Nick Lee Properties Ltd. private finance document

Nick Lee Properties Ltd.

This is a document for distribution to friends and family and is issued to High Net Worth or Sophisticated Investors only. It is not for public promotion and is not to be regarded as an FCA approved regulated investment. We maintain a log of anyone who has been invited to read this document as part of our recording system

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PRIVATE FINANCE DOCUMENT

Nicholas Lee director

www.nickleeproperties.co.uk [email protected] 07809 297742 0203 488 1992

mailto:[email protected]



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Table of Contents

Executive Summary ………………………………………………………………………………………………………………………3

Objectives …………………………………………………………………………………………………………………………………….4

Mission Statement ……………………………………………………………………………………………………………………….5

National Overview ……………………………………………………………………………………………………………………….5

Local Area Overview …………………………………………………………………………………………………………………….7

Future Plans for the Local Area …………………………………………………………………………………………………….9

Strategy ………………………………………………………………………………………………………………………………………10

Lead Generation …………………………………………………………………………………………………………………………10

SWOT Analysis ……………………………………………………………………………………………………………………………11

Investment Options and Your Return ………………………………………………………………………………………….12

Personal Details ………………………………………………………………………………………………………………………….13



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Executive Summary

This document is addressed to investors.

Nick Lee Properties Ltd. is looking for funding to invest in properties to make a profit. It sets out a

property investment strategy and presents a strong argument for investing in property with Nick Lee

Properties Ltd.

Current interest rates offer little return 0-3%

Nick Lee Properties Ltd 12%

By making funds available and for short periods of time a much better return can be made

investing in property.

Nick Lee Properties Ltd. can offer potential returns of up to 12% per annum pro rata for

investors

Nick Lee Properties Ltd. investment strategy is based around managing whole properties

and renting the rooms individually as well as finding property solutions

Adding value through high standards, a strict code of conduct and ensuring market value

rents

The current area of investment is North London, specifically in the N4, N15 and N22

postcodes which lie in the London borough of Haringey

With traditional saving accounts producing record low returns, we believe that now is an ideal time to be investing in property.

Our personal property education, current employment and steps towards continuing our

professional development are given in Personal details on page 13



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Objectives

Our Objectives

We initially focussed on managing properties for income, leasing properties on a 3 – 5 year

commercial agreement from landlords with full management and control handed to us, at

which point we would rent each room individually at no cost to the landlord. Our aim is to

continue to build a cash flowing (income generating property portfolio consisting of:

a. HMO (Houses of Multiple Occupation)

b. Small end Houses of Multiple Occupancy (HMO’s with 4 or 5 bedrooms)

c. Buy-To-Lets (BTL)

We intend to invest only in properties producing a minimum monthly cash flow for

a. BTL = £400+

b. HMO = £700+

Managing properties with no fees involved, and still offer Market Value Rents for the areas

Managing terraced and semi-detached properties. Tenant demand is highest for these

property types in the North London area

Ensuring standards are kept and a strict code of conduct and fairness is followed

Generate capital through management of rental properties, leading to the purchase of

below market value properties (BMV) refurbishing and selling on for a profit, also using

angel funds, refurbishing then renting out long-term and then mortgaging or re-mortgaging

the properties to release funds invested.



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Mission Statement

Nick Lee Properties Ltd. is committed to providing quality, affordable rental accommodation within the N4, N15 and N22 postcodes of London. We believe that everyone has the right to be housed in decent accommodation that provides for their basic needs.

Nick Lee Properties Ltd. Provides positive solutions for people aspiring to own their own home but cannot obtain a mortgage. Owning your own home is a dream everybody has and being able to help people realise that dream is important to us.

National Overview

Greater London has shown a negative variance in comparison to the same time last year. This shows that rents in the capital are slowing to a halt and may cap off around the £1500 mark

The price of property coming to the market in North London is now 4.06% higher than a year ago: - In the last 5 years we have seen a 48.99% increase in house prices in Greater London - The average house price in the UK is £216,750. In Greater London that figure is £484,716

The average asking price in London is up by nearly 12.3%. Mortgage Market Review can help temper the wider market, though London needs major housing supply boost to prevent excessive rises with ten out of 32 boroughs having annual rises of over 20%

Migration Watch UK shows us that the year up until June 2016 saw a record 335,000 migrants coming to live in the UK, with work stated as the main reason for coming. This is even with the impending Brexit vote

Average Rents in greater London are more than double that of the rest of the UK

UK not including Greater London

Greater London

Average variance in average rental values

3.1% 1.6%

Average Rents (£/pcm)

£689 £1521

Household rent to income ratio

27.7% 30.0%

Sales Volume (Volume as a % of homes sold year on year)

-27.2% -46.0%



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What this means

The price of property coming to market in North London is up by 4.06% from last year at the same

time. Although not the greatest increase, it does prove that regardless of the economic or political

state of London, Property prices continue to increase. The market momentum and upwards price

pressure continue, and have been accelerated by Brexit and changes in legislation regarding

landlords and properties.

