Colin Parker
Director

"Are You A Cautious 'What If' Investor?
Our Property Investment Service
Answers Every Question!"

Are you interested in property investment but think ...

WHAT IF ... I don't know the area, how do I know it's a good investment?

WHAT IF ... the property is not in good condition?

WHAT IF ... I have to spend £1,000, £2,000, £3,000+ before it will rent?

WHAT IF ... I spend money on refurbishment and I get a shoddy job?

WHAT IF ... the property is in an area where rental demand is low?

WHAT IF ... the quoted rental is higher than I can achieve?

WHAT IF ... I can't find a tenant and I have to pay the mortgage myself?

WHAT IF ... I have a problem tenant and I live miles away?

WHAT IF ... I can't find a reliable property management company?

We know from experience that these are the questions and concerns that many investors have especially when the property on offer is in an area many miles away from where you live.

The vast majority of our current investors do not live within 100 miles of the North East which is where we source our investment property.  In fact the majority reside in the South and we even have UK investors who now live overseas.

The simple fact is the low price (under £150K), higher yielding, 2/3 bed houses that most buy to let investors prefer are just not available in the South.  That means investing in the North is often the only option if you want to maximise the number of properties you can buy with the investment that you have available.

With property prices substantially below the peaks of 2007, interest rates reduced from above 7% to below 5%, and rental demand strong ... you may well agree with many experienced investors who believe that now is an excellent time to invest in property.

But ... then you stop and think about all of the WHAT IF'S above ... and you hesitate.

We understand your hesitation because we have answered these investor concerns ever since we first introduced our property investment service in early 2007.

Over 8,500 investors
now subscribe to ONEPORTFOLIO
Click here to arrange
a NORTH EAST VISIT

Who Are ONEPORTFOLIO?

ONEPORTFOLIO is a company jointly owned by myself, Colin Parker and my wife Karen..  We operate from our North East offices near Alnwick in rural Northumberland and our lettings agent partners NGU are based in Gateshead near Newcastle.

ONEPORTFOLIO was established in early 2007 with the aim of providing a high quality 'A to Z' personal portfolio building service for investors right through from the initial sourcing of the property to tenant finding and full property management.  As the business grew we engaged the services of NGU Lettings in late 2008 to tenant and manage the growing portfolio’s of our investors.  This partnership was very successful and in February 2010 the partnership was legally formalised.

We offer a full ‘A to Z’ buy to let investment service which includes sourcing property to your personal specification, refurbishing your property to ‘ready to rent’ condition, tenanting (with a rental guarantee) and full property management.

Properties are sourced exclusively in the North East and include areas in and around Newcastle, Sunderland, Durham, Darlington and Middlesbrough. 

We only source in the North East for two reasons: one, because we know this area intimately and we can therefore advise investors accordingly and two, because it would not be possible to offer a highly professional and efficient 'hands on' tenant sourcing and property management service away from the area that we know.

We now have over 450 properties under management and we are recognised by both investors and many well known people within property investment as one of the UK's most professional and reputable property sourcing, letting and management companies.

Our property service also includes access to mortgage brokers, solicitors, FSA regulated Independent Financial Consultants who can advise you on property tax and related investment issues, in addition to our own lettings and property management agency.

Opposite you will find just a small selection of testimonials and we can also provide you on request with the names and contact numbers of investors that you can talk to personally.

What Makes Your Sourcing Service Different?

Right from the start we wanted to provide a service which was geared towards fulfilling the personal requirements of each individual investor.
Put simply, we wanted to say to our investors ... "you tell us what you want and we will go and find it for you".

All too often property is sourced and offered to investors not on the basis of 'is it right for the investor' but 'is it right for the property sourcing company'.
This is one of the reasons why so many investors were lured into buying high value city centre apartments, off plan developments or overseas property which are often high risk for the investor ... but offer high profits for the sourcing company.

By contrast ONEPORTFOLIO provide a true personal sourcing service for investors where you ‘BUY’ rather than being ‘SOLD TO’.  As you will see, our service always keeps you in control of what property we source, what property we offer and what property you decide to buy.

