Money Maker

A FORM OF INVESTMENT WHERE EVERYONE IS HAPPY

My tenant (photograph alongside) had already lived in the property for 10 years. She already had all her own furniture, fixtures and fittings etc. She didn't require anything from me - not even a light bulb.

Until recently, I had not met her and there was actually no necessity to meet, since under our agreement the day-to-day repair and maintenance of the property and all the contents is her responsibility! My responsibilities are only to insure the building, maintain the gas and electricity safety certificates and to ensure that the gas, electricity and water/sewerage systems are as they should be - all insurable services.

She pays me rent monthly by standing order. That rent is 88 pcm more than my mortgage. The rent therefore makes me a profit of 28%.

All I have had to put down was 15% deposit, finder's fee for the company that provided the package deal, mortgage broker's fee, solicitor's fee and the usual disbursements.

An all in investment of 15,640 and the property was mine in 3 weeks!

Statistics show that historically property prices double every 7 - 9 years.

However, for my property and for ease of illustration, let's say that my property (bought for 85,000) takes 10 years to double in value.

That means an appreciation of 85,000 at an average of 8,500 per annum.

On my 15,640 investment - that represents a gain of 54% this year!

Remember there is an annual 28% profit from the rent too.

The 15,640 payment was a one-off payment, remember. I will NOT have to pay any more.

My projected profit over 5 years therefore would be 47,780 (305%)

My projected profit over 10 years, similarly, would be 95,560 (610%)

Compare these figures with what I would get by investing 15,640 in a bank, shares or elsewhere.

My tenant is HAPPY because she gained a lump sum from the sale of the property and has decided to retire early from her manual job. Secondly, she has paid off all her debts and her monthly accommodation cost is far less than it was previously. Thirdly, she has remained in the same property with no apparent change in her accommodation. She need not tell anyone about the change in her financial circumstances, unless she wishes to do so.

I am HAPPY because I have gained a highly profitable and minimal hassle long term tenanted buy-to-let investment. My tenant is a respectful and mature person who wants to look after the property and wants to stay there for the long term. She is fully aware of and is happy with the terms and conditions of our agreement.

The introducing company, mortgage company, solicitors, insurers etc are all HAPPY too, because they have transacted their respective business.

Hence, as I say -EVERYONE IS HAPPY!

In fact I am SO HAPPY; with this concept that I became a Prime Agent for the company. More than that, shortly afterwards, I negotiated a Business Development Manager role within the company. I have made the following Chinese proverb my motto:

"When someone shares something of value with you and you benefit from it, you have a moral obligation to share it with others".

If you would like to acquire a similar deal in the UK and perhaps build a portfolio please contact us.

With best wishes

Mr A Amann

West Yorkshire, England