Please reach us at enquiries@hearnholdings.co.uk if you cannot find an answer to your question.
There is no minimum investment amount, we do not expect to fund the entire property with a single investor. We like to use multiple investors. The term of the loan would normally be 12 months, however we may have shorter investment terms if required.
We make our money when we purchase the property and we have a proven system of stress tested calculations we have to follow to ensure our investors are protected. We only purchase properties where we have multiple exit strategies, giving us at least 2 different ways to release the money from the property. We generally build in 20-25% margin in the properties as part of the stress tested formula, which will protect against any crash in the market. In the 2008 recession, house prices did not fall more than 10%, and this did not happen overnight. Our projects generally run for 6-12 months, and a considerable drop during these timeframes is highly unlikely. In this highly unlikely event, we know we have 20-25% margin included to allow for any drop in the property value. We might not make any money in this scenario, but our investors will be repaid with all the agreed interest. That's our personal guarantee.
We legally log your investment with a loan agreement, which is logged against the property by our solicitor.
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