|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Purpose of the loan
As a professional landlord and investor, Micky Singh has identified a project which lends itself to a great opportunity for providing high-quality and affordable shared housing in the format of a 10-Bedroom high-end HMO.
Micky has extensive experience in property purchasing, below-market value deals, rental prospects, refurbishment and refinance. With a large and diverse self-made personal portfolio, this is an opportunity to work together on our first venture and hopefully open doors with an aspiring investor/developer that will undoubtedly present bigger and better projects in due course.
The opportunity here is currently a detached commercial property and the intention is to convert from office use to residential use in order to provide an asset that provides great financial uplift and a long-term investment vehicle. Should the 10-bedroom HMO proposal be deemed unsuitable (with consideration to planning permission), then a number of alternative exit routes are available including a family dwelling, multiple apartment dwellings or even refurbished commercial premises/offices. This, therefore, provides reassurance as a change of use is not deemed essential in order for the deal to financially stack.
Micky is seeking a working relationship with MaxCrowdFund as a bridging facility for a more personal and rewarding experience (as an alternative to bridging lenders/more popular crowd funders) to raise the purchase and refurbish costs for this project. The estimated time for completion is expected to be 12-18 months, after which the exit will be to refinance the property via a commercial buy-to-let mortgage.
Interest per annum
Loan To Value (LTV)
Total Loan Cover (TLC)
|Purchase Fees and Charges||€10,000.00|
Payment of the loan takes place in phases that correspond to the execution of the work: phase I (€ 250,000) and phase II (€ 100,000). Phase I will be made available to the solicitor to establish the first mortgage right and is intended for the purchase of the property. Once full planning permission is granted phase, phase II will be made available to the fundraiser's bank account for conversion to be carried out. Applicable fees are held back from phase II payment.
No additional terms apply to this loan.
A first rank mortgage of € 350,000 excluding execution costs will be established on behalf of investors to secure the loan. The market value with 90 days restriction period is valued at € 225,000 and € 315,000 without this restriction. The market value if converted to 10 bedroom HMO is valued at € 665,000. The loan will be made available in two phases to minimize risk for investors. In addition the developer is offering a personal guarantee of € 125,000 qualified as material.
Avanti Housing has a C rating from Creditsafe, indicating a moderate risk. The identified risks are estimated as limited. The investor/developer owns a significant and diverse portfolio which has sufficient equity to repay the loan and refurbishment cost in the event of any issues with the project.
Below mortgage will be established on behalf of investors to secure this loan.
|TYPE OF PROPERTY||MORTGAGE RANK||AMOUNT||LC|
|TYPE OF SECURITY||QUALIFICATION||MODE||AMOUNT||SECURITY GRANTOR|
|Personal Guarantee||Material||Constant||€125,000.00||M.H.S. PANESAR & C. KAUR|
|Refurbishment timescales: There is a risk that the project duration could extend beyond 12-18 months.||Low||We are in a position to continue to service the loan should the refurbishment period extend beyond 12-18 months, therefore this doesn't present any significant concern.|
|Refurbishment cost: There is a risk that the project cost could extend beyond the expected budget of €125,000.||Low||We are in a position to fund any additional refurbishment budget should it extend beyond the initial projection of €125,000, therefore this doesn't present any significant concern.|
|Economic downturn could affect property market/values||Low||As this investment is based on a buy, refurbish and refinance model, any market downturn will not be of any significance as the venture is a long-term buy-to-rent opportunity.|
|The valuation reports shows that there may be asbestos present, which may result in additional time & costs to remove.||Low||The fundraiser has experience with asbestos removal as they have completed many industrial and commercial projects before. They are aware of the appropriate health and safety guidelines and will cover additional costs if applicable.|
63 Welford Road B90 3HU Shirley United Kingdom
Message from fundraiser
As an experienced and respected investor, developer and landlord, Micky Singh has over 20 years of experience in a diverse property portfolio including residential, commercial and industrial projects.
Micky has delivered several projects and is working closely with local councils to deliver affordable and much-needed accommodation to a rising number of tenants. He has the privilege of being a member of the National Landlords Associations and the Midland Landlord Accreditation Scheme. These accolades are a testimony to the professionalism and commitment of this individual.
Where Micky shines most is the fact that he is self-made and has therefore built a superb depth of knowledge and contacts in order to identify, refurbish and refinance properties to provide a long-term strategy.
Micky is keen to start a journey with MaxCrowdFund and to build a relationship to work collaboratively on further projects, particularly with buildings of great heritage, including victorian residential properties, hotels and commercial projects.
This initial 10-Bedroom HMO project is an exciting opportunity to work with a humble and successful individual that brings charisma, passion and skill to the world of property investing.