Before we start to source property for you we always advise that you discuss your investment strategy with an Independent Financial Adviser and/or an experienced and independent property investor.  The investment strategy you choose will depend on factors such as your age, current income, available investment, planned retirement date and your current and future view of the property market.

We source resale property in the valuation range £50K to £150K because we believe this property will consistently have both a strong rental demand and a strong purchase demand from first time buyers. 

Property in this valuation range also offers investors the dual benefits of lower mortgage payments and generally higher net rental yields which combine to lower investment risk and exposure to interest rate increases and rental voids.

As an ONEPORTFOLIO investor you can specify property that meets your investment requirements ie., valuation, type of property, age of property, number of beds, minimum rental yield etc.

We will then personally source that property for you - at 20% below current RICS market value giving you up to £30,000 equity - and offer that property to you exclusively for up to 5 days.

You are under no obligation to accept any property offered and if you want to 'pass' we will simply source and offer you another property until such time as you are completely happy and ready to proceed to purchase and completion.

However, unlike most property sourcing companies, our service does not stop once you purchase.  We will refurbish and tenant the property for you, give you a rental guarantee and provide full property management.
It can take just four weeks to complete the purchase of your property ... but buying a property is really just the beginning of your investment.  You should take a 3 to 10+ year view and that means holding, tenanting and managing the property for many years to come.

That is where I believe our service excels.  We tenant properties quickly, manage efficiently, minimise voids and maximise investor returns.

Our investors will tell you that this is the biggest single reason why they re-invest with ONEPORTFOLIO.

How Can I Buy A Property For Less Than £20,000?

The average valuation range of the property we source c£70K-£150K.

Through our extensive advertising and marketing we generate enquiries from vendors who are looking to sell their property quickly.

This may be due to many reasons: for example, financial difficulty, equity release, divorce, emigration or simply to make sure they sell in time to secure a property they want to buy.

We negotiate with these vendors and a small minority will agree to sell at a discount which allows us to offer you the property at 20% below current market value.

The market value of the property will be established by an independent RICS (Royal Institute Of Chartered Surveyors) valuation and you will buy the property at a 20% discount to this valuation.

Please note that whilst a RICS valuation is a professional independent valuation we still advise you to do your own valuation due diligence.

On a £75,000 RICS valuation this means you would buy the property for £60,000 giving you equity of £15,000. To buy the property you need a 25% deposit which amounts to £15,000 plus our sourcing fee of £4,985 - making a total of £19,985.

Our sourcing fee of £4,985 includes all of your purchase costs which include mortgage broker fees, valuation fee, legal fees and disbursements, purchase administration fees and our finders fee. These fees normally amount to c£2,500 which means that our sourcing fee is only c£2,495.  However, we also guarantee that the property will be refurbished to ‘ready to rent’ condition and these refurbishment costs are included in our sourcing fee.  This means you can budget your total investment far more accurately.

‘Ready to rent’ refurbishments costs (ie., new carpets, redecoration, damp proof course, kitchen, bathroom, boiler etc.)  included in our fee can be in the range £500-£5,000.  We are often asked – given that our sourcing fee is just £4,985 and includes c£2,500 of standard purchase costs – how we are able to include up to £5,000 refurbishment costs in this fee.  The simple answer is that we evaluate what the ‘ready to rent’ refurbishment costs are and charge the vendor this as an estate agency fee on completion of the sale.  This fee is used to cover refurbishmemt costs. 

Therefore ... to purchase a £75,000 ‘ready to rent’ property your total investment is just £19,985.  Obviously on property valued below £75K your total investment will be proportionately less and on property over £75K proportionately more. Please note: refurbishment will often increase the market valuation of the property and increase your discount beyond 20%.

On our property valuation range of £50K to £150K your total investment to purchase will range from just £14,985 to a maximum of £34,985.

At current mortgage rates (4.35%) a £60,000 mortgage on a £75,000 property would cost £163pcm with a rental return of c£425pcm.  After management and property insurance fees - £52pcm - your net rental income would be £210pcm or £2,520pa. That gives a 12.6% annual return on your initial £19,985 invested.

