Syndicates

Syndicates are growing in popularity, with an increasing number of low exposure investment opportunities becoming available using a syndicate model. Typically starting at £10k, syndicates allow investors to exploit high Returns on Investment (ROI's) that are available in the property investment market, but without having to front large sums of money, or deal with additional financing.

The Syndicate structure allows pools of investors to buy properties in cash and sidestep the volatile UK mortgage market, in which the lenders control the deals. Our client has built its name on buying discounted properties, renovating to create added value, and letting room by room to maximise the yields. The Syndicate investment works within that established framework, but allows partial ownership of the property. The investor is part of a collective and the collective buys (and renovates) with cash rather than using external finance. There are two facets to the Syndicate investment; either a buy-to-hold strategy or a buy-to-sell.

The buy-to-hold strategy allows long term planning to suit all budgets, with the Syndicate buying a ready-to-rent, fully refurbished property, delivering ongoing 8-12% yields.

The buy-to-sell strategy lets investors capitalise the discount on a distressed property and renovate it into a high yielding asset. This strategy produces returns of 8-12% in approximately 3 months.

Each investor collaborates by placing £10k into a syndicate with other like minded investors to purchase an undervalued property outright. This property is then refurbished to a top standard and achieves a 10-15% uplift. The property is then held to take a monthly profit or sold and the respective investors split the profits.