Hi [name]

Hope you are well, and had a good Easter break!

I dusted down the golf clubs for the first game of the year, and played pretty well, and had a relaxing few days!

Some positive news on property, in the UK, and with a recent survey of high net worth clients also showing that property, and residential property in particular, is still their main area to invest in! We also highlight an exclusive new private finance option for investors as well below! We also have some excellent new deals due in this week - see below. And for those waiting for information on how to source unlimited below market value opportunities close to home, look out for more information at the start of next week!

The Rich still prefer Residential Property

The Sunday Times reports, "Property has pipped equities to the title of most popular asset class among the world’s wealthiest individuals, according to a report published last week. The survey by Knight Frank of Citi Private Bank’s international high-net-worth clients — those with assets worth more than $10 million (£6.6 million) — showed that the bulk of their portfolios (33 per cent) were invested in property. Equities account for the next-biggest chunk — 24 per cent — followed by cash and bonds, at 17 per cent and 13 per cent, respectively.

The results indicate that even more money could be flooding into bricks and mortar this year — 71 per cent of respondents said they believed that 2010 was a good time to buy, compared with 68 per cent who think that equities are a good purchase. compared with 41 per cent invested in commercial property, 5 per cent in agricultural and 4 per cent in funds."

Of those who have invested in property, residential — excluding the investors’ own homes — was the favourite, accounting for 50 per cent of a typical property portfolio,

So encouraging news for those buy to let investors, knowing even the big players are still continuing to build up their portfolios, and seeing good opportunities out there!

UK Latest Prices

After the first downward recording of figures in February this year for around a year, March recorded a very strong 0.7% increase. After last year’s slight increase, this year I would expect prices to stay fairly flat. Overall this is a pretty good thing for us as buyers, and for sellers.

Yields are good just now for buy to let investors, and with us able to secure deals as much as 25% below current valuations, then yields and instant equity are very attractive.

While mortgages are still not loosening up a lot, the stamp duty window for first time buyers should help encourage more of them to enter the market which is attractive to investors.

There are also hints of 80% buy to let mortgages coming out over the next few months – which again you would expect as the lenders build up their confidence further – and with strict lending criteria still in place ie no self certified mortgages, and firm rental coverage required, they should be minimising their risks – even at 80% LTV.

We also have access to a very attractive private finance route, for those who are either sourcing their own discounted deals, or have run out of traditional buy to let finance – and this works well on new build and older properties with at least a 20% discount.

Further details - Private Finance Option

Details are below but in short this is a clear, simple and transparent way of doing NMD deals. Please find below details on how things are set up here.

We have teamed up with this private finance company which offers members a draw down facility of either £300,000 or £1million pounds aggregated lending which is used at 85% LTV of the valuation price of the property you are buying.

They offer a 3 year fixed rate at 6.49% and you qualify for finance with a credit check, and by filling in a standard finance form.

You have 12 months to access the finance with no need for further qualifications once the original DIP had been approved.

A limited company will be set up for you (you decide the name of the Co.) and a bank trading account as well (if you don’t already have one).

Once all documents are finalized you can start buying property from them which is purchased in your companies name.

There are 2 level of memberships for the above facility - £10k for a £300,000 draw down facility and £20k for a £1million draw down facility.

I should also mention that they can also look to finance your own properties you might have sourced or look to re-mortgage current properties you have, again at 85% of the value - or finance the properties we source at 20-25% below market value.

For your information the finance works like this:

On passing a successful DIP (decision in Principle) they can set up a £300,000 or £1million draw down facility for you to purchase property at 85% ltv. You would aim for a typical discount of around 20-25%. This therefore means that they can lend you all the money you need and more to purchase a property portfolio.

For example a property is worth £100k (off Rics Valuation)

We secure a discount of 20% = purchase price £80k

They will lend you up to 85% ltv = £85k to buy that property.

You have a packaging fee of £5k – therefore you would draw down £80,000 ie the purchase price, and 5k would be used to cover this packaging fee.

So basically would not have to find any other fees.

You could probably buy 3-4 properties with this facility – could probably just manage 4 at a push ie average mortgages of £70,000 – and costs to buy would only be around £3k each.

Borrowing rates are slightly higher - although are fixed for 3 years.

We have several investors who are maxed out on traditional buy to let mortgages applying for this, plus several ex pat investors who are finding this an excellent source of finance!

If you are keen to learn more on this, just add your details here Register for more information on private finance! and we will send further information and an application form - there is no cost to apply!

New Deals in this Week

We continue to source large numbers of low money down deals each week - and this week we are due to have properties in Scotland, Manchester, Wales, and Liverpool!

If you have not registered yet, to receive these deals straight to your in box the day they are secured, then please do so now, and let us know which area is of most interest!

You can pre-register here Pre-register for all new UK deals! and we will send straight out - they usually get snapped up within 24 hours! Rememebr our team can manage the whole process and take care of management on completion!

You can also call us on 0115 9853963 and speak to one of our Portfolio Managers to discuss our latest investment opportunities.

Best Regards

Alan