Is The Property Price Really 'Below Market Value'?

Even during a boom market savvy property investors never pay full market value for a property.

As a ONEPORTFOLIO investor it is guaranteed that every property you buy will be a genuine 20% below a current RICS market valuation.  With a property valuation range of £50K to £150K that means you achieve a starting equity o£ £10,000 to £30,000 on every property in your portfolio.

However, we always stress to investors that whilst a RICS valuation is an independent professional property valuation you should still do your own valuation due diligence.  We obviously have to place a valuation on a property before we offer it to you.  A RICS valuation is – in our opinion – the most transparent and independent method of doing so.  It is not our valuation based on comparable selling prices, it is not the sellers valuation and it is not an estate agents valuation.

If you feel that the RICS valuation – and therefore the 20% discounted purchase price – is not what you believe the property to be worth ... don’t buy it!

Unlike the vast majority of property sourcing companies who email available property to a database of 1,000’s of investors – we offer you the property exclusively for up to 5 days.  Investors interested in property emailed to a large database are under time pressure to make a quick decision.  That is not the case with ONEPORTFOLIO.  You are offered the property exclusively for up to 5 days – you receive a highly detailed 13 page report – and you are free to visit the property before making a decision to purchase.

We always say “if in doubt ... don’t buy”.  As I have said earlier, with ONEPORTFOLIO you will never be ‘sold to’ ... you will always make your own decision to buy.  I am sure you understand there is a clear difference.

So, in answer to the question “is the property really below market value” the answer is YES.  Because quite simply, if your research did not confirm that it was ... you would not buy it!

Are Your Property Investment Fees Fully Inclusive?

As experienced investors know, and unfortunate investors have discovered to their cost, the cost of buying an investment property is often far more than the 'ticket price'.

Before you buy any property make absolutely certain what is, and what is not, included in the 'price' because there are multiple purchase costs involved in buying a property.

Buy to let mortgages require a 20%/25% deposit ... are the broker fees included for arranging your mortgage? Is the mortage survey fee included? Are your legal fees included? Are administration fees included for managing the sale and purchase? Are property finders fees included? Is their any rental guarantee? And don't forget VAT ... is that included?

If any of these costs, or any other costs, are not included in the 'ticket price' but hidden away in the contract small print ... they could add hundreds or even thousands of pounds to your purchase price.

But ... once you purchase your property there could still be another big 'hidden' cost that could add £1,000's to your true outlay . And that is the cost of bringing your property to 'ready to rent' condition.

If you don't ask specific questions about the condition of a property ... or have the opportunity to view before purchase ... you may be in for a costly shock if your letting agent tells you that the property needs major or even minor refurbishment before it is suitable to rent.

Our investors do not have these concerns. We offer property in guaranteed 'ready to rent' condition and any refurbishment such as new carpets, painting and even major refurbishment/repairs are INCLUDED in your purchase fees of £4,985. That means you know exactly what your total investment is before you purchase – just £4,985 plus 20%/25% deposit.

Should I Source Property Myself ... Or Use A Company?

Experienced investors with time available often do both.

They may operate their own advertising campaigns to generate enquiries from motivated sellers, or buy at auctions or source through estate agents.

They will also buy 'ready made deals' direct from property companies.

However sourcing your own property – especially at substantial discounts – can take time and effort and potentially involve outlay on advertising.

You need to be organised and disciplined at auctions to make sure that you have done sufficient due diligence on any property you wish to bid on and that you do not overpay in a bidding war. Getting the best deals from estate agents is an equally competitive market place and you need to build relationships and act quickly if deals are offered.

If you deal direct with vendors you will need strong negotiating skills – just because a vendor is motivated to sell quickly does not mean that they will easily agree to a sale at a substantial discount.

Some investors have the time and the experience to source property – whilst others prefer to use the services of property sourcing company.

If you are considering using the services of a property sourcing company our property investment service may well be of interest to you.

What Are The Disadvantages Of Buying From A Company?