Demand for housing remains strong with sales agreed on right move up by 5.2% in November

compared to the same period last year in spite of the backdrop of Brexit uncertainty. However, the

supply of new properties to market is still unable to keep pace with demand, and whilst earlier

months last year saw an encouraging increase in the number of new sellers, this month has seen the

number of properties coming to market fall by 2.1% compared to November, as the Christmas

holidays affect seller activity.

With Brexit, the UK has seen a record number of migrants (335,000) last year. It seems the

uncertainty of this event has not dimmed the imagination of migrants looking for opportunities in

the UK. More migration will result in the need for more housing.

Where a major imbalance exists between supply and demand, as in London, the long-term solution

has to be to create more housing supply to meet any structural need rather than to artificially hold

down demand. London has seen the most sought-after locations jump in price as they have become

prized by the worlds wealthy, and now level out as supply has increased in this relatively small

volume sector. This increase in housing supply is much harder to achieve in the volumes required for

the mass London market, where the success of the capital city both as a place to live and a magnet

for employment is now resulting in mainstream areas within easy access of the centre seeing

massive price increases. Ten out of 32 boroughs have annual rises of over 20%. The 43.1%

(+£186,809) annual increase in new seller asking prices in Tower Hamlets is the largest in London

and exemplifies the wider problem. Albeit, the increase in demand results in a rich rental market for

London where Nick Lee Properties Ltd. will fit in perfectly.



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Local Area Overview

Our local area of investment is North London, specifically around N4, N15 and N22 which, through

our thorough research have found the most opportunity can be found in terms of room rentals. We

are focusing on this area for this year. Whilst the focus will be in this area of London, opportunities

elsewhere in the country will not be ruled out. In all cases the necessary research will be carried out

prior to any investment being made.

Although knowing and acknowledging the UK wide statistics on the housing market is important for

generalised trends, it is even more vital to know what is happening within our local market, as can

be seen from the following information.

Nick Lee Properties Ltd. monitors and researches National and local trends on a monthly basis to

keep up to date with the Property Market

Additionally, because of the current financial situation there remains a healthy demand for smaller

terraced and semi-detached houses, thus leading to an increase in rents for these property types.

N4 Avg. price 2016 £612,440 Avg. price 2015 £623,580 Last 3 Month change

0.86% up

Ave. Rents per room 2016

£155 per week



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Future Plans for the Local Area

Uniquely positioned between world-leading firms like Google at King’s Cross, Europe’s largest tech

cluster in Cambridge and global gateway Stansted it is easy to see why Haringey (North London) is

such an attractive location for people to live. The Borough boasts a multitude of transport links

including the Overground, Victoria and Piccadilly Lines, buses and National rail services. It takes 11

minutes to get into central London, and has direct trains to Stansted Airport or Liverpool Street from

Tottenham Hale.

The population grew by 8.6% between 1991 and 2006 and was projected to grow by a further 5.4%

by 2016 to 233,125. The male to female ratio is 50:50 and the age structure is similar to that of

London as a whole, although younger than the national average. Haringey has a high proportion of

young adults in the 20-39 age range and a low proportion of residents aged 45 and over. The

borough has a high proportion of lone parent households.

With a proud history of being London’s home of manufacturing, Tottenham is already seeing a new

generation of makers take advantage of our borough’s boom to set up shop. Among the highlights of

Tottenham’s burgeoning maker economy are:

Redemption Brewery and Beavertown Brewery – producing some of the UK’s finest award-winning craft beer to London and beyond

Wildes Cheese – the capital’s only artisan cheese maker, and officially voted London’s favourite cheese

Kashket & Partners – official manufacturer of coats and uniforms to Her Majesty the Queen, military outfits and even Royal wedding uniforms

Haringey is a centre of culture in North London. One can peruse the market stalls on Tottenham

Green, or marvel at the view from Alexander Palace. It is possible to find food from many countries

of the world including South America, the Caribbean and Africa.

The borough of Haringey boasts the fastest rate of economic growth outside of Zone 1 and will see

an incredible increase in jobs of 23% by 2036 which is more than double that of Zone 1.

Tottenham is the next chapter of London’s regeneration story. It’s one of the first of the Mayor’s flagship housing zones and is already seeing the benefit of more than £1billion of public and private investment to transform the area. Their aim is to deliver at least 10,000 new homes and 5,000 new jobs by 2025.

