. No time to waste. I respect your time and more importantly mine. Lets transact or lets move on and its really that simple 


      Its a fact not just psychology, putting a contract and hard cash on the table will set you apart from the "competition" and show the seller how serious you are about buying the property. The check must always be made out to title or escrow so you don't have to worry about a random seller running off with your money. Take professional legal advice & assistance on the best way to do this for your circumstances & jurisdiction. 

      4. Transparency Builds Trust, Long Term Relationships & WINS always.

      It's always difficult for a vendor/ seller to disagree with market factual data. Stating the factors behind arriving at a certain valuation will build a collaborative relationship between buyer, agent and or seller. Ultimately contract subject to purchase price not being lower than official survey value and abortive costs undertaking should very easily resolve this minor challenge for a WIN, WIN, WIN outcome. 

      5. Above all Know & Understand Your Seller as well as Motivating Factors 

      The most important and initial task to do is to understand the other party's priorities & motivations including any time factor constraints. You want to know what ultimately is most important offer acceptance factor(s). It is not always the highest price as is generally thought as most buyers don't do in-depth research in this aspect. You wouldn't play a game without knowing the rules, would you? 

      ]]>      Thu, 07 May 2020 21:05:00 -0800      <![CDATA[Three Basics to Keeping Your Real Estate Investment Strategy Simple... KISS]]>https://lololol.zohosites.com/thoughts/post/Three-Basics-to-Keeping-Your-Real-Estate-Investment-Strategy-Simple...-KISS
      Amassing a personal fortune through real estate may seem beyond possibility, but it can be done —  Keep it simple and pay close attention to these three basic concepts. 


      1. Maintain Conservative Ratios 

      If you’re building or buying real estate as a long-term hold, make sure that property is going to cash flow very well, even if that means you utilize more equity and accept a slightly lower return. Debt-service coverage ratio (DSCR or just DCR) is calculated by taking the net annual cash a property produces and dividing it by the total annual payments for any/all debt on the property. So, if a property will generate £100,000 per year after all expenses such as taxes, maintenance, vacancy, etc., and you put a loan on it where the total monthly payments for the year equal £50,000, then you have a 2.0 DCR. 


      A 2.0 DCR may seem overly conservative, but when over-leveraged owners get in trouble, equity evaporates, and banks can foreclose, leading to a total loss of capital. I like to say that real estate experiences temporary setbacks. If the market drops and you have plenty of cash, you might have to accept a lower return on equity for a while, but you won't lose the asset to foreclosure. Then, when the market rebounds, all your equity will come right back. 


      Remember, accepting a lower return and/or keeping cash on the side-lines will serve you very well when the time comes. Not losing money is often better than making a huge return. Over time, not losing will be a better strategy than always chasing yield — because eventually, almost all highly leveraged individuals and/or companies will take a big tumble. 
      2. Location 

      I know, location is traditionally said to be the three most important things, so maybe this should be No. 1 on this list. Stay close to town, close to services and close to the right level of wealth/money. For instance, don't try to locate a low-income housing project in Westminster, and don't build £2 million properties in Inverness (unless maybe there's a ski resort or something there I don't know about). The point is, your properties blend in with their surroundings. This is not a place to try to be the one who bucks the trend. 


      3. Supply And Demand 

      This concept is equally easy to quantify and easy to avoid or not pay attention to — I see it all the time. Here’s the scoop: Find the information, and pay attention to it. Are there more projects coming to the area than there is demand for? If it’s even close, move on. Believe me, even a top-notch yoga studio and gourmet coffee shop aren’t going to earn an extra £200 per month in rent or fill up or sell your units if there’s no demand for them. That’s where many find themselves right now. Development is starting to run rampant, and people are working to justify their deals because they think their projects are better than the four other similar ones going up. But whether they’re better or not is not the right question. The right question is: “Are there enough buyers/renters/tenants to fill up all current deals as well as any others in the planning phase?” 

      If you are investing in a project or looking to create one, don't underestimate the importance of being conservative, making sure it your location is right and paying close attention to supply and demand. 


      (source/credit: John Bogdasarian) 

      We aim to deliver much needed capital for SME’s and Property Developers.

      Call Now ​+44 (0) 203 2909019

      ]]>      Tue, 10 Dec 2019 06:01:01 -0800      <![CDATA[Do You Want to Succeed As A Real Estate Investor? ]]>https://lololol.zohosites.com/thoughts/post/Do-You-Want-to-Succeed-As-A-Real-Estate-Investor

      Here are half-a-dozen things to be aware of... 

      london

      The high-income expectation without a lot of hard work gets a lot of people all around the world into trouble and disappointment.          