The big advantage of buying investment property from a sourcing company is that the below market value purchase price has already been negotiated with the vendor.

The big disadvantage is that - with very few exceptions - the sourcing company guarantees nothing else other than a below market value purchase price.

They don't guarantee the condition of the property ... they don't guarantee the rentability of the property ... they don't guarantee that the market rent advertised is achievable ... they don't offer a refurbishment service ... they don't offer a tenant finding service ... and they don't offer a property management service.

That is when the 'scales often become unbalanced' ... you have to weigh up the benefits of buying a property at a below market value price against the disadvantages – especially if that involves investing in an area that you are totally unfamiliar with.

You also have to consider this fact ...

If the company sourcing the property does not take on the responsibility for tenant sourcing and property management how diligent are they likely to be in only offering you property in areas where rental demand is strong?

At ONEPORTFOLIO a key element of our service is that we DO provide a tenant and property management service.  And because of that we only source and offer property to our investors in areas where we know there is a strong rental demand and where we are confident that a tenant can be found quickly.

Where a company just provides a sourcing service the relationship between a property company and an investor only lasts for four weeks ie., the time it takes to complete the purchase.

At ONEPORTFOLIO our relationship with you continues long after your property purchase has completed ... and hopefully for many years to come!

How Can I Be Sure My Property Will Rent?

We are asked this question more often than any other.

After all, the most important word in buy to let property investment is LET.

A core principle of buy to let investment is that your tenant effectively pays for the running costs of your property, provides you with an income, and allows you over time to benefit from increased equity through capital growth.

And yet ... one of the single biggest reasons why many investors fail to achieve their investment objectives, why they fail to retire early or achieve financial security ... is quite simply down to buying property that - far from being a cash flowing asset – becomes a cash draining liability.

If a property is not tenanted, subsidising just one buy to let mortgage out of income can often prove difficult for an investor ... subsidising two, three, four or five mortgages can prove impossible.

When this happens the investor is left either at best with a forced sale often at a below market price or at worst with repossession and possible bankruptcy.  This unfortunately has been the fate of many investors, especially when interest rates rose quickly after August 2007.  Although interest rates have since reduced guarding against interest rate increases and the effect they have on cash flow is an important investment factor.

This is a major factor in our decision to only offer property to investors in the valuation range £50K to £150K as these properties invariably cash flow well and give protection against interest rates rising from the current base rate of 0.5%.

The single biggest reason why our investors repeat purchase with us is because a) we tenant new purchases quickly and b) we minimise rental voids through stringent tenant referencing and highly efficient property management.

Our average time from completion of purchase to a property being tenanted is just two weeks and we back this up by giving you this RENTAL GUARANTEE ...

Is This A Good Time To Invest In Property?

As I am sure you appreciate, the tumultuous events that have taken place in the global financial system since the start of the credit crunch in August 2007 are unprecedented in living memory.

These events have had a massive impact on property prices which, depending on area and type of property, are now 20%-40% down on the peak prices of early 2007.

However, whilst these price falls are dramatic, cyclical ups and downs in property prices are nothing new. 

One of the key factors in your property investment strategy is understanding how rising and falling prices impact on rental yields and how this can determine if and when you invest.

In general terms increasing house prices are the result of a readily available supply of credit and relatively low interest rates which in turn generally indicate a stable or expanding economy.

Falling house prices (as everyone now knows!) are often the result of a stricter supply of credit, and/or higher interest rates, and/or recessionary factors which all generally indicate a less stable economy. 

However, whilst house price valuations can experience dramatic swings in a relatively short period of time, house rental valuations are generally not affected in the same way ie., rentals do not increase or decrease in line with prices.

What this means is that generally rental yields fall during periods of rising prices and increase during periods when prices fall. 

With base rate currently at 0.5% and some deposit accounts paying less than 1% interest - investors may believe that investing in property will give a better return on cash invested whilst at the same time giving the potential for future capital gain.

Protection against further falls in house prices can be achieved through buying at below market value – 20% below market value if you invest through ONEPORTFOLIO.

Will property prices ‘boom’ again – and if so when?

