#PROTEGE PROPERTY MANAGEMENT HOW TO#

We also know customers, clients and have colleagues that work and joint ventures and been very successful at doing so.īut, some joint ventures aren't structured correctly from the beginning. Often joint ventures can work really well. We do joint ventures with our properties with clients, partners, friends, family. Number two is the scams that can come into play when your working with joint ventures.Ĭertainly, not all joint ventures are bad, far from it. If something looks there like it's been inflated or is much higher than other similar properties you've looked at, then it could be a sign that something isn't quite right. Whether it's bricks and mortar, yield value, a ready-to-go HMO or commercial property make sure you look carefully at the figures. You will need to ask yourself: Is this legitimate? Do I have an exit strategy? Does this property make sense when compared to the local area? This includes looking at ALL the numbers involved - and not just the yield. That's why we say examine the fundamentals, do your due diligence and look at everything. Most often this is an appeal to greed, where someone is trying to get someone to invest based on the promise of unrealistic, and therefore very attractive returns. There are scams out there in the property industry and some of them involve the promise of wildly inflated returns. We've included these numbers as a rough guide as to what you can expect from property investment. That's a 20% return after all the refurbishment costs and the costs involved in buying. Typically, for development projects, we try and target about a 20% return on investment. But, our focus has always been to try and invest in quality locations. Now, you'll get lower value areas that will give you much higher yields than that. This is a number we generally look for across the board. Houses In Multiple Occupation (HMO)ĭevelopment projects for a house in multiple occupation, typically, you expect around 12%+ gross rental yield.

#PROTEGE PROPERTY MANAGEMENT HOW TO#

That isn't to say you should avoid city centres - if you like the area and the tenant profile you can attract then you should go for it.įor more information see our article on how to calculate the rental yield of a buy-to-let. These types of property might be more expensive than other types and yields can be as low as 6%. Now, some city-centre locations might offer lower yields than that.

We try and target buy to lets that are around 8% rental yields where we can. When we're looking at potential property deals we follow some general rules of thumb regarding the returns that we would expect. If the return on a property is too good to be true, then that's a sign that the deal is not all that it seems. The first one we'll look at is all about risk and reward. Property Scam # 1 - Inflated Rental Yield

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