And that’s not all. Across Haringey, huge infrastructure improvements such as proposals for a number of new Crossrail 2 stations which would unlock more regeneration opportunities across the borough. Work is also underway for a new Investment Framework for Wood Green laying the foundations for a potential 4500 new homes and a thriving town centre.



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Strategy

We go direct to landlord to finalize agreements to manage the whole property (ideally 3+ bed rooms, 1 or 2 receptions) guaranteeing Market Value Rent. Nick Lee Properties Ltd. will convert the reception room into one or two bedrooms and rent each room in the property on an individual basis.

No fees are charged to the landlords or tenants

Investment purchases will be made so that a return is guaranteed. This will be achieved by buying below market value so that as soon as the property is purchased equity will have been created.

Bridging (Short term loans from ‘Bridging’ Companies) or Angel Finance (Private Investor finance) will be used to buy BMV properties.

Lead Generation

Managed properties and BMV properties are sourced in various ways.

Nick Lee Properties Ltd. is currently active in North London and searches daily via internet property sites for any new marketed properties (No speculation)

Nick Lee Properties Ltd. Advertises through social media, which is currently carried out once every fortnight

Nick Lee Properties Ltd. is in contact with North London Letting and Estate Agents and relationships have been established so that we get notified as soon as properties come onto the market that fit our criteria

Word of mouth, Nick Lee Properties Ltd. has a landlord database and various contacts in North London

Mail drops/Leafletting may be utilised if necessary



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Management & Refurbishments

Nick Lee Properties Ltd. already has a maintenance company in place to deal with all properties, including refurbishments and repairs

Nick Lee Properties Ltd. Has a team in place that is highly experienced in managing properties and vetting new tenants

Confirmed tenant occupation within maximum 28days

Boards outside properties will also be used

A database of all enquiries or potential leads is always kept for future use.

SWOT analysis

Strengths Weaknesses Opportunities Threats

High demand for rentals in target area

Pitfalls of a new business

Possible team up with local businesses to house their

staff

Uncertainty of Brexit

Huge market in London

Investment

Capital for each new project

Corporate lettings

New laws and legislations

negatively impacting landlords

NLA Accreditation

Micro

Management (at the start)

Serviced accommodation and other Streams of

Property Income

Knowledgeable and experienced team

Dedicated Maintenance team

We realise that there will be risk in achieving our objectives and we have addressed these below:

Interest rates are expected to increase at some point in the future. How soon this will happen is subject to much debate and largely related to what happens with inflation and the state of the economy after Brexit.

Only properties that generate a minimum of £400 or more cash flow after all expenses (BTL)

and £700 HMO will be invested in. This monthly £400 (BTL) and £700 (HMO) is a large

enough amount that it can act as a cushion for when rates are increased.



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One of the expenses allowed for are agency fees. New legislation sees agents forbidden charging fees to tenants. These costs could in turn be charged to the landlords themselves causing rents to rise. Whilst the intention is to have all properties managed by an agent, when interest rates and/or fees increase, there is scope for the properties to be self-managed thereby making a saving that can be put towards new deals.

When rates go up there may be an increase in properties to the rental market but this will be partly countered by the increase in tenants: people who are unable to buy at the moment or those that may have just been repossessed.

House prices could fall further. Whilst we believe prices have stabilised, particularly in our area of investment the possibility of further decreases cannot be ruled out. Properties will only be bought that are well below market value so that as soon as a purchase has been made at least 25% equity is owned from the word go. This provides a buffer for any decreases in value so that no properties end up with negative equity.

New legislation may come into effect in 2017… mandatory HMO licensing for properties with 5 or more people regardless of the number of floors is one example. An added £500 has been allocated as ‘Other Costs’(see table below) that should take any extra costs into consideration.

Investment Options and Your Return The Options Choices of investment offers are available to suit different styles of investment. 1. Invest £30,000 for 1 year and receive a 12% return

2. Invest on a project by project basis and receive 10% pa pro rata return Cost per Project (property management) Initial costs for each project are as follows: (using higher rate market value rent for 3 bed, 2 reception house in N15 - £1850 pcm)

COSTS Amount £

One month’s rent advance 1850

6 weeks’ deposit 2562 Furnishings (£500 per room) 2500

Refurbishment 1000 Other Costs 500

TOTAL 8412

Investment returns will be at the end of the agreed term (either 6months to one year) paid in full.