   We can all speculate on this question and the fact is even the ‘experts’ consistently get the answer wrong.  For example, prices were predicted to fall by 15%-30% in 2009 yet rose by over 4%.  Prices continued to rise for the first few months of 2010 but then started to drop slightly before stabalizing.  Where will prices go from 2011?

   We believe that this is a question you must ask yourself and take whatever independent advice you deem necessary.  Investment objectives and attitude to risk differ widely from investor to investor and only you can determine whether or not it is right for you to invest in the current market.

    However, with the UK population forecast to rise to 70 million and new housing starts falling way behind the Governments requirements – the current housing shortage is becoming more acute and demand is likely to exceed supply for years to come potentially maintaining upward pressure on medium to long term house prices.

Can You Show Me Examples Of Investment Properties?

Please click the links below to view examples of properties sourced for our investors:-

http://www.one-portfolio.co.uk/uploaded/deals/Newbiggin2.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Hetton2.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Southbank2.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Thornaby2.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Seaton.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Newton.pdf

You will notice that we provide very detailed information and if you register as a ONEPORTFOLIO investor this is how we present property to you.  You can call us to discuss any aspect of the property prior to making an investment decision.

We visit every property and all photographs and descriptions are done by ourselves and not by the vendor or copied from an estate agents details.

Remember ... we will only source property that matches your personal sourcing criteria so these properties should be viewed as examples and are not necessarily indicative of the property you would be offered.

As an ONEPORTFOLIO investor you are under no obligation to accept a property offered and if you do decide to 'pass' we will simply source and offer you alternative property until you are entirely happy to proceed to purchase.

When viewing these properties please take into account the valuation ... these properties are valued in the range £50K-£150K and I have given examples of typical properties in typical areas.

All of these properties are currently let and earning net rental income for ONEPORTFOLIO investors and every property was purchased at 20% below RICS valuation.

How Do I Pay The Property Investment Fees?

As detailed earlier to purchase a property you pay a 25% deposit based on the current RICS valuation plus total purchase fees of £4,985.

To give you peace of mind these fees are paid in three stages and we offer a 100% fully refundable guarantee of the initial registration fee if you are not satisfied with our service prior to accepting a property or you are unable to obtain a buy to let mortgage.

..........These are the 3 fee payment stages:

..........1.       £485             To register as a ONEPORTFOLIO Investor

.............2.       £4,500         After mortgage survey of a property

......... 3.       25% Deposit   Immediately prior to property completion

Properties are sourced to instruction and once you register as an ONEPORTFOLIO investor we would discuss your property investment strategy and compile a detailed list of your property requirements.

We would normally expect to source and offer you a property within four weeks.

When you are offered a property you will receive very comprehensive details view property examples by clicking but you are under no obligation to accept a property. If you 'pass' we will continue to source and offer property until you are 100% confident to proceed to purchase.

If you accept a property you will then talk to our broker to arrange a mortgage.

If you receive a DIP (decision in principle) from the Lender the property will proceed to valuation by a RICS valuer selected by your Lender.

If you are satisfied with the valuation report - and decide to proceed to purchase - it is only at this stage that you pay the fee balance of £4,500 and the property will then proceed to completion.

I Am Interested ... What Next?

If you are interested in discussing our property investment service in more detail or you have any questions please do not hesitate to call me personally on 01665 577 502.

You are also more than welcome to visit myself and my team here in the North East and this is something I would strongly recommend.  You can view the area and see properties that we have recently sourced for our current investors.

I can assure you that these visits are not 'selling days’ but are geared totally towards giving you the opportunity to meet with us and ask us any questions you may have. You are also welcome to bring any advisers with you.

We want to build lasting long term relationships with our investors and these visit days are the start of that relationship and an essential part of the trust building process.

Thanks for reading, I hope you have found this information of interest, and I look forward to perhaps meeting you in the near future. If you would like to send this information to a fellow investor, friend or colleague please click here.

Best Regards,

Colin Parker
Senior Partner

PS.  If you have not already registered your details with us please do so below.  You will receive my weekly Property Investment Newsletter with the latest news and tips.