OUR MODEL
BUY
The BRR model is a technique within the property investing strategy of buy-to-let. Heward Properties aims to buy 2/3 bedroom properties within North Lincolnshire and East Yorkshire. Our ideal property is one that, once renovated to a high standard, will help to meet the huge demand of the rental market. We strive to buy properties below market value, properties that could do with some modernisation. Properties are purchased using bridging finance and private investment.
REFURBISH
The next stage is all about adding value. Typically properties will have a full refurbishment, often including a rewire, plumbing, a new kitchen, a new bathroom and full decoration throughout. If the layout can be reconfigured to add an additional bedroom or make for a more modern living style, this is a great way of bumping up the 'done up value' of the property for the final stage of our model.
REFINANCE
The final stage is to put a buy to let mortgage on the property. The essence of the BRR model is that a good chunk of the initial investment can be released at this stage. In basic terms, if for example a property should be worth £100k in a great condition, and is on the market for £85k due to it needing modernisation, we would aim to buy this property for around £70k. Imagining the refurbishment would cost £10k, we can then put a 75% mortgage on the property and pull out all but £5k of our initial investment. This repays our investors whilst securing another property for our portfolio.