Frequently Asked Questions
Where do you invest?
We invest in the UK’s #1 Buy to Let hotspot – London. We focus specifically on the East and South of London as both offer the opportunity to buy low, achieve a high rental yield and withdraw 50% of investment funds out using our model.
How much money do I need?
If you use a standard BTL mortgage then you will need access to £100,000 per property, this sum will cover a deposit on a property, any necessary renovation to add value, in addition to our sourcing fee. We frequently deal with clients who invest in larger projects that require more money, in flipping or blocks of flats, for example, and also with clients who buy property in cash.
Is the property you buy registered in my name?
No, it is bought under Synergy20, which you will be a shareholder in, based on your initial investment.
Which property type is best for investment?
We invest in both residential and commercial properties. One reason commercial properties are considered one of the best types of real estate investments is the potential for higher cash flow. Investors who opt for commercial properties may find they represent higher income potential, longer leases, and lower vacancy rates than other forms of real estate.
How do you know if a property will be a good investment?
One popular formula to help you decide if a property is good investment is the 1 percent rule, which advises that the property’s monthly rent should be no less than 1 percent of the upfront cost, including any initial renovations and the purchase price.
How do we calculate ROI?
The most common is net income divided by the total cost of the investment, or ROI = Net income / Cost of investment x 100.
What do investors get in return?
The bigger the better. In general, angel investors expect to get their money back within 5 to 7 years with an annualized internal rate of return (“IRR”) of 20% to 40%. Venture capital funds strive for the higher end of this range or more.
How much profit should you make on a rental property?
Once you know your expenses, you’ll be better able to set a rent price to help make a reasonable monthly profit. In terms of profitability, one guideline to use is the 2% rule of thumb. It reasons that if your rent is 2% of the purchase price, you are more likely to generate positive cash flow.