      Yes, you can make good money in real estate, but like any business and anything worthwhile doing in life, consistency and persistency are key ingredients as well as tenacity to not fail and quit, but fail and learn over and over again until that break-through. Having a mentor and professional team of advisors is a MUST not an option. 

      As the saying goes, "If you have a Dream, you MUST build a TEAM and have a Theme". Business and investing is a team sport, don't try and do it alone as there is no such thing as "a self made, millionaire or billionaire" 
      1. It's a challenge to do part-time but can still be done with discipline and consistency, keeping focus on the main ultimate prize - financial freedom or your individual WHY. 
      Yes, there are part-time property investors and you can do deals when you're not at work. However, if your work schedule is like most of the 95% not financially free population, it's going to take discipline and massive action in doing what you've never done before, in order to get what you've never got before. Sounds like a cliché, right? 
      2. You are ultimately self-employed; captain of your ship and destiny. 
      Though you'll have to work with various professional advisers such as lawyers, real estate agents, contractors, lenders, insurance brokers, finance brokers, accountants etc, you are in business for yourself. This means that you'll need to keep up with laws and taxes to make sure you don't end up crossways with HMRC or industry regulators. 

      Your requirements of professional advisors will depend on whether you are investing in simple buy-to-let single family tenancy or multiple tenancy property or developing new build property or doing conversions etc 
      3. Finance, Cost Modelling or Budgeting 
      Like any business, you will need capital for property acquisition costs, construction or refurbishment costs which all need to be considered as accurately as possible prior to purchase as these can affect your investment viability and profitability. 

      For real estate development companies such as CostModelling offer free software and paid versions that could help with this very important task - see https://costmodelling.com/ 

      Ultimately the numbers should tell you whether your investment is worth the investment as well as other factors such as area/location growth potential and trends 
      4. Finance Options 
      Fortunately with real estate unlike for example buying stocks & shares, you can borrow in order to invest and therefore leverage with the banks or other investors capital making it an attractive investment asset class. 

      Funding options ranging from short-term / bridge loans to commercial term loans as well as residential property or commercial development loans. See our real estate capital section.

      We aim to deliver much needed capital for SME’s and Property Developers.

      Call Now ​+44 (0) 203 2909019

      5. Investment Strategy and Exit 
      Some of the key questions here are:
      • Building to sell or build to hold and rent? 
      • Are you investing for capital growth, income, or both capital growth and income 


      The above questions will affect type of funding, your investment cash input and investment costs as well as quality and type of finishes for example 


      If you're into houses, showing them, the sales and transaction process and helping people to buy and sell, you're probably going to succeed and make a lot of money over time. 


      The key message is to get into the business with a realistic attitude and income expectation. Above all else, build a TEAM. See this short video on  how best to build a wining TEAM
      6. Want to learn more?  Call us and we'd be delighted to guide and assist you in your property investment journey. 
      GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019 
      ]]>      Mon, 18 Nov 2019 11:26:57 -0800      <![CDATA[ Important Factors To Consider When Buying Investment Property - Your Game Plan! ]]>https://lololol.zohosites.com/thoughts/post/Important-Factors-To-Consider-When-Buying-Investment-Property-Your-Game-Plan

       

      There’s no question that the right investment property is an incredible financial opportunity. 


      Whether you purchase a residential or commercial property, tapping into its potential, such as renovating and then renting out a space, can help you generate passive income and even turn a nice profit when you sell or long term income and capital growth. 


      However, you shouldn’t just buy the first property you come across that looks interesting. Instead look at the numbers and do your homework. The best way to reduce risk is to know the cards on the table. 

      We aim to deliver much needed capital for SME’s and Property Developers.

      Call Now ​+44 (0) 203 2909019

      Your Investment Objective or Desired Outcome #1 

      The most important thing is to keep in mind why you're investing in the first place. 
      • Are you investing to have more passive income that will allow you financial freedom and the choices that come along with it? Or 
      • Do you want to build capital therefore, focus is capital growth Or 
      • Do you require both income and capital growth? 

      Whilst there is no wrong answer, clarity on objective will determine what and how you invest in order to accomplish your end game/ goals. 


      "All that glitters is not gold" Location, Location, Location, Research, Research, Research – KNOW THY MARKET 

      Micro & Macro Economic Trends, Market Drivers & Influencers #2 

      Understand what market demand your investment is there to serve. 
          
