Invest 1 – Deadline looms
We had some interested parties in the last 3 units of this JV, however we had to make a decision on how to proceed today. We had to give them deadline to get in by 9am UTC time, as we had a deadline to meet ourselves.
A bit of pressure applied, which can help for some people to make a decision, and to give us some certainty with the current deal. Unfortunately we didn’t hear from them by that time, which is a no, so we moved forward with the alternative, which makes the returns much better for the initial investors, so great all round.
These potential JV partners could now be in the queue to get into the next opportunity that we create.
Below here is some more info for people we know and trust. Check out how to read it here.
Instead of raising the funds through investors, we are going to use the properties we have purchased with cash as security on a bridging loan. We first chased a few private P2P like arrangements with friends we know of that have some cash sitting around, offering them a great rate of return at 0.9% pcm on a 65% LTV (Loan to Value) secured loan.
We didn’t get any takers on the 1st charge offer, so we went to the commercial providers and have secured a 65% LTV loan at 1.2% pcm, a little higher than we hoped, but this will raise our credit profile significantly, which is what commercial lenders look at. At the moment our credit profile is limited still, so we will just pay a little extra this time to build it so that next time we will be in a much better bargaining position, with more banks out there.
Despite this seemingly ridiculous rate we are paying, it will actually make the returns even better.