Manage episode 286153871 series 2310268
David is currently packaging a ‘Lifetime Interest’ deal and in this episode explains how this type of deal can be a positive for both the beneficiary and the investor.
For an investor who wants to invest in a secure way with a great uplift that is both significant and inevitable in a way that can only be achieved with bricks and mortar, this is a strategy that is worth a look at.
- A lifetime interest is a document that means the surviving person can remain in the property rent-free.
- If you have cash in today’s market you can put your money into bricks and mortar and increase the value of your money overnight
- You have an asset that you can’t access but it continues to increase in value.
- You don’t know what’s going to happen in the future but if you have cash and don’t know what to do with it then bricks and mortar is always going to be desirable
- When packaging this type of deal the beneficiaries get their money out and the lifetime tenant doesn’t have to move.
- The investor gets an uplift from day one and when the property is sold, achieves a good increase for the money invested.
- If you have money that you want to invest in a secure way why wouldn’t you look at lifetime interests?
‘The uplift is inevitable and significant’
‘Lifetime Interests – an interesting strategy for the times we are in’
There is no-where elsewhere you can get that kind of increase’
ABOUT THE HOST
David is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004.
In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him, and he enjoys empowering other landlords by sharing the knowledge he has gained.
The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours.
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