Paid Back in Full

51 Hallewell Road, Birmingham, B16 0LP

Developer: Tushar Shah

loan amount

£215,000

interest paid*

10%

funds pledged

£215,000

number of investors

55

% of target pledged

Fully Funded

project type

Conversion to HMO

loan term

up to 8 months

security

1st charge

project phasing

1 of 1

floor area

1062 sq.ft.

purchase price/value

£322,000

cost of work

£40,000

loan to value

66.77%

est. sales value (gdv)**

£322,000

owed at exit to gdv***

72%

strategy & vision

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.

exit strategy

the borrower
& project team

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.

indicated return for your pledge
interest
total
6 month loan
£200
£5,200
18 month loan
£600
£5,600

CrowdProperty Comments


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. 



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*Please see full risk warning
**Estimated Sales Value is more formally referred to as GDV - Gross Development Value
***Owed at exit to GDV is calculated as the total capital + any planned loan interest against the RICS GDV for the project. These figures do include subsequences on projects funding development costs during the course of the project.

Your capital is at risk and you may lose all you lend. See our full risk warning for more information

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