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PERSONAL DETAILS: NAME: Nicholas Lee DATE OF BIRTH: 26/11/1984 NATIONALITY: British HOME ADDRESS: Flat 16, 8 – 9 Spring Place, Kentish Town NW5 3ER TELEPHONE NUMBER: 07809294472 EDUCATION:

September 2016 National Landlords Association Accreditation Completed my accreditation for the Landlords Scheme. The NLA is the largest association of private-residential landlords in the UK. They work towards a fair balance between Landlord, Tenants and Agents 2000 – 2002 Campion College (Jamaica) 3 A-Levels B-C’s 1995 – 2000 Campion College (Jamaica) 8 GCSEs A-B’s WORK:

October 2016 – Current Sourcing Agent at Nick Lee Properties Ltd.

Recruitment Consultant • Itsu • March 2014 – October 2016

I was at the fore front of recruitment within the company, utilizing various recruitment tools to find

team members to hunting for suitable individuals to fill management roles.

New Shop Openings Trainer • Itsu • June 2013 – March 2014

Flexibility was essential as we travelled to many areas in the UK ensuring the smooth opening of new

shops (eg Brighton, Stansted). Training the new starters was also a responsibility of the NSO trainers

and that involved using many coaching and training techniques to build competent teams



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Team Leader • Itsu • January 2013– June 2013

Team Leaders had the responsibility of maintaining standards in the shops beyond government

standards (Food Hygiene and Health and Safety, HACCP, COSHH etc) Also involved in stock taking,

training, and waste control

Team member • Itsu • June 2012– January 2013

Assisted in the kitchen and customer service areas of the shops, including food preparation, stock

rotation, cash handling, risk assessments

Supervisor • Morrisons • June 2004– April 2012

Started as a customer service assistant. I worked on various departments including Produce and

Fresh Food Pre-Packed (as it was called) where I became a supervisor. Duties included making rotas,

training, stock rotation, waste control.

PROPERTY EDUCATION:

Elite Legacy Training UK: Advanced Property Course 11/12/2015 - 13/12/2015 “Momentum” Property Training course Course Content:

How to set goals and objectives that link to your personal set of circumstances, your financial freedom figure and your broader aspirations.

How to finance the purchases – learn what the trainers and mentors do and have done. A Mortgage broker illustrated the products and options available to you depending on your strategy and investment profile. A solicitor explained the legalities and tax implications to consider when setting up, building and protecting your business.

A system and the correct sequence of activities using interactive exercises that allowed the creation of a business plan appropriate to your personal investment profile, the strategy that you want to implement and the area you want to invest in. Walked away with the information needed to create a 6-month plan to get from Momentum to Mentorship or to simply kick start an investment career.

How to build your property power team and you will learn the importance of networking and negotiation in your development as a professional property investor.

The importance of mentoring and using the support structure provided by people within the Elite Legacy family that have already built successful property portfolios.



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11/03/2016 - 13/03/2016 “Creative Finance” Property Training Course Course Content:

Finding your Area

The ‘Key’ to financing

Financing houses

Back to Back deals

Portfolio Finance

Vendor Finance

Commercial Finance

Bridging Finance

Angel Finance

Government loans and grants

Seller finance

06/05/2016 - 08/05/2016 “Lease Options” Property Training Course Course Content:

How to create a Lease-Option Money Machine that pays you quick cash and a steady monthly income.

How to create contracts that allow you to purchase property for little or no money down and virtually risk free.

How to spot the opportunity of what makes the perfect Lease Option and how to market and negotiate a win-win offer on a potential Lease Option deal.

A specialist Solicitor will walk you through how to set up legalities and contracts for Lease Options. This will cover what occurs in the event of:

o Death o Bankruptcy o MIA of all parties o How to successfully deal with the lenders to assume control in the correct way o A due diligence process to ensure you are protected at all time

Solid proven strategies to create huge monthly cash flow to allow you financial freedom. Techniques to help first time buyers enter the property ladder. Techniques to help individuals avert repossession, provide solutions for those that may

otherwise struggle.

13/05/2016 - 15/05/2016 “Buy To Let” Property Training Course Course Content:

How to find good BTL deals

How to manage the tax implications

How to find and check that you have a good quality tenant



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How to set up and manage a tenancy

The safety legislation required to remain legally compliant

The eviction process and how to serve notice on a tenant

How to effectively manage maintenance

How to minimise voids

Hedging property for the future

Resources and support for Landlord March 2016 - current

“T60” Property Mentorship Mentor: Lindsay Hopkins

Mind-set and Positive Thinking

Financial Evaluation

Strategy planning

Goal setting

Calculations and deal analysis

Negotiated deals and put in offers

Marketing and advertising strategies

CONTINUING PROFESSIONAL DEVELOPMENT:

Regularly attend the following: UK Property Network Meeting (Victoria) every 4th Monday of the month Premier Property Meet (Kings Cross) every 2nd Thursday of the month

Currently enjoying Property Mentorship with Candace Francis and Lindsay Hopkins

Real Estate

Nick Lee Properties Ltd. private finance document