The Developer, Tushar Shah, has exchanged contracts on this property and is currently carrying out conversion works to convert it into a 7 Bedroom HMO (House of Multiple Occupancy) prior to completing the purchase at the end of June 2015. The property will then be operated as an HMO by the Developer, and this will be an extension to his current portfolio of rental and HMO properties. The property has been valued at £322,000 by a RICS valuer as a finished 7 bed HMO. The rental income of £39,600 per annum is also based upon the RICS rental valuation figures. The Developer has a successful track record of delivering above market rents for his HMOs and Single Lets. The Developer will refinance the HMO once operational to exit the CrowdProperty loan and return funds to the Lenders at the end of the loan term and will retain the property and operate it as an ongoing HMO business.
|Minimum 6 month Loan||Full 8 month loan period|
The Developer, Tushar Shah, will be the legal owner of the property and will also be the ‘Borrower’ on the loan agreement for this project. He works with his business partner Mehul Shah. Tushar and Mehul are entrepreneurs operating multiple businesses since 2006. They have been investing in property since 2010 and have developed significant experience resulting in a portfolio of single lets, commercial and HMO properties in Birmingham, London and Reading. Specifically within the HMO sector their strategy of creating HMOs with high quality rooms for professional tenants has enabled them to secure above market rents. In 2014 they established Blenheim & Chester Developments with joint venture finance focusing on residential developments in the South East.
This is exactly the type of project we like to back on CrowdProperty. A profitable HMO business and being run by highly experienced property investors that specialise in high quality profitable HMOs.
* Please see full risk statement here.
† Estimated Sales Value is more formally referred to as GDV - Gross Developed Value
‡ Interest Cover is a measure of the project's ability to cover the interest payments from profits and is calculated by dividing the Projected Return on Costs by the Total Interest incurred throughout the loan period