      From there you can start to build an effective analysis of the key factors of price per square foot or square meter, the in-place rent versus expenses on that same basis to establish a margin and, lastly, how that margin effectively ties into your target yield and over what time frame. 

      Disposable Cash to Invest - Your Personal Financial Situation #3 

      Each person's personal financial situation is different and investment properties generate unique financial outcomes. 
      • Some might require smaller investments and incur fewer costs along the way, but produce little to no ongoing revenue for a while. 
      • Others will require larger upfront and ongoing investments, but will generate greater cash flow right away.  

      Community Considerations And Regeneration Investment Areas #4 

      Return on investment is the most important factor for most property investors and developers. Investors and developers must however be prepared to answer important questions that stretch beyond their own monetary returns like benefits to the community and society in general. 

      Considerations  such as 
      • Amenities 
      • Energy efficiency etc. 

      Anticipation of Market Cycles & Preparedness #5 

      When considering an investment property, while it is important to confirm the property meets your cash flow and investment criteria, as an investor the best thing to keep in mind is how you can strategically reposition the asset to increase your returns and be prepared during downturns in the market. 

      Real estate is one of the best asset classes to build wealth and maintain wealth through the proper use of  debt and leverage if managed well. 

      Your Real Estate Ultimate Strategy and Objective #6 

      Clarity: Know what you want your end result to be and this will guide your investment decisions. 
      • Cash flow 
      • Capital Gains Or 
      • Both Cash Flow and Capital Gains 

      Know your strengths and your weaknesses and build a team around you. Business and investing is a team sport. 

      GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019

      ]]>      Sun, 22 Sep 2019 23:40:13 -0800      <![CDATA[Owning or Renting? What is best?]]>https://lololol.zohosites.com/thoughts/post/Owning-or-Renting-What-is-best

      Grant Cardone - Real Estate Mogul - Shares His Views About Owning Vs Renting a Property. Strategy! 

      • Which is better in the long term? 
      • Which option gives you more profit? 
      • What do the numbers tell you?
        Check the video below, the answer might surprise you. 


        Are you an SME, Property Investor or Property Developer? Call the office today and we will help you scale your business through Debt and Private Equity Funding .

        We aim to deliver much needed capital for SME’s and Property Developers.

        Call Now +44 (0) 203 2909019

        Get Started! Get Funded!
        ]]>        Mon, 08 Jul 2019 10:29:49 -0800        <![CDATA[Is London still worthy of property investment?]]>https://lololol.zohosites.com/thoughts/post/Is-London-still-worthy-of-property-investment


        Property investors are always on the lookout for the new hotspots that are good for investment and will offer them great returns and renting opportunities. 


        In recent years, the North has been garnering attention as a good place for investment thanks to low prices and continuing development and gentrification in cities like Manchester and Liverpool.


        At the same time, house prices in London have been plummeting for the first time in over a decade, causing many to question whether the capital is still a prime location for those ready to hop on the buy-to-let ladder.


        While property demand in London has certainly taken a nosedive, there are still boroughs that are worthy of property investment.


        Mitcham

        This south London suburb has undergone some serious gentrification over the last couple of year so naturally, the area is alive and kicking, perfect for investors ready to snap up affordable flats and houses. The town centre has undergone a fairly extensive makeover and nearby neighbourhoods Tooting and Colliers Wood also have improved high streets, boosting the surrounding areas and ensuring residents have a great selection of shops, restaurants and bars.


        Ilford

        Ilford is set to become a hotspot for city workers thanks to the opening of the Elizabeth line, set to take place at the end of 2019, which will offer services to Bond Street in just 24 minutes. The area is also benefiting from improved green spaces and cycle paths, perfect for attracting eco-friendly millennials.


        South Norwood

        Situated south of Crystal Palace, South Norwood is hailed by those that live there for having an exceptional sense of community, something that is often hard to stumble upon in bustling London. The local council has also recently been investing in parts of Portland Road and Station Road that includes landscaping and improved footways. There will also be better parking access for local shops.


        Walworth

        While most working professionals in London would of course live in the centre of the city if they could, there are plenty of great places nearly that make commuting easier than ever, with Walworth being high on that list. It is barely 2 miles from Trafalgar Square and also boasts quirky markets and plenty of history.

        Have you discovered how our portfolio builder capital service can help to facilitate your ambitions as a landlord or investor? Find out more here.

        We aim to deliver much needed capital to start-ups and SMEs

        Call Now +44 (0) 203 2909019

        ]]>        Sun, 29 Apr 2018 22:27